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THE GOVERNMENT
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THE SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
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No. 32/2024/ND-CP
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Hanoi, March 15, 2024
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DECREE
MANAGEMENT AND DEVELOPMENT OF INDUSTRIAL CLUSTERS
Pursuant to the Law on
Government Organization dated June 19, 2015; Law dated November 22, 2019 on
Amendments to some Articles of the Law on Government Organization and Law on
Local Government Organization;
Pursuant to the Law on
Planning dated November 24, 2017; Law on amendments to some Articles concerning
planning of 37 laws dated November 20, 2018;
Pursuant to the Law on
Investment dated June 17, 2020;
Pursuant to the Law on
Public Investment dated June 13, 2019;
Pursuant to the Law on
Land dated November 29, 2013;
Pursuant to the Law on
Construction dated June 18, 2014; Law on amendments to some Articles of the Law
on Construction dated June 17, 2020;
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The Government hereby
promulgates a Decree on management and development of industrial clusters.
Chapter
I
GENERAL
Article
1. Scope and Regulated entities
1. This Decree provides
for the industrial cluster development plan, establishment and expansion of industrial
clusters; investment in construction of technical infrastructure, business and
production facilities in industrial clusters; incentives for and policies to
provide assistance in development of industrial clusters, and state management
of industrial clusters.
2. This Decree applies
to:
a) Enterprises,
cooperatives, 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;
c) Other agencies,
organizations and individuals related to management and operation of industrial
clusters.
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For the purposes of this
Decree, the terms below are construed as follows:
1. “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 cluster has an area
exceeding 05 ha but not exceeding 75 ha.
2. “craft village
industrial cluster” means an industrial cluster 60% of industrial land of which
is intended for 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
practicing traditional craft.
3. “investor in
construction of industrial cluster infrastructure” (hereinafter referred to as
“technical infrastructure investor”) means an enterprise, cooperative or
organization that is established and operates in accordance with Vietnam’s law,
and invests in and commercially operates technical infrastructure of an
industrial cluster.
4. “system of shared
technical infrastructural constructions of an industrial cluster” includes the
system of internal traffic works, sidewalks, trees, constructions for water
supply and drainage, wastewater and solid waste treatment, electric power
supply, public lighting or internal communications, and other constructions
serving activities of the industrial cluster.
5. “project on investment
in construction of industrial cluster infrastructure” (hereinafter referred to
as “industrial cluster infrastructure construction project”) means an
investment project that uses land to synchronously build technical
infrastructure of an industrial cluster; the land in which is leased out or
subleased to investors for execution of production and business investment
projects, operating and managing industrial cluster infrastructure in
accordance with regulations of law.
6. “industrial land area”
means land area of an industrial cluster that is leased out or subleased to an
organization or individual for their industrial production or provision of
services for industrial production and is determined in the detailed
construction planning approved by the competent authority.
7. “occupancy rate of an
industrial cluster” means the ratio of the industrial land area which is leased
or subleased to an organization or individual, or for which investment
guidelines are approved, or to which investment registration certificate is
issued for production and business to the total area of industrial land of the
industrial cluster.
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9. “Decision on
industrial cluster establishment or Decision on industrial cluster expansion”
means a document issued by a competent authority recording legal information
about an industrial cluster as the basis for making investment in construction
of industrial cluster infrastructure and applying State’s policies and
regulations to the industrial cluster.
10. “industrial cluster
database” includes information about the plan for development, establishment or
expansion of industrial clusters, investment in construction of technical
infrastructure and activities of industrial clusters in provinces and
nationwide.
Article
3. Business lines and business and production establishments encouraged to make
their investment in and relocate to industrial clusters
1. Industries and
business and production establishments encouraged to make their investment
in and relocate to industrial clusters consist of:
a) Processing and manufacturing industries supporting agriculture;
mechanical industry (such as: automobiles, agricultural machines, construction
equipment, industrial equipment, electrical equipment, medical equipment,
etc.); supporting industry; textile and apparel and footwear industry;
b) Information technology
and communications, electronics industry; smart energy; digital technology,
automation, high-end equipment, new materials, biotechnology;
c) Local industries and
cottage industries to be preserved and developed; warehousing services,
packaging, transport of goods, repair and maintenance of machinery, industrial
equipment and other services directly serving local industrial and
cottage-industrial production with a total area not exceeding 10% of the
industrial cluster area;
d) Other industries
employing high, clean and energy-efficient technologies resulting in high value
and sustainable development;
dd) Industrial and
cottage-industrial production establishments which cause pollution or are
likely to cause pollution in craft villages and populated areas are encouraged
relocated to industrial clusters.
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Chapter
II
INDUSTRIAL
CLUSTER DEVELOPMENT, ESTABLISHMENT AND EXPANSION PLANS
Section
1. INDUSTRIAL CLUSTER DEVELOPMENT PLAN
Article
4. Industrial cluster development plan
1. An industrial cluster
development plan is formulated on the following grounds:
a) Vietnam's industrial
development strategy, and provincial strategy for development of priority
industries and sectors;
b) Socio - economic
development orientations, regional planning, and provincial technical and
specialized planning;
c) c) 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;
d) 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;
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2. An industrial cluster
development plan shall include, inter alia, the following contents:
a) Legal grounds and
necessity for formulation of an industrial cluster development plan;
b) 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;
c) 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;
d) Viewpoints, objectives
and orientations for development of industrial clusters in the province during
the planning period;
dd) 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;
e) Displaying status of
and planning for industrial clusters expected to be developed on the provincial
planning maps;
g) 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).
3. Funding and phasing of
an industrial cluster development plan shall adhere to regulations on
provincial planning.
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1. Each provincial
Department of Industry and Trade shall preside over and cooperate with relevant
provincial departments, agencies, district-level People’s Committees, and
relevant units in formulating and completing the provincial industrial cluster
development plan in accordance with the provisions of Article 4 hereof, and
then submitting a report on the plan to the provincial People’s Committee.
2. The provincial
People’s Committee shall direct the provincial planning agency to process and
integrate the industrial cluster development plan into the provincial planning,
and get opinions about such provincial planning (which includes the industrial
cluster development plan) in accordance with regulations of law on planning for
completing and submitting it to competent authorities for approval.
3. The decision on
approval for the provincial planning must include contents of the industrial
cluster development plan and the enclosed list of industrial clusters during
the planning period, including names, locations and area of industrial clusters
and relevant contents (if any).
Article
6. Adjustment of industrial cluster development plan
1. Grounds for adjustment
of an industrial cluster development plan:
a) There are adjustments
to Vietnam's industrial development strategy, local strategy for development of
priority industries and sectors; regional planning, provincial planning, and
other local technical and specialized planning;
b) There are changes in
the land area used for development of industrial clusters to meet demands for
lease of land to serve production and business activities of organizations and
individuals and match the efficiency of investment in infrastructure and
ability to lease spaces of industrial clusters of the district;
c) There is possibility
of attracting enterprises and cooperatives to the industrial clusters expected
to be added for their investment in construction of technical infrastructure
and organizations and individuals for their production and business; there is a
feasible industrial cluster relocation plan if an industrial cluster is removed
from the planning.
2. The adjustment of an
industrial cluster development plan shall mainly cover:
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b) The assessment of
progress and efficiency 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; achievements,
shortcomings and causes thereof;
c) Estimated demands for
production premises for investment attraction, relocation to the industrial
cluster, current use of land, industries, ability to attract investors,
estimated total investment in industrial clusters expected to be adjusted under
or added to the planning; assessment of current status and efficiency of
investment in industrial clusters to be removed from the planning, grounds for
proposing and feasibility of the industrial cluster relocation plan;
d) Proposed List of
industrial clusters during the planning period in the province (after the adjustment),
including: names, locations (down to commune; maintaining an environmental
safety distance from neighboring populated areas, national historical
sites/monuments, rivers, lakes, etc.; only placing industrial clusters next to
each other when there is a connection between industrial clusters), area,
industries.
dd) Implementation solutions.
Article
7. Formulation and integration of adjusted industrial cluster development plan
into adjusted provincial planning
1. Each provincial Department
of Industry and Trade shall preside over and cooperate with relevant provincial
departments, agencies, district-level People’s Committees, and relevant units
in formulating and completing the report on adjustment of provincial industrial
cluster development plan in accordance with the provisions of Article 6 hereof,
and then submitting it to the provincial People’s Committee.
2. The provincial
People’s Committee shall direct the provincial planning agency to process and
integrate the adjusted industrial cluster development plan into the adjusted
provincial planning, and get opinions about such adjusted provincial planning
(which includes the adjusted industrial cluster development plan) in
accordance with regulations of law on planning for completing and submitting it
to competent authorities for approval.
3. The decision on
approval for the adjusted provincial planning must include contents of the
adjusted industrial cluster development plan and the enclosed list of
industrial clusters during the planning period, including names, locations and
area of industrial clusters and relevant contents (if any).
Section
2. ESTABLISHMENT AND EXPANSION OF INDUSTRIAL CLUSTERS
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1. The following
conditions must be met when establishing an industrial cluster:
a) The industrial cluster
is on the List of industrial clusters in a province approved by a competent
authority; available land is suitable for the land use planning in a district;
b) An enterprise,
cooperative or organization that has a legal status and capacity for investment
in construction of technical infrastructure applies for approval as a technical
infrastructure investor;
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 area of industrial land yet to be leased out must not exceed 100 ha.
2. The following
conditions must be met when expanding an industrial cluster:
a) Total area of the
industrial cluster after expansion must not exceed 75 ha; available land is
suitable for the land use planning in a district;
b) An enterprise,
cooperative or organization that has a legal status and capacity for investment
in construction of technical infrastructure applies for approval as a technical
infrastructure investor;
c) The occupancy rate is
at least 60% or the demand for leasing industrial land in the industrial
cluster exceeds the area of current industrial land of the industrial cluster;
d) Essential shared
technical infrastructural constructions have been completed and put into
service (including internal roads, constructions for water supply and
wastewater collection and treatment) in line with the approved detailed
planning.
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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 industrial cluster, which is submitted by the
district-level People’s Committee. If the industrial cluster is located in two
district-level administrative divisions or more, the provincial People's
Committee shall assign the People's Committee of one district to apply for establishment
or expansion of the industrial cluster;
b) The application form
submitted by the enterprise, cooperative or organization for approval as
technical infrastructure investor (including a commitment not to violate law
and commitment to bear all costs and risks if not approved) enclosed with a
report on investment in establishment or expansion of industrial cluster and a
map determining the location and boundaries of the industrial cluster;
c) A legitimate copy of
the document proving legal status of the enterprise, cooperative or
organization applying for approval as technical infrastructure investor;
d) A legitimate copy of
the documentation proving financial capacity of the enterprise, cooperative or
organization applying for approval as the technical infrastructure investor,
consisting one of the following documents: financial statement of the last 02
years; parent company's commitment to provide financial assistance; financial
institution’s commitment to provide financial assistance; guarantee for investor’s
financial capacity; other document proving financial capacity (if any);
dd) A legitimate copy of
the document proving experience of the enterprise, cooperative or organization
applying for approval as the technical infrastructure investor and other
relevant document (if any).
2. Main contents of the
report on investment in establishment or expansion of the industrial cluster:
a) Legal grounds,
necessity and assessment of conformity with and satisfaction of the conditions for
establishment or expansion of the industrial cluster; impacts of industrial
parks and industrial cluster in the locality on the investment efficiency and
occupancy rate of the industrial cluster;
b) Current use of land,
conditions for land expropriation, estimated demand for land, orientation for
arranging industries 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) Determination of legal
status, capacity and experience of the enterprise, cooperative or organization
applying for approval as technical infrastructure investor; expected total
investment, structure and ability to balance and mobilize sources of investment
capital for project execution;
dd) Costs of servicing,
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) Preliminary assessment
of environmental impacts in accordance with regulations of law on environmental
protection; estimated capacity for receiving and treating waste around the area
where the industrial cluster is expected to be established or expanded;
forecasted sources of waste and environmental impacts of industries in which
investment is expected to made in the industrial cluster and environmental
management plan; assessment of the suitability for the water source functions;
g) Proposed investment
incentives, special mechanisms and policies (if any); analysis and assessment
of socio-economic impacts and efficiency of the industrial cluster; solutions
for implementation thereof.
Article
10. Sequence of establishing or expanding an industrial cluster
1. Within 05 working days
from the date of receiving the first document of the enterprise, cooperative or
organization applying for approval as technical infrastructure investor, the
district-level People’s Committee shall publicly announce its receipt of the
application for establishment or expansion of industrial cluster on local mass
media. The time limit for receiving applications is 15 days from the date of
announcement.
2. Within 05 working days
from the ending date of receiving the application establishment or expansion of
industrial cluster, the district-level People’s Committee shall preside over
and cooperate with the enterprise, cooperative or organization applying for
approval as the technical infrastructure investor to prepare 02 sets of
application for establishment or expansion of the industrial cluster as
prescribed in clause 1 Article 9 of this Decree enclosed with electronic files
thereof, and submit them to the provincial Department of Industry and Trade,
which will preside over and cooperate with relevant Departments and agencies to
carry out appraisal.
3. Within 25 days from
the date of receiving a sufficient application for establishment and expansion
of industrial cluster, the provincial Department of Industry and Trade shall complete
the appraisal and submit to the provincial People's Committee a consolidated
report on establishment or expansion of industrial cluster. If the report on
establishment or expansion of industrial cluster is unsatisfactory, the
provincial Department of Industry and Trade shall request the district-level
People’s Committee in writing to complete the application. The length of time
over which the application is completed shall not be included in the time limit
for appraisal.
The selection of an
enterprise, cooperative or organization as a technical infrastructure investor
shall comply with clause 2 Article 13 of this Decree. The provincial People’s
Committee shall decide the disclosure of results of investor selection to the
enterprise, cooperative or organization as technical infrastructure investor.
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In case name of the
industrial cluster or its location within a district-level administrative
division is changed or its area is 05 ha more than the area mentioned in the
approved planning and in conformity with the district-level land use planning
and other planning in the locality, the provincial People's Committee shall
consider making its decision under the decision on establishment or expansion
of the industrial cluster; at the same time update the change for reporting to
the Prime Minister in the next period of formulating and approving the
provincial planning.
Article
11. Contents of appraisal of application for 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 grounds,
necessity and conformity with provincial planning and other related planning;
b) Assessment of satisfaction
of conditions for establishment or expansion of industrial cluster; demand for
land, capacity for land lease or land repurposing;
c) Name, area,
objectives, industries and selection of an alternative for investment in
industrial cluster infrastructure construction;
d) Legal status and
capacity of the enterprise, cooperative or organization applying for approval
as technical infrastructure investor, total investment, structure and ability
to balance and solutions for mobilizing sources of investment capital for
completion of the industrial cluster infrastructure; feasibility of the plan
for environmental protection, fire prevention and fighting prevention and
rescue, and housing for workers in the industrial cluster;
dd) Relevant costs and methods
for management, operation and use of industrial cluster infrastructure after
being put into operation;
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g) Assessment of
investment incentives and conditions for enjoyment thereof (if any).
Article
12. Decision on establishment or expansion of industrial cluster
1. Main contents of a
Decision on establishment or expansion of industrial cluster:
a) Name, area, location
and main industries;
b) Technical
infrastructure investor;
c) Scale of investment in
technical infrastructure construction, expected total investment capital and
structure of investment capital sources;
d) Schedule for execution
of the industrial cluster infrastructure construction project;
dd) Investment incentives
and assistance and conditions for application thereof (if any);
e) Responsibility of the
technical infrastructure investor and relevant authorities for execution of the
industrial cluster infrastructure construction project;
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h) Other contents (if
any).
2. Adjustment or
annulment of Decision on establishment or expansion of industrial cluster:
a) Under its authority
and regulations of law, the provincial People's Committee shall decide to
adjust or annul the Decision on establishment or expansion of industrial
cluster in a manner as to suit local actual situation;
b) In the case of change
of the technical infrastructure investor, the investor assessment and selection
shall comply with clause 2 Article 13 of this Decree.
If the industrial cluster
has a technical infrastructural construction formed using the state budget, the
Provincial People's Committee shall assign the selected technical
infrastructure investor to manage, repair and operate it to serve activities of
the industrial cluster. Funding for construction of industrial cluster
infrastructure is covered by the state budget must be excluded when fixing the
rents for land rent and shared industrial cluster infrastructure; the costs of
management, repair and operation of technical infrastructural constructions
shall be included when fixing the rent for shared industrial cluster
infrastructure. If special legislation specifies this regulation, it shall be
complied with.
Chapter
III
INVESTMENT
IN CONSTRUCTION OF INDUSTRIAL CLUSTER INFRASTRUCTURE
Article
13. Technical infrastructure investors
1. The State provide
incentives and assistance to enterprises, cooperatives and organizations acting
as technical infrastructure investors.
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The provincial People's
Committee shall establish an Assessment Council for selecting a qualified
technical infrastructure investor (the assessment council is comprised of a
Chairperson who is a leader of the provincial People's Committee, a Deputy
Chairperson who is a leader of the provincial Department of Industry and Trade,
and other members who are representatives of relevant provincial departments
and agencies; a Secretary who is a representative of the specialized division
of the provincial Department of Industry and Trade and is not a Council’s
member) for marking on a scale of 100 points according to the following
criteria: the plan for investment in technical infrastructure construction
(maximum 15 points), the plan for environmental protection and management of
the industrial cluster (maximum 15 points), capacity and experience of the
enterprise or cooperative (maximum 30 points) and the financial plan for
construction of technical infrastructure (maximum 40 points). According to the actual
condition of the locality and relevant regulations of law, the Council shall
agree upon the working principles and methods, contents of each criterion and
appropriate corresponding maximum point.
An enterprise,
cooperative or organization given 50 points or higher shall be considered and
selected as the technical infrastructure investor by the provincial People’s
Committee according to the Decision on establishment or expansion of the
industrial cluster (if 02 or more enterprises, cooperatives or organizations
jointly apply for approval as technical infrastructure investor, the
enterprise, cooperate or organization with the highest mark shall be selected;
if there are at least two enterprises, cooperatives or organizations with the
same highest mark, the enterprise, cooperative, or organization shall be
selected according to the proposal of the Chairperson of the Assessment
Council).
Article
14. Sequence of investment in construction of industrial cluster infrastructure
The investment in
construction of industrial cluster infrastructure shall be made following the
basic sequence below:
1. Prepare and approve
the report on investment in establishment or expansion of the industrial
cluster, other investment procedures (if any).
2. Formulate and approve
the detailed planning for industrial cluster construction.
3. Set up and approve the
industrial cluster infrastructure construction project and procedures for
project investment preparation.
4. Organize construction
of technical infrastructural constructions, and manage and operate such
technical infrastructural constructions after their completion.
Article
15. Detailed planning for industrial cluster construction
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2. The formulation and
adjustment of the detailed planning for industrial cluster construction shall
comply with regulations on detailed planning for construction of functional
areas specified under the law on construction without having to determine planning
tasks. The approved construction detailed planning shall serve as the basis for
issuing construction permits and setting up construction investment projects.
3. Funding for
formulation of the detailed planning for industrial cluster construction shall
comply with regulations of law.
Article
16. Management of industrial cluster infrastructure construction projects
1. The system of shared
technical infrastructure system of an industrial cluster shall be designed
synchronously to save costs, ensure land and water use efficiency, and
facilitate the construction, repair and operation of technical infrastructural
constructions. The industrial cluster infrastructure construction project shall
conform to the Decision on establishment or expansion of industrial cluster and
detailed construction planning approved by the competent authority.
The technical
infrastructure investor shall set up and execute the industrial cluster
infrastructure construction project. Contents and sequence of setting up, appraising,
approving and managing the project shall comply with regulations of law on
investment and construction.
2. During the stages of
preparation and execution of the project, the technical infrastructure investor
shall adhere to procedures and regulations on land, construction and
environment, formulate plan to prevent and control pollution, deterioration and
depletion of water sources and fire prevention and fighting plan and comply
with other regulations applicable to the project as prescribed.
Article
17. Management of public services and utilities
1. Shared public services
and utilities in an industrial cluster include security and order protection
and maintenance; communications; water supply and drainage; environmental
hygiene, waste treatment; fire prevention and fighting; maintenance, servicing
and operation of technical infrastructural constructions and other services and
utilities. Fees for use of shared public services and utilities are determined
under an agreement signed between service users and the technical
infrastructure investor.
2. The technical
infrastructure investor 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 before receiving
organizations and individuals investing in production and business into the
industrial cluster in accordance with regulations of law and submit 01 copy
thereof to the provincial Department of Industry and Trade and the
district-level People's Committee within 05 working days from the date of
approval for monitoring and management purposes; if organizations or
individuals investing in production and business are present in the industrial
cluster, before approving the Regulation on management of public services and
utilities, their comments shall be collected.
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Article
18. Rights of technical infrastructure investors
Every technical
infrastructure investor has the right to:
1. encourage and receive
investment projects into the industrial cluster according to the detailed
planning and industries approved by the competent authority.
2. raise capital for
construction of industrial cluster infrastructure in accordance with law.
3. invest in construction
of factories, warehouses and offices for lease by enterprises or for sale and trading
in other public services and utilities in the industrial cluster in accordance
with the law.
4. Decide on the sublease
and rents for land on which shared technical infrastructure exists, rents or
selling prices for factories, warehouses and offices and prices for other
public services and utilities. For an industrial cluster in which the investor
is not an enterprise, cooperative or organization conducting investment and
business activities, the land lease shall comply with regulations of law on land;
fees for use of shared technical infrastructure and other public services and
utilities in the industrial cluster shall be decided by competent authorities.
5. request a competent
authority to revoke the investment guideline or the investment registration
certificate (if any) or take actions against the investment projects in the
industrial cluster which violate the law, have been terminated or have not been
executed or have been delayed according to regulations of law on investment.
6. receive incentives and
assistance as prescribed in this Decree and have common interests in accordance
with relevant regulations of law.
Article
19. Obligations of technical infrastructure investors
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1. establish a department
that manages and operates industrial cluster infrastructure construction
projects; organize execution of projects according to the approved detailed
planning, ensuring that they are executed on schedule; in case of violation of
the law, delay in execution or termination or failure to execute the project,
incur penalties as prescribed by law.
2. maintain, service and
operate the system of shared technical infrastructure systems of the industrial
cluster throughout its operation duration; provide public services and
utilities in the industrial cluster.
3. comply with
regulations of law on investment, land, construction, environmental protection,
protection of water resources, fire fighting and prevention and rescue,
finance, accounting, audit, statistics, insurance, labor, occupational safety,
industrial hygiene, security and order, social safety in the industrial
cluster.
4. assist and enable
organizations and individuals to follow the procedures for making their
investment in production and business in the industrial cluster.
5. Submit periodic
reports on activities of industrial cluster infrastructure construction
projects to the statistics authority in the locality according to regulations
of Law on Statistics, and to the provincial Department of Industry and Trade
and district-level People’s Committee for management purposes; 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.
6. comply with other
obligations and regulations of law.
Chapter
IV
INVESTMENT
IN PRODUCTION AND BUSINESS IN INDUSTRIAL CLUSTERS
Article
20. Receiving investment projects into industrial clusters
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Article
21. Land lease and issuance of construction permits in industrial clusters
1. Organizations and
individuals making investment in an industrial cluster shall follow the
procedures for leasing land on which shared technical infrastructure exists in
accordance with requirements for environmental protection imposed by the
technical infrastructure investor. For an industrial cluster in which the
investor is not an enterprise, cooperative or organization conducting
investment and business activities, the land lease shall comply with
regulations of law on land.
2. For non-linear construction
works in the industrial cluster, the issuance of construction permits shall
comply with regulations of law on construction.
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 regulations of 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 technical infrastructure investor.
4. receive assistance in
recruiting and training employees to meet production and business requirements.
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6. receive incentives and
assistance prescribed in this Decree and law and enjoy other rights in
accordance with relevant regulations of law.
Article
23. Obligations of businesses in industrial clusters
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 technical infrastructure investor,
Regulation on management of public services and utilities in the industrial
cluster and 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. comply with
regulations of law on investment, land, construction, environmental protection,
protection of water resources, fire fighting and prevention and rescue,
finance, accounting, audit, statistics, insurance, labor, occupational safety,
industrial hygiene, security and order, social safety regarding investment
projects in the industrial cluster; pay fees for use of infrastructure, public
services and other utilities as agreed.
3. actively participate
in attracting employees and creating jobs in the locality, give priority to
employees who are policy beneficiaries and households whose land has been
expropriated for construction of the industrial cluster.
4. submit periodic
reports on activities of investment projects in the industrial cluster to the
statistics authority in the locality according to regulations of Law on
Statistics, and to the district-level People’s Committee for management
purposes.
5. comply with other
obligations and regulations of law.
Article
24. Management of production and business activities
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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
provincial Department of Industry and Trade, the district-level People’s
Committees and technical infrastructure in preventing and taking actions
against violations of law committed in the industrial cluster.
3. Organizations and
individuals 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 provincial Department of Industry and Trade for management.
Chapter
V
INCENTIVES
FOR AND POLICIES TO PROVIDE ASSISTANCE IN DEVELOPMENT OF INDUSTRIAL CLUSTERS
Article
25. Investment incentives for industrial cluster infrastructure construction
projects and production and business investment projects in industrial clusters
1. An industrial cluster
which is a disadvantaged area; investment in construction of industrial cluster
infrastructure is a business line eligible for special investment incentives.
2. The application of
incentives to industrial cluster infrastructure construction projects and
production and business investment projects in an industrial cluster shall
comply with regulations of law on land, law on taxation, law on credit and
other relevant regulations of law. In case the law stipulates different
incentives, the incentive that is most beneficial shall apply.
Article
26. Assistance in investment in construction of industrial cluster infrastructure
1. The local government
budget (including extra funding from the central government) shall provide
financial assistance in investment and development of technical infrastructure
systems inside and outside industrial clusters in the locality (prioritize the
provision of assistance in investment in technical infrastructural
constructions serving environmental protection of industrial clusters that have
been put into operation; assistance in investment in essential shared technical
infrastructural constructions of industrial clusters in disadvantaged and
extremely disadvantaged areas, industrial clusters developing in the direction
of linking industries, specialization, assistance, ecology, preservation of
traditional craft) according to the provisions of the Law on Public Investment
and the Law on State Budget.
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2. The provincial
People’s Committee shall decide under its authority and regulations of law or request
the provincial People’s Council to decide the provision of assistance in
investment in construction of technical infrastructure in industrial clusters
within its province.
Article
27. 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 industrial cluster 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
industrial clusters in the country and foreign countries; formulation and
dissemination of policies and laws on management and development of industrial
clusters;
c) Studying and
establishing criteria for determining effective industrial cluster development
models which protect the environment (such as specialized industrial clusters,
supporting industrial clusters, ecological industrial clusters, etc.);
provision of guidance on and recognition of industrial cluster development
models; provision of rewards, conduct of final review, and preparation of
reports on industrial cluster development orientations.
2. The local government
budget shall cover funding for development of industrial clusters by local
governments, including:
a) The activities prescribed
in points a and b 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;
preparation and appraisal of applications for establishment or expansion of
industrial clusters; formulation of detailed planning for industrial cluster
construction; assistance in completion of administrative procedures related to
industrial clusters;
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3. Funding for
development of industrial clusters is the public service budget; is managed and
used in accordance with the Law on State Budget and its guiding documents.
Chapter
VI
STATE
MANAGEMENT OF INDUSTRIAL CLUSTERS
Article
28. Contents of state management of industrial clusters
1. Formulating and
organizing implementation of schemes, plans, programs, laws, policies,
standards and technical regulations on management and development of industrial
clusters.
2. Deciding, issuing,
adjusting and revoking permits and certificates related to investment in and
commercial operation of industrial clusters; establishing and operating
database, performance of state administrative procedures, public services and
utilities of industrial clusters.
3. Organizing apparatus
for and providing guidance on and professional training in management and
development of industrial clusters.
4. Inspecting and
assessing investment efficiency, settling complaints and denunciations,
providing rewards, handling recommendations, violations against the law and
other issues concerning industrial clusters.
Article
29. Powers and responsibilities during state management of industrial clusters
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2. The Prime Minister
shall direct the formulation and completion of policies and laws on management
and sustainable development of industrial clusters; orient and assist in
investment in construction of industrial cluster infrastructure in localities
in line with development requirements and ability to balance the state budget
in each period; handle 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 30, 31 and 32 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 provincial 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
30. 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 policies, laws, programs, plans,
document templates, statistical reporting regimes and database related to
management and development of industrial clusters nationwide; give opinions
about local industrial cluster development plans as prescribed.
2. 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
organize the implementation thereof after obtaining approval.
3. Conduct international
cooperation and investment promotion activities meant for industrial cluster
development.
4. Carry out periodic or
ad hoc inspection and assessment of implementation of plans for development,
policies for management and development of industrial clusters in provinces;
provide rewards, deal with recommendations and violations against law on
industrial clusters under its authority and relevant regulations of law.
Article
31. Powers and responsibilities of other related Ministries
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2. The Ministry of
Finance shall consolidate costs estimates for development of industrial
clusters on an annual basis in accordance with regulations of law on state
budget.
3. The Ministry of
Construction shall provide guidelines for technical regulations on
construction, procedures for formulating and approving detailed planning for
construction and issuance of construction permits in industrial clusters and
investment rates for construction of industrial cluster infrastructure.
4. The Ministry of
Natural Resources and Environment shall provide guidelines for land management
and environmental protection in industrial clusters.
5. The Ministry of Public
Security shall provide guidelines for security, order, fire fighting and
prevention and rescue in industrial clusters.
Article
32. Powers and responsibilities of provincial People’s Committees
The provincial People’s
Committee acts as an agency in charge of state management of industrial
clusters in its province and has the following powers and responsibilities:
1. Direct formulation and
implementation of industrial cluster development plans in its province; issue
decisions on establishment or expansion of industrial clusters, adjust or annul
such decisions; regulate or request competent authorities regulate the
provision of financial assistance covered by the local government budget for
construction of technical infrastructure inside and outside industrial clusters
in its province; organize the implementation of policies, laws, and plans for
industrial cluster development in its province.
2. Promulgate regulations
on management of industrial clusters, adopt single-window system or
inter-agency single-window system to handle procedures for executing technical
infrastructure construction projects and production and business projects in
industrial clusters.
3. Direct, instruct and
assist enterprises, cooperatives, organizations and production facilities to
implement technical infrastructure construction projects and production and
business projects in industrial clusters, and carry out land clearance, provide
compensation, implement agricultural resettlement and residential settlement
plans, build transportation, electricity supply, water supply and drainage,
post and telecommunications systems; provide land in its province to build
housing for workers in industrial clusters where necessary; organize investment
promotion activities in industrial clusters in its province.
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5. Direct authorities to
carry out periodic or ad hoc inspection and audit of the compliance with laws
on land, investment, construction, environmental protection, fire fighting and
prevention, rescue, and other State’s regulations on industrial clusters in its
province; handle violations under its authority.
6. Submit to the Ministry
of Industry and Trade periodic or ad hoc reports on the current situation of
industrial clusters in its province; reward and propose rewards to
organizations and individuals with achievements in industrial cluster
development; exercise other tasks and powers regarding industrial clusters
according to regulations.
Article
33. Powers and responsibilities of provincial Departments of Industry and Trade
1. Formulate, submit and
organize the implementation of the industrial cluster development plan,
Regulation on industrial cluster management, policies to provide assistance in
industrial cluster investment and development and cost estimates for industrial
cluster development activities in its province.
2. Regarding handling of
procedures for making investment in construction of technical infrastructure,
and production and business in industrial clusters:
a) Preside over appraising
of applications for and submit to the provincial People's Committee for
decision on establishment or expansion of industrial cluster, adjustment or
annulment of decisions on establishment or expansion of industrial cluster;
participate in commenting on documents and procedures related to investment in
construction of industrial cluster infrastructure (including land
expropriation, land lease, approval of detailed planning, fundamental design of
investment project, approval of environmental procedures, approval of fire
fighting and prevention plan, etc.) according to the provisions of law and the
provincial People's Committee.
b) Participate in
commenting on applications and procedures for issuance, adjustment and
revocation of investment guideline decisions, investment certificates (if any)
and other investment documents and procedures for production and business
projects in industrial clusters according to the provisions of law and the
provincial People's Committee.
3. Carry out periodic or
ad hoc inspection and assessment of implementation of plans for development,
policies for management and development of industrial clusters in their
provinces as prescribed by law; review and propose rewards to organizations and
individuals with achievements in industrial cluster development; handle or
request competent authorities to handle recommendations and violations against
law in accordance with regulations.
4. Submit periodic or ad
hoc reports to the Ministry of Industry and Trade and provincial People’s Committee
on the current situation of industrial clusters; build and operate database of
industrial clusters in their provinces; exercise other tasks and powers
regarding industrial clusters according to regulations of this Decree and law.
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1. Propose the
formulation of plans to develop, establish and expand industrial clusters in
their districts; assist investors in investing in construction of technical
infrastructure and effectively managing industrial clusters in their districts;
receive, process or request competent authorities to process procedures for
implementing investment projects in industrial clusters.
2. Decide to provide
investment assistance or request competent authorities to decide to provide
assistance in investment in technical infrastructure inside and outside
industrial clusters; approve and implement the plan to relocate enterprises and
production establishments into industrial clusters and industrial cluster development
activities in their districts.
3. Carry out periodic or
ad hoc inspection and audit and impose penalties for violations against law on
land, investment, construction, environmental protection, fire fighting and
prevention, rescue, and other regulations on industrial clusters in their
districts under their authority; submit periodic or ad hoc reports on current
situation of industrial clusters in their districts to provincial People's
Committees and provincial Departments of Industry and Trade.
Chapter
VII
IMPLEMENTATION
CLAUSE
Article
35. Transitional 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 was established
or expanded before the effective date of the Government’s Decree No.
68/2017/ND-CP and any industrial cluster formed before the effective date of
the Prime Minister’s Decision No. 105/2009/QD-TTg and established by
a competent authority with an area of more than 75 shall operate and be managed
as prescribed by this Decree.
2. Any industrial cluster
pending approval for establishment or expansion under the Government’s Decree
No. 68/2017/ND-CP and Decree No. 66/2020/ND-CP , the regulations of this Decree
shall continue to be complied with.
3. Any unit assigned to
act as a technical infrastructure investor as prescribed in clause 2 Article 15
of the Decree No. 68/2017/ND-CP shall continue to operate until the decision on
arrangement and handling issued by a competent authority is available; exercise
the rights and fulfill the obligations of the technical infrastructure investor
specified under this Decree and relevant laws.
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a) According to the
actual situation and operational efficiency of the industrial clusters, the
provincial People's Committee shall review the investment in technical
infrastructure construction and legal documents related to the industrial
clusters to clarify the necessity, conformity with regulations of law and
feasibility, and decide the establishment of the industrial clusters.
In the course of
implementation, contents of the decision on industrial cluster establishment
shall adhere to the regulations enshrined under clause 1 Article 12 of this
Decree. Where an industrial cluster has an area of more than 75 ha fully
covering the area of industrial land or for which the detailed planning is
approved and the compensation and land clearance are completed, the provincial
People’s Committee shall decide to maintain or decrease the area to make it
conformable with local managerial requirements. The assessment and selection of
a technical infrastructure investor shall comply with clause 3 Article 2 and
clause 2 Article 13 of this Decree. In case there is a technical
infrastructural construction in the industrial cluster is formed using the
state budget, the regulations enshrined in point b clause 2 Article 12 of this Decree
shall apply.
b) The deadline for
deciding the establishment of an industrial cluster as specified in this clause
is before December 31, 2026.
Article
36. Provision of rewards and imposition of penalties for violations
1. Organizations and
individuals with achievements in investment in construction of industrial
cluster infrastructure, production and business in industrial clusters shall be
rewarded according to the provisions of law.
2. Any organization or
individual that violates the provisions of this Decree shall, depending on
nature and severity of the violation, be disciplined, incur an administrative
penalty or face a criminal prosecution; in case of causing any damage,
compensation must be provided according to the provisions of law.
Article
37. Effect
1. This Decree comes into
force from May 01, 2024.
2. The Decree No.
68/2017/ND-CP and Decree No. 66/2020/ND-CP shall cease to have effect from the
effective date of this Decree.
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Ministers, heads of ministerial
agencies, heads of Governmental agencies, Chairpersons of People’s Committees
of provinces and central-affiliated cities, and organizations and individuals
concerned are responsible for the implementation of this Decree.
ON BEHALF OF THE GOVERNMENT
PP. THE PRIME MINISTER
THE DEPUTY PRIME MINISTER
Tran Hong Ha