Nghị định 68/2017/NĐ-CP quản lý phát triển cụm công nghiệp

DECREE

MANAGEMENT AND DEVELOPMENT OF INDUSTRIAL CLUSTERS

Pursuant to the Law on Government Organization dated June 19, 2015;

Pursuant to the Law on Investment dated November 26, 2014;

Pursuant to the Law on Public Investment dated June 18, 2014;

Pursuant to the Law on Enterprises dated November 26, 2014;

Pursuant to the Law on Construction dated June 18, 2014;

Pursuant to the Law on Land dated November 29, 2013;

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At the request of the Minister of Industry and Trade;

The Government herby promulgates a Decree on the management and development of industrial clusters.

Chapter I

GENERAL PROVISIONS

Article 1. Scope and regulated entities

1. This Decree provides for planning for, and establishment and expansion of industrial clusters; investment in technical infrastructure and business and production facilities in industrial clusters; incentives and assistance for development of industrial clusters and state management of industrial clusters.

2. This Decree applies to:

a) Enterprises, cooperatives and units investing in construction of technical infrastructure of industrial clusters (hereinafter referred to as “industrial cluster infrastructure”).

b) Organizations and individuals carrying out production and business (hereinafter referred to as “businesses”) in industrial clusters;

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Article 2. Definitions

For the purposes of this Decree, the terms below are construed as follows:

1. “industrial cluster” means a place in which 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 not less than 75 ha and not exceeding 10 ha. An industrial cluster in a mountainous district or a craft village industrial has an area not less than 75 ha and not exceeding 5 ha.

2. “draft village industrial cluster” means an industrial cluster that serves the relocation of and expansion of production and business by small and medium-sized enterprises, cooperatives, cooperative associations, production establishments of households and individuals in the craft village for the purposes of remedying environmental pollution and developing local crafts and craft villages.

3. “investor in industrial cluster infrastructure” means an enterprise, cooperative or unit that is established and operate in accordance with Vietnam’s law, and constructs, manages and operates a system of technical infrastructural constructions of an industrial cluster.

4. “district-level industrial cluster development center” means a revenue-generating economic public service provider affiliated to a district-level People's Committee and established in accordance with the Regulation on industrial cluster management promulgated together with the Prime Minister’s Decision No. 105/2009/QD-TTg dated August 19, 2009.

5. “district-level industrial cluster management board” means a unit affiliated to a district-level People's Committee and established by the district-level People's Committee to authorize the board to act as an investor in industrial cluster infrastructure within the district.

6. “system of shared technical infrastructural constructions of an industrial cluster” includes the system of internal traffic works, sidewalks, trees, water supply and drainage, wastewater and solid waste treatment, electric power supply, public lighting or internal communications system, administrative and security offices, and other works serving activities of the industrial cluster.

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8. “industrial land area” means land area of an industrial cluster that may be leased out or subleased to an enterprise to conduct its production and business activities and is specified in the detailed planning approved by the competent authority.

9. “area for development of the system of shared technical infrastructural constructions of an industrial cluster” means an industrial cluster’s area of land that is reserved for the development of the system of shared technical infrastructural constructions and specified in the detailed planning approved by the competent authority.

10. “occupancy rate of an industrial cluster” means the ratio of the industrial land area leased out or subleased to an organization or individual to conduct its/his/her production and business activities over the total industrial land area of the industrial cluster.

11. “industrial cluster development planning” means a system of objectives, orientations, solutions and policies on development of industrial clusters within a province in each period, which is intended for appropriately running and developing a network of industrial clusters by economically and effectively using local resources and natural resources.

Article 3. Fields, business lines and business and production establishments encouraged to make their investment and relocate to industrial clusters

1. Fields, business lines and business and production establishments encouraged to make their investment in and relocate to industrial clusters include:

a) Business and production establishments which cause pollution or are likely to cause pollution in craft villages, populated areas and urban areas and other production establishments which need to relocated to an industrial cluster;

b) Production of products and spare parts, and assembly and repair of machinery and equipment for agricultural and rural production;

c) Production of supporting industrial products on the list of prioritized supporting industrial products promulgated by the Government;

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dd) Business lines and products which are the local and regional strengths and other business lines in conformity with the planning for development of local industry and cottage industry;

e) Agricultural, forestry and fishery processing industry.

2. Businesses involved in the fields and business lines mentioned in Clause 1 of this Article are given priority upon considering providing investment incentives and assistance.

Article 4. Database of industrial clusters

The database of industrial clusters includes information about the planning, establishment, investment in technical infrastructure and operations of industrial clusters in provinces and nationwide.

Chapter II

PLANNING FOR AND ESTABLISHMENT OF INDUSTRIAL CLUSTERS

Section 1. INDUSTRIAL CLUSTER DEVELOPMENT PLANNING

Article 5. Industrial cluster development planning

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a) Socio-economic development planning; industrial and cottage industry development planning; Land use planning; Construction planning and Planning for other relevant local industries, products and fields;

b) Demand for premises to attract and relocate businesses in industrial clusters;

c) Ability to mobilize capital investment  sources of enterprises, the State and other legal capital sources for constructing technical infrastructural constructions of local industrial clusters.

2. Contents of an industrial cluster development planning:

a) Legal bases and the necessity of formulating the planning;

b) Assessment and anticipation of the demand for development of industries and cottage industries and cottage industrial business and factors impacting industrial cluster development; premises demand of organizations and individuals investing in industrial clusters;

c) Assessment of status and schedule for implementation of the planning and investment in technical infrastructure construction, investment attraction, occupancy rate, operating efficiency of each industrial cluster; achievements, shortcomings and reasons;

d) Orientations for distribution and development of industrial clusters, facts for formulation of planning for each industrial cluster (including: name, location, area, current land status according to the principle of restricting use of land reserved for growing rice, business lines, schedule for investment in technical infrastructure, ability to connect technical infrastructure outside industrial clusters; demand for leasing out and subleasing land of industrial clusters and favorable and complicating factors);

dd) Assessment of current status and management of environment in industrial clusters locally established; forecasting of environmental impacts of and measures to remedy environment in industrial clusters for which the planning is formulated;

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3. Costs of formulating the industrial cluster development planning shall be covered by the local government budget and comply with applicable regulations.

4. The planning for development of industrial clusters in a province shall be formulated for each 10-year period together with its prospect of a subsequent 10-year period, and announced within 30 days after the date on which the planning approval decision is issued.

Article 6. Formulation and approval of industrial cluster development planning

1. Sequence of formulating and approving industrial cluster development planning shall comply with regulations of law on comprehensive planning for socio-economic development.

2. The Department of Industry and Trade shall take charge and cooperate with relevant departments and district-level People’s Committees concerned in organizing formulation and appraisal of the local industrial cluster development planning for submission thereof to the provincial People’s Committee, which will submit it to the Ministry of Industry and Trade for approval as prescribed in Clauses 3 and 4 of this Article.

3. An application for approval of the planning includes:

a) An application form for approval of the planning, which is submitted by the provincial People's Committee;

b) A report on the planning;

c) A report on planning appraisal;

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dd) Other documents (if any).

03 sets of application are submitted to the Ministry of Industry and Trade.

4. Within 30 working days from the date on which a sufficient application is received, the Ministry of Industry and Trade shall finish appraising it and grant written approval of the planning.

In the event the application or any content of the planning fails to satisfy the requirements or needs clarification, the Ministry of Industry and Trade shall send a written request for modification of application or content of the planning or a written request for opinions of relevant ministries. The time for modifying the application or the planning or seeking opinions of relevant ministries shall not be included in the time for appraising or approving the planning.

5. Based on the written approval of the planning granted by the Ministry of Industry and Trade, the provincial People’ Committee shall provide guidance on modification of the application and/or contents of the planning and approve the industrial cluster development planning. 01 copy of the decision on approval of the planning shall be submitted to the Ministry of Industry and Trade.

Article 7. Conditions for making adjustments or additions of the industrial cluster development planning

1. Conditions for adding an industrial cluster to the planning:

a) The industrial cluster shall conform to the socio-economic development planning; industrial and cottage-industrial development planning; provincial and district-level land use plans and planning; construction planning and planning for other relevant industries and products within the district or province;

b) There is an industrial land fund large sufficient for establishing a new industrial cluster;

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d) An investor in construction of infrastructure of the industrial cluster shall be clearly determined.

2. Conditions for excluding an industrial cluster from the planning:

The industrial cluster that meets one of the following conditions may be excluded from the planning:

a) The industrial cluster is no longer conformable with the socio-economic development planning; industrial and cottage-industrial development planning; land use plan and planning; construction planning, urban planning and planning for other relevant industries and products within the district or province;

b) There is a need to give the industrial cluster with ineffective investment in technical infrastructure a new purpose which is to develop another field or industry in line with the local socio-economic development planning, urban planning or construction planning approved by the competent authority.

Article 8. Applications for adjustment or addition to industrial cluster development planning

1. An application for adjustment or addition to the planning includes:

a) An application form for adjustment or addition to the industrial cluster planning, which is submitted by the district-level People’s Committee;

b) A report on adjustment or addition to the planning;

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2. Main contents of the report on adjustment or addition to the planning:

a) A report on addition to the planning shall contain legal bases, necessity and explanation for satisfying the conditions for making addition to the planning; expected demand for production premises for attracting investment in or relocation to the industrial cluster; plan to make addition to the planning (including name, location, area, current use of land, business lines, schedule for infrastructure investment, ability to connect outside infrastructure, legal status and capacity of the investor, capital sources, capital raising solution, plan on investment in construction of technical infrastructure investment, proposed environmental impacts and measures to remedy environment and manage the industrial cluster after being added to the planning);

b) A report on adjustment to the planning shall contain the necessity and explanation for satisfying the conditions for making adjustment to the planning; assessment of current status and effectiveness of investment in technical infrastructure construction and industrial cluster repurposing plan.

Article 9. Sequence of making adjustment or addition to industrial cluster development planning

1. The district-level People’s Committee shall prepare an application form and submit it to the provincial People’s Committee enclosing 08 sets of application for adjustment or addition to the planning (including 02 original sets), and to the Department of Industry and Trade, which will take charge and cooperate with relevant departments in carrying out appraisal. The appraisal shall focus on the legitimacy and validity of applications, and contents and feasibility of the report on adjustment or addition to the planning.

2. Within 15 working days from the receipt of a sufficient application, the Department of Industry and Trade shall finish appraising it and submit it to the provincial People’s Committee thereof. Within 05 working days from the date on which the appraisal report submitted by the Department of Ministry of Industry and Trade is received, the provincial People’s Committee shall send a written request enclosed with 01 set of application and relevant documents to the Ministry of Industry and Trade for its approval.

3. Within 15 working days from the date on which the abovementioned documents are received, the Ministry of Industry and Trade shall grant written approval for adjustment or addition to the planning.

4. Within 5 working days from the date on which the written approval is received, the provincial People’s Committee shall issue a decision on adjustment or addition to the planning; 01 copy of the decision shall be submitted to the Ministry of Industry and Trade.

Section 2. ESTABLISHMENT OR EXPANSION OF INDUSTRIAL CLUSTERS

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1. Conditions for establishing an industrial cluster:

a) The industrial cluster is included in the approved industrial cluster development planning;

b) There is an enterprise or cooperative that has a legal status, capacity and experience to invest in construction of technical infrastructure or a unit that is assigned to invest in construction of technical infrastructure;

c) In the event industrial clusters have been established within a district, the average occupancy rate of those industrial clusters must exceed 50% or the clusters’ total industrial land fund yet to be leased out must be less than 50 ha.

2. Conditions for expansion of an industrial cluster:

a) The industrial cluster must not exceed 75 ha and there is a land fund conforming to the land use planning and land use plan within the district;

b) There is an enterprise or cooperative that has a legal status, capacity and experience to invest in construction of technical infrastructure or a unit that is assigned to invest in construction of technical infrastructure;

c) The occupancy rate is at least 60% or the demand for leasing the industrial land in the industrial cluster exceeds the area of current land of the industrial cluster;

d) The industrial cluster has completed construction of and put common shared technical infrastructural constructions into normal operation in line with the approved detailed plan.

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1. An application for establishment or expansion of an industrial cluster includes:

a) An application form for establishment or expansion of an industrial cluster, which is submitted by the district-level People’s Committee;

b) The written request for acting as the investor in technical infrastructure construction project or written request for establishment or expansion of the  industrial cluster from the unit assigned to construct industrial cluster infrastructure enclosed with an report on investment in establishment or expansion of the  industrial cluster;

c) A copy of certificate of establishment or a document proving legal status;

d) A copy of one of the following documents: the investor's financial statements of the last two years; parent company's commitment to provide financial assistance; financial institution’s commitment to provide financial assistance; guarantee for investor’s financial capacity; explanation for investor’s financial capacity;

dd) Other documents.

2. Main contents of the report on investment in establishment or expansion of the industrial cluster:

a) Legal bases, necessity and assessment of conformity with and satisfaction of the conditions for establishment or expansion of the industrial cluster; impacts of industrial parks on the effectiveness of investment in and occupancy rate of the industrial cluster.

b) Current use of land, orientation for arranging business lines that prove connective and supportive to production; land use structure and expected attraction of investment in the industrial cluster; assessment of ability to connect technical infrastructure inside and outside the industrial cluster;

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d) Assessment of investor's capacity and legal status; expected total investment capital, structure and ability to balance and raise investment capital (including public investment capital if available) for execution of the project;

dd) Costs of maintenance and operation of the system of technical infrastructural constructions, other relevant costs; methods of managing and operating such system after being put into operation;

e) Assessment of current status of the environment, environmental management, ability to receive waste around the area where the industrial cluster is expected to be established or expanded; forecasting sources of waste and environmental impacts of business lines which it is expected to attract to make investment in the industrial cluster and an environmental management plan;

g) Preliminary analysis and assessment of socio-economic efficiency of the industrial cluster; solutions for organizing implementation.

Article 12. Sequence of establishing or expanding an industrial cluster

1. The enterprise or cooperative shall submit its written request for acting as the investor in technical infrastructure construction project or the unit assigned to construct industrial cluster infrastructure shall submit its written request for establishment or expansion of the industrial cluster enclosed with an report on investment in establishment or expansion of the industrial cluster to the district-level People’s Committee.

2. Within 5 working days, the district-level People’s Committee shall take charge and cooperate with the enterprise or cooperative or unit assigned to invest in technical infrastructure construction in preparing 08 sets of application for establishment or expansion of the industrial cluster (including at least 02 original sets), and submit them to the Department of Industry and Trade, which will take charge and cooperate with relevant departments in appraising the application.

3. Within 15 working days from the receipt of a sufficient application, the Department of Industry and Trade shall finish the appraisal and submit a report on establishment or expansion of the industrial cluster to the provincial People’s Committee.

In the event the application or contents of the report on establishment or expansion of the industrial cluster fails to satisfy the requirements, the Department of Ministry and Trade shall request the district-level People’s Committee in writing to complete the application. The time for completing the application shall not be included in the time for appraisal.

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In case where the establishment or expansion of the industrial cluster results in a change of the area which is 5 ha more than the area mentioned in the approved planning, the provincial People's Committee shall reach a written agreement with the Ministry of Industry and Trade before approval.

Article 13. Contents of appraisal of establishment or expansion of an industrial cluster

1. The legitimacy and validity of the application for establishment and expansion of an industrial cluster.

2. Contents and feasibility of the report on investment in establishment or expansion of the industrial cluster:

a) Legal bases, necessity, conformity and satisfaction with the conditions for establishment or expansion of the industrial cluster;

b) Name, area, objectives, business lines and selection of an alternative for investment in technical infrastructure construction;

c) The investor’s capacity, legal status, total investment capital, structure, ability to balance and solutions to raise capital for the completion of technical infrastructure construction (if the public investment capital is available, the procedures set out in the law on public investment must be complied with);

d) Relevant costs and methods of managing and operating technical infrastructure after being put into operation;

dd) Solutions for attracting investment and relocation, and socio-economic and environmental efficiency of the industrial cluster.

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1. Name, area, location and main business lines.

2. Investor in construction of technical infrastructure.

3. Scale of investment in technical infrastructure construction, total investment capital and structure of investment capital sources.

4. Schedule for execution of the technical infrastructure construction project.

5. Investment incentives and assistance (if any) and conditions for application thereof.

6. Effective date of the decision on establishment or expansion of the industrial cluster.

Chapter III

INVESTMENT IN CONSTRUCTION OF INDUSTRIAL CLUSTER INFRASTRUCTURE

Article 15. Investors in construction of industrial cluster infrastructure

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2. For disadvantaged or extremely disadvantaged areas and areas that are incapable of attracting any enterprise to invest in and commercially operate industrial cluster infrastructure, the provincial People's Committee shall, at the request of the district-level People's Committee and the Department of Industry and Trade, assign one of the following units to act as an investor in construction of industrial cluster infrastructure:

a) The district-level industrial cluster development center established under the Regulation on the management of industrial clusters promulgated together with the Prime Minister’s Decision No. 105/2009/QD-TTg dated August 19, 2009;

b) The district-level industrial cluster management board;

c) A public service provider affiliated to the Department of Industry and Trade.

3. Priority should be given to selection of an enterprise or cooperative to act as the investor in the construction of industrial cluster infrastructure. If multiple enterprises and cooperatives wish to act as the investor in the construction of technical infrastructure, based on each enterprise and cooperative’s financial capacity and experience and the feasibility of the report on investment in establishment or expansion of the industrial cluster, the Department of Industry and Trade shall request the provincial People’s Committee to decide to make a selection in accordance with regulations of law.

Article 16. Sequence of investment in construction of industrial cluster infrastructure

1. Prepare and approve the report on investment in establishment or expansion of the industrial cluster.

2. Formulate and approve the detailed planning for industrial cluster construction.

3. Set up and approve the industrial cluster infrastructure construction project.

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Article 17. Detailed planning for industrial cluster construction

1. The district-level People’s Committee shall direct agencies and units to organize formulation and approval of the detailed planning for industrial cluster construction within the district before attracting or relocating enterprises and production establishments to the industrial cluster. The contents of the detailed planning must conform to the report on investment in establishment or expansion of the industrial cluster, include technical infrastructural constructions serving environmental protection in conformity with business lines that will operate in the industrial cluster and regulations on treatment and discharge of wastewater into water in accordance with regulations of law.

2. The contents and sequence of formulating, appraising, approving and managing the detailed planning for industrial cluster construction shall comply with applicable regulations on construction. The construction detailed planning shall serve as the basis for formulating, appraising and approving the industrial cluster infrastructure construction project.

3. At the request of the district-level People’s Committee, the provincial People’s Committee shall provide guidance on planning and providing residential land in appropriate locations within the district to build residential houses for employees working in industrial clusters.

4. The funding for formulation of the detailed planning for industrial cluster construction is included in the annual local government budget; if an enterprise or cooperative acts as the investor in construction of industrial cluster infrastructure, the funding for formulation of the detailed construction planning is part of the capital ready for investment and included in the project’s total investment capital.

Article 18. Investment in construction of industrial cluster infrastructure

1. Management of a technical infrastructure construction project:

a) The system of shared technical infrastructure system of an industrial cluster shall be designed simultaneously and synchronously in an investment project to ensure thriftiness and land use efficiency, and facilitate construction, repair and operation of technical infrastructural constructions. The project shall conform to the contents of the report on investment in or expansion of the industrial cluster and the approved detailed planning. It is not required to follow procedures for obtaining a decision on investment guidelines.

The investor shall set up and execute the industrial cluster infrastructure construction project. The contents and sequence of setting up, appraising, approving and managing the project shall comply with regulations of law on investment and construction.

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c) The Department of Natural Resources and Environment shall take charge and cooperate with the Department of Industry and Trade and district-level People’s Committee in inspecting and supervising the investor’s compliance with the contents of the environmental impact assessment report; promptly discover and take actions against violations of the law on environmental protection.

2. The investor shall submit a report on investment in construction of industrial cluster infrastructure to the local statistics authority according to regulations of the Law on Statistics; and 01 copy of the report shall be sent to the Department of Industry and Trade. The report shall contain the schedule for making investment in infrastructure, capital disbursed, investment results of the project, results of attraction of investment to industrial clusters, payments made to the budget, results of receipt of the State incentives and assistance, labor, environmental protection and specialized norms by operating fields.

Article 19. Management of public services and utilities

1. Shared public services and utilities in an industrial cluster include security and order protection; communications systems; water supply and drainage; environmental hygiene, waste and wastewater treatment; fire prevention and fighting; maintenance and operation of technical infrastructural constructions and other utility services.

Prices for use of public services and utilities are determined under an agreement signed between service users and the investor in construction of industrial cluster infrastructure. In case of failure to reach an agreement, the investor in construction of industrial cluster infrastructure shall notify the district-level People’s Committee for resolution as prescribed in law.

2. The investor in construction of industrial cluster infrastructure shall organize provision and management of shared public services and utilities in the industrial cluster; shall make and approve the Regulation on management of public services and utilities according to the opinions of businesses in the industrial cluster, which must comply with regulations of law. Within 5 working days from the date on which the decision on approval of Regulation on management utilities and public services is made, the investor shall submit it to the Department of Industry and Trade and the district-level People's Committee for monitoring and management purposes.

3. The resolution of complaints and disputes arising from the management, provision and use of shared public services and utilities in an industrial cluster must comply with regulations of law.

Article 20. Rights of investors in construction of industrial cluster infrastructure

Every investor in construction of industrial cluster infrastructure has the right to:

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2. raise capital for construction of industrial cluster infrastructure in accordance with law.

3. invest in construction of factories, warehouses and offices for lease or sale to enterprises and trade in other public services and utilities in the industrial cluster in accordance with the law.

4. sublease or transfer the rights to use land on which shared technical infrastructure has been constructed; determine prices for subleasing or transferring such rights, prices for rental or sale of factories, warehouses and offices and prices for other public services and utilities. If the investor in construction of industrial cluster infrastructure is the district-level industrial cluster management board, the district-level industrial cluster development center or the public service provider affiliated to the Department of Industry and Trade, the Department of Industry and Trade shall request a competent authority to decide on the land sublease or transfer of land use rights, prices for such sublease or transfer, prices for rental or sale of factories, warehouses, and offices, and prices for other public services and utilities.

5. request a competent authority to revoke the investment guideline decision or the investment registration certificates or take actions against the investment projects which violate the law, have been terminated or have not been executed for a 12 month period.

6. receive incentives and assistance prescribed in this Decree and relevant law.

Article 21. Obligations of investors in construction of industrial cluster infrastructure

Every investor in construction of industrial cluster infrastructure has the obligation to:

1. execute its industrial cluster infrastructure construction project in accordance with the approved detailed planning and ensure the construction is carried out on schedule, otherwise the investor in construction of technical infrastructure must apply for extension and obtain approval by the competent authority in accordance with regulations of law on investment.

2. maintain the system of shared technical infrastructure systems of the industrial cluster throughout its operation duration; provide public services and utilities (if any) serving production and business in the industrial cluster.

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4. fulfill obligations according to regulations of laws on land, finance, accounting, auditing, statistics, insurance, labor, construction standards, occupational safety, industrial sanitation and environmental protection.

5. assist and enable organizations and individuals to follow the procedures to start their production and business in the industrial clusters.

6. submit annual reports to the Department of Industry and Trade and make publicly available information on area of land yet to be leased out or subleased in the industrial cluster on the websites of enterprises and local governments.

7. fulfill other obligations prescribed by law.

Chapter IV

INVESTMENT IN PRODUCTION AND BUSINESS INVESTMENT IN INDUSTRIAL CLUSTERS

Article 22. Receipt of investment projects in industrial clusters

Organizations and individuals wishing to invest in, and production establishments wishing to relocate to an industrial cluster shall contact the investor in construction of technical infrastructure for instructions on planning, on arrangement of business lines, on land rents and prices for factories, warehouses and offices, on prices for use of public services and utilities and on procedures for executing investment projects in the industrial cluster, and shall sign an in-principle agreement on the locations and area of industrial land for lease.

Article 23. Land lease and issuance of construction permits in industrial clusters

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2. Construction works in an industrial cluster for which the detailed planning with a scale of 1/500 has been approved and for which the design has been appraised are exempt from construction permits. In this case, the organizations and individuals shall send written notice of the date of commencing building of construction works enclosed with the construction design dossier to the district-level People’s Committees for monitoring and archiving purposes.

Article 24. Rights of businesses in industrial clusters

Every business in an industrial cluster has the right to:

1. use land and have land use term extended in accordance with the Law on Land; sublease a piece of land, a factory, warehouse, office and property on such land in accordance with law.

2. use and pay fees for technical infrastructural constructions, public services and other services as prescribed.

3. advance or contribute capital to construct and commercially operate technical infrastructure by agreement with the investor in infrastructure construction.

4. receive assistance in recruiting and training employees to meet production and business requirements.

5. receive instructions and assistance in following procedures for investment in production and business in the industrial cluster.

6. receive incentives and assistance prescribed in this Decree and law.

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Every business in an industrial cluster has the obligation to:

1. use land and execute investment projects, and carry out business and production activities under economic contracts signed with the investor in construction of technical infrastructure and the decision on approval of investment guidelines or the investment registration certificate (if any); if any term or time limit is exceeded, inform the investor and the competent authority for extension.

2. fulfill obligations according to regulations of the laws on business registration, investment, finance, accounting, auditing, statistics, insurance, occupational safety and health, environmental protection, fire and explosion prevention and fighting, order and security, payment of fees for use of infrastructure and other public services and utilities as agreed.

3. participate in attracting employees and creating local jobs, give priority to employees who are policy beneficiaries and households whose land has been appropriated for construction of the industrial cluster.

4. fulfill other obligations prescribed by law.

Article 26. Management of production and business activities

1. Production and business activities in an industrial cluster shall comply with applicable regulations of law. Businesses must prepare and implement an environmental protection plan or environmental impact assessment report as prescribed by law.

2. Specialized inspection of businesses shall be conducted in accordance with the plan approved by the competent authority and once a year unless any violation against the law is suspected. The inspecting authority shall regularly cooperate with the Department of Industry and Trade, the district-level People’s Committees and investor in construction of technical infrastructure in preventing and taking actions against violations of law committed in the industrial cluster. 

3. Organizations and individuals making investment in an industrial cluster shall submit a report on their production and business to a local statistics authority as prescribed by the Law on Statistics. Quarterly and annually, the local statistics authority shall submit consolidated reports on production and business to the district-level People’s Committee and the Department of Industry and trade for management.

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INCENTIVES AND ASSISTANCE FOR DEVELOPMENT OF INDUSTRIAL CLUSTERS

Section 1. INCENTIVES AND ASSISTANCE PROVIDED TO INDUSTRIAL CLUSTERS

Article 27. Investment incentives for production and business projects in industrial clusters

Production and business projects in an industrial cluster shall be exempted from land rents for 7 years and entitled to other incentives as prescribed by law. In case a project is eligible for multiple incentives, the incentive that is most beneficial shall apply.

Article 28. Investment policies for projects on investment in commercial operation of industrial cluster infrastructure

1. Projects on investment in commercial operation of industrial cluster infrastructure shall be exempted from land rents for 11 years and may be eligible for state investment loans of up to 70% of the total investment capital and other incentives prescribed by law. In case a project is eligible for multiple incentives, the incentive that is most beneficial shall apply.

2. The investment in construction of industrial cluster infrastructure may be made in the form of public-private partnership.

Article 29. Assistance in investment in construction of industrial cluster infrastructure

1. Scope, eligible entities, contents and level of investment assistance from the central government budget for construction of technical infrastructure of industrial clusters in service of relocation of enterprises and production establishments that cause or are likely to cause environmental pollution in craft villages, populated areas or urban areas, and industrial clusters in disadvantaged or extremely disadvantaged areas or areas incapable of attracting enterprises to invest in technical infrastructure shall comply with the target program for investment in industrial cluster infrastructure approved in each period.

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Article 30. Assistance in development of industrial clusters

1. The central government budget shall cover funding for development of industrial clusters by the Ministry of Industry and Trade, including:

a) Investigation, establishment and operation of database; organization of conferences and seminars and cooperation in investment promotion; communications, printing and publishing documents; provision of professional training in laws and policies on industrial clusters;

b) Review, assessment and formulation of management policies and models, and experience in development of domestic and foreign industrial clusters.

2. The local government budgets shall cover funding for development of industrial clusters by local authorities, including:

a) The activities prescribed in Clause 1 of this Article;

b) Investment promotion activities; investigation and survey into organizations and individuals wishing to relocate to and invest in industrial clusters; formulation and approval of plans on establishment or expansion of industrial clusters; formulation of detailed planning for industrial cluster construction; assistance in completion of administrative procedures related to industrial clusters;

c) Provision of financial assistance in setting up investment projects for enterprises and production establishments that cause or are likely to cause environmental pollution in craft villages or populated areas, and then encouraged to relocate to an industrial cluster.

3. Funding for development of industrial clusters is professional funding; is managed and used in accordance with the Law on State Budget and guiding documents.

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Article 31. Conditions for receipt of incentives and assistance by craft village industrial clusters

1. The clusters are included in the planning, established and operate in accordance with regulations of law on industrial cluster management.

2. The number of enterprises, cooperatives, cooperative association, production establishments of households and individuals must take up over 60% of the number of enterprises and production facilities which have already relocated to or registered for relocation to a craft village industrial cluster.

3. By the time of considering providing incentives and assistance, the registered occupancy rate is over 80%, including over 60% of enterprises, cooperatives, cooperative associations, production establishments of households and individuals in the craft village as confirmed by the district-level People's Committee.

Article 32. Incentives and assistance for craft village industrial clusters

1. Investment incentives:

a) Projects on investment in production and business in a craft village industrial cluster shall be exempted from land rents for 11 years and may be eligible for state investment loans of up to 70% of the total investment capital;

b) Projects on investment in commercial operation of industrial cluster infrastructure shall be exempted from land rents for 15 years and may be eligible for state investment loans of up to 70% of the total investment capital.

2. Investment assistance:

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b) The central and local government budget shall consider giving priority to providing assistance in investment in construction of technical infrastructure of a craft village industrial cluster.

3. In addition to receiving the incentives and assistance defined in Clause 1 and Clause 2 of this Article, projects on investment in commercial operation of industrial cluster infrastructure and projects on investment in production and business in a craft village industrial cluster are entitled to the incentives and assistance mentioned in Articles 27 to 30 of this Decree and relevant laws. In case a project is eligible for multiple incentives or levels of assistance, the incentive or assistance that is most beneficial shall apply.

Chapter VI

STATE MANAGEMENT OF INDUSTRIAL CLUSTTERS

Article 33. Contents of state management of industrial clusters

1. Promulgating and organizing implementation of planning, plans, programs, law, policies and technical standards on management and development of industrial clusters.

2. Issuing, adjusting and revoking permits and certificates related to investment in and commercial operation of industrial clusters; establishing and operating database, assisting performance of administrative procedures, public services and utilities of industrial clusters.

3. Organizing apparatus for and providing professional training in management and development of industrial clusters.

4. Inspecting and assessing investment effectiveness, settling complaints and denunciations, providing rewards, taking actions against violations and addressing issues concerning industrial clusters.

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1. The Government shall unify state management of industrial clusters nationwide; delegate responsibilities and powers to each ministry, provincial People’s Committee, and relevant agencies; promulgate policies and legislative documents on industrial clusters.

2. The Prime Minister shall approve the target program for investment in industrial cluster infrastructure in each period funded by the central government budget; provide instructions on handling of violations and issues that are beyond the power of ministries and provincial People's Committees.

3. In addition to the powers and responsibilities mentioned in Articles 35 through 42 of this Decree, ministries and provincial People’s Committees shall perform state management of business lines and manage industrial clusters by regions; inspect and impose penalties for administrative violations within their power; instruct or authorize Departments of Industry and Trade and district-level People's Committees to perform state management tasks within their power as prescribed in this Decree and relevant law.

Article 35. Powers and responsibilities of the Ministry of Industry and Trade

The Ministry of Industry and Trade acts as an agency in charge of state management of industrial clusters nationwide and has the following powers and responsibilities:

1. Formulate, promulgate or request competent agencies to promulgate programs, plans, policies, laws and certificates related to industrial clusters; reach an agreement on planning, give opinions about proposals for public-private partnership investment in industrial clusters.

2. Provide professional training in management and development of industrial clusters.

3. Annually make a plan and cost estimate for development of industrial clusters funded by the central government budget, and submit them to a competent authority for approval, and implement them after obtaining approval.

4. Preside over formulation and submission of the target program for investment in industrial cluster infrastructure for the post-2020 period funded by the local government budget to the Prime Minister for approval, and organize implementation thereof; formulate annual and 5-year plans on the central government budget providing funding for investment in construction of industrial cluster infrastructure, submit it to the Ministry of Planning and Investment, which will submit a consolidated report to the Prime Minister for decision.

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6. Promulgate forms of regulation on management and reporting of industrial clusters; establish and operate a database of industrial clusters nationwide.

Article 36. Powers and responsibilities of the Ministry of Planning and Investment

1. At the request of the Ministry of Industry and Trade, consolidate annual and 5-year plans on the central government budget providing funding for investment in the construction of industrial cluster infrastructure.

2. Take charge and cooperate with the Ministry of Industry and Trade in providing instructions on managing execution of projects on public-private partnership investment in industrial cluster infrastructure construction projects.

3. Consolidate and add industrial clusters (excluding industrial clusters in advantaged areas which are urban districts of special grade or grade-I urban areas affiliated to the central government) to the List of areas eligible for investment incentives, and investment in the construction of industrial cluster infrastructure and to the List of business lines eligible for special investment incentives as prescribed by the law on investment and provide guidelines for implementation.

Article 37. Powers and responsibilities of the Ministry of Finance

1. Balance the local government budget for development of industrial clusters.

2. Consolidate, supplement, and provide guidance on corporate income tax incentives for projects on investment in commercial operation of technical infrastructure and projects on investment in production and business in industrial clusters as prescribed by law.

Article 38. Powers and responsibilities of the Ministry of Construction

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Article 39. Powers and responsibilities of the Ministry of Natural Resources and Environment

1. Supervise and instruct ministries and local governments to protect the environment in industrial clusters.

2. Review, consolidate and publish the list of industrial clusters causing serious environmental pollution nationwide.

Article 40. Powers and responsibilities of the Ministry of Home Affairs

Cooperate with the Ministry of Industry and Trade in providing guidance on organizational structure and operation of industrial cluster development centers, district-level industrial cluster management board and public service providers affiliated to Departments of Industry and Trade, which are assigned to invest in construction of industrial cluster infrastructure.

Article 41. Powers and responsibilities of the Ministry of Public Security

Perform and provide guidance on the state management of security and order assurance and fire prevention and fighting in industrial clusters as prescribed.

Article 42. Powers and responsibilities of provincial People’s Committees

1. Approve planning, establishment and expansion of industrial clusters, policies and plans on development of industrial clusters, proposals for public-private partnership investment in industrial clusters after consulting the Ministry of Industry and Trade; submit the industrial cluster infrastructure investment assistance program funded by the local government budget to provincial People's Councils for approval.

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3. Direct departments and units within their provinces to provide guidance and assistance for enterprises, cooperatives and production establishments to execute projects on investment  in construction of technical infrastructure and production and business in industrial clusters; provide assistance in land clearance, compensation, relocation, building of systems of transport, electricity supply, water supply and drainage, post and telecommunications and workers' housing.

4. Provide instructions on inspection and imposition of penalties for violations against law in industrial clusters; on inspection and supervision of industrial clusters causing serious environmental pollution within their provinces.

5. Submit periodic or ad hoc reports on status of local industrial clusters to the Ministry of Industry and Trade; perform other tasks and exercise other powers related to industrial clusters as prescribed by law.

Article 43. Powers and responsibilities of Departments of Industry and Trade

The Department of Industry and Trade acts as an agency in charge of state management of industrial clusters nationwide and has the following powers and responsibilities:

1. Formulate, submit and organize implementation of planning, regulations, policies and programs for assistance in investment in technical infrastructure, and an estimate of costs of developing local industrial clusters after obtaining approval by a competent authority.

2. Take charge of receiving and handling or cooperate in or request a competent authority to make investment guideline decisions, issue investment registration certificates to projects on construction of technical infrastructure, and production and business in industrial clusters, procedures for investing in construction of industrial cluster infrastructure (including land appropriation, land lease, approval of detailed planning, approval of projects funded by public investment capital, approval of environmental impact assessment reports, approval of fire prevention and fighting plans) under the regulations of and as authorized by provincial People's Committees.

3. Take charge of inspecting and evaluating implementation of planning, policies, laws and operating efficiency of industrial clusters; take actions against violations and handle issues about industrial clusters or request provincial People’s Committees to do so.

4. Submit periodic or ad hoc reports on status of industrial clusters within provinces to Ministry of Industry and Trade and provincial People's Committees; register the demand for use of land of industrial clusters in each period with the competent authority; establish and operate a database of local industrial clusters.

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1. Propose the planning, establishment or expansion of industrial clusters within districts; enable industrial cluster development centers or of district-level industrial cluster management boards to operate effectively.

2. Instruct communal People’s Committees and its affiliated specialized agencies to assist in land appropriation, land lease, compensation land clearance, relocation, workers’ housing and procedures for investing in industrial clusters.

3. Take charge of receiving and handling or cooperate with or request a competent authority to handle procedures for executing investment projects in industrial clusters (including land appropriation, land lease, approval of detailed planning, approval of projects funded by public investment capital, approval of environmental impact assessment reports, approval of fire prevention and fighting plans) under the regulations of and as authorized by provincial People's Committees.

4. Invest or request a competent authority to make a decision on investment in technical infrastructure inside and outside industrial clusters; approve and implement plans on relocation of enterprises and production establishments, and development of local industrial clusters.

5. Inspect and evaluate the compliance with law and policies on industrial clusters within their power; submit periodic or ad hoc reports on status of local industrial clusters to provincial People’s Committees and Departments of Industry and Trade.

Chapter VII

IMPLEMENTATION CLAUSE

Article 45. Rewarding, and imposition of penalties for violations

1. Any organization or individual having an achievement in investment in construction of technical infrastructure, and production and business in industrial clusters shall be rewarded as prescribed by law.

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Article 46. Grandfather clauses

1. Any industrial cluster with an area of less than 10 ha or industrial cluster in a mountainous district or a craft village industrial cluster with an area of less than 5 ha that has been already established or expanded or whose establishment or expansion are being appraised according to the Prime Minister’s Decision No. 105/2009/QD-TTg dated August 19, 2009 shall operate and be managed as prescribed by this Decree.

2. The Joint Circular No. 31/2012/TTLT-BCT-BKHDT dated October 10, 2012 of the Ministry of Industry and Trade and the Ministry of Planning and Investment and the Circular No. 17/2016/TT-BCT dated August 30, 2016 of the Ministry of Industry and Trade shall continue to apply to industrial clusters established before the effective date of the Regulation on management of industrial clusters enclosed with the Prime Minister’s Decision No. 105/2009/QD-TTg dated August 19, 2009.

Article 47. Effect

1. This Decree comes into force from July 15, 2017.

2. This Decree annuls the Prime Minister’s Decision No. 105/2009/QD-TTg dated August 19, 2009.

Article 48. Responsibility for implementation

1. The Ministry of Industry and Trade shall take charge and cooperate with relevant ministries and local governments in providing guidance on the implementation of this Decree.

2. Ministries, Heads of ministerial agencies, Heads of Governmental agencies, Chairpersons of People’s Committees of provinces and central-affiliated cities, relevant organizations and individuals are responsible for the implementation of this Decree./.

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ON BEHALF OF THE GOVERNMENT
THE PRIME MINISTER




Nguyen Xuan Phuc