Glossary FTZ (Free Trade Zone)

A Free Trade Zone(FTZ) is a designated area that ensures free manufacturing, logistics, distribution, and trade activities by offering special benefits and support regarding relevant laws. Manufacturing companies, with foreign investment of more than $5 million, are exempt from taxes such as corporate income tax for a certain period of time, and are also provided with benefits such as reduced land use fees. FTZs are typically designated and managed as part of the development of hinterland near airports.