Decree 32/2024/ND-CP management and development of cottage industry zones

DECREE

On management and development of cottage industry zones^[1]

Pursuant to the June 19, 2015 Law on Organization of the Government; and the November 22, 2019 Law Amending and Supplementing a Number of Articles of the Law on Organization of the Government and the Law on Organization of Local Administration;

Pursuant to the November 24, 2017 Planning Law; and the November 20, 2018 Law Amending and Supplementing a Number of Articles of Thirty-Seven Laws Concerning Planning;

Pursuant to the June 17, 2020 Law on Investment;

Pursuant to the June 13, 2019 Law on Public Investment;

Pursuant to the November 29, 2013 Land Law;

Pursuant to the June 18, 2014 Law on Construction; and the June 17, 2020 Law Amending and Supplementing a Number of Articles of the Law on Construction;

Pursuant to the November 17, 2020 Law on Environmental Protection;

At the proposal of the Minister of Industry and Trade;

The Government promulgates the Decree on management and development of cottage industry zones.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation and subjects of application

1. This Decree provides plans on development of cottage industry zones; establishment and expansion of cottage industry zones; investment in the construction of technical infrastructure and production and business in cottage industry zones; policies on incentives and supports for development of cottage industry zones, and state management of cottage industry zones.

2. This Decree applies to:

a/ Enterprises, cooperatives and organizations investing in the construction of technical infrastructure in cottage industry zones;

b/ Organizations and individuals carrying out production and business activities in cottage industry zones;

c/ Other agencies, organizations and individuals involved in the management of, investment in, and operation of, cottage industry zones.

Article 2. Interpretation of terms

In this Decree, the terms below are construed as follows:

1. Cottage industry zone means a delimited place where industrial production is carried out and services for industrial and cottage industry production are provided and there are no inhabitants, which is constructed mainly to attract production and business investment of or relocate small- and medium-sized enterprises, cooperatives and cooperative groups.

A cottage industry zone must have an area of between 10 hectares and 75 hectares. Particularly for cottage industry zones in mountainous districts and craft-village cottage industry zones, each must have an area of between 5 hectares and 75 hectares.  

2. Craft-village cottage industry zone means a cottage industry zone with at least 60% of its industrial land area reserved for the relocation and production and business expansion of small- and medium-sized enterprises, cooperatives, cooperative groups and production facilities of households and individuals in craft villages or owning traditional crafts.

3. Owner of a project on construction of technical infrastructure of a cottage industry zone means an enterprise, a cooperative or an organization established and operating under Vietnam’s law that invests in commercial operation of technical infrastructure in such cottage industry zone.

4. System of shared-use technical infrastructure facilities of a cottage industry zone consists of internal traffic works, pavements, greeneries, water supply, wastewater and solid waste collection and treatment, fire protection, power supply, public lighting, and internal information and communications facilities, and other technical infrastructure facilities serving the operation of such cottage industry zone.

5. An investment project on construction of technical infrastructure in a cottage industry zone means an investment project that involves the use of land to synchronously build technical infrastructure in such cottage industry zone; lease or sublease of land to investors for execution of production and business investment projects and operation and management of technical infrastructure facilities in such cottage industry zone in accordance with law.

6. Industrial land area means the land area of a cottage industry zone which is leased or subleased to organizations or individuals to carry out industrial production and provide industrial production services, and is identified in a detailed master plan on construction approved by a competent agency.

7. Occupancy rate of a cottage industry zone means the percentage of the industrial land area which has been leased or subleased to organizations and individuals or for which the investment policy has been approved or the investment registration certificate has been issued for carrying out production and business activities in the total industrial land area of such cottage industry zone.

8. Plan on development of cottage industry zones means the arrangement and distribution of space for rational development of cottage industry zones in association with policies and solutions for management, and investment in the construction of technical infrastructure in a province or centrally run city (below referred to as provincial-level locality) in each period, while ensuring environmental protection, and thrifty and efficient use of land, water and other resources of such locality. A plan on development of cottage industry zones constitutes a content of a provincial master plan, which shall be formulated and incorporated into the provincial master plan under the planning law.

9. Decision on establishment or expansion of a cottage industry zone means a document issued by a competent agency to record legal information about such cottage industry zone for use as a basis for making investment in the construction of technical infrastructure in such cottage industry zone and applying the State’s policies and regulations to such cottage industry zone.

10. Database on cottage industry zones consists of information about plans on development, establishment and expansion of cottage industry zones, investment in the construction of technical infrastructure in and operation of cottage industry zones in provincial-level localities and nationwide.

Article 3. Sectors, trades and production and business facilities encouraged for investment in or relocation into cottage industry zones

1. Sectors, trades and production and business facilities encouraged for investment in or relocation into cottage industry zones:

a/ Processing and manufacturing industries serving agriculture; mechanical engineering industry (automobiles, agricultural machinery, construction equipment, industrial equipment, electrical equipment, medical equipment, etc.); supporting industry; garment-textile and footwear industry;

b/ Information technology and telecommunications industry, electronic industry; smart energy industry; digital technology industry, automation, high-end equipment, new materials, biotechnology;

c/ Local industries and cottage industries to be conserved and developed; warehousing, packaging, goods transport, and machinery and industrial equipment repair and maintenance services, and other services directly serving local industrial and cottage industrial production on a total area not exceeding 10% of the area of cottage industry zones;

d/ Other industries applying high, clean and energy-efficient technologies that bring about high added value and sustainable development;

dd/ For industrial and cottage industrial production facilities which cause pollution or are likely to cause pollution in craft villages and residential quarters, it is encouraged to relocate them into cottage industry zones.

2. Provincial-level People’s Committees shall specify sectors, trades and business and production facilities in cottage industry zones in conformity with plans on development of cottage industry zones included in provincial master plans and orientations for local socio-economic development, which shall be stated in decisions on establishment or expansion of cottage industry zones.

Chapter II

PLANS ON DEVELOPMENT, ESTABLISHMENT AND EXPANSION OF COTTAGE INDUSTRY ZONES

Section 1

PLANS ON DEVELOPMENT OF COTTAGE INDUSTRY ZONES

Article 4. Plans on development of cottage industry zones

1. Grounds for formulation of a plan on development of cottage industry zones:

a/ The Strategy for Vietnam’s industrial development, and strategies on development of industries and industrial sectors in provincial-level localities; 

b/ Socio-economic development orientations, regional master plans and technical and specialized master plans in provincial-level localities; 

c/ Demand for ground area, geographic and traffic conditions and resources for attraction of investment of organizations and individuals in production and business in cottage industry zones in provincial-level localities or relocation of such organizations and individuals;

d/ Capability to mobilize investment sources from enterprises and the State and other lawful funding sources for investment in the construction of technical infrastructure facilities in cottage industry zones in provincial-level localities;

dd/ Requirements for environmental protection, and thrifty and efficient use of land and other resources of localities.

2. Major contents of a plan on development of cottage industry zones:

a/ Legal grounds for and necessity of formulating the plan on development of cottage industry zones;

b/ Evaluation of actual state of investment in technical infrastructure; attraction of investment, occupancy rate and production and business situation; environmental treatment and protection; fire protection and rescue in cottage industry zones; socio-economic efficiency of planned cottage industry zones; management of cottage industry zones in the provincial-level locality; achievements, weaknesses and causes;

c/ Forecasting of factors affecting the development of cottage industry zones in the planning period; forecasting investors’ demand for ground area in cottage industry zones, potential land area for development of cottage industry zones in district- and provincial-level localities; forecasting of labor demand for cottage industry zones in the planning period;

d/ Viewpoints, objectives and orientations for development of cottage industry zones in the provincial-level locality in the planning period;

dd/ A List of cottage industry zones expected to be developed in the provincial-level locality in the planning period, stating: names, locations (to the commune-level units; assurance of an environmentally safe distance for neighboring residential quarters, national historical relics, rivers, and lakes; it is permitted to place cottage industry zones next to each other only when there is a connection in terms of sectors and trades to be invested, environmental treatment, energy, etc., among cottage industry zones), land area of, sectors and trades to operate in, cottage industry zones. Detailed commentaries  shall be given for each cottage industry zone, clearly stating: land use status (on the principle of restricting the use of land areas planned for rice cultivation and land areas in nature reserves, historical-cultural relics, and scenic places, etc.); sectors and trades to operate in cottage industry zones (with priority to be given to connectible sectors and trades in the same value chain of priority products and services of the locality or neighboring locality); explanations about grounds for adjusting and adding cottage industry zones to the List of cottage industry zones in the locality; estimated total investment in the construction of technical infrastructure in cottage industry zones;

e/ Inclusion of contents on status of and planning on cottage industry zones expected to be developed in the maps of the provincial master plan;

g/ Solutions for developing cottage industry zones in the provincial-level locality in the planning period (including mobilization of funding sources for investment in infrastructure; and mechanisms and policies to support the development of cottage industry zones; environmental protection; management and organization of implementation thereof).

3. Funds for formulation and the period of a plan on development of cottage industry zones must comply with regulations on provincial master plans.

Article 5. Formulation and integration of plans on development of cottage industry zones into provincial master plans

1. The provincial-level Departments of Industry and Trade shall assume the prime responsibility for, and coordinate with provincial-level departments, sectors, district-level People’s Committees and related units in, formulating and finalizing plans on development of cottage industry zones in localities under Article 4; and submit reports on plans on development of cottage industry zones to provincial-level People’s Committees.

2. Provincial-level People’s Committees shall direct agencies formulating provincial master plans to incorporate plans on development of cottage industry zones into provincial master plans, and collect opinions on provincial master plans (including plans on development of cottage industry zones) in accordance with the planning law in order to finalize and submit them to competent agencies for approval.

3. A decision on approval of a provincial master plan must have a content on a plan on development of cottage industry zones, enclosed with a list of cottage industry zones expected to be developed in the planning period, stating names, locations and land area of cottage industry zones, and other contents (if any).

Article 6. Adjustment of plans on development of cottage industry zones

1. Grounds for adjustment of a plan on development of cottage industry zones

a/ There are adjustments to the Strategy for Vietnam’s industrial development or strategies on development of industries and industrial sectors in a locality; or to regional master plans, provincial master plans and other technical and specialized master plans in a locality;

b/ There is a change in land areas for development of cottage industry zones to meet organizations’ or individuals’ demand for renting land for production and business in conformity with efficiency of investment in infrastructure construction and lease capacity of cottage industry zones in a district-level locality;

c/ Cottage industry zones expected to be added are capable of attracting enterprises and cooperatives to invest in the construction of technical infrastructure, attracting organizations and individuals to invest in production and business therein; there is a feasible plan on conversion of cottage industry zones in case of removing a cottage industry zone(s) from the master plan.

2. Major contents of adjustment of a plan on development of cottage industry zones

a/ Legal grounds, necessity and explanations about grounds for adjustment of the plan on development of cottage industry zones;

b/ Evaluation of progress and efficiency of investment in technical infrastructure; attraction of investment, occupancy rate and production and business situation; environmental treatment and protection; fire protection and rescue in cottage industry zones; socio-economic efficiency of planned cottage industry zones; achievements, weaknesses and causes;

c/ Projected ground areas for attraction of investment and relocation into cottage industry zones, land use status, sectors and trades to operate in cottage industry zones, capability to attract project owners, estimated total investment amount, for cottage industry zones expected to be added to the master plan; evaluation of the current state and effectiveness of investment in cottage industry zones expected to be removed from the master plan, grounds for proposal and feasibility of the plan on conversion of cottage industry zones;

d/ Proposed List of cottage industry zones in the planning period in the provincial-level locality (after the plan on development of cottage industry zones is adjusted), stating names, locations (to the commune-level units; assurance of an environmentally safe distance for neighboring residential quarters, national historical relics, rivers, and lakes, etc.; it is permitted to place cottage industry zones next to each other only when there is a connection among cottage industry zones), land area of, sectors and trades to operate in cottage industry zones.

dd/ Solutions for organization of implementation of the plan.

Article 7. Formulation and incorporation of an adjusted plan on development of cottage industry zones into an adjusted provincial master plan

1. The provincial-level Department of Industry and Trade shall assume the prime responsibility for, and coordinate with provincial-level departments, sectors, district-level People’s Committees and related units in, formulating and finalizing a report on adjustments to the plan on development of cottage industry zones in the locality under Article 6; and send a report on adjustments to the plan on development of cottage industry zones to the provincial-level People’s Committee.

2. The provincial-level People’s Committee shall direct the agency formulating the provincial master plan to integrate the adjusted plan on development of cottage industry zones into the adjusted provincial master plan, and collect opinions on the adjusted provincial master plan (including the adjusted plan on development of cottage industry zones) in accordance with the planning law in order to finalize and submit the adjustments to a competent agency for approval.

3. A decision on approval of adjustments to a provincial master plan must contain the adjustments to the plan on development of cottage industry zones, enclosed with a list of cottage industry zones in the planning period, stating names, locations and land area of cottage industry zones and other contents (if any).

Section 2

ESTABLISHMENT AND EXPANSION OF COTTAGE INDUSTRY ZONES

Article 8. Conditions for establishment and expansion of cottage industry zones

1. Conditions for establishment of a cottage industry zone:

a/ The cottage industry zone is on the approved List of cottage industry zones in the provincial-level locality; there are available land areas in conformity with the master plan on land use in the district-level locality;

b/ An enterprise, a cooperative or an organization having the legal status and capacity to make investment in the construction of technical infrastructure wishes to act as the owner of the project on construction of technical infrastructure of the cottage industry zone;

c/ In case cottage industry zones have been established in the district-level locality, the average occupancy rate in these cottage industry zones is higher than 50% or the total unoccupied industrial land area in these cottage industry zones is smaller than 100 hectares.

2. Conditions for expansion of a cottage industry zone:

a/ The cottage industry zone, once expanded, must not be larger than 75 hectares; there are available land areas in conformity with the master plan on land use in the district-level locality;

b/ An enterprise, a cooperative or an organization having the legal status and capacity to make investment in the construction of technical infrastructure wishes to act as the owner of the project on construction of technical infrastructure of the cottage industry zone;

c/ The cottage industry zone’s occupancy rate reaches at least 60% or the industrial land area to be rented in the cottage industry zone is larger than the available industrial land area in the cottage industry zone;

d/ Essential shared-use technical infrastructure facilities (including internal roads, and water supply and wastewater collection and treatment facilities) have been completely constructed and put into operation according to the approved detailed master plan.

Article 9. Dossiers of request for establishment or expansion of cottage industry zones

1. A dossier of request for establishment or expansion of a cottage industry zone must comprise:

a/ A written request for establishment or expansion of a cottage industry zone, made by the district-level People’s Committee. In case a cottage industry zone is located in two district-level administrative units or more, the provincial-level People’s Committee shall assign the People’s Committee of a district-level administrative unit to submit a written request for establishment or expansion of a cottage industry zone;

b/ An enterprise’s, a cooperative’s or an organization’s written request for acting as the owner of the project on construction of technical infrastructure of the cottage industry zone (stating a commitment not to violate law and to bear all costs and risks in case its request is disapproved), enclosed with a report on investment in establishment or expansion of the cottage industry zone and a map showing the location and boundaries of the cottage industry zone;

c/ A valid copy of the document proving the legal status of the enterprise, cooperative or organization requesting for acting as the owner of the project on construction of technical infrastructure of the cottage industry zone;

d/ Valid copies of the documents proving financial capacity of the requesting enterprise, cooperative or organization, including at least one of the following documents: the last two years’ financial statements of the requesting enterprise, cooperative or organization; the parent company’s commitment to provide financial assistance; a financial institution’s commitment to provide financial assistance; guarantee on financial capacity of the requesting enterprise, cooperative or organization; and other documents (if any) proving financial capacity of the requesting enterprise, cooperative or organization;

dd/ A valid copy of the document proving experience of the requesting enterprise, cooperative or organization and other relevant documents (if any).

2. Major contents of a report on investment in the establishment or expansion of a cottage industry zone:

a/ Legal grounds, necessity, assessment of the conformity and satisfaction of conditions for establishment or expansion of the cottage industry zone; labor demand; impacts of industrial parks and other cottage industry zones in the locality on the investment effectiveness and occupancy rate of the cottage industry zone;

b/ Land-use status quo, conditions for land recovery, estimated needs for land use, orientations on arrangement of sectors and trades that are capable of connecting and supporting one another in production; land use structure and estimated investment to be attracted into the cottage industry zone; assessment of the possibility of connection of technical infrastructure inside and outside the cottage industry zone;

c/ Objectives, land area, location and scope of investment in the construction of technical infrastructure; analysis and selection of the plan on investment in the construction of technical infrastructure facilities; plan on ground clearance and resettlement support (if any); time limit and schedule for project implementation suitable to reality and the capability to mobilize resources; plan and schedule of attraction of investment and relocation and occupancy rate of the cottage industry zone; plan on prevention and control of pollution, degradation and depletion of water sources; plan for fire protection and rescue in the cottage industry zone; and plan on housing for workers in the cottage industry zone;

d/ Identification of the legal status, capacity and experience of the enterprise, cooperative or organization requesting for acting as the owner of the project on construction of technical infrastructure in the cottage industry zone; estimated total investment, structure of and capability to balance or mobilize funding sources for implementing the project;

dd/ Costs of maintenance and operation of technical infrastructure facilities and other relevant expenses; methods of management, operation and use after these facilities are put into use;

e/ Preliminary assessment of environmental impacts in accordance with the law on environmental protection; identification of the possibility to receive and treat wastes around the area where the cottage industry zone is expected to be established or expanded; projected waste sources, and environmental impacts of sectors and trades projected to be attracted into the cottage industry zone, and the environmental management plan; assessment of the conformity in terms of water source functions;

g/ Proposed investment incentives, special mechanisms and policies (if any); analysis and evaluation of socio-economic impacts and efficiency of the cottage industry zone; and implementation solutions.

Article 10. Order of establishment and expansion of a cottage industry zone

1. Within 5 working days after receiving the first written request of an enterprise, a cooperative or an organization for acting as the owner of the project on construction of technical infrastructure of a cottage industry zone, the district-level People’s Committee shall issue a notice of its receipt of the dossier of request for establishment or expansion of the cottage industry zone in the local mass media. The time limit for receiving dossiers is 15 days from the date of issuance of a notice.

2. Within 5 working days from the deadline for receiving dossiers of request for establishment or expansion of the cottage industry zone, the district-level People’s Committee shall assume the prime responsibility for, and coordinate with the requesting enterprise, cooperative or organization in, preparing 2 sets of dossier of request for establishment or expansion of the cottage industry zone as specified in Clause 1, Article 9 of this Decree, enclosed with electronic files thereof, and send them to the provincial-level Department of Industry and Trade for appraisal in coordination with related provincial-level departments and sectors.

3. Within 25 days after receiving a complete dossier of request for establishment or expansion of a cottage industry zone, the provincial-level Department of Industry and Trade shall complete the appraisal and send a report on the establishment or expansion of a cottage industry zone to the provincial-level People’s Committee. In case the dossier or report on the establishment or expansion of a cottage industry zone is unsatisfactory, the provincial-level Department of Industry and Trade shall send a written request to the district-level People’s Committee for completion of the dossier. The time for dossier completion shall not be included in the time limit for appraisal.

The selection of an enterprise, a cooperative or an organization to act as the owner of the project on construction of technical infrastructure of a cottage industry zone must comply with Clause 2, Article 13 of this Decree. The provincial-level People’s Committee shall provide regulations on the issuance of a notice of the result of project owner selection to the requesting enterprise, cooperative or organization.

4. Within 7 working days after receiving a dossier for establishment or expansion of a cottage industry zone, together with the appraisal report from the provincial-level Department of Industry and Trade, the provincial-level People’s Committee shall consider and decide on the establishment or expansion of a cottage industry zone. One copy of a decision on the establishment or expansion of a cottage industry zone shall be sent to the Ministry of Industry and Trade.

In case the competent authority wishes to change the name of a cottage industry zone or change the location of a cottage industry zone within a district-level administrative unit or increase the area of a cottage industry zone by no more than 5 hectares against the area stated in the approved master plan and such change/increase complies with the district-level land-use master plan and other master plans in the locality, the provincial-level People’s Committee shall consider and permit such change/increase in a decision on establishment or expansion of the cottage industry zone; and, at the same time, update the change for reporting to the Prime Minister in the subsequent period of formulating and approving the provincial master plan.

Article 11. Contents of appraisal of the establishment or expansion of a cottage industry zone

1. The legality and validity of the dossier for establishment or expansion of the cottage industry zone.

2. Contents and feasibility of the report on investment in the establishment or expansion of the cottage industry zone:

a/ Legal grounds, necessity, and conformity with the provincial master plan and other relevant master plans;

b/ Satisfaction of conditions for establishment or expansion of the cottage industry zone; demand for land use, satisfaction of conditions for land lease or land repurposing;

c/ Name, land area, objectives, sectors and trades to operate in the cottage industry zone and selection of the plan on investment in the construction of technical infrastructure in the cottage industry zone;

d/ Legal status and capacity of the enterprise, cooperative or organization requesting for acting as the owner of the project on construction of technical infrastructure in the cottage industry zone, total investment, structure of and capability to balance and solutions to mobilize funding sources for completing construction of technical infrastructure in the cottage industry zone; feasibility of plans on environmental protection, fire protection and rescue, and housing for workers in the cottage industry zone;

dd/ Relevant expenses and methods of management, operation and use of technical infrastructure in the cottage industry zone after they are put into operation;

e/ Solutions to attract investment in and relocate projects and establishments which cause pollution or are likely to cause pollution in the province-level locality (if any); preliminary assessment of socio-economic efficiency of the establishment or expansion of the cottage industry zone and environmental impacts of the cottage industry zone;

g/ Investment incentives and conditions for application thereof (if any).

Article 12. Decisions on establishment or expansion of cottage industry zones

1. Major contents of a decision on establishment or expansion of a cottage industry zone:

a/ Name, area and location of and main sectors or trades to operate in the cottage industry zone;

b/ Owner of the project on construction of technical infrastructure of the cottage industry zone;

c/ Scale of investment in the construction of technical infrastructure, estimated total investment and structure of funding sources;

d/ Implementation schedule of the investment project on construction of technical infrastructure in the cottage industry zone;

dd/ Investment incentives and supports and conditions for application thereof (if any);

e/ Responsibilities of the owner of the project on construction of technical infrastructure of the cottage industry zone and related agencies for implementation of the investment project on the construction of technical infrastructure of the cottage industry zone;

g/ Effective date of the decision;

h/ Other contents (if any).

2. Modification or annulment of a decision on establishment or expansion of a cottage industry zone:

a/ The provincial-level People’s Committee shall, based on its competence and regulations, decide to modify or annul a decision on establishment or expansion of a cottage industry zone as suitable to local reality;

b/ In case of change of the owner of the project on construction of technical infrastructure of the cottage industry zone, the evaluation and selection of a new project owner must comply with Clause 2, Article 13 of this Decree.

In case a cottage industry zone has technical infrastructure facilities built with state budget funds, the provincial-level People’s Committee shall assign the selected owner of the project on construction of technical infrastructure to manage, repair and operate such facility to serve operation of the cottage industry zone. State budget funds for the construction of technical infrastructure facilities of the cottage industry zone may not be included in the land rental and the charges for shared-use technical infrastructure in the cottage industry zone; the costs of management, repair and operation of technical infrastructural facilities shall be included in the charges for shared-use technical infrastructure of the the cottage industry zone. In case such content is provided in specialized laws, these specialized laws shall apply.

Chapter III

INVESTMENT IN CONSTRUCTION OF TECHNICAL INFRASTRUCTURE OF COTTAGE INDUSTRY ZONES

Article 13. Owners of projects on construction of technical infrastructure of cottage industry zones

1. The State shall adopt policies to encourage and support enterprises, cooperatives and organizations to act as owners of projects on construction of technical infrastructure of cottage industry zones.

2. Selection of owners of projects on construction of technical infrastructure of cottage industry zones is a content of the appraisal for the establishment or expansion of cottage industry zones and shall be carried out during the process of establishment or expansion of cottage industry zones. In case the dossier of request for establishment or expansion of a cottage industry zone submitted by an enterprise, a cooperative or an organization complies with this Decree, the selection of the owner of the project on construction of technical infrastructure of the cottage industry zone shall be carried out as follows:

The provincial-level People’s Committee shall establish a council for appraisal for the selection of the owner of the project on construction of technical infrastructure of cottage industry zone (the council shall be composed of a leader of the provincial-level People’s Committee as its chairperson, leaders of the provincial-level Department of Industry and Trade and Department of Planning and Investment as its deputy chairpersons, and representatives of a number of related provincial-level departments and agencies as its members; the council secretary shall be a representative of a specialized division of the provincial-level Department of Industry and Trade who is not a member of the council). The council shall carry out evaluation using a 100-point grading scale with the following criteria: plan on investment in construction of technical infrastructure (15 points at most); plan on management and protection of the environment in the cottage industry zone (15 points at most); capacity and experience of the enterprise or cooperative (30 points at most); and financial plan for investment in construction of technical infrastructure (40 points at most). Based on practical conditions of the locality and relevant regulations, the council shall agree on working principles and methods, contents of each criterion and corresponding maximum score as appropriate.

In case the enterprise, cooperative or organization scores 50 points or higher, the provincial-level People’s Committee shall consider and decide to assign it to act as the owner of the project on construction of technical infrastructure of an cottage industry zone in the decision on the establishment or expansion of the cottage industry zone (in case there are two or more enterprises, cooperatives or organizations applying to be assigned to act as the owner of the project on construction of technical infrastructure of an cottage industry zone, the one having scored the highest point shall be assigned to act as the project owner; in case there are two or more enterprises, cooperatives or organizations scoring the equal highest points, the enterprise, cooperative or organization that is proposed by the council chairperson shall be selected).

Article 14. Process of investment in construction of technical infrastructure of cottage industry zones

Investment in construction of technical infrastructure of a cottage industry zone shall be carried out according to the following basic process:

1. Making and approving a report on investment in establishment or expansion of the cottage industry zone, other investment procedures (if any).

2. Formulating and approving a detailed plan on construction of the cottage industry zone.

3. Formulating and approving an investment project on construction of technical infrastructure of the cottage industry zone and procedures for preparing investment in the project.

4. Organizing construction of technical infrastructure facilities of the cottage industry zone and managing the operation of these facilities after they are completed.

Article 15. Detailed plan on construction of cottage industry zones

1. District-level People’s Committees shall direct project owners and related agencies and units to formulate detailed plans on construction of cottage industry zones in their localities and submit them to competent authorities for approval. The contents of a detailed plan on construction of a cottage industry zone must conform with the report on investment in establishment or expansion of the cottage industry zone and include arrangement of environmental protection technical infrastructure facilities suitable to the sector(s) or trade(s) of the cottage industry zone and requirements on treatment and discharge of wastewater into water sources in accordance with law.

2. The formulation and adjustment of detailed plans on construction of cottage industry zones must comply with the construction law’s provisions on detailed plans on construction of functional zones but do not require the formulation of planning tasks. Approved detailed plans shall serve as grounds for granting construction permits and formulating construction investment projects.

3. Funds for formulation of detailed plans on construction of cottage industry zones must comply with law.

Article 16. Management of investment projects on construction of technical infrastructure of cottage industry zones

1. The system of shared-use technical infrastructure facilities of a cottage industry zone shall be synchronously designed to save costs, efficiently use land and water, and facilitate the construction, repair and operation of these facilities. An investment project on construction of technical infrastructure of a cottage industry zone must conform with the decision on establishment or expansion of the cottage industry zone and detailed plan on construction of the cottage industry zone approved by competent agencies.

Owners of projects on construction of technical infrastructure of cottage industry zones shall formulate and implement investment projects on construction of technical infrastructure of cottage industry zones. The contents and process of formulation, appraisal, approval and management of investment projects on construction of technical infrastructure of cottage industry zones must comply with the laws on investment and construction.

2. In the stages of preparation and implementation of an investment project on construction of technical infrastructure of a cottage industry zone, the project owner shall carry out procedures and comply with regulations on land, construction and environmental protection, work out plans on prevention and control of pollution, degradation and depletion of water sources, fire protection; and comply with other regulations.

Article 17. Management of public and utility services

1. Public services and shared-use utilities in a cottage industry zone include protection and maintenance of security and order; information and communications; water supply and drainage; environmental sanitation and waste treatment; fire protection; maintenance and operation of technical infrastructure facilities and other utility services. The prices of public services and shared-use utilities shall be determined on the principle of agreement through contracts signed between service users and the owner of the project on construction of technical infrastructure of the cottage industry zone.

2. The owner of a project on construction of technical infrastructure of a cottage industry zone shall organize the provision and management of public services and shared-use utilities in the cottage industry zone; before admitting organizations and individuals to the cottage industry zone, formulate and approve a Regulation on management of public services and utilities, which, however, must not  contravene law, and within 5 working days after approving the Regulation, send a copy thereof to the provincial-level Department of Industry and Trade and district-level People’s Committee for monitoring and management. In case there have been organizations and/or individuals conducting production and business activities in the cottage industry zone, the project owner shall consult these organizations and/or individuals before approving the Regulation on management of public services and shared-use utilities.

3. The settlement of complaints and disputes arising in the management, provision and use of public services and shared-use utilities in cottage industry zones must comply with law.

Article 18. Rights of the owner of a project on construction of technical infrastructure of a cottage industry zone

1. To mobilize and admit investment projects to the cottage industry zone on the basis of its detailed plan and production and business sector or trade approved by competent authorities.

2. To mobilize capital for investment in construction of technical infrastructure of the cottage industry zone in accordance with law.

3. To invest in construction of workshops, storehouses and storage yards and working offices for lease or for sale, and provide public services and other utilities in the cottage industry zone in accordance with law.

4. To decide on sublease and sublease rates of land with shared-use technical infrastructure, rent rates or selling prices of workshops, storehouses and storage yards and working offices and prices of other public services and utilities. In case the project owner is not an enterprise, a cooperative or an organization, the lease of land in the cottage industry zone must comply with the land law; charges for shared-use technical infrastructure and other public services and utilities in the cottage industry zone shall be decided by competent authorities.

5. To propose competent agencies to revoke the investment policy or investment certificates of (if any), or handle, investment projects in the cottage industry zone that commit violations of law, halt operation or are not implemented or are implemented behind schedule in accordance with the investment law.

6. To enjoy the incentives and supports prescribed in this Decree and common interests in accordance with relevant laws.

Article 19. Obligations of the owner of a project on construction of technical infrastructure of a cottage industry zone

1. To set up a division in charge of management and operation of the investment project to construct technical infrastructure of the cottage industry zone; to organize the implementation of the investment project according to the approved detailed plan, ensuring its implementation schedule, and be handled in accordance with law if committing violations of law, delaying or halting the implementation or failing to implement, the project.

2. To repair, maintain and operate shared-use technical infrastructure facilities in the cottage industry zone throughout their operation period; to provide public services and shared-use utilities in the cottage industry zone.

3. To comply with provisions on the laws on investment; land; construction; environmental protection; water resources protection; fire protection; rescue; finance; accounting; audit, statistics; insurance; labor; occupational safety; industrial sanitation; and social order and security.

4. To support and create favorable conditions for organizations and individuals to carry out procedures for conducting production and business in the cottage industry zone.

5. To make periodical reports on the operation of the investment project on construction of technical infrastructure of the cottage industry zone to the local statistics office in accordance with the Statistics Law, and concurrently to the provincial-level Department of Industry and Trade and district-level People’s Committee for management; and make public information on unoccupied (not-yet leased or subleased) land areas in the cottage industry zone on the websites of the enterprise and the locality.

6. To perform other law-prescribed obligations and provisions.

Chapter IV

INVESTMENT IN PRODUCTION AND BUSINESS IN COTTAGE INDUSTRY ZONES

Article 20. Admission of investment projects to cottage industry zones

Organizations and individuals that wish to be relocated into or invest in a cottage industry zone shall contact the owner of the project on construction of the cottage industry zone’s technical infrastructure so as to receive instructions on the planning and arrangement of establishments based on their sectors and trades; rental rates of land, workshops, storehouses, storage yards, and working offices and charge rates for public and utility services; and procedures for implementing investment projects in the cottage industry zones, and reach agreement on the location, site and area of the industrial land plots they expect to rent.

Article 21. Lease of land and grant of construction permits to those operating in cottage industry zones 

1. Organizations and individuals doing production and business activities in a cottage industry zone shall carry out procedures to sublease land with shared-use technical infrastructure that meets the environmental protection requirements from the owner of the project on construction of the cottage industry zone’s technical infrastructure. In case the project owner is not an enterprise, a cooperative or an organization, the lease of land in the cottage industry zone must comply with the land law.

2. The grant of construction permits for non-linear construction works in cottage industry zones must comply with the construction law. 

Article 22. Rights of an organization or individual doing production and business in a cottage industry zone

1. To use land and have land use period extended in accordance with the land law; to sublease land, workshops, storehouses, storage yards, working offices and assets on its/his/her leased land in accordance with law.

2. To use technical infrastructure facilities, public services and other services and pay charges therefor under regulations.

3. To advance or contribute funds for construction and commercial operation of technical infrastructure as agreed with the owner of the project on construction of technical infrastructure of the cottage industry zone.

4. To be provided with support and favorable conditions in labor recruitment and training to meet production and business requirements.

5. To be provided with instructions and favorable conditions in performing procedures for doing production and business in the cottage industry zone.

6. To enjoy incentive and support policies as prescribed in this Decree and other interests prescribed in relevant laws.

Article 23. Obligations of an organization or individual doing production and business in a cottage industry zone

1. To use land and implement its/his/her investment project and carry out production and business activities according to the economic contract signed with the owner of the project on construction of technical infrastructure of the cottage industry zone, the Regulation on management of public services and utilities in the cottage industry zone, decision on approval of investment policy or investment registration certificate (if any); in case of delayed implementation, to propose competent agencies and the owner of the project on construction of technical infrastructure of the cottage industry zone to extend the implementation according to regulations.

2. To comply with provisions of the law on investment, land, construction, environmental protection, fire protection, rescue, finance, accounting, audit, statistics, insurance, labor, occupational safety, industrial sanitation, social order and security with regard to its/his/her investment project in the cottage industry zone and pay charges for use of technical infrastructure, other public services and utilities as agreed.

3. To actively participate in attracting and creating jobs for local workers, prioritizing social policy beneficiaries and members of households whose land is recovered for the construction of the cottage industry zone.

4. To make periodical reports on the operation of its/his/her investment project in the cottage industry zone to the local statistics office in accordance with the Statistics Law, and concurrently to the district-level People’s Committee for management.

5. To perform other law-prescribed obligations and provisions.

Article 24. Management of production and business activities

1. Production and business activities in cottage industry zones shall be carried out in accordance with current law.

2. Examination and specialized inspection of organizations and individuals doing production and business in cottage industry zones shall be conducted at most once a year according to plans approved by competent state agencies, unless signs of violation are detected. Agencies competent to conduct examination and inspection shall coordinate with provincial-level Departments of Industry and Trade, district-level People’s Committees and owners of projects on construction of technical infrastructure of cottage industry zones in preventing and handling violations committed in cottage industry zones.

3. Organizations and individuals doing production and business in cottage industry zones shall send reports on their production and business to local statistics offices in accordance with the Statistics Law. Quarterly and annually, local statistics offices shall summarize information on production and business activities in cottage industry zones and report thereon to provincial-level Departments of Industry and Trade and district-level People’s Committees for management.

Chapter V

POLICIES ON INCENTIVES AND SUPPORT FOR COTTAGE INDUSTRY ZONE DEVELOPMENT

Article 25. Incentives for investment projects on construction of technical infrastructure of, and projects on investment in production and business in, cottage industry zones

1.  Cottage industry zone is a geographical area with difficult socio-economic conditions; investment in construction of technical infrastructure of cottage industry zones is a sector/trade eligible for special investment incentives.

2. Incentives for investment projects on construction of technical infrastructure of, and projects on investment in production and business in, cottage industry zones shall be applied in accordance with the laws on land, tax and credit and other relevant laws. In case the laws provide different incentive levels, the highest one shall be applied.

Article 26. Support for investment in construction of technical infrastructure of cottage industry zones

1. Local budgets (including target transfers from the central budget) shall balance support for investment in and development of technical infrastructure facilities inside and outside cottage industry zones in the localities (with priority given to investment in environmental protection infrastructure facilities in cottage industry zones that have been put into operation; investment support for essential shared-use technical infrastructure projects for cottage industry zones in geographical areas with difficult or extremely difficult socio-economic conditions, inter-sectoral cottage industry zones, specialized cottage industry zones, cottage industry zones for supporting industries, ecological cottage industry zones, and cottage industry zones for preservation of traditional crafts ) in accordance with the Law on Public Investment and the Law on the State Budget.

The State shall provide support not exceeding 30% of the total investment of an investment project on construction of technical infrastructure of each cottage industry zone. The support funds shall not be included in the total investment of the projects which is used for calculation of rates for land sublease and use of infrastructure applicable to investment projects in cottage industry zones. Owners of projects on construction of technical infrastructure of cottage industry zones shall manage, repair and operate technical infrastructure facilities built with the State’s supports to serve the operation of the cottage industry zones.

2. Provincial-level People’s Committees shall report to the same-level People’s Councils for decision, or decide on, the provision of investment support for construction of technical infrastructure of cottage industry zones in their localities according to their competence and law.

Article 27. Support for cottage industry zone development activities

1. The central budget shall cover funds for cottage industry zone development activities carried out by the Ministry of Industry and Trade, including: 

a/ Conducting surveys, building and operating a database on cottage industry zones; organizing conferences and workshops on, and coordinating investment promotion in, cottage industry zones; disseminating information and printing and publishing documents, and organizing professional training in laws and policies on cottage industry zones;

b/ Conducting surveys, assessing and formulating policies on, models of management of, and experiences on, cottage industry zone development at home and abroad, formulating, and disseminating information on the implementation of, policies and laws on the management and development of cottage industry zones;

c/ Conducting researches on, and establishing criteria for determining, effective and eco-friendly cottage industry zone development models (such as specialized cottage industry zones, cottage industry zones for supporting industries, ecological cottage industry zones, etc.); providing instructions on, and recognizing, cottage industry zone development models; carrying out commendation work, reviewing and preparing reports on orientations for cottage industry zone development.

2. Local budgets shall cover funds for cottage industry zone development activities carried out by localities, including: 

a/ The activities specified at Points a and b, Clause 1 of this Article;

b/ Conducting investment promotion for cottage industry zones; investigating and surveying organizations and individuals wishing to be relocated into or invest in cottage industry zones; establishing, and appraising the establishment and expansion of, cottage industry zones; formulating detailed plans on construction of cottage industry zones; supporting the performance of administrative procedures related to cottage industry zones;

c/ Providing support in funds for the formulation of investment projects, expenses for transportation and installation of machinery and equipment for relocation of enterprises, cooperatives, groups of cooperatives and households from craft villages or residential areas into cottage industry zones and craft village cottage industry zones. The specific support levels shall be decided by provincial-level People’s Committees.

3. Funds for cottage industry zone development activities are non-business funds which shall be managed and used in accordance with the Law on the State Budget and guiding documents.

Chapter VI

STATE MANAGEMENT OF COTTAGE INDUSTRY ZONES

Article 28. Contents of state management of cottage industry zones

1. Formulating, and organizing the implementation of, development schemes, plans, programs, policies, laws, and standards and technical regulations on management and development of cottage industry zones.

2. Deciding on, granting, modifying and revoking licenses and certificates related to, investment in and commercial operation of cottage industry zones; building and operating databases, performing administrative procedures and provision of public services and utility services for cottage industry zones.

3. Organizing the apparatus for, and providing professional training in, cottage industry zone management and development.

4. Inspecting, examining, evaluating investment efficiency, settling complaints and denunciations, performing commendation work, handling violations and other matters related to cottage industry zones.

Article 29. Powers and responsibilities for state management of cottage industry zones

1. The Government shall perform the uniform state management of cottage industry zones nationwide; assign specific responsibilities and powers to each ministry, sector, provincial-level People’s Committee and related agency; and promulgate policies and legal documents on cottage industry zones.

2. The Prime Minister shall direct the formulation and improvement of policies and laws on the management and sustainable development of cottage industry zones; set orientations on provision of investment supports for construction of technical infrastructure of cottage industry zones in localities in conformity with development requirements and the fund-balancing capacity of the state budget in each period; handle violations and settle problems falling beyond the competence of ministries, sectors and provincial-level People’s Committees.

3. Ministries, sectors and provincial-level People’s Committees shall, in addition to the powers and responsibilities specified in Articles 30, 31 and 32 of this Decree, perform the state management of their sectors or fields or territory-based management regarding cottage industry zones; conduct examination and inspection and sanction administrative violations according to their competence; guide, decentralize or authorize provincial-level Departments of Industry and Trade or district-level People’s Committees to perform a number of state management tasks in accordance with this Decree and relevant laws.

Article 30. Powers and responsibilities of the Ministry of Industry and Trade

The Ministry of Industry and Trade is the agency performing the state management of cottage industry zones nationwide and has the following powers and responsibilities:

1. To formulate and submit to competent agencies for promulgation, or promulgate according to its competence, policies, laws, programs, plans, forms, statistical reporting regulations and databases on cottage industry zone management and development nationwide; to give opinions on local cottage industry zone development schemes under regulations.

2. To prepare annual plans on cottage industry zone development activities and cost estimates therefor from the central budget for submission to competent agencies for approval and organize the execution of these estimates after they are approved.

3. To carry out international cooperation and investment promotion support for cottage industry zone development.

4. To conduct periodical or unscheduled examination and evaluation of the efficiency of schemes on development and policies on management and development of cottage industry zones in provinces and centrally run cities; to perform commendation work and settle recommendations and violations concerning cottage industry zones according to its competence and relevant laws.

Article 31. Powers and responsibilities of other related ministries

1. The Ministry of Planning and Investment shall propose the Prime Minister to direct the provision of supports for investment in construction of technical infrastructure of cottage industry zones in localities from the state budget based on medium-term and annual public investment plans in conformity with socio-economic development requirements in each period; propose competent agencies the regulation not requiring  investment projects on construction of technical infrastructure of cottage industry zones that are conformable with contents of approved reports on investment in the establishment or expansion of cottage industry zones to carry out procedures for approval of investment policy in accordance with in the law on investment; and coordinate with the Ministry of Industry and Trade in conducting periodical or unscheduled examination and evaluation of the implementation of schemes and policies on development and management of cottage industry zones.

2. The Ministry of Finance shall sum up annual cost estimates for cottage industry zone development activities in accordance with the law on the state budget.

3. The Ministry of Construction shall provide guidance on construction technical regulations, the process of formulation and approval of detailed construction plans and licensing of construction activities in cottage industry zones, and investment unit cost in technical infrastructure of cottage industry zones.

4. The Ministry of Natural Resources and Environment shall provide guidance on land management and environmental protection of cottage industry zones.

5. The Ministry of Public Security shall provide guidance on the assurance of security and order, fire protection, and rescue in cottage industry zones.

Article 32. Powers and responsibilities of provincial-level People’s Committees

Provincial-level People’s Committees are agencies in charge of state management of cottage industry zones in their localities and have the following powers and responsibilities:

1. To direct the formulation and implementation of plans on development of cottage industry zones in their localities; to decide to establish, expand, adjust, or annul decisions on establishment or expansion of, cottage industry zones; to prescribe or propose competent authorities to prescribe investment supports from local budgets for construction of technical infrastructure in and outside cottage industry zones in their localities; to organize the implementation of policies, laws, and plans on development of cottage industry zones in their localities.

2. To promulgate Regulations on management of cottage industry zones and settle procedures for implementation of investment projects on construction of technical infrastructure of cottage industry zones and projects on production and business in cottage industry zones according to the single-window and inter-agency single-window mechanisms.

3. To direct, guide and support businesses, cooperatives, organizations and production facilities to implement investment projects on construction of technical infrastructure of cottage industry zones and projects on production and business in cottage industry zones, and carry out work related to site clearance, compensation, allocation of land for agricultural production and resettlement for affected subjects, construction of transport systems, power supply, water supply and drainage, post and telecommunications; to arrange land areas in their localities to build houses for workers of cottage industry zones in case of necessity; to organize investment promotion activities in cottage industry zones in their localities.

4. To review and draw up plans and take solutions to completely handle cottage industry zones and investment projects in cottage industry zones that cause environmental pollution, use land inefficiently and violate laws; to take measures to effectively handle and manage cottage industry zones in their localities which were established before the effective date of the Prime Minister’s Decision No. 105/2009/QD-TTg of August 19, 2009, promulgating the Regulation on management of cottage industry zones, and have no entities acting as owners of projects on construction of technical infrastructure.

5. To direct functional agencies to conduct periodical and unscheduled inspection and examination of the observance of the laws on land, investment, construction, environmental protection, fire protection, and rescue, and other regulations on cottage industry zones in their localities; to handle violations according to competence.

6. To report on the situation of cottage industry zones in their localities to the Ministry of Industry and Trade on a periodical or unscheduled basis; to commend, or propose commendation of, organizations and individuals that record achievements in development of cottage industry zones; to perform other tasks and powers regarding cottage industry zones under regulations.

Article 33. Powers and responsibilities of provincial-level Departments of Industry and Trade

1. To formulate, submit, and organize the implementation of, plans on development of cottage industry zones, Regulations on management of cottage industry zones, policies on support for investment and development of cottage industry zones, plans and cost estimates for development of cottage industry zones in their localities.

2. Handling of procedures for investment in construction of technical infrastructure of, and production and business in, cottage industry zones:

a/ To assume the prime responsibility for appraising, and propose provincial-level People’s Committees to decide on, establishment and expansion of cottage industry zones, adjustment and annulment of decisions on establishment and expansion of cottage industry zones; to give opinions on dossiers and procedures related to investment and construction of technical infrastructure of cottage industry zones (including: land recovery, land lease, approval of detailed master plans, basic design of investment projects, approval of environmental procedures, approval of fire protection plans, etc.) in accordance with law and regulations of provincial-level People’s Committees.

b/ To give opinions on dossiers and procedures for applying for grant of, adjusting, and revoking, investment policy decisions, investment certificates (if any) and other investment-related dossiers and procedures for production and business projects in cottage industry zones in accordance with law and regulations of provincial-level People’s Committees.

3. To conduct periodical or unscheduled inspection and evaluation of efficiency of cottage industry zone development plans and cottage industry zone management and development policies in their localities in accordance with law; to summarize and propose commendation of organizations and individuals that record achievements in development of cottage industry zones; to handle or propose competent authorities to handle petitions and violations of law under regulations.

4. To report on the situation of cottage industry zones to the Ministry of Industry and Trade and provincial-level People’s Committees on a periodical or unscheduled basis; to build and operate databases of cottage industry zones in their localities; to perform other tasks and powers regarding cottage industry zones in accordance with this Decree and law.

Article 34. Powers and responsibilities of district-level People’s Committees

1. To propose the formulation of plans on development, establishment and expansion of cottage industry zones in their localities; to support project owners to invest in construction of technical infrastructure and effectively manage cottage industry zones in their localities; to receive, handle or request competent authorities to handle procedures for implementing investment projects in cottage industry zones.

2. To decide on support for investment or propose competent authorities to decide on support for investment in technical infrastructure in and outside cottage industry zones; to approve and implement plans on relocation of businesses and production facilities to cottage industry zones and development of cottage industry zones in their localities.

3. To carry out periodical or unscheduled  inspection and examination, and handle violations of laws on land, investment, construction, environmental protection, fire protection and rescue and other regulations on cottage industry zones in district-level areas according to their competence; to report on the situation of cottage industry zones in their localities to provincial-level People’s Committees and provincial-level Departments of Industry and Trade on a periodical and unscheduled basis.

Chapter VII

IMPLEMENTATION PROVISIONS

Article 35. Transitional provisions

1. Cottage industry zones with an area smaller than 10 hectares or cottage industry zones in mountainous districts, craft villages’ cottage industry zones with an area smaller than 5 hectares which were established and expanded before the effective date of the Government’s Decree No. 68/2017/ND-CP of May 25, 2017, on management and development of cottage industry zones, and cottage industry zones established by competent authorities with an area larger than 75 hectares before the effective date of the Prime Minister’s Decision No. 105/2009/QD-TTg of August 19, 2009, promulgating the Regulation on management of cottage industry zones, may continue to operate and be managed under this Decree.

2. For cottage industry zones of which the establishment or expansion is undergoing the appraisal and decision process under the Government’s Decrees No. 68/2017/ND-CP, and No. 66/2020/ND-CP of June 11, 2020, amending and supplementing a number of articles of Decree No. 68/2017/ND-CP, the provisions of these Decrees shall continue to apply.

3. Units assigned to act as owners of projects on construction of technical infrastructure of cottage industry zones specified in Clause 2, Article 15 of Decree No. 68/2017/ND-CP may continue to operate until competent agencies issue decisions on reorganization and handling; and perform rights and obligations of owners of projects on construction of technical infrastructure of cottage industry zones specified in this Decree and relevant laws.

4. The establishment of cottage industry zones specified in plans on development of cottage industry zones under provincial master plans before the effective date of Decision No. 105/2009/QD-TTg (including cottage industry zones which have their investment projects on construction of technical infrastructure and detailed construction plans approved by competent authorities before October 5, 2009, are included in master plans on development of cottage industry zones or local master plans on industrial development, have admitted production and business before October 5, 2009), shall be settled as follows:

a/ Based on the actual situation and operational efficiency of cottage industry zones, provincial-level People’s Committees shall review the current situation of investment in technical infrastructure construction and related legal papers of cottage industry zones to clarify the necessity, compliance with regulations and feasibility and decide to establish the cottage industry zones.

During the implementation process, contents of decisions on establishment of cottage industry zones must comply with Clause 1, Article 12 of this Decree. For cottage industry zones with an area larger than 75 ha in which industrial land areas have been fully occupied or for which detailed master plans have been approved and procedures on compensation and site clearance have been fully completed, provincial-level People’s Committees shall decide to maintain or reduce the area in conformity with local management requirements. The evaluation and selection of owners of projects on construction of technical infrastructure of cottage industry zones must comply with Clause 3, Article 2 and Clause 2, Article 13 of this Decree. Technical infrastructure facilities in cottage industry zones formed with state budget funds shall be handled according to Point b, Clause 2, Article 12 of this Decree.

b/ The deadline for handling the establishment of cottage industry zones under this Clause is December 31, 2026.

Article 36. Commendation and handling of violations

1. Organizations and individuals that record achievements in investing in building technical infrastructure of cottage industry zones, production and business in cottage industry zones will be commended in accordance with law.

2. Organizations and individuals that violate this Decree will, depending on the nature and severity of their violations, be disciplined, administratively sanctioned or examined for penal liability; in case of causing damage, they shall pay compensation in accordance with law.

Article 37. Effect

1. This Decree takes effect on May 1, 2024.

2. Decree No. 68/2017/ND-CP and Decree No. 66/2020/ND-CP cease to be effective on the effective date of this Decree.

Article 38. Implementation responsibility

Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People’s Committees and related organizations and individuals shall implement this Decree.-

On behalf of the Government
For the Prime Minister
Deputy Prime Minister
TRAN HONG HA