Decree No. 68/2017/ND-CP dated May 25, 2017 of the Government on management and development of industrial clusters

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Issuing body:	Government	Effective date:	Known Please log in to a subscriber account to use this function. Don’t have an account? Register here
Official number:	68/2017/ND-CP	Signer:	Nguyen Xuan Phuc
Type:	Decree	Expiry date:	Known Please log in to a subscriber account to use this function. Don’t have an account? Register here
Issuing date:	25/05/2017	Effect status:	Known Please log in to a subscriber account to use this function. Don’t have an account? Register here
Fields:	Industry

SUMMARY

To exempt land rental for 11 years for Investment projects on commercial operation

On May 25, 2017, the Government issued the Decree No. 68/2017/ND-CP on management and development of industrial clusters with the detailed regulations on investment projects in the industrial cluster.

In particulars, production and business investment projects in industrial clusters are entitled to land rental exemption for 7 years. Investment projects on commercial operation of industrial cluster technical infrastructure are entitled to land rental exemption for 11 years and eligible to borrow investment credit funds of the State not exceeding 70% of their total investment amounts and are entitled to other incentives as prescribed by law. In case they are eligible for different incentive levels, the highest one shall be applied.

At the same time, the Decree also prescribes many incentives and supports for craft village industrial clusters. Within that investment projects on production and business in craft village industrial clusters are entitled to land rental exemption for 11 years and eligible to borrow investment credit funds of the State not exceeding 70% of their total investment amounts; investment projects on commercial operation of industrial cluster technical infrastructure are entitled to land rental exemption for 15 years and eligible to borrow investment credit funds of the State not exceeding 70% of their total investment amounts.

To enjoy incentives and supports, craft village industrial clusters are included in the master plan, and are established and operate in accordance with regulations on management of industrial clusters. The number of enterprises, cooperatives, cooperative teams, production facilities of households and individuals in the craft village account for over 60% of the number of enterprises and production facilities already relocated or having registered for relocation into the craft village industrial cluster. By the time of considering incentives and supports, the registered occupancy rate is over 80%, with over 60% of which occupied by enterprises, cooperatives, cooperative teams, production facilities of households and individuals in the craft village as certified by the district-level People’s Committee.

This Decree takes effect on July 15, 2017 and annuls the Prime Minister’s Decision No. 105/2009/QD-TTg of August 19, 2009.

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THE GOVERNMENT		THE SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness
No. 68/2017/ND-CP		Hanoi, May 25, 2017

DECREE

On management and development of industrial clusters[1]

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

Pursuant to the November 26, 2014 Law on Investment;

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

Pursuant to the November 26, 2014 Law on Enterprises;

Pursuant to the June 18, 2014 Law on Construction;

Pursuant to the November 29, 2013 Land Law;

Pursuant to the June 23, 2014 Law on Environmental Protection;

At the proposal of the Minister of Industry and Trade;

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

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation and subjects of application

1. This Decree prescribes the planning, establishment and expansion of industrial clusters; investment in the construction of technical infrastructure and production and business in industrial clusters; policies on incentives and supports for development of industrial clusters, and state management of industrial clusters.

2. This Decree applies to:

a/ Enterprises, cooperatives and units investing in the construction of industrial cluster technical infrastructure;

b/ Organizations and individuals carrying out production and business activities in industrial clusters;

c/ Other agencies, organizations and individuals involved in the management and operation of industrial clusters.

Article 2. Interpretation of terms

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

1. Industrial cluster means a delimited place where industrial, cottage industry and craft production activities are carried out and services for these activities are provided and there are no inhabitants, which is constructed to attract small- and medium-sized enterprises, cooperatives and cooperative teams to invest in production and business or relocate their existing production and business facilities.

An industrial cluster must neither be larger than 75 hectares nor smaller than 10 hectares. For those in mountainous districts and industrial clusters of craft villages, each must neither be larger than 75 hectares nor smaller than 5 hectares.

2. Craft village industrial cluster means an industrial cluster serving the relocation and expansion of production and business of small- and medium-sized enterprises, cooperatives, cooperative teams and production facilities of households and individuals in craft villages in order to overcome pollution and develop local crafts and craft villages.

3. Project owner in the construction of industrial cluster technical infrastructure is an enterprise, a cooperative or a unit established and operating under Vietnamese law to invest in the construction of an industrial cluster and manage and operate the system of technical infrastructure facilities therein.

4. District-level industrial cluster development center is a revenue-generating non-business unit which is attached to a district-level People’s Committee and established under the Regulation on management of industrial clusters promulgated together with the Prime Minister’s Decision No. 105/2009/QD-TTg of August 19, 2009.

5. District-level industrial cluster management unit is a unit attached to and established by a district-level People’s Committee and assigned or authorized by the latter to act as the project owner in the construction of industrial cluster technical infrastructure in the locality.

6. System of common-use technical infrastructure facilities of an industrial cluster consists of systems of internal traffic works, pavements, greeneries, water supply and drainage, wastewater and solid waste treatment, power supply, public lighting, internal information and communications, administration and security houses, and other facilities to serve the operation of the industrial cluster.

7. Investors in production and business in an industrial cluster include enterprises, cooperatives and cooperative teams established in accordance with Vietnamese law; and individuals and households (for craft village industrial clusters) which register their business in accordance with law.

8. Industrial land area is the land area of an industrial cluster which may be leased or subleased to enterprises for production and business, which is identified in a detailed plan approved by a competent agency.

9. Area for construction of the system of common-use tehnical infrastructure facilities in an industrial cluster is the land area of an industrial cluster reserved for the construction of the system of common-use technical infrastructure facilities, which is identified in a detailed plan approved by a competent agency.

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Decree No. 68/2017/ND-CP dated May 25, 2017 of the Government on management and development of industrial clusters

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