Panama's export zones present growth avenue for Vietnamese enterprises

Panama operates 27 export processing zones across its territory, with 20 fully operational and seven in development stages. The zones collectively host 201 companies conducting 282 distinct business activities, positioning Panama as a regional hub for manufacturing and trade operations.

Logistics, services, and the processing of finished or semi-finished products dominate activities within the zones, accounting for nearly half of all business operations. This composition reflects Panama's geographic advantage as a transit point between Asia and the Americas, and its established infrastructure for international commerce.

Vietnam and Panama have moved to strengthen bilateral economic ties, with officials from both nations identifying export processing zones as a key area for expanded cooperation. The development comes as Vietnamese enterprises seek to diversify their international presence and establish manufacturing and distribution bases outside traditional markets.

The zones' operational framework provides foreign investors with tariff incentives, customs benefits, and streamlined regulatory procedures designed to attract multinational companies and regional traders. Vietnamese firms in sectors including textiles, electronics, and light manufacturing have identified Central American markets as growth opportunities.

Photo: Aerial view of the Colón Free Trade Zone, Panama, April 2014. Administración de la Zona Libre de Colón via Wikimedia Commons (CC0).