Decree No. 29/2008/ND-CP dated March 14, 2008 of the Government providing for industrial parks, export processing zones and economic zones

DECREE

PROVIDING FOR INDUSTRIAL PARKS, EXPORT PROCESSING ZONES AND ECONOMIC ZONES

THE GOVERNMENT

Pursuant to the December 25, 2001 Law on Organization of the Government;
Pursuant to the November 29, 2005 Law on Investment;
Pursuant to the November 29, 2005 Law on Enterprises;
Pursuant to the June 14, 2005 Commercial Law;
At the proposal of the Minister of Planning and Investment,

DECREES:

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation and subjects of application

1. This Decree provides for the establishment, operation, state management of and policies toward industrial parks, export processing zones, economic zones and border-gate economic zones.

2. This Decree applies to state management agencies, organizations and individuals related to activities of investment, production and business in industrial parks, export processing zones, economic zones and border-gate economic zones.

Article 2. Interpretation of terms

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

1. Industrial park means a zone that specializes in the production of industrial goods or provision of services for industrial production, has specified geographical boundaries, and is established under the conditions and according to the order and procedures specified in this Decree.

2. Export processing zone means an industrial zone that specializes in the production of export goods, provision of services for export goods production and export activities, has specified geographical boundaries, and is established under the conditions and according to the order and procedures applicable to industrial parks specified in this Decree.

Industrial parks and export processing zones are collectively referred to as industrial zones, unless they are specifically referred to.

3. Economic zone means a zone that has a separate economic space with a particularly favorable investment and business environment for investors, has specified geographical boundaries, and is established under the conditions and according to the order and procedures specified in this Decree.

An economic zone is organized into functional areas, including non-tariff area, bonded area, export processing area, industrial area, entertainment area, tourism area, urban area, residential area, administrative area and other functional areas suitable to characteristics of each economic zone.

4. Border-gate economic zone means an economic zone that is located in a land border area where exists an international border gate or a major border gate and established under the conditions and according to the order and procedures specified in this Decree.

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

5. Industrial land area means a land area of an industrial zone on which infrastructure has been constructed for lease or sublease to investors for the implementation of investment projects on production or business in this industrial zone.

6. Export processing enterprise means an enterprise that is established and operates in an export processing zone or exports all its products and operates in an industrial zone or economic zone.

7. Master plan on development of industrial zones and economic zones throughout the country means a plan that is elaborated and approved under legal provisions on the elaboration, approval and management of master plans on socio-economic development and the provisions of this Decree.

Article 3. Application of specialized laws and treaties

1. Special investment activities in industrial zones and economic zones specified in specialized laws comply with the provisions of these specialized laws.

2. If a treaty concerning investment to which Vietnam is a contracting party contains provisions different from those of this Decree, this treaty prevails.

Chapter II

ORDER AND PROCEDURES FOR ESTABLISHING INDUSTRIAL ZONES AND ECONOMIC ZONES

Article 4. Master plan on development of industrial zones and economic zones

1. Based on the socio-economic development strategy and planning: land use plannings of the whole country, provinces and centrally run cities, the Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate with concerned ministries, branches and Peoples Committees of provinces or centrally run cities (below collectively referred to as provincial-level Peoples Committees) in, elaborating and submitting to the Prime Minister for approval a master plan on development of industrial zones and economic zones.

2. The approved master plan on development of industrial zones and economic zones serves as a basis for consideration of the establishment of industrial zones and economic zones; elaboration of plannings and plans on investment in the development of technical and social infrastructure works in service of the development of industrial zones and economic zones.

Article 5. Conditions on the establishment and expansion of industrial zones

1. Conditions on the establishment of an industrial zone:

a/ This industrial zone is in line with the approved master plan on development of industrial zones;

b/ At least 60% of the total industrial land area of industrial zones already established in the territory of the province or centrally run city where this industrial zone is to be located has been leased or sub-leased to investment projects which have been registered or granted investment certificates.

2. Conditions on the expansion of an industrial zone:

a/ This industrial zone is in line with the approved master plan on development of industrial zones;

b/ At least 60% of the total industrial land area of this industrial zone has been leased or sub-leased to investment projects which have been registered or granted investment certificates;

c/ This industrial park has already built and put into use a consolidated wastewater treatment work.

3. For industrial zones occupying 500 hectares or more each in which many investors join in constructing and commercially operating infrastructure works in separate plots or industrial zones linked with other urban or business centers under the same overall scheme, general construction plannings must be elaborated under the Ministry of Constructions guidance before detailing plannings are made.

4. For industrial zones occupying 500 hectares or more each, or located near national highways, regional or national defense zones, historical sites, beauty spots and ecological conservation zones or in grade-II, grade-I or special-grade urban centers, written consents of the Construction Ministry and concerned ministries and branches to detailed plans on construction of these industrial zones are required before these plans are approved by provincial-level Peoples Committees.

Article 6. Conditions on the addition of an industrial zone to the master plan on development of industrial zones

1. At least 60% of the total industrial land area of industrial zones already established in the territory of the province or centrally run city where this industrial zone is to be located has been leased or sub-leased to investment projects which have been registered or granted investment certificates.

2. This industrial zone is in line with the local socio-economic development planning; the land use planning; the regional and urban construction planning; the planning on technical infrastructure; the planning on use of minerals and other natural resources.

3. This industrial zone has favorable conditions for or is capable of constructing a system of technical and social infrastructure works, synchronously elaborating and closely combining the planning on development of industrial zones with the urban development planning, the distribution of population, residential houses and social works in service of its workers.

4. There are enough conditions for the development of this industrial zone, including:

a/ There is a sufficient land area reserved for its development and there exist conditions for it to be linked with adjacent industrial zones to form a cluster of industrial zones;

b/ It is attractive to both domestic and foreign investors to invest their capital;

c/ Local workforce is sufficient to meet its labor needs;

5. Its location plan is in line with defense and security planning and requirements.

Article 7. Conditions on the establishment and expansion of economic zones

1. Conditions on the establishment of an economic zone:

a/ It is in line with the approved master plan on development of economic zones;

b/ It has a geographical position favorable for the regional economic development (having a deepwater seaport or being near an airport), is linkable with major national and international roads; can be easily controlled and serve as a hub for convenient exchange with other domestic and foreign regions; and has favorable condition and resources for technical infrastructure investment and development;

c/ It occupies a land area of 10,000 hectares or more to satisfy its general development requirements;

d/ It is able to attract large-sized and important investment projects and works with significant impacts on the regional socio-economic development;

e/ It is able to bring into play local potential and exert pervasive development impacts on surrounding areas;

f/ It has no negative impacts on nature reserves; causes no harmful effects or damage to tangible cultural heritages, scenic places and beauty spots, groups of architectures of historical, aesthetic or scientific value; is in line with the defense disposition and ensures the defense and security maintenance; and is able to satisfy requirements on environmental protection and sustainable development.

2. Conditions on the establishment of a border-gate economic zone:

a/ It is in line with the approved master plan on development of economic zones:

b/ It has an international or a major border gate specified in the Governments Decree No. 32/2005/ND-CP of March 14, 2005, promulgating the Regulation on land border gates; and consists of adjoining administrative units which are not spatially separated from each other;

c/ It is linkable with major national roads; can serve as a hub for convenient exchange with neighboring countries through their land border gates; and has favorable conditions and resources for technical infrastructure investment;

d/ Its general development requirements, covering commercial activities, import, export, temporary import for re-export, transportation of goods in transit, industrial production, tourism and services, can be satisfied; it has conditions for bringing into play local potential; it is able to develop commerce and attract investment;

e/ It combines economic development with firm maintenance of security, political stability and social order and safety, and helps protect national sovereignty in border areas;

f/ It has no negative impact on nature reserves; causes no harmful effect on or damage to tangible cultural heritages, scenic places and beauty spots, groups of architectures of historical, aesthetic or scientific value; and is able to satisfy requirements on environmental protection and sustainable development.

3. Conditions on the expansion of an economic zone:

a/ The whole system of its infrastructure has been completed under its general construction planning;

b/ At least 70% of the total land area of its functional areas has been allocated or leased to organizations and individuals for the implementation of projects.

4. An economic zone is organized into functional areas under Clause 3, Article 2 of this Decree. The area and location of each functional area are identified in the general construction planning of the economic zone approved by the Prime Minister.

Article 8. Process of establishment or expansion of industrial zones

1. Procedures for the grant of investment certificates for investment projects on construction and commercial operation of infrastructure works of industrial zones comply with the investment law.

If an industrial zone or the expansion of an industrial zone has been included in the approved master plan on development of industrial zones or general planning on construction of an economic zone, the investment certificate-granting agency shall carry out procedures for investment projects on construction and commercial operation of infrastructure works without having to propose the Prime Minister to approve the investment policy and permit the establishment of this industrial zone;

If an industrial zone or the expansion of an industrial zone has not yet been included in the approved master plan on development of industrial zones, the provincial-level Peoples Committee shall carry out procedures for incorporating the addition or expansion of this industrial zone into the master plan on development of industrial zones under Articles 6 and 12 of this Decree.

2. Decision on the establishment or expansion of an industrial zone:

a/ A dossier for the establishment or expansion of an industrial zone shall be made under Article 10 of this Decree;

b/ A decision on the establishment or expansion of an industrial zone complies with Clause 2, Article 15 of this Decree.

Article 9. Process of establishment or expansion of an economic zone

1. If the establishment or expansion of an economic zone has been included in the approved master plan on development of economic zones, the Ministry of Planning and Investment shall carry out procedures for evaluating the establishment or expansion of this economic zone under Article 13 of this Decree.

If the establishment or expansion of an economic zone has not yet been included in the approved master plan on development of economic zones, procedures for incorporating the establishment or expansion of this economic zone into the master plan on development of economic zones must be carried out under legal provisions on the elaboration, approval and management of master plans on socio-economic development.

2. Decision on the establishment or expansion of an economic zone:

a/ A dossier for the establishment or expansion of an economic zone shall be made under Article 11 of this Decree;

b/ A decision on the establishment or expansion of an economic zone complies with Clause 1, Article 15 of this Decree.

Article 10. A dossier for the establishment or expansion of an industrial zone

1. A written request of the investor for the establishment or expansion of an industrial zone.

2. The provincial-level Peoples Committees decision approving the detailed planning on construction of the industrial zone.

3. The investment certificate granted to the investor implementing the investment project on development of infrastructure works of the-industrial zone.

4. A dossier shall be made in four sets, including an original dossier set, and submitted to the Management Board of the industrial zone, export processing zone or economic zone (below collectively referred to as the Management Board, unless it is specifically referred to) or the provincial-level Planning and Investment Service (for localities where no Management Board is available).

5. Within five working days after receiving a valid dossier, the Management Board or the provincial-level Planning and Investment Service (for localities where no Management Board is available) shall propose to the provincial-level Peoples Committee the establishment or expansion of the industrial zone. Within ten working days after receiving a valid dossier, the provincial-level Peoples Committee shall decide on the establishment or expansion of the industrial zone under Clause 2, Article 15 of this Decree.

Article 11. A dossier for the establishment or expansion of an economic zone

1. A scheme on the establishment or expansion of an economic zone, with the following principal contents:

a/ The necessity and legal grounds of the establishment of an economic zone;

b/ An evaluation of elements and conditions of geographical position, natural conditions and resources, socio-economic situation, advantages and limitations of the area where the economic zone is expected to be located;

c/ An assessment and explanation of the possibility to satisfy the conditions specified in Article 7 of this Decree;

d/ The set forth development orientations, including development objectives, characteristics and functions of the economic zone; orientations for development of branches, sectors and functional areas; orientations of the planning on the use of land in the economic zone;

e/ Projected total investment capital, modes of raising capital for investment in the infrastructure system of the economic zone; time of establishment of the economic zone; plan and roadmap on investment in the construction and development of the economic zone;

f/ An environmental impact assessment;

g/ Proposed solutions and their application;

h/ Display of the economic zone planning on the planning map.

2. A report of the provincial-level Peoples Committee to the Prime Minister, proposing the establishment or expansion of the economic zone.

3. A dossier must be made in ten dossier sets, of which at least two sets are original (one to be submitted to the Prime Minister and nine others; to the Ministry of Planning and Investment for appraisal under Article 13 of this Decree).

Article 12. A dossier for addition of industrial zones to the master plan on development of industrial zones

1. A planning scheme on development on industrial zones in the territory of the province or centrally run city, with the following principal contents:

a/ The necessity and legal grounds of the addition of industrial zones to the master plan;

b/ An assessment of the practical socio-economic situation and the set forth orientations for socio-economic development and industrial development in the territory of the province or centrally run city;

c/ An assessment of the practical construction and development of industrial zones which have been established and planned in the territory of the province or centrally run city;

d/ Name, location, land area, practical state and specific conditions for development of each industrial zone expected to be planned;

e/ An evaluation and explanation of the possibility to satisfy the conditions in Article 6 of this Decree;

f/ The possibility to raise capital for investment in the construction and development of industrial zones;

g/ Display of the industrial zone development planning on the planning map.

2. A report of the provincial-level Peoples Committee to the Prime Minister, proposing the addition of industrial zones to the master plan on development of industrial zones.

3. A dossier must be made in ten dossier sets, of which at least two sets are original (one to be submitted to the Prime Minister and nine others, to the Ministry of Planning and Investment for appraisal under Article 13 of this Decree).

Article 13. Evaluation of the addition to the master plan on development of industrial zones or the establishment of an economic zone

1. Evaluation contents:

a/ The legal grounds and necessity of the addition to the master plan on development of industrial zones or the establishment of an economic zone;

b/ The conformity of the addition to the master plan on development of industrial zones or the establishment of an economic zone with the local socio-economic development planning and land use planning; the regional and urban construction planning; the technical infrastructure planning; and the planning on the use of minerals and other natural resources;

c/ The objectives and targets of the addition to the master plan on development of industrial zones or the establishment of an economic zone and the distribution of resources;

d/ The degree of satisfaction of the conditions respectively set on the addition to the master plan on development of industrial zones or the establishment of an economic zone;

e/ Solutions to and feasibility of the addition to the master plan on development of industrial zones or the establishment of an economic zone.

2. Order of and procedures for evaluation:

a/ Within five working days after receiving a dossier on the addition to the master plan on development of industrial zones or the establishment of an economic zone, the Ministry of Planning and Investment shall gather opinions of concerned ministries and branches.

If the dossier fails to satisfy the requirements specified in Article 10 or 11 of this Decree, the Ministry of Planning and Investment shall request in writing the provincial-level Peoples Committee to supplement or modify the dossier. The duration for dossier supplementation or modification is not counted into the evaluation duration.

b/ Within ten working days, for industrial zones, or twenty working days, for economic zones, after receiving a valid dossier, concerned ministries and branches shall send their opinions to the Ministry of Planning and Investment.

When necessary, the Ministry of Planning and Investment shall organize a meeting with concerned ministries and branches and the provincial-level Peoples Committee to clarify matters which remain unclear.

c/ Within thirty working days, for industrial zones, or forty five working days, for economic zones, after receiving a valid dossier, the Ministry of Planning and Investment shall propose it to the Prime Minister for consideration and decision.

Article 14. First-time expansion and adjustment of the area of an industrial zone

1. If the first-time expansion of an industrial zone does not exceed 10% of its approved planned area or 30 hectares and has no impact on other local plannings, the provincial-level Peoples Committee may, based on opinions of concerned ministries and branches, decide on the expansion of this industrial zone without having to propose to the Prime Minister for approval the addition to the master plan on development of industrial zones.

2. If the actually measured area of an industrial zone is larger or smaller by under 10% than the approved planned area and the difference does not exceed 20 hectares, the provincial-level Peoples Committee may decide on the adjustment of the planned area to match the actual area without having to propose it to the Prime Minister for approval.

3. Other cases of expansion and adjustment of the area of an industrial zone must be proposed to the Prime Minister for consideration and decision.

Article 15. Competence to establish and expand industrial zones and economic zones

1. The Prime Minister shall decide on the establishment or expansion of economic zones in compliance with the approved master plan on development of economic zones.

2. Presidents of provincial-level Peoples Committees shall decide on the establishment or expansion of industrial zones already incorporated into the approved master plan on development of industrial zones or the approved general planning on construction of economic zones.

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