Panama Free Trade Zones offer expansion opportunities for Vietnamese firms

Panama's free trade zones, including the Colon Free Zone, are emerging as strategic gateways for Vietnamese businesses to access Latin American and North American markets. The Colon Free Zone, the second largest in the world, serves as a massive logistics and transshipment hub located near the Atlantic entrance of the Panama Canal. It facilitates the movement of goods such as electronics, apparel, and pharmaceuticals from Asia, Europe, and the US to the Caribbean and Latin America.

During a recent conference in Panama City organized by the Vietnamese Trade Office in Mexico, officials highlighted the legal and tax incentives available within these zones. Panama's free trade zones operate under a specific legal framework designed to attract foreign investment and job creation. Currently, there are 27 zones in development or operation, with nearly half of the activities focused on logistics, services, and processing.

Panamanian President José Raúl Mulino has emphasized the country's competitive advantages in logistics and its role as a gateway to the Americas, positioning Panama as a complementary partner to Vietnam's role as a bridge to Asia.