Industrial cluster development plan in Vietnam according to Decree 32/2024/ND-CP

Regarding this matter, LawNet would like to answer as follows:

1. What is industrial cluster under the law in Vietnam?

According to the provisions of Clause 1, Article 2 of Decree 68/2017/ND-CP, industrial cluster means a place in which industrial production activities are carried out and services are provided for industrial and cottage-industrial production, with defined geographical boundaries and without any inhabitant living in the cluster, and which is constructed to attract and relocate small and medium-sized enterprises, cooperatives and cooperative associations to conduct production and business activities. An industrial cluster has an area exceeding 10 ha but not exceeding 75 ha. An industrial cluster in a mountainous district or a craft village industrial has an area exceeding 05 ha but not exceeding 75 ha.

Industrial cluster development plan means the rational arrangement or allocation of space for industrial clusters, which must be associated with policies and solutions for synchronous management and investment in construction of technical infrastructure of a province or central-affiliated city (hereinafter referred to as “province”) from time to time on the basis of environmental protection, economical and efficient use of land and other local human and natural resources. The industrial cluster development plan is an integral part of, formulated and integrated with, the provincial planning in accordance with regulations of law on planning.

2. Grounds for formulating industrial cluster development plan in Vietnam

According to Clause 1, Article 4 of Decree 32/2024/ND-CP, an industrial cluster development plan is formulated on the following grounds:

- Vietnam's industrial development strategy, and provincial strategy for development of priority industries and sectors;

- Socio - economic development orientations, regional planning, and provincial technical and specialized planning;

- The demand for ground area, conditions concerning geography, traffic and human resources for attracting and relocating organizations and individuals to provincial industrial clusters for their investment in production and business;

- The ability to mobilize sources of investment capital from enterprises and the State, and other lawful capital sources to invest in construction of industrial cluster infrastructure of provincial industrial clusters;

- Requirements for environmental protection, economical and efficient use of land and other local human and natural resources.

3. Industrial cluster development plan in Vietnam according to Decree 32/2024/ND-CP

According to Article 4 of Decree 32/2024/ND-CP, an industrial cluster development plan shall include, inter alia, the following contents:

- Legal grounds and necessity for formulation of an industrial cluster development plan;

- The assessment of current status of investment in technical infrastructure; investment attraction, occupancy rate and production and business situations; fire prevention and fighting and prevention and rescue in industrial clusters; socio-economic efficiency of each planned industrial cluster; management of industrial clusters in the province; achievements, shortcomings and causes thereof;

- Forecasted factors that may impact the development of industrial clusters in each planning period; estimated demand for ground space of organizations and individuals making investment in industrial clusters, area of land available to develop industrial clusters in the district and province; estimated demand for labor in industrial clusters during the planning period;

- Viewpoints, objectives and orientations for development of industrial clusters in the province during the planning period;

- List of industrial clusters expected to be developed in the province during the planning period, including: names, locations (down to commune; maintaining an environmental safety distance from neighboring populated areas, national historical sites/monuments, rivers, lakes; only placing industrial clusters next to each other when there is a connection in terms of industries, environmental remediation, energy, etc. between industrial clusters), area, industries. Detailed description of each industrial cluster, clearly stating: land use status (on the principle that the use of land planned for rice cultivation and land in wildlife sanctuaries, historical - cultural sites/monuments, scenic landscape, etc. is restricted); industries (with orientations towards industries that can be linked or of the same value chain of products and services given priority for production of the locality or its vicinity); explanation for grounds for removing and adding industrial clusters from/to the List of industrial clusters in the locality; estimated total investment for construction of industrial cluster infrastructure;

- Displaying status of and planning for industrial clusters expected to be developed on the provincial planning maps;

- Solutions for developing industrial clusters in the province during the planning period (including mobilizing sources of capital for investment in infrastructure; mechanisms and policies to support the development of industrial clusters; environmental protection; management and implementation thereof).

Best regards!