Decree No. 164/2013/ND-CP of November 12, 2013, amending and supplementing a number of articles of the Government’s Decree No. 29/2008/ND-CP of March 14, 2008, on industrial parks, export-processing zones and economic zones

THE GOVERNMENT

Decree No. 164/2013/ND-CP of November 12, 2013, amending and supplementing a number of articles of the Government’s Decree No. 29/2008/ND-CP of March 14, 2008, on industrial parks, export-processing zones and economic zones

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the November 29, 20015 Law on Investment;

Pursuant to the November 29, 20015 Law on Enterprises;

At the proposal of the Minister of Planning and Investment,

The Government promulgates theDecree amending and supplementing a number of articles of the Government’s Decree No. 29/2008/ND-CP of March 14, 2008, on industrial parks, export-processing zones and economic zones.

Article 1.To amend and supplement a number of articles of the Government’s Decree No. 29/2008/ND-CP of March 14, 2008, on industrial parks, export-processing zones and economic zones:

1. To amend Clauses 4 and 5 of, and add Clause 8 to, Article 2 as follows:

“4.Coastal economic zonesmeans economic zones that arelocatedin coastal areas and adjacent areasand establishedaccording to the conditions, order and procedures prescribed in Decree No. 29/2008/ND-CP.

Border-gate economic zonesmeans economic zonesthatarelocated in land border areas and adjacent areaswithinternational border gatesormainborder gatesand establishedaccording tothe conditions,order and proceduresprescribed in Decree No. 29/2008/ND-CP.

Coastal economic zones and border-gate economic zones are collectively referred to as economic zones, unless they are specifically referred to.”

“5.Industrial land areameanstheland area of an industrialparkfor lease or sub-lease to investorsforimplementingproduction and business investment projects in this industrial park, which is identified inthe approveddetailed plan on construction of industrial parks.”

“8.Occupancyrateof an industrial park meansthepercentage (%) oftheindustrial land area already leasedorsub-leased to investorsfor carrying outproduction and business activities to the total industrial land area ofthisindustrial park.”

2. To amend and supplement Article 5 as follows:

“Article 5.Conditions for grant of investment certificates for construction or expansion of industrial parks

1. Conditions for grant of an investment certificate for an investment project to build and commercially operate industrial park infrastructure:

- The project is in line with the approved master plan on development of industrial parks and land use master plan and plan.

-At least 60% of the total industrial land area of industrial parks already establishedin the territory oftheprovince or centrally run city has been leased or sub-leased to registered and licensed projects.

2. Conditions for grant ofaninvestment certificate for the expansion ofan industrial park:

- The industrial park is in line with the approved master plan on development of industrial parks and land use master plan and plan.

- The industrial parkoccupancyratio must be at least 60%.

- A concentrated wastewater treatment facility has been built and put to use in the industrial park.

3. For industrialparkseachoccupying 500haor more in which many investors join inbuildingand commercially operating infrastructure works in separate lots,or industrialparkslinked with other urban or business centersunder the same overall scheme, general construction plansmust be elaborated under the Ministry of Construction’s guidance before detailedplans aremade.

4. For industrialparkseachoccupying200 hectares or more, or locatedclose tonational highways, regional or national defense zones, historicalrelic conservationsites,scenicspotsorregional or nationalecological conservation zones,orlocatedin grade-II, grade-I or special-grade urban centers, writtenopinionsof the Ministryof Construction, the Ministry of Planning and Investmentandrelatedministries andsectors, ondetailed plansonconstruction of theseindustrialparksare required beforesuchplans aresubmitted toprovincial-level People’s Committeesfor approval.

5. For anexistingindustrial park and its expanded areadeveloped by differentinfrastructure development investors,theconditions for grant of an investment certificatefor theinvestment project to build and commercially operate this expanded area are the same as those forthe establishment ofnewindustrial parks as prescribed in Clause 1 of this Article.

6. Dossiers, order, procedures for, and competence to decide on, the establishment and expansion of industrial parks comply with Articles 8, 10 and 15 of Decree No. 29/2008/ND-CP.”

3. To amend Clauses 2 and 5, Article 6 as follows:

“2. This industrialparkis in line with the socio-economic developmentmasterplan; thenationalland usemaster plan andplan; the regional and urban constructionmasterplans; thetechnical infrastructure masterplan;andthemasterplan on use of minerals and other natural resources.”

“5.The industrial park’slocation is in line withthedefensearrangementandsatisfies the requirements on defense,securityand protection of the environment, natural resources and historical and cultural relics.”

4. To amend Clause 1, Article 8 as follows:

“1. Procedures for grant of investment certificates for investment projectsto buildand commerciallyoperate industrial parkinfrastructure comply with theinvestment law:

If an industrialparkor the expansion of an industrialpark isalreadyincluded in the approvedmasterplan ondevelopment of industrial parks orgeneral planon construction of economic zones, the investment certificate-granting agency shallconsult the Ministry of Planning and Investment and related ministries and sectors in the process ofcarryingoutinvestmentprocedures for investment projectsto build and commercially operate infrastructure.

If an industrialparkor the expansion of an industrialpark isnot yet included in the approved master plan on development of industrialparks, the provincial-level People’s Committee shall carry out procedures for incorporating the addition or expansion of this industrialparkintothemaster planon development of industrial parksas prescribed inArticles 6 and 12 ofDecree No. 29/2008/ND-CP.”

5. To amend Clause 1, Article 9 as follows:

“1.If the establishment or expansion of an economic zoneisincluded in the approved master plan on development of economic zones, the Ministry of Planning and Investment shall carry out procedures forappraisingtheestablishment or expansion of this economic zoneas prescribed inArticle 13 of this Decree.

If the establishment or expansion of an economic zoneisnot yet included in the approved master plan on development of economic zones, procedures for incorporating theadditionor expansion of this economic zone into the master plan on development of economic zones must be carried outaccording to regulationson the elaboration, approval and management of socio-economic developmentmaster plans,withexplanations onthe satisfaction of the conditions specified in Article 7 of Decree No. 29/2008/ND-CP.”

6. To amend Clause 2, Article 14 as follows:

“2. In the process of making a detailed plan on construction of an industrial park, if the actually measured area of this industrial park is larger or smaller than the approved planned areaby below 10%butthe difference does not exceed 20ha, the provincial-level People’s Committeeshall, before approving this detailedplan, consult the Ministry of Construction and the Ministry of Planning and Investment anddecide on the adjustment of the planned area to match the actual area without having tosubmitit to the Prime Minister.”

7. To amend Article 18 as follows:

“Article 18. Exit, entry, travel, residence and sojourn in economic zones

1. Foreigners and overseas Vietnamese who work, invest or conduct business activities in economic zones and their family members may be grantedmultiplevisas withavalidity duration according to regulations; and may sojourn or reside in economic zones andinVietnam in accordance with the law on residence and the law on exit, entry and residence of foreigners in Vietnam.

2. Foraborder-gate economic zone, entry, exit and travel are prescribed as follows:

a/ Citizens residing in a bordering country’s districtadjacent toaborder-gate economic zoneof Vietnammay travelinto this zone with their border laissez-passers granted by this country’s competentauthorityand other law-prescribed valid papersin compliance with a treaty between Vietnam and this country.If these persons wish to enter other places of the province having the border-gate economic zone, the provincial police officemaygrant them travel permits with a specified validity duration.

b/Passport holders ineligible for visa exemption (citizens ofthebordering country or a third country) are exempt from entry visasandmay stay in the border-gate economic zone for 15 daysat most. If these persons wish to travel as tourists to other areas of Vietnam under programs organized by Vietnamese international travelbusinesses, the competent immigration agencymayconsider and grant them entry visas at the border-gate economic zone.

c/Cargo vehiclesoftheneighboring country or a third country may enter the border-gate economic zone under business contracts betweenforeign partners andVietnamese enterprisesand road or waterway transportationagreementsbetween Vietnam andthebordering country, andsubmittotheexamination, control and supervision by border-gate functional forces.To deliverandreceive cargoes at other places outside the border-gate economic zone,these vehicles must comply wishcurrent regulations.

Vehicle operators (crewmembers on board ships, vehicle drivers and their assistants) may enter and leave the border-gate economic zone with their passports, crewmember books, border laissez-passersor other valid papersgranted by foreign authorities,according toa treaty between Vietnam and the borderingcountryconcerned;

d/ It is allowed toreceivein the border-gate economic zone tourists from neighboring countrieswho havepassports, identity cards or other equivalent papers totravel toother provinces and citiesnationwideaccording to Item b, Clause 2 of this Article;

dd/ Vietnamese cargo or vehicle owners who have business ties with neighboring countries’ partners maycarrytheir cargoes or vehicles into these countries to deliver or receive cargoes with border laissez-passersor other valid papersgranted bycompetentVietnamese authorities;

e/ Vietnamese citizens who conduct business or reside in thecommune, ward or townshiphaving a border-gate economic zone may travel into the bordering country with their border laissez-passersor other valid papersincompliancewith a treaty between Vietnam and this bordering country orafterobtaining this country’sapproval.”

9. To amend Clauses 2, 3 and 5 of, and add Clause 7 to, Article 21 as follows:

“2. Export-processing zones or enterprises are separated from the outside territory with fence and wall systems which have entry and exit gates and doors to facilitate examination, supervision and control by customs offices andrelatedfunctional agencies.

3. Export-processing enterprises may purchase construction materials, stationery, food, foodstuffs and consumer goods from inland Vietnam to build necessary facilities and serve theoperationof their officesand dailyactivities of their staff members and workers.

Export-processing enterprises and sellers of goods to these enterprises mayor may notcarry out import, export and customs procedures for construction materials, stationery, food, foodstuffs and consumer goods from inland Vietnam.”

“5. Export-processing enterprises may sell into the domestic market their liquidated assets and goods in accordance with investment and tradelaws.Theexchange of goods between export-processing zones and enterprises and other areas in the Vietnamese territory, except non-tariff areas,isregarded as import and export relations.”

“7. Export-processing enterprises that are granted business permits for goods trading and goods trading-relatedactivities in Vietnamare required toestablish their own branches outside export-processing enterprises and zones for conducting these activities.

The Ministry of Finance, the Ministry of Industry and Trade and the Ministry of Planning and Investment shall specify this Article.”

10. To add the following Articles 21b and 21ctoArticle 21:

“Article 21b.Powers and obligations of enterprises operating in industrial parks or economic zones and investors building and commercially operatinginfrastructure inindustrial parks or economic zones

1. Enterprises operating in industrial parks or economic zones and investors building and commercially operatinginfrastructure in industrial parks or economic zoneshave all powers and obligations of investors as prescribed in the investment and enterprise laws and relevant laws.

2. Investors building and commercially operatinginfrastructure in industrial parks or economic zonesmay set prices for lease or sub-lease of land with technical infrastructure and other relevantinfrastructure usecharges in accordance with law and shall register price and chargetarrifswiththemanagement boards of these parksorzones every 6 months or in case of adjustment oftheseprice and chargetariffs.

3.Enterprises and investors shallfulfill financial obligations toward the State.

4.Enterprises and investors shallimplement accounting, statistical and insuranceregimesin accordance with law.

5.Enterprises and investors shallobserve regulations on security, order,occupationalsafety, corporate culture, industrialsanitation, environmental protection, and fire and explosion prevention and fighting.Enterprises and investors shallcoordinate with police forces and localities in elaborating plans on fire and explosion prevention and fighting and assurance of security and social order and safety inlocalities.

6.Enterprises and investors shallsend monthly, quarterly and annual reports on the operation of enterprises to the Ministry of Planning and Investment, provincial-level People’s Committees and management boardsof industrial parks or economic zones, and other specialized reports at the request of related ministries and sectors.

Article 21c. Development of houses for industrial-park and economic-zoneemployees

1. The State encourages households and individuals to build houses for lease toemployees in industrial parks.

2. Houses built by households and individuals for leaseprescribed in Clause 1 of this Article must satisfy area, quality, beauty, safety and environmental standards.

3. People’s Committees at all levels shall create favorable conditions foremployees to access medical, cultural and social services in localities.

4. To plan houses for industrial-parkemployees inconformitywithlocalmaster planson industrial parks.Provincial-level People’s Committees shall plan and allocate land areas in appropriate locations for agencies, organizations and enterprises to build houses for industrial-parkemployees. In the process of carrying out procedures for grant of investment certificates for projects to build and commercially operate industrial-park infrastructure, investors shall reporton housingplans for industrial-parkemployees to licensing agencies.

5. For industrial parks facing difficulties inarranginghouses foremployees, provincial-level People’s Committees shall, based on practical conditions andtheproposal of investors building and commercially operating industrial-park infrastructure, adjust detailed plans onconstruction ofindustrial parks to reserve part ofalready clearedindustrial park land areas for building social houses foremployees, after reaching written agreement with the Ministry of Construction and the Ministry of Planning and Investment, and carry out procedures for such adjustment according to regulations.

In case areas planned for housingdevelopment are adjacent to industrial parks,provincial-level People’s Committees shall approve detailed plans on construction of industrial parks inconformitywithmasterplans on construction of houses for industrial-parkemployees.

The Ministry of Construction and the Ministry of Planning and Investment shall specify this Article.”

11. To add the following Clauses 8, 9 and 10 to Article 24:

“8. To assume the prime responsibility for, and coordinate with the Ministry of Home Affairs in, elaborating a circular guiding the functions, tasks, powers and organizational structures of management boards.

9. To assume the prime responsibility for formulating a scheme on consolidation of centralandlocal state management apparatusesofindustrial parks and economic zones.

10. Toguide thereporting and statistical regimes applicable to industrial parks and economic zones.”

12. To add the following Clauses 4 and 5 to Article 25:

“4. To coordinate with the Ministry of Planning and Investment in elaborating a circular guiding the functions, tasks, powers and organizational structures of management boards.

5. To coordinate with the Ministry of Planning and Investment in formulating a scheme on consolidation of central-to-local state management apparatusesofindustrial parks and economic zones.”

13. To add the following Clause 3 to Article 27:

“3. To guide the authorizationofmanagement boards to perform the state management of construction prescribed in Clause 2, Article 37 of Decree No. 29/2008/ND-CP, which was amended and supplemented under this Decree, and the state management of construction in industrial parks and economic zones in accordance with the construction law.”

14. To amend Clauses 2 and 3, Article 28 as follows:

“2. To authorize management boards to grant certificates of origin for goodsproducedin industrialparksand economic zones; to grant,re-grant,modify, supplement and extend permits forestablishingtrade representative offices of foreign organizations and tradersbasedin industrialparks and economic zones; to granttradingeligibility certificates for goods subject to restrictedtradingor conditionaltradingin accordance with law.

“3. To guide management boards inthegrant, re-grant, modification or supplementation ofbusinesspermits for goods trading activities and goods trading-related activitiesto foreign-invested enterprises and foreign investors in industrialparksand economic zones.”

15. To amend Clause 3, Article 29 as follows:

“3. To guide the authorizationofmanagement boards to perform the state management of environment prescribed in Clause 2, Article 37 of Decree No. 29/2008/ND-CP, which was amended and supplemented under this Decree, and the state management ofnatural resources and environmentin industrial parks and economic zones in accordance with theenvironmental protectionlaw.”

16. To amend Article 31 as follows:

To guide the authorizationofmanagement boards to perform the state management of labor prescribed in Clause 2, Article 37 of Decree No. 29/2008/ND-CP, which was amended and supplemented under this Decree, and the state management of labor in industrial parks and economic zones in accordance with the labor law.

17. To add the following Clause 3 to Article 32:

“3. To assume the prime responsibility for, and coordinate with the Ministry of National Defense in, guiding the implementation of regulations on entry, exit, transit and residence of foreigners in economic zones.”

18. To add the following Article 32a:

“Article 32a. Powers and responsibilities of the Ministry of National Defense

1. To perform the state management of national defense and coordinate with the Ministry of Public Security in protecting national securityandmaintaining social order and safety in economic zones, border-gate economic zones and seaport border gates in economic zones in accordance with law.

2. To direct and guide the border guardinorganizing, arranging and using forces and vehicles in controlling entry and exit, examining, controlling and supervising persons and vehicles leaving, entering and operating in border-gate economic zones and seaport border gates in economic zones.

3. To coordinate with the Ministry of Public Security in guiding the implementation of regulations on entry, exit, transit and residence of foreigners in economic zones.”

19. To amend Clause 2, Article 33 as follows:

“2. To guide the authorizationofmanagement boards to grant, re-grant, modify, supplement and extend permits for establishing representative offices and branches of foreign tourist businesses in economic zones.”

20. To add the following Article 33a:

“Article 33a. State management powers and responsibilities of the Government Inspectorate

To coordinate with related ministries and sectors in guiding the inspection of industrial parks and economic zones.”

21. To amend Clause 2 of, and add Clause 3 to, Article 37 as follows:

“2. Management boards shall perform the following tasksin accordance withlaw:

a/To manage, disseminate, guide, examine andsupervisethe implementation ofapprovedregulations,masterplans and plansrelated toindustrialparksand economic zones;

b/To makeinvestment registration;toconduct verificationand grant, modifyand revokeinvestment certificates for investment projectsfalling withintheir competencein accordance with the investment law;

c/ To coordinate with functional agencies in inspectingthe implementation of regulations, master plans and plans related to industrial parks and economic zones;

d/ To examine andmonitorthe fulfillment of investmentpurposesprescribed in investment certificates, progress of capital contribution and project implementation; the implementation of commitments for projects enjoying investmentincentivesand theimplementationofregulationson construction, labor, wages and social insurance toward employees, the protection of lawful interests of employees and employers, the operation of socio-political organizations, fire and explosion prevention and fighting, security and orderassurance,eco-environmental protection for projects in industrial parks and economic zones;to propose sanctioning ofadministrativeviolationsin the fields falling within their competence which are committed byindustrial parks and economic zones;

dd/ To coordinate withpublic securityunits ininspectingsecurity and order maintenancework; todeviseand propose measures to assure security and order; toorganize securityforces andfire prevention and fighting forces in industrial parks and economic zones;

e/ To settle difficulties and problems of investors in industrial parks and economic zones and propose the Prime Minister, related ministries and sectors and provincial-level People’s Committees to settle problems falling beyond the competenceof management boards;

g/ To receive statistical reports and financial statements of enterprises operating in industrial parks and economic zones; to assesstheinvestment effectiveness in industrial parks and economic zones;

h/ To coordinate with the Ministry of Planning and Investment in developing and managingtheinformation systemson industrial parks and economic zones under their management;

i/ To send tothe Ministry of Planning and Investment, related ministries and sectors and provincial-level People’s Committees periodical reports on construction and development of industrial parks and economic zones; the grant, modification and revocation of investment certificates; implementation and operation of investment projects; fulfillment of obligations toward the State; attraction and employment of employees; implementation of the labor law, settlement of labor disputes and application of measures to protect the eco-environment inindustrialparksand economic zones;

k/To organizeemulation movements for and commend enterprises in industrialparksand economic zones;

l/To organize,and coordinatewith state management agencies in conducting inspections andexaminations,settlingcomplaints and denunciations, preventing and combatingcorruption, wastefulnessandnegativepractices, and handling administrative violations inindustrial parks and economic zones;

m/To performtasksaccording tolaw andregulations ofprovincial-level People’s Committeesregarding management of assigned finance, assets and state budget funds;tocollectand managethe use of charges and fees;toconduct scientific research and apply scientific and technological advances;tocooperatewith domestic and foreign organizations and individuals inthe fieldsrelated toconstructioninvestment and development of industrialparksand economic zones;tomanagethe organizationalapparatus, payroll, cadres, civil servants and public employees, and provideprofessional training fortheircadres, civil servants and public employees; to recommendjobs forworkers inindustrialparksand economic zones;

n/To performother tasks assigned by provincial-level People’s Committees.”

“3. Management boards shall perform the following tasks as authorized and guided byministries, sectors, provincial-level People’s Committees and competent state agencies:

a/ Granting, re-granting, modifying, supplementing and extending permits for establishing trade representative offices of foreign organizations and traders based in industrial parks and economic zones; business permits for goods trading activities and goods trading-related activitiesto foreign-invested enterprises andforeigninvestors in industrial parks and economic zones; andtradingeligibility certificates for goods subject to restrictedtradingor conditionaltrading;

b/ Granting certificates of origin for goods produced in industrial parks and economic zones;

c/ Adjusting approved detailed plans on construction of industrial parks and main functional sub-zones in economic zones without changing land use functions and planning structure; appraising base designs of projects of groups B and C or granting and extending construction permits for works under the law onmanagement of work construction investment projects;

d/ Granting, re-granting and revoking work permits for foreign citizens working in industrial parks and economic zones; registering labor rules; receiving collective labor agreements; receiving wage scales and tables and labor norms; registering plans of enterprises in industrial parks and economic zones to send workers abroad for apprenticeship for under 90 days;

e/ Granting other permits and certificates in industrial parks and economic zones;

g/ Certifying contracts and documents on real estate in industrial parks and economic zones for related organizations; receivingwrittenregistrationsof landrentratesand infrastructureusecharge rates in industrial parks and economic zones from investors building and commercially operatinginfrastructure inindustrial parksand economiczones;

h/ Appraising and approving environmental impact assessment reports for investment projectsinindustrial parks and economic zones which fall within the competence of provincial-level People’s Committees;granting written certifications for entities subject to registration of environmental protection commitments that operate in industrial parks and economic zones;appraising, approving, examining and certifying detailed environmental protectionschemesand simple environmental protectionschemesfor projects in industrial parks and economic zones;

“4. Management boards shall act asthefocal points in managing investment activities inlocalindustrial parks and economic zones. Ministries, sectors and local state management agencies shall, when performing professional tasks in industrial parks and economic zones, coordinate with and consul management boards to ensure uniform state management of industrial parks and economic zonesand facilitatetheoperation of enterprises in accordance with law.”

Article 2.Effect

1. This Decree takes effect on January 1, 2014.

2. Within 6 months after this Decree takes effect, related ministries and sectors shall guide or authorize provincial-level People’s Committees and management boards to perform the tasks mentioned in this Decree.

Article 3.Implementation responsibility

Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People’s Committees, heads of management boards of industrial parks, export-processing zones and economic zones, and related organizations and individuals shall implement this Decree.-

On behalf of the Government
Prime Minister
NGUYEN TAN DUNG