Decree 82/2018/ND-CP prescribing the management of industrial parks and economic zones

DECREE

Prescribing the management of industrial parks
and economic zones^[1]

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

Pursuant to the November 26, 2014 Law on Investment;

At the proposal of the Minister of Planning and Investment;

The Government promulgates the Decree prescribing the management of industrial parks and economic zones.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation and subjects of application

1. This Decree prescribes the planning, establishment and operation of, policies toward, and state management of, industrial parks and economic zones.

2. This Decree applies to state management agencies, organizations and individuals related to investment, production and business activities in industrial parks and economic zones.

Article 2. Interpretation of terms

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

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

Industrial parks can be divided into different types, including export processing zones, supportive industrial parks and eco-industrial parks (below collectively referred to as industrial park, unless there are separate regulations applicable to each type of industrial park).

a/ Export processing zone means an industrial park that specializes in export production, provision of services for export production and export activities and is established under the conditions and according to the order and procedures applicable to industrial parks prescribed in this Decree.

Export processing zones shall be separated from  the outside according to  regulations applicable to non-tariff zones prescribed by the law on import duty and export duty;

b/ Supportive industrial park means an industrial park that specializes in production of supporting industry products and provision of services for production of supporting industry products. The area of land for lease or sublease to investment projects in supporting industries must account for at least 60% of the industrial land area available for lease in the industrial park. 

c/ Eco-industrial park means an industrial park where enterprises carry out cleaner production, efficiently use resources and cooperate with one another in production activities along the line of industrial symbiosis so as to increase economic, environmental and social effectiveness.

2. Industrial symbiosis in industrial parks means the cooperation among enterprises in an industrial park or different industrial parks in order to optimize the use of inputs and outputs such as raw materials, supplies, water, energy, wastes and scraps during the production and business process. Through cooperation, enterprises form a network for exchanging production-serving elements, sharing infrastructure works, jointly using production-serving services, improving technological processes, and raising production and business efficiency.    

3. Industrial-urban-service zone means a zone composed of different functional areas: industrial park, which is the major functional area; urban-service area, which has the function of supporting and providing social utility services for the industrial park (the urban-service area may be composed of functional sub-areas such as houses, hospitals, schools, research and development centers, enterprise incubators, and some other socio-economic facilities needed for the synchronous and sustainable development of the zone), and built with a view to ensuring economically, socially and environmentally effective and sustainable development of the industrial park. The area of the urban-service zone must not exceed one-third (1/3) of the area of the industrial park.

4. Industrial park expansion means the development of an industrial park to surrounding or adjacent areas capable of connecting or sharing technical infrastructure with the existing industrial park.

5. Industrial sub-area means part of an industrial park that has identified boundaries, conforms with the industrial park’s construction master plan, and specializes in production activities and provision of services serving production activities in a certain industry.

6. Investment project on development of industrial park infrastructure facilities means an investment project to build in an industrial park synchronous technical infrastructure facilities for lease or sublease to investors for construction of workshops and production and business activities in accordance with law.

7. Economic zone means an area that has identified geographical boundaries, is composed of several functional areas, and is established for the purposes of investment attraction, socio-economic development and national defense and security protection.

Economic zones prescribed in this Decree include coastal economic zones and border-gate economic zones (below collectively referred to as economic zones, unless there are separate regulations applicable to each type of economic zone);

a/ Coastal economic zone means an economic zone that is formed in a coastal area and adjacent areas and established under the conditions and according to the order and procedures prescribed in this Decree;

b/ Border-gate economic zone means economic zone that is formed in a land border area and adjacent areas where exists an international border gate or a main border gate and is established under the conditions and according to the order and procedures prescribed in this Decree.

8. Economic zone expansion means the development of an economic zone in surrounding or adjacent areas so as to increase its development potentials and spillover effects.

9. Industrial land area means the land area in an industrial park which is reserved for lease or sublease to investors for implementation of production and business projects in the industrial park, is determined in the approved construction detailed plan and construction zoning plan of the industrial park.

10. Export processing enterprise is an enterprise established and operating in an export processing zone or an enterprise specialized in export production and operating in an industrial park or economic zone.

Export processing enterprises located outside export processing zones shall be separated from the outside according to regulations applicable to non-tariff zones prescribed in the law on import duty and export duty.

11. Master plan on development of industrial parks and economic zones nationwide means a master plan formulated and approved in accordance with the planning law and this Decree.

12. Occupancy rate of an industrial park means the percentage (%) of the industrial land area already leased or sub-leased to investors for carrying out production and business activities to the total industrial land area of this industrial park.

13. Social, cultural and sports facilities in an industrial park or economic zone means all the works in direct service of the life and cultural and sports activities of workers in the industrial park or economic zone.

Chapter II

PLANNING OF, INVESTMENT IN AND ESTABLISHMENT OF INDUSTRIAL PARKS AND ECONOMIC ZONES  

Section 1

PLANNING OF, INVESTMENT IN AND ESTABLISHMENT OF INDUSTRIAL PARKS 

Article 3. Master plans on development of industrial parks

1. Based on the socio-economic development strategy; national overall master plans; and national- and provincial-level land use master plans, the Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate with related ministries, sectors and People’s Committees of provinces or centrally run cities (below collectively referred to as provincial-level People’s Committees) in, formulating and submitting to the Prime Minister for approval master plans on development of industrial parks.

2. The master plan of an industrial park located in an economic zone shall be integrated into the general construction plan of such economic zone and submitted to the Prime Minister for approval in accordance with the construction law. In case the industrial park has been included in the Prime Minister-approved general construction plan of the economic zone, it is not required to carry out procedures to add such industrial park to the concerned master plan on development of industrial parks.

3. Approved master plans on development of industrial parks and general construction plans of economic zones shall be used as the basis for consideration of the investment in, establishment and expansion of industrial parks; formulation of master plans  and plans on investment in the development of technical and social infrastructure systems for the development of industrial parks.

Article 4. Order of planning, establishment and expansion of industrial parks

1. The dossier of and procedures for adjusting a master plan on development of industrial parks and adding an industrial park to a master plan on development of industrial parks must comply with Articles 6 thru 11 of this Decree.

For cases of adjusting or supplementing the master plan of an industrial park located in an economic zone, it is required to carry out procedures for adjusting the general construction plan of such economic zone in accordance with the construction law.

2. The order and procedures for making investment policy decision for investment projects on development of industrial park infrastructure facilities, including also industrial parks in economic zones, must comply with the investment law, except those using public investment funds which must comply with the law on public investment.

3. The order and procedures for grant of investment registration certificates for investment projects on development of industrial park infrastructure facilities must comply with the investment law.

4. Provincial-level People’s Committees shall issue decisions on establishment and expansion of industrial parks under Article 13 of this Decree.

Article 5. Conditions for adding new industrial parks and expanded industrial parks to master plans on development of industrial parks  

1. In case of adding a new industrial park to the master plan on development of industrial parks of a province or centrally run city, at least 60% of the total industrial land areas of industrial parks already established in the province or centrally run city has been leased or sub-leased to investment projects which have been registered or granted with investment certificates.

2. Cases of adding an industrial park expanded from an existing industrial park, the following conditions must be met:

a/ At least 60% of the total industrial land area available for lease of the existing industrial park has been leased or sub-leased to investment projects which have been registered or granted with investment certificates and the industrial park’s centralized wastewater treatment facility has been built and put into use in accordance with the law on environment;

b/ The expanded industrial park’s infrastructure is connectable to that of the existing industrial park.

3. Ensuring conformity with regional and provincial master plans.

4. Having favorable conditions for or being capable of building technical and social infrastructure systems, synchronously implementing and closely combining the relevant master plan on development of industrial parks and master plans on urban development, population allocation, construction of houses and other social, cultural and sports facilities serving workers in the industrial park.

5. Meeting all conditions for development of industrial parks, including:

a/ Having a land area reserved for development and conditions for forming an industrial cluster;

b/ Being capable of attracting capital from domestic and foreign investors;

c/ Being capable of supplying labor to meet labor needs.

6. Ensuring conformity with requirements on national defense, security, environmental protection, natural resources, historical and cultural relics and scenic spots.

7. The condition on coverage rate of industrial parks prescribed in Clause 1 of this Article does not apply in the following cases:

a/ Adjusting or changing the planned location of an industrial park already included in a master plan on development of industrial parks without increasing the area of such industrial park;

b/ Adjusting the master plan on development of industrial parks in a locality without increasing the Prime Minister-approved total land area planned for development of industrial parks in such locality.

Article 6. Dossiers for addition of new and expanded industrial parks to master plans on development of industrial parks

1. A planning scheme on development of industrial parks in the territory of a province or centrally run city, which must have the following principal contents:

a/ The necessity and legal grounds of the addition of industrial parks or expanded industrial parks to the master plan;

b/ Assessment of the actual socio-economic situation and the set orientations for socio-economic development and industrial development in the province or centrally run city;

c/ Assessment of the actual situation of construction and development of industrial parks already established or planned for establishment in the province or centrally run city and their contributions to local socio-economic development;

d/ Name, location, land area, actual state and specific conditions for development of each new or expanded industrial park proposed for addition to the master plan;

dd/ Evaluation of and explanation about the possibility to satisfy the conditions prescribed in Article 5 of this Decree;

e/ Objectives and solutions for implementation of the master plan; possibility to raise investment capital for the construction and development of industrial parks;

g/ A planning map showing the plan for development of industrial parks.

2. A report of the provincial-level People’s Committee to the Prime Minister, proposing the addition of new and expanded industrial parks to the master plan on development of industrial parks.

3. A dossier shall be made in 10 sets, of which at least 2 sets are original (1 to be submitted to the Prime Minister and the remaining 9 sets, to the Ministry of Planning and Investment for appraisal under Article 7 of this Decree).

Article 7. Appraisal of the supplementation of a master plan on development of industrial parks

1. Appraisal contents:

a/ The legal grounds and necessity of the supplementation of the master plan on development of industrial parks;

b/ The conformity of the supplementation of the master plan on development of industrial parks with regional and provincial master plans;

c/ The degree of satisfaction of the respective conditions for the supplementation of the master plan on development of industrial parks;

d/ Objectives, solutions and allocation of resources for implementation of the master plan and feasibility of the supplementation of the master plan on development of industrial parks.

2. Appraisal order and procedures:

a/ Within 5 working days after receiving a dossier for supplementation of a master plan on development of industrial parks, the Ministry of Planning and Investment shall consult related ministries and sectors.

In case the dossier fails to satisfy the requirements specified in Article 6 of this Decree, the Ministry of Planning and Investment shall request in writing the provincial-level People’s Committee to supplement or modify the dossier. The time for dossier supplementation or modification shall not be counted into the appraisal time limit.

b/ Within 10 working days after receiving a valid dossier, ministries and sectors shall send their opinions to the Ministry of Planning and Investment.

When necessary, the Ministry of Planning and Investment shall organize meetings with related ministries and sectors and the provincial-level People’s Committee or form an Appraisal Council to clarify related issues.

c/ Within 30 working days after receiving a valid dossier, the Ministry of Planning and Investment shall consider and propose it to the Prime Minister for consideration and decision.

Article 8. Narrowing of industrial parks and exclusion of industrial parks from master plans on development of industrial parks

1. An industrial park included in a master plan on development of industrial parks may have its approved planned area decreased or be excluded from the master plan in order to suit the change or adjustment of relevant master plans and its investment attraction capacity; to meet requirements on national defense and security, protection of the environment, natural resources and historical and cultural relics; and to serve the need to change the use purpose of industrial park land for construction of urban centers, houses and social, cultural and sports facilities for industrial park workers.

2. Competent authorities’ approval of the narrowing of an industrial park and exclusion of an industrial park from a master plan on development of industrial parks shall be used as the basis for carrying out procedures for adjusting the industrial park’s construction master plan and change of use purposes of the industrial park’s land under relevant laws.

Article 9. Dossiers for narrowing of an industrial park or exclusion of an industrial park from a master plan on development of industrial parks

1. A report of the concerned provincial-level People’s Committee on the narrowing of an industrial park or exclusion of an industrial park from the master plan on development of industrial parks in the province or centrally run city, which must include the following principal contents:

a/ The necessity and legal grounds for adjustment of the master plan;

b/ Assessment of the current situation of construction and development of industrial parks already established or planned for establishment in the province or centrally run city, their contributions to local socio-economic development;

c/ A plan on the narrowing of the industrial park or exclusion of the industrial park from the master plan, clearly stating the name, location and current state of the industrial park; decreased area or area of the industrial park to be excluded from the master plan; reasons for the narrowing or exclusion;

d/ Conformity with local socio-economic development orientations; benefits and impacts of the adjustment of the master plan and measures for settlement.

In case of narrowing the industrial park or excluding the industrial park from the master plan in order to change the use purpose of land in the industrial park, there must be detailed assessments of the conformity with regional and provincial master plans; the satisfaction of the conditions for change of land use purposes in accordance with the specialized law (if any); the feasibility, effectiveness and economic, social and environmental impacts of the change of the land use purpose.

2. A report submitted to the Prime Minister by the provincial-level People’s Committee on the narrowing of the industrial park or exclusion of the industrial park from the master plan on development of industrial parks in the province or centrally run city.

3. A dossier shall be made in 9 sets, including at least 2 original sets (1 original dossier set shall be submitted to the Prime Minister), of which 8 sets shall be submitted to the Ministry of Planning and Investment for appraisal under Article 10 of this Decree.

Article 10. Appraisal of the narrowing of an industrial park or exclusion of an industrial park from a master plan on development of industrial parks

1. Appraisal contents:

a/ Legal grounds and necessity for decrease of the land area of an industrial park or exclusion of an industrial park from a master plan on development of industrial parks;

b/ Reasonability of the reasons for and plan of adjustment;

c/ Assessment of the conformity of the change of land use purposes; economic, social and environmental impacts of the adjustment plan in case the adjustment of the master plan on development of industrial parks involves the change of land use purpose.

2, Appraisal order and procedures:

a/ Within 5 working days after receiving a dossier for narrowing of an industrial park or exclusion of an industrial park from a master plan on development of industrial parks, the Ministry of Planning and Investment shall consult related ministries and sectors.

In case the dossier fails to meet the requirements prescribed in Article 9 of this Decree, the Ministry of Planning and Investment shall request in writing the concerned provincial-level People’s Committee to supplement or modify the dossier. The time for dossier supplementation and modification by the provincial-level People’s Committee shall not be counted into the appraisal time limit.

b/ Within 10 working days after receiving a valid dossier, ministries and sectors shall send their opinions to the Ministry of Planning and Investment.

When necessary, the Ministry of Planning and Investment may hold meetings with related ministries and sectors and the provincial-level People’s Committees or form an Appraisal Council to clarify related issues.

c/ Within 20 working days after receiving a valid dossier, the Ministry of Planning and Investment shall consider and propose it to the Prime Minister for consideration and decision.

d/ In case of adding a new or expanded industrial park to a master plan on development of industrial parks concurrently with narrowing an industrial park or excluding an industrial park from such master plan, it is required to prepare a scheme on adjustment of the master plan on development of industrial parks with the contents corresponding to each specific case prescribed in Clause 1, Article 6, and Clause 1, Article 9, of this Decree.

The appraisal order and procedures must comply with Clause 2, Article 7 of this Decree.

The appraisal contents must comply with regulations applicable to each case in Clause 1, Article 7 and Clause 1, Article 10, of this Decree.

Article 11. First-time adjustment and adjustment of the area of an industrial park after measurement and renaming of an industrial park

1. In case the area involved in the first-time expansion or narrowing of an industrial park is less than 10% of its approved planned area and concurrently does not exceed 30 hectares and the adjustment does not affect other master plans, the provincial-level People’s Committee shall, based on the opinions of the Ministry of Planning and Investment, Ministry of Natural Resources and Environment, Ministry of Construction, and other related ministries and sectors, decide on the adjustment of the land area of such industrial park without having to report the case to the Prime Minister.

2. In case the actual area of an industrial park is larger or smaller by less than 10% of its approved planned area but the difference does not exceed 20 hectares, the provincial-level People’s Committee shall consult the Ministry of Planning and Investment, Ministry of Natural Resources and Environment and Ministry of Construction and adjust the land area of the industrial park to match the actual area without having to report the case to the Prime Minister.

3. In case of renaming an industrial park without changing its location, boundaries and area specified in the Prime Minister-approved master plan on development of industrial parks, the provincial-level People’s Committee may decide on the renaming of the industrial park without having to report the case to the Prime Minister and shall issue a written notice to competent planning management agencies.

4. Other cases of adjusting the area of industrial parks than those prescribed in Clauses 1 and 2 of this Article shall be reported to the Prime Minister for consideration and decision under this Decree.   

Article 12. Conditions for consideration of and decision on investment policy for projects on development of infrastructure facilities of industrial parks and expanded industrial parks

1. Conditions for consideration of and decision on investment policy for a project on development of infrastructure facilities of an industrial park:

a/ Ensuring conformity with the approved master plan on development of industrial parks and land use master plan;

b/ At least 60% of the total industrial land area of existing industrial parks in the concerned province or centrally run city has been leased or sub-leased for projects for which investment has been registered or which have been granted with investment registration certificates.

2. Conditions for consideration of and decision on investment policy for a project on development of infrastructure facilities of an expanded industrial park:  

a/ Ensuring conformity with the approved master plan on development of industrial parks and land use master plan;

b/ The occupancy rate of the existing industrial park has reached at least 60%;

c/ The industrial park’s centralized wastewater treatment facilities have been built and put into use in accordance with the law on environment.

3. In case the project on development of infrastructure facilities of an existing industrial park and the project on development of infrastructure facilities of the expanded area of such industrial park are carried out by different investors, the conditions for consideration of and decision on investment policy for the project on development of infrastructure facilities of the expanded part of the industrial park are those applied to a new industrial park prescribed in Clause 1 of this Article.

4. For an industrial park of which the infrastructure development investment project has obtained an investment policy decision and investment license, investment certificate or certificate of registration for investment in and establishment of the industrial park but which is later subject to operation termination under the investment law and assigned to a new investor, the new investor’s project on development of infrastructure facilities of the industrial park will not be subject to the occupancy rate specified at Point b, Clause 1 of this Article.    

5. For an industrial park which has an area of 500 hectares or more, an industrial park of which the infrastructure has been determined to be jointly invested in and built by more than one investor with each of them making investment in an area of the park, or an industrial park which is closely associated with an urban-service zone or another centralized business zone under an overall scheme, it is required to make a general construction plan before making the construction zoning plan and detailed plan in accordance with the construction law.

6. For an industrial park which has an area of 200 hectares or more or is located next to a national highway, national defense zone, historical relic conservation zone, scenic spot, national or regional ecological conservation zone, or national tourist site or spot or within a grade-II, grade-I or special-grade urban center, there must be written opinions of the Ministry of  Construction, Ministry of Planning and Investment, line ministry and Ministry of National Defense (for industrial parks next to national defense zones) on the construction plan of the industrial park before such plan is submitted to the provincial-level People’s Committee for approval.

Article 13. Decision on establishment of industrial parks and expanded industrial parks

1. The provincial-level People’s Committee shall issue a decision on establishment of an industrial park or an expanded industrial park after competent agencies issue the following documents:

a/ Decision approving the industrial park’s construction plan;

b/ Investment registration certificate or investment policy decision (for projects not requiring investment registration certificates as prescribed by the investment law), granted to the investor implementing the investment project on development of infrastructure facilities of the industrial park; decision approving investment policy and investment decision issued by competent authorities, in case the investment project on development of infrastructure facilities of the industrial park uses public investment funds in accordance with the law on public investment.

2. Within 5 working days after the documents specified in Clause 1 of this Article are issued, the Industrial Park and Economic Zone Management Board or provincial-level Planning and Investment Department (for localities without Industrial Park and Economic Zone Management Boards) shall propose the provincial-level People’s Committee to establish the industrial park or expanded industrial park.

Within 5 working days after receiving the proposal report of the Industrial Park and Economic Zone Management Board or provincial-level Planning and Investment Department, the provincial-level People’s Committee shall issue a decision on the establishment of the industrial park or expanded industrial park.

3. The provincial-level People’s Committee’s decision on the establishment of the industrial park or expanded industrial park must contain the following details: name, area and location of the industrial park, investor, total investment capital and operation duration of the project on development of infrastructure facilities of the industrial park, which must be conformable with the contents of the documents specified in Clause 1 of this Article.

4. In case the content of a document specified in Clause 1 of this Article changes, prompting the modification of the decision on establishment of the industrial park or expanded industrial park, the order and procedures for such modification must comply with Clause 2 of this Article.

Section 2

PLANNING AND ESTABLSIHMENT OF ECONOMIC ZONES

Article 14. Master plans on development of economic zones

1. Based on the socio-economic development strategy; national overall master plan; and national and provincial-level land use master plans, the Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate with related ministries, sectors and People’s Committees of provinces or centrally run cities (below referred to as provincial-level People’s Committees) in, formulating and submitting to the Prime Minister for approval master plans on development of economic zones.

2. Approved master plans on development of economic zones shall be used as the basis for consideration of the establishment and expansion of economic zones; and formulation of master plans and plans on investment in the development of technical and social infrastructure systems serving the development of economic zones.

Article 15. Order of planning, establishment and expansion of economic zones

1. For economic zones and expanded economic zones not yet included in approved master plans on development of economic zones, it is required to carry out procedures to add such economic zones to these master plans under Articles 17 and 18 of this Decree.   

2. The order and procedures for establishment and expansion of economic zones already included in approved master plans on development of economic zones must comply with Articles 21, 22 and 23 of this Decree.

Article 16. Conditions for adding new economic zones to or expanding economic zones in master plans on development of economic zones   

1. Conditions for adding a new coastal economic zone to the master plan on development of coastal economic zones:

a/ Ensuring conformity with regional and provincial socio-economic development master plans and orientations;

b/ Occupying a geographical location favorable for regional economic development (having a deep-water seaport or an airport) and having easy access to national and international key transport routes; being easily supervised and convenient for domestic and overseas exchange; and having favorable conditions and resources for technical infrastructure investment and development;

c/ Having an area of at least 10,000 hectares and meeting requirements for integrated development of the economic zone;

d/ Being capable of attracting large-scale and important investment projects and works that have impacts on regional socio-economic development;

dd/ Being capable of promoting local potentials and creating spillover effects on surrounding areas;

e/ Neither exerting negative impacts on nature reserves nor badly affecting nor harming to tangible cultural relics, scenic spots, and architectural ensembles of historical, aesthetic and scientific value; being suitable to national defense arrangement and defense and security assurance; meeting the requirements for environmental and eco-environmental protection and sustainable development.

2. Conditions for adding a new border-gate economic zone to the master plan on development of border-gate economic zones:

a/ Ensuring conformity with national, regional and provincial socio-economic development master plans and orientations;

b/ Having an international border gate or main border gate in accordance with the law on management of land border gates; and composed of spatially inseparable administrative units;

c/ Having easy access to national key transport routes; being convenient for exchange with the neighboring country via a land border gate of such country; and having favorable conditions and resources for technical infrastructure investment;

d/ Meeting the requirements for integrated development of the border-gate economic zone, including trade, import and export, temporary import for export, transportation of in-transit goods, industrial production, tourism and services; being capable of promoting the potentials of the locality and surrounding areas, developing trade and attracting investment;

dd/ Ensuring close association between economic development and firm maintenance of security, political stability, social order and safety, and safeguarding of national sovereignty in border areas;

e/ Neither exerting negative impacts on nature reserves nor adversely affecting or harming tangible cultural relics, scenic spots, and architectural ensembles of historical, aesthetic and scientific value; meeting the requirements for environmental and eco-environmental protection and sustainable development.

3. Conditions for expanding an economic zone already included in a master plan on development of economic zones:

a/ The whole infrastructure system of the economic zone has been completely built under the general construction plan of the economic zone;

b/ At least 70% of the land area of functional areas in the economic zone has been allocated or leased for project implementation.

Article 17. Dossiers for addition of new economic zones to or expansion of economic zones in master plans on development of economic zones

1. A planning scheme on development of economic zones in the province or centrally run city, prepared by the provincial-level People’s Committee, which must have the following principal contents:

a/ The necessity and legal grounds of the supplementation of the master plan;

b/ Assessment of the actual socio-economic development situation and orientations on organization of development space; expected orientations for socio-economic development, organization of development space, the system of transport infrastructure, seaports and industries in the province or centrally run city;

c/ Assessment of the actual situation of construction and development of industrial parks, economic zones and other special territories (if any) already established and planned in the province or centrally run city;

d/ Assessment of the conformity and connectability of the area planned for development into an economic zone with relevant master plans;

dd/ Overall assessment of natural conditions, socio-economic development situation and technical and social infrastructure systems in the area planned for development into an economic zone; advantages and difficulties in the compensation for ground clearance, resettlement, environmental protection, national defense and security maintenance;

e/ Explanations about the satisfaction of the conditions for supplementation of master plans on development of economic zones prescribed in Article 16 of this Decree;

g/ Evaluation of the role and functions of the economic zone to provincial socio-economic development and regional development (if any); limitations and competitive advantages of the area planned for development into an economic zone;

h/ Socio-economic development orientations of the economic zone, including: socio-economic development objectives; organization of development space; technical and social infrastructure systems, sectors and trades, specifying which are key ones;

i/ A plan on establishment and development of the economic zone and implementation solutions;

k/ An administrative boundary map of the province or centrally run city displaying the planning of the economic zone; a land use map with orientations for preliminary planning of the economic zone.

2. A report of the provincial-level People’s Committee to the Prime Minister, proposing the addition of a new economic zone to or expansion of an economic zone in the master plan on development of economic zones.

3. A dossier shall be made in 10 sets, including at least 2 original sets (1 original set shall be submitted to the Prime Minister), of which 9 sets shall be submitted to the Ministry of Planning and Investment for appraisal under Article 18 of this Decree.

Article 18. Appraisal of supplementation of a master plan on development of economic zones

1. Appraisal contents:

a/ The legal grounds and necessity of the supplementation of the master plan on development of economic zones;

b/ The conformity of the supplementation of the master plan on development of economic zones with relevant regional and provincial master plans;

c/ The role and potential for socio-economic development; the possibility of satisfaction of the conditions for supplementation of the master plans on development of economic zones;

d/ The feasibility of the plan on establishment and development of the economic zone and implementation solutions.

2. Appraisal order and procedures:

a/ Within 5 working days after receiving a dossier for supplementation of a master plan on development of economic zones, the Ministry of Planning and Investment shall consult related ministries and sectors.

In case the dossier fails to satisfy the requirements specified in Article 17 of this Decree, the Ministry of Planning and Investment shall request in writing the provincial-level People’s Committee to supplement or modify the dossier. The time of dossier supplementation or modification shall not be counted into the appraisal time limit.

b/ Within 15 working days after receiving a valid dossier, ministries and sectors shall send their opinions to the Ministry of Planning and Investment.

When necessary, the Ministry of Planning and Investment may hold meetings with related ministries and sectors and the provincial-level People’s Committee or form an Appraisal Council to clarify related issues.

c/ Within 40 working days after receiving a valid dossier, the Ministry of Planning and Investment shall consider and propose it to the Prime Minister for consideration and decision.

Article 19. Dossiers for adjustment of the area of economic zones already included in master plans on development of economic zones

1. Cases of adjusting the area of an economic zone:

a/ Reducing the area of an economic zone compared to its approved planned area;

b/ Increasing the approved planned area of an economic zone by 10% at most.

Other cases of increasing the area of an economic zone must comply with the order and procedures for supplementation of master plans on development of economic zones prescribed in Articles 16, 17 and 18 of this Decree.

2. A dossier for adjustment of the area of an economic zone must comprise:

a/ A report of the provincial-level People’s Committee on adjustment of the master plan on development of economic zones in the province or centrally run city, which must have the following principal details:

- To-be-adjusted contents, necessity and grounds for adjustment of the master plan;

- Assessment of the socio-economic development situation, orientations on organization of development space; expected socio-economic development orientations, organization of development space, transport infrastructure systems, seaports, border gates and industries of the province or centrally run city;

- Assessment of the establishment and development of existing economic zones;

- Reasons for and assessment of the conformity of the adjustment of the master plan with relevant master plans;

- Advantages and difficulties in and impacts of the adjustment of the master plan on the achievement of the objectives of socio-economic development, environmental protection, national defense and security, and solutions;

- A map displaying the plan on adjustment of the economic zone.

b/ A report of the provincial-level People’s Committee to the Prime Minister, proposing the adjustment of the economic zone’s master plan in the master plan on development of economic zones.

2. A dossier shall be made in 9 sets, including at least 2 original sets (1 original set shall be submitted to the Prime Minister), of which 8 sets shall be submitted to the Ministry of Planning and Investment for appraisal under Article 20 of this Decree.

Article 20. Appraisal of the adjustment of the area of an economic zone in a master plan on development of economic zones

1. To-be-appraised contents:

a/ Legal grounds and necessity of the adjustment of the area of the economic zone in the master plan on development of economic zones;

b/ Conformity of the adjustment of the area of the economic zone with national, regional and provincial master plans;

c/ Plan and solutions for adjusting the economic zone’s master plan.

2. Order and procedures for appraisal:

a/ Within 5 working days after receiving a dossier for adjustment of an economic zone’s area, the Ministry of Planning and Investment shall consult related ministries and sectors.

In case the dossier fails to satisfy the requirements specified in Article 19 of this Decree, the Ministry of Planning and Investment shall request in writing the provincial-level People’s Committee to supplement or modify the dossier. The time for dossier supplementation or modification shall not be counted into the appraisal time limit.

b/ Within 10 working days after receiving a valid dossier, ministries and sectors shall send their opinions to the Ministry of Planning and Investment.

When necessary, the Ministry of Planning and Investment may hold meetings with related ministries and sectors and the provincial-level People’s Committee to clarify related issues.

c/ Within 30 working days after receiving a valid dossier, the Ministry of Planning and Investment shall consider and propose it to the Prime Minister for consideration and decision.

Article 21. Dossiers for establishment and expansion of economic zones

1. A scheme prepared by a provincial-level People’s Committee on the establishment or expansion of an economic zone must cover the following principal contents:

a/ The necessity and legal grounds for the establishment or expansion of the economic zone and its conformity with the approved master plan on development of economic zones;

b/ Assessment of elements and conditions regarding geological location, natural conditions, natural resources, socio-economic situation, advantages and limitations of the area planned for construction of the economic zone;

c/ Evaluation of and explanations about the conditions prescribed in Article 16 of this Decree;

d/ Development orientations, including: development objectives, characteristics and functions of the economic zone; orientations for development of industries and sectors; orientations for development of functional areas; and orientations for planning the land use in the economic zone;

dd/ Estimated total investment fund, methods for raising capital for investment in the infrastructure system of the economic zone; expected time of establishment of the economic zone; plan and roadmap for construction and development of the economic zone;

e/ Assessment of environmental protection issues, including: overall assessment of positive and negative impacts on the environment; identification of environmental and socio-economic elements affected by the establishment of the economic zone and the degree of effect; solutions for environmental protection when the economic zone is put into operation; and other contents (if any) in accordance with the law on environment; assessment of national defense and security assurance;

g/ Proposed solutions for and organization of implementation;

h/ A planning map displaying the planning of the economic zone.

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

3. A dossier shall be made in 10 sets, including at least 2 original sets (1 original set shall be submitted to the Prime Minister), of which 9 sets shall be submitted to the Ministry of Planning and Investment for appraisal under Article 22 of this Decree.

Article 22. Appraisal of the establishment or expansion of an economic zone

1. To-be-appraised contents:

a/ Legal grounds and necessity of the establishment or expansion of the economic zone;

b/ Conformity of the establishment or expansion of the economic zone with regional and provincial master plans;

c/ Objectives and targets of the establishment or expansion of the economic zone and arrangement of resources;

d/ Conditions for the establishment or expansion of the economic zone;

dd/ Solutions for implementation and feasibility of the plan on the establishment or expansion of the economic zone.

2. Appraisal order and procedures:

a/ Within 5 working days after receiving a dossier for establishment or expansion of an economic zone, the Ministry of Planning and Investment shall consult related ministries and sectors.

In case the dossier fails to satisfy the requirements specified in Article 21 of this Decree, the Ministry of Planning and Investment shall request in writing the provincial-level People’s Committee to supplement or modify the dossier. The time for dossier supplementation or modification shall not be counted into the appraisal time limit.

b/ Within 20 working days after receiving a valid dossier, ministries and sectors shall send their opinions to the Ministry of Planning and Investment.

When necessary, the Ministry of Planning and Investment may hold meetings with related ministries and sectors and the provincial-level People’s Committee or form an Appraisal Council to clarify related issues.

c/ Within 45 working days after receiving a valid dossier, the Ministry of Planning and Investment shall consider and report it to the Prime Minister for consideration and decision.

Article 23. Competence to decide on the establishment and expansion of economic zones

1. The Prime Minister shall decide on the establishment and expansion of economic zones in conformity with approved master plans on development of economic zones.

2. An economic zone may have different functional areas. The land area and location of each functional area shall be determined in the general construction plan of the economic zone approved by the Prime Minister.

Chapter III

POLICIES TOWARD INDUSTRIAL PARKS AND ECONOMIC ZONES

Article 24. Investment incentives for industrial parks and economic zones

1. Industrial parks are geographical areas eligible for investment incentives and entitled to preferential policies applicable to localities on the list of those with difficult socio-economic conditions in accordance with the investment law. Industrial parks located in localities on the list of those with extremely difficult socio-economic conditions may enjoy preferential policies applicable to localities on this list in accordance with the investment law.

2. Economic zones are geographical areas eligible for investment incentives and entitled to preferential policies applicable to localities on the list of those with extremely difficult socio-economic conditions in accordance with the investment law.

3. Eligible investment projects, principles and procedures for application of investment incentives to investment projects in industrial parks and economic zones must comply with the investment law.

4. Expenses for investment in the construction, operation or lease of apartment buildings and social infrastructure works serving workers in industrial parks and economic zones shall be considered deductible reasonable expenses when calculating taxable incomes of enterprises having investment projects in industrial parks or economic zones.

Investment projects to build houses, cultural and sports facilities and social infrastructure works serving workers in industrial parks and economic zones are entitled to incentives in accordance with the law on construction of social houses and relevant laws.

5. Competent agencies shall support investors and enterprises having investment projects in industrial parks and economic zones by performing administrative procedures related to investment, enterprises, land, construction, environmental issues, labor and trade under the “on-the-spot single-window” mechanism, and supporting labor recruitment and other related issued during project implementation.

Article 25. Modes of raising capital for investment in the construction of infrastructure facilities of industrial parks

1. Investment projects to build infrastructure facilities of industrial parks located in geographical areas with difficult or extremely difficult socio-economic conditions are entitled to supports from the central budget for investment in infrastructure facilities under target programs on infrastructure investment approved by competent authorities for each period.

2. Provincial-level People’s Committees shall balance local budgets to support investors to develop technical infrastructure systems inside and outside industrial parks; adopt policies to encourage investors and raise capital from other lawful sources for investment in the construction of infrastructure facilities of industrial parks.

Article 26. Modes of raising capital for investment in development of technical and social infrastructure systems of economic zones

1. Funds for constructing important technical and social infrastructure works and environmental protection and pollution treatment facilities of economic zones shall be allocated from local budgets’ development investment capital sources and targeted supports from the central budget. Conditions for, principles of and types of works eligible for central budget supports must comply with regulations of target programs on support for development of infrastructure facilities of economic zones approved by competent authorities.

2. Investment projects to build large infrastructure facilities playing a decisive role in the development of economic zones may issue project bonds in accordance with law.

3. Necessary technical and social infrastructure, service and public-utility facilities of economic zones may be funded with official development assistance (ODA) loans and concessional credit and provided with other technical assistance in accordance with law.

4. To raise investment capital in BOT, BT, BTO and other forms in accordance with the law on investment in the form of public-private partnership.

5. Investment projects on construction and commercial operation of infrastructure facilities of functional areas in economic zones may raise capital through leasing part or the whole of unleased land areas to financially capable and experienced investors for investment and sub-lease in accordance with law.

6. Investment projects on development of shared-use technical and social infrastructure facilities in economic zones may raise capital from the land fund in accordance with the land law.

Article 27. Entry, exit, travel and residence in economic zones

1. Foreigners and overseas Vietnamese who work, invest or carry out business activities in economic zones and their family members may be granted multiple-entry and exit visas with a suitable validity duration according to regulations; and may permanently or temporarily reside in economic zones and Vietnam in accordance with the law on residence and the law on foreigners’ entry, exit and residence in Vietnam.

2. For border-gate economic zones, the following provisions on entry, exit and travel shall apply:

a/ Citizens of a neighboring country’s district bordering on a Vietnam’s border-gate economic zone may travel through the border gate into such zone with laissez-passers granted by the bordering country’s competent authority or other valid papers in accordance with law and the treaty between Vietnam and the neighboring country. The duration of temporary residence of a citizen of a neighboring country who enters an economic zone with a laissez-passer is 15 days, provided that his/her laissez-passer remains valid for at least 45 days by the time of entry; in case he/she wishes to enter other places of the province of the border-gate economic zone, the provincial police office shall grant a one-time travel permit which will be valid for up to 15 days;          

b/ Holders of passports ineligible for visa exemption (being citizens of a bordering country or third country) are exempt from entry visas and may stay in the border-gate economic zone for up to 15 days. If these persons wish to travel as tourists to other areas of Vietnam under tours operated by Vietnamese international travel companies, the competent immigration management agency shall consider and grant them entry visas at the border-gate economic zone;

c/ Vehicles carrying cargoes of a neighboring country or third country may enter the border-gate economic zone according to business contracts between Vietnamese enterprises and foreign partners, must comply with road and waterway transport agreements between Vietnam and the bordering country and be subject to control and supervision by functional forces at the border gate. If these vehicles wish to deliver or receive cargoes outside the border-gate economic zone, they must comply with current relevant regulations.

Vehicle operators (ship crewmembers, vehicle drivers and their assistants) may enter and leave the border-gate economic zone with their passports, crewmember books, border identity cards or laissez passers granted by foreign authorities in conformity with the treaty between Vietnam and the concerned bordering country;

d/ Vietnamese cargo or vehicle owners and drivers who have business ties with neighboring countries’ partners may escort their cargoes or vehicles into these countries to deliver or receive cargoes with their identity cards or border laissez-passers or other lawful papers granted by competent Vietnamese authorities;

dd/ Vietnamese citizens who do business or reside in the commune, ward or township of a border-gate economic zone may travel to the  bordering country with their laissez-passers or other lawful papers in accordance with the treaty between Vietnam and this bordering country if obtaining permission from such country.

Article 28. Provisions on finance and credit applicable to economic zones

1. The sale and purchase, payment, transfer and other transactions between organizations and individuals carrying out business activities in border-gate economic zones may use Vietnam dong, Chinese yuan, Lao kip, Cambodian riel and other freely convertible foreign currencies in accordance with the law on foreign exchange management.

2. Credit institutions may be established and operate in economic zones in accordance with the law on credit institutions.

3. Domestic and foreign travelers and tourists entering non-tariff areas in border-gate economic zones may purchase imported goods there and bring them into inland Vietnam and are entitled to tax incentives under tax laws applicable to non-tariff zones in border-gate economic zones.

4. Organizations and individuals that record merits in raising non-refundable ODA capital and calling for investment projects in economic zones will be commended or rewarded under regulations promulgated by provincial-level People’s Committees after obtaining the Ministry of Finance’s consent.

Article 29. Temporary residence in industrial parks, export processing zones and export processing enterprises

1. No one is allowed to live in industrial parks and export processing zones.

2. Only investors and persons working in export processing zones or enterprises and persons having working relations with agencies, organizations and enterprises in export processing zones or export processing enterprises may enter and leave these zones or enterprises.

3. When necessary, foreigners (including managers, executive officers and experts) may temporarily reside in their enterprises in industrial parks or export processing zones under regulations of provincial-level People’s Committees. The temporary residence of foreigners must meet the following conditions:

a/ The temporary residence serves production or business activities of enterprises;

b/ There are no family members and relatives accompanying these foreigners;

c/ The procedures for registration and declaration of temporary residence under current regulations on entry, exit and residence of foreigners in Vietnam are completed;

d/ The accommodation for foreign managers, executive officers and experts shall be arranged separately from production workshops and office buildings and meet construction regulations applicable to residential buildings. Enterprises shall make temporary residence registration for foreigners and undertake to ensure security and order and that such residence does not affect the operation of industrial parks or export processing zones.

Article 30. Provisions exclusively applicable to export processing zones and export processing enterprises

1. Export processing zones and export processing enterprises are entitled to the legal regime applicable to exclusive customs areas and non-tariff areas, except regulations applied exclusively to non-tariff areas in border-gate economic zones. The status of export processing enterprise shall be stated in investment registration certificates or documents issued by competent investment registration agencies, for enterprises not required to obtain investment registration certificates. Investment registration agencies shall consult competent customs offices about enterprises’ capacity of meeting the conditions for customs inspection and supervision before granting investment registration certificates or issuing written certifications to investors.

2. In industrial parks, there may be areas reserved exclusively for export processing enterprises. Export processing zones, export processing enterprises and industrial parks’ areas reserved exclusively for export processing enterprises shall be separated from inland Vietnam with fences and walls  which have gates to secure the inspection, supervision and control by customs offices and relevant functional agencies under regulations applicable to non-tariff zones and the law on import duty and export duty.

3. Export processing enterprises may purchase construction materials, stationery, food, foodstuffs and consumer goods from inland Vietnam to serve construction activities, office administration and daily-life activities of their staff members and workers.

Export processing enterprises and those selling goods to export processing enterprises may choose to or not to carry out import, export and customs procedures for the above-said goods.

4. Customs procedures and customs inspection and supervision of exported and imported goods of export processing zones and export processing enterprises must comply with the customs law.

5. Relations of goods exchange between export processing zones or export processing enterprises and other areas other than non-tariff areas in the Vietnamese territory shall be regarded as import and export relations, except the cases prescribed in Clause 3 of this Article and cases not requiring customs procedures prescribed by the Ministry of Finance

Export processing enterprises may sell into inland Vietnam their liquidated assets and goods in accordance with the law on investment and trade. At the time of sale or liquidation of goods or assets into inland Vietnam, the policy on management of imports and exports shall not apply, except for goods subject to management based on conditions and criteria which have not gone through specialized inspection upon their importation; as for goods managed by permits, written consent of import licensing agencies is required.

6. When carrying foreign currencies from inland Vietnam into export processing zones or export processing enterprises and vice versa, workers in these export processing zones and enterprises are not required to declare them to the customs authority.

7. When permitted to carry out goods sale and purchase activities and activities directly related to sale and purchase of goods in Vietnam, export processing enterprises shall open account books for separately accounting turnover and expenses related to these activities and arrange areas for storing such goods separately from goods serving their production activities or shall establish branches located outside export processing enterprises or export processing zones to carry out these activities.

8. The mechanisms applicable to export processing enterprises prescribed in this Articles shall also apply to their branches if the conditions prescribed in Clause 2 of this Article are met and the branches are established in export processing zones, industrial parks or economic zones and are dependent cost-accounting units of these enterprises.

Article 31. Rights and obligations of enterprises operating in industrial parks, economic zones and investors developing infrastructure facilities of  industrial parks and economic zones

1. Enterprises operating in industrial parks or economic zones and investors developing infrastructure facilities of industrial parks or economic zones have all the rights and obligations of investors as prescribed in the law on investment, the law on enterprises and relevant laws.

2. Investors developing infrastructure facilities of industrial parks or functional areas of economic zones may set the rental rates for lease or sub-lease of land areas with technical infrastructure facilities and charges for use of other related infrastructure facilities in accordance with law and register the brackets of rental and charge rates with Industrial Park or Export Processing Zone Management Boards. The registration of rental and charge rate brackets shall be made once every 6 months or upon change of registered ones.

3. In case a project on development of infrastructure facilities of an industrial park is implemented by more than one investor, these investors shall jointly take responsibility for the synchronicity of the technical infrastructure system of the industrial park under this Decree.

4. Investors that develop infrastructure facilities of industrial parks and investors that lease or sub-lease land areas with infrastructure facilities in industrial parks may build for lease workshops of different types, including multi-story ones, in industrial parks in accordance with the construction law, the Ministry of Construction’s guidance and other relevant laws.

5. Investors that develop infrastructure facilities of industrial parks and functional areas of economic zones shall build and operate centralized wastewater treatment facilities and other environmental protection facilities (if any) in accordance with the law on environmental protection.

6. Investors that develop infrastructure facilities of industrial parks and functional areas of economic zones and have received state budget supports for investment activities shall maintain and operate such infrastructure systems serving production and business activities of enterprises that lease land in industrial parks and functional areas of economic zones.

In case of transfer of investment projects or equitization of state enterprises, the handling of assets formed from state budget supports for industrial parks and functional areas in economic zones must comply with the law on management of state capital and equitization.

7. To comply with regulations on security and order maintenance, occupational safety and health, business culture, environmental protection, and fire prevention and fighting. To coordinate with public security forces and competent agencies in working out plans on fire and explosion prevention and fighting and maintenance of security and social order and safety in the areas.

8. To make statistical reports to competent agencies in accordance with law.

Article 32. Development of houses and social, cultural and sports facilities for workers in industrial parks and economic zones

1. The State encourages organizations and individuals to invest in building houses for lease to workers in industrial parks and economic zones; and employers and enterprises developing infrastructure facilities of industrial parks and economic zones to invest in building social, cultural and sports facilities for workers in industrial parks and economic zones.

2. Houses and social, cultural and sports facilities built under Clause 1 of this Article must satisfy the criteria on area, quality, landscape, safety and environment in accordance with law.

3. People’s Committees at all levels shall create favorable conditions for workers to have access to medical, educational, social, cultural and sports services available in their localities.

4. Houses and social, cultural and sports facilities for workers in industrial parks shall be planned in conformity with local master plans on industrial parks. Provincial-level People’s Committees shall plan and arrange land areas at suitable locations for the building of houses and social, cultural and sports facilities for workers in industrial parks. In the process of carrying out investment procedures for projects on development of infrastructure facilities of industrial parks, investors shall report their plans on building houses and social, cultural and sports facilities for workers in industrial parks to investment registration agencies.

5. For industrial parks meeting with difficulties regarding houses and social, cultural and sports facilities for workers, the Ministry of Planning and Investment shall, based on the practical situation and proposals of the investors that develop infrastructure facilities of such industrial parks, assume the prime responsibility for, and coordinate with the Ministry of Construction in, proposing the Prime Minister to adjust the areas of these industrial parks in the master plan on development of industrial parks so as to reserve part of the land areas of these industrial parks for building houses and social, cultural and sports facilities for workers. After obtaining the Prime Minister’s approval, provincial-level People’s Committees shall approve adjustments to the construction plans of such industrial parks in accordance with the construction law.

In case the land area planned for construction of houses and social, cultural and sports facilities for workers in an industrial park is adjacent to such industrial park, the provincial-level People’s Committee shall approve the construction plan of the industrial park in association with the plan on construction of houses and social, cultural and sports facilities for its workers.

The Ministry of Finance and related ministries and sectors shall determine and guide the application of investment incentives and promotion for investment projects to build houses and social, cultural and sports facilities in industrial parks and economic zones.

Chapter IV

SOME TYPES OF INDUSTRIAL PARKS

Section 1

GENERAL PROVISIONS

Article 33. Development of supportive industrial park and eco-industrial parks

1. The State encourages and adopts measures to support organizations and individuals to establish or shift the whole or part of industrial parks included in approved master plan to operate after the model of supportive industrial park or eco-industrial park under this Decree.

2. Investors that develop infrastructure facilities or lease or sub-leases land areas with infrastructure facilities in supportive industrial parks and eco-industrial parks are entitled to incentives for investment in industrial parks and geographical area-, sector- and trade-based incentives in accordance with law and support from competent state agencies regarding administrative procedures, technical consultancy, investment promotion and provision of investment cooperation information under this Decree.

Section 2

SUPPORTIVE INDUSTRIAL PARKS

Article 34. Objectives of development of supportive industrial parks

1. To develop supportive industrial parks in order to concretize and implement strategies and plans on development of key industries and supporting industries in each period.

2. To form production chains between industrial parks and enterprises located therein; to renew the foreign investment attraction structure; to transfer advanced and modern technologies and production techniques through cooperation in investment and business between domestic and foreign enterprises operating in supporting industries.

Article 35. Policies to encourage the development of supportive industrial parks

1. For investment projects on development of infrastructure facilities of supportive industrial parks, including also areas reserved for supporting industries in industrial parks:

a/ To be entitled to exemption from or reduction of land rental in accordance with the land law; lease of land for up to 70 years;

b/ To be given priority in borrowing the State’s development investment credit and on-lent preferential ODA loans, to be considered for grant of government guarantee for raising capital from overseas and raising capital in other lawful forms in accordance with the law on enterprises, the law on credit and other relevant laws;

c/ To be included in the list of national key projects calling for investment cooperation.

2. For investment projects on production of supporting industry products in supportive industrial parks:

a/ To be entitled to enterprise income tax, import duty and export duty and other incentives in accordance with the law on tax, the law on development of supporting industries and other relevant laws;

b/ For projects to produce products on the list of supporting industry products prioritized for development under the law on development of supporting industries, procedures for certifying eligibility for investment incentives shall be completed by competent state agencies within 30 days.

c/ To be given priority in participating in training programs and support programs for startups, small- and medium-sized enterprises and other programs implemented by competent state agencies.

3. To enjoy the incentives prescribed in Clause 1 of this Article, an investment project on development of infrastructure facilities of a supportive industrial park or areas reserved for supporting industries in an industrial park must meet all the following conditions:

a/ The investor that develops infrastructure facilities of the supportive industrial park has determined supporting industries prioritized for calling for investment according to the Government’s regulations on supporting industries;

b/ The industrial land for lease or sub-lease to investment projects in supporting industries accounts for at least 60% of the industrial land available for lease in the industrial park;

c/ The dossier of the project on development of infrastructure facilities of the industrial park must demonstrate the contents specified at Points a and b of this Clause and clearly specify the type of the industrial park. Competent agencies shall state the type of supportive industrial park in the investment policy decision or investment registration certificate or in a document issued by the investment registration agency, for cases not requiring investment registration certificates in accordance with the investment law.

Section 3

INDUSTRIAL-URBAN-SERVICE ZONES

Article 36. Objectives of development of industrial-urban-service zones

1. To form synchronous areas in terms of technical and social infrastructure facilities, improving operational effectiveness of industrial parks, and combining the development of industrial parks with the urbanization process in localities.

2. To settle issues concerning accommodation, cultural and sports facilities and other social facilities so as to ensure the life of workers in industrial parks and sustainably develop industrial parks. 

3. To contribute to reasonably distributing population in localities where concentrate many industrial parks and develop new urban centers with synchronous technical and social infrastructure facilities.

4. To form industrial, urban and service areas having a modern living and working environment with sufficient and convenient facilities for inhabitants and workers; to strive for the formation of industrial cities and smart cities up to international standards.

Article 37. Order and procedures for planning industrial-urban-service zones

1. The order and procedures for adjusting or adding industrial-urban-service zones to master plans on development of industrial parks and establishment of industrial-urban-service zones are those for adjustment and supplementation of master plans on development of industrial parks and establishment of industrial parks prescribed in this Decree.

2. In addition to those prescribed in Article 6 of this Decree, a dossier for adjustment or addition of an industrial-urban-service zone to a master plan on development of industrial parks must have the following details:

a/ The expected scope, area and structure of land in each functional area of the industrial-urban-service zone; assessment of the conformity between the industrial park’s demand for social utility services and the size of the urban-service area;

b/ The conformity of each functional area of the industrial-urban-service zone with relevant master plans.

Article 38. Order and procedures for investment in industrial-urban-service zones

1. The whole infrastructure system of the industrial park and functional areas in an industrial-urban-service zone may be invested by one or more than one investor.

2. In case of making investment in the development of the infrastructure system of an industrial-urban-service zone under an overall project, the investor(s) shall comply with the investment order and procedures applicable to investment projects on development of infrastructure facilities of industrial parks in accordance with the investment law.

In case of making investment under separate projects for each functional area, the investor of each project shall comply with the investment order and procedures applicable to its project in accordance with the investment law and other relevant specialized laws.

3. Projects on development of urban-service areas shall be implemented concurrently or after the construction of basic infrastructure facilities of the industrial park is completed.

Investors of projects on development of functional areas shall work together so as to ensure the synchrony of technical infrastructure facilities; urban-services areas must provide social infrastructure services for workers in the industrial park.

4. After investment procedures are completed in accordance with the investment law and this Decree, the construction and management of functional areas of the industrial-urban-service zone must comply with relevant laws applicable to each functional area.

Article 39. Incentives for investment in industrial-urban-service zones

1. Investors having projects on development of infrastructure facilities of industrial-urban-service zones shall conduct independent cost accounting for production and business activities of functional areas.

Functional areas are entitled to investment incentives regarding enterprise income tax, import duty, export duty, exemption from and reduction of land rental and other investment incentives in accordance with relevant provisions applicable to them in accordance with the tax law, land law and other relevant laws.

2. Investors carrying out production and business activities in industrial parks of industrial-urban-service zones are entitled to investment incentives applicable to industrial parks prescribed in this Decree. Investors implementing production and business activities in other functional areas of industrial-urban-service zones are entitled to investment incentives in accordance with the laws applicable to these functional areas.

Section 4

ECO-INDUSTRIAL PARKS

Article 40. Objectives of development of eco-industrial parks

1. To increase economic effectiveness of enterprises in industrial parks through application of cleaner production methods, efficiently using natural resources and forming industrial symbiosis.

2. To improve the effectiveness of environmental protection in industrial parks and surrounding areas through minimizing polluting and waste sources and encouraging the use of clean technologies and cleaner and environment-friendly production methods.

3. To form industrial park business communities capable of competing in the market, protecting and developing the living environment for communities surrounding industrial parks, and realizing sustainable development goals.

Article 41. Policies to encourage development of eco-industrial parks

1. To encourage investors having projects on development of infrastructure facilities of industrial parks to build complete technical and social infrastructure facilities, provide high-quality infrastructure services, connect and support enterprises in industrial parks in forming industrial symbiosis with a view to becoming eco- industrial parks.

2. To encourage enterprises in industrial parks to renovate management and operation processes, renew and apply technologies toward cleaner production, reduce sources of pollution, reuse wastes and scraps and use natural resources efficiently.

3. Enterprises in industrial parks are encouraged to coordinate with one another or with third parties so as to jointly use or share the provision of services, infrastructure facilities, raw materials and production input elements; may re-use redundant wastes, scraps and energies of their own and other enterprises in industrial parks so as to reduce costs and increase their operational efficiency and competitiveness.

4. The construction of new eco-industrial parks shall be carried out through planning and rationally arranging functional areas to attract enterprises operating in sectors and trades which are similar or supportive to one another so as to create conditions for enterprises to form industrial symbiosis.

5. Industrial Park or Economic Zone Management Boards shall assign attached public non-business units or appropriate units to perform the function of providing information and connecting enterprises in forming industrial symbiosis.

6. Agencies, organizations and investors are encouraged to build databases on effective use of natural resources in industrial parks so as to support and connect enterprises in carrying out industrial symbiosis activities.

Article 42. Criteria for identifying an eco-industrial park

1. Investors developing industrial park infrastructure facilities and enterprises in industrial parks strictly observe the law on production and business activities, environmental protection and labor; investors developing industrial park infrastructure facilities and enterprises in industrial parks are encouraged to apply production and environment management systems under appropriate standards of the International Standardization Organization (ISO).

2. Investors developing industrial park infrastructure facilities provide basic services in the industrial parks as prescribed by law, including: essential infrastructure services (electricity, water, communications, fire prevention and fighting, etc.) and related services.

3. At least 90% of enterprises in industrial parks are aware of efficient use of natural resources and cleaner production and at least 20% of enterprises in industrial parks apply solutions for efficient use of natural resources and cleaner production, renew and renovate managerial methods and production technologies to reduce wastes and pollutants and reuse wastes and scraps.

4. At least 25% of the land area of the industrial park is reserved for trees, transport and common-use service infrastructure facilities in accordance with the Ministry of Construction-promulgated construction standards.

5. At least one industrial symbiosis association and 10% of enterprises in the industrial park have plans to participate in industrial symbiosis association.

6. There are solutions for ensuring accommodation and social, cultural and sports facilities for workers in the industrial park.

7. Investors developing industrial park infrastructure facilities and enterprises in industrial parks shall adopt mechanisms for supervising output and input factors of the industrial park regarding use of energies, water and basic production materials and management of hazardous substances; make annual reports on results of energy conservation and pollution surveillance of the industrial park to the local Industrial Park and Economic Zone Management Board.

8. Investors developing industrial park infrastructure facilities shall send annual reports on environmental protection, social responsibility performance and contribution to communities surrounding industrial parks to the local Industrial Park and Economic Zone Management Board and publish them on their websites.

Article 43. Incentives for enterprises in eco-industrial parks

1. Industrial parks meeting the criteria prescribed in Article 42 of this Decree shall be certified as eco-industrial parks by provincial-level People’s Committees of the localities where they are located after the latter consult the Ministry of Planning and Investment, Ministry of Natural Resources and Environment, Ministry of Industry and Trade, and Ministry of Construction.

2. Enterprises operating in industrial parks and participating in cleaner production, efficient use of energy and industrial symbiosis activities shall be certified as eco-enterprises by Industrial Park and Export Economic Management Boards.

3. Enterprises developing infrastructure facilities of eco-industrial parks and eco-enterprises are entitled to borrow preferential loans from the Vietnam Environmental Protection Fund, the Vietnam Development Bank and domestic and foreign funds, financial institutions and donors to build technical infrastructure facilities of the industrial parks, apply cleaner production methods and industrial symbiosis solutions.

4. Enterprises developing infrastructure facilities of eco-industrial parks and eco-enterprises will be given priority in participating in technical support programs and investment promotion programs organized or managed by state agencies.

5. Enterprises operating in eco-industrial parks will be given priority in having access to information relating to technology markets and possibility of cooperation for conducting industrial symbiosis in production and business activities.

Article 44. Order and procedures for registration and certification of eco-industrial parks

1. Investors developing infrastructure facilities of industrial parks shall make 4 dossier sets of registration for certification as eco-industrial park, clearly proving the satisfaction of the criteria prescribed in Article 42 of this Decree and send them to local Industrial Park and Economic Zone Management Boards. Local Industrial Park and Economic Zone Management Boards shall assign a unit to receive these dossiers.

2. Within 3 working days after receiving a registration dossier, the Industrial Park and Economic Zone Management Board shall send it to the Ministry of Planning and Investment, Ministry of Natural Resources and Environment, Ministry of Industry and Trade, and Ministry of Construction for opinion.

3. Within 7 working days after receiving the Industrial Park and Economic Zone Management Board’s request, the agencies specified in Clause 2 of this Article shall reply whether or not the industrial park meets the criteria on eco-industrial parks prescribed in Article 42 of this Decree.

4. Within 15 working days after receiving the opinions of the agencies specified in Clause 2 of this Article, the Industrial Park and Economic Zone Management Board shall make a report assessing the satisfaction of the criteria prescribed in Article 42 of this Decree.

5. In case the assessment result is satisfactory, the Industrial Park and Economic Zone Management Board shall report such to the provincial-level People’s Committee to grant a certificate of eco-industrial park to the industrial park. The investor shall be notified of the issuance right after the certificate is signed.

6. In case the assessment result is unsatisfactory, within 3 working days after the assessment result is available, the Industrial Park and Economic Zone Management Board shall notify such in writing to the enterprise and clearly state the reason.

7. In case of certifying eco-enterprises under Clause 2, Article 43 of this Decree, within 15 working days after receiving a dossier of registration for certification as eco-enterprise, the Industrial Park and Economic Zone Management Board shall seek opinions from relevant agencies for use as the basis for consideration and certification.

Chapter V             

STATE MANAGEMENT OF INDUSTRIAL PARKS AND ECONOMIC ZONES

Article 45. Contents of state management of industrial parks and economic zones

1. Elaborating and directing the implementation of master plans, plans and policies on development of industrial parks and economic zones.

2. Promulgating, guiding, disseminating, and organizing the implementation of, policies, laws, standards and technical regulations relating to the establishment, investment, construction, development and management of operation of industrial parks and economic zones; building and managing the system of information on industrial parks and economic zones; organizing the promotion of investment in industrial parks and economic zones.

3. Granting, modifying and revoking investment policy decisions, investment registration certificates, enterprise registration certificates, permits, licenses and certificates; organizing performance of administrative procedures and provision of supportive services related to investment, production and business activities of organizations and individuals in industrial parks and economic zones.

4. Organizing the apparatus of and providing professional training and retraining for state management agencies in charge of industrial parks and economic zones.

5. Guiding, assisting, evaluating investment efficiency, examining, supervising, inspecting, settling complaints and denunciations, offering commendation and reward, handling violations and solving problems arising in the course of formation and development of industrial parks and economic zones.

Article 46. Powers and responsibilities for state management of industrial parks and economic zones

1. The Government shall perform the unified state management of industrial parks and economic zones nationwide by assigning specific tasks and powers to each ministry, sector, provincial-level People’s Committee and Industrial Park and Economic Zone Management Board as prescribed in this Decree; direct the elaboration and implementation of master plans and plans on development of, and the promulgation of policies and legal documents on, industrial parks and economic zones.

2. The Prime Minister has the following powers and responsibilities:

a/ To direct ministries, sectors, provincial-level People’s Committees and Industrial Park and Economic Zone Management Boards in implementing laws and policies on industrial parks and economic zones;

b/ To approve and adjust master plans on development of industrial parks and economic zones;

c/ To decide on investment in projects falling under his/her competence; to decide on the establishment and expansion of economic zones; to approve and adjust general construction plans of economic zones; to permit the expansion and narrowing and change of approved use purposes of land in industrial parks and functional areas of economic zones;

d/ To direct the handling and settlement of problems arising in the course of planning, establishment, investment, administration and management of operation of industrial parks and economic zones which are beyond the competence of ministries, sectors, provincial-level People’s Committees and Industrial Park and Economic Zone Management Boards.

3. Ministries, sectors and provincial-level People’s Committees shall, within the ambit of their respective functions, tasks and powers, perform the state management of industrial parks and economic zones based on their sectors, areas or administrative territories; guide, assign and authorize Industrial Park and Economic Zone Management Boards to perform a number of state management tasks falling under their competence as prescribed in this Decree and relevant laws.

Article 47. Powers and state management responsibilities of the Ministry of Planning and Investment

1. To assume the prime responsibility for assisting the Government in performing the unified state management of industrial parks and economic zones.

2. To assume the prime responsibility, and coordinate with the Ministry of Construction, Ministry of Natural Resources and Environment, Ministry of National Defense, Ministry of Industry and Trade, and related ministries, sectors and provincial-level People’s Committees in, elaborating master plans on development of industrial parks and economic zones, and submitting them to the Prime Minister for approval.

3. To assume the prime responsibility for, and coordinate with related ministries and sectors in, drafting legal documents and policies on development of industrial parks and economic zones, and submitting them to competent state agencies for promulgation;

4. To assume the prime responsibility for, and coordinate with related ministries and sectors in, guiding the construction of eco-industrial parks;

5. To assume the prime responsibility for, and coordinate with related ministries and sectors in, providing professional guidance and training for Industrial Park and Economic Zone Management Boards.

6. To assume the prime responsibility for, and coordinate with the Ministry of Finance and related ministries and sectors in, working out plans on the central budget’s supports for investment projects on development of infrastructure facilities of industrial parks in localities with difficult and extremely difficult socio-economic conditions under the Prime Minister’s decisions; and plans on the central budget’s supports for investment in the development of technical and social infrastructure systems of economic zones under this Decree; in creating mechanisms for raising funds from other sources for investment in the development of infrastructure facilities of industrial parks and economic zones.

7. To assume the prime responsibility for, and coordinate with related ministries, sectors, provincial-level People’s Committees and Industrial Park and Economic Zone Management Boards in, elaborating and implementing national programs and plans on promotion of investment in industrial parks and economic zones.

8. To build and manage the national system of information on industrial parks and economic zones; to set forms of periodical reports and provide information on industrial parks and economic zones to related governmental agencies.

9. To review and evaluate socio-economic results and benefits of industrial parks and economic zones.

10. To assume the prime responsibility for, and coordinate with the Ministry of Home Affairs in, guiding Industrial Park and Economic Zone Management Boards in performing their functions and tasks and building their organizational structures.

11. To promulgate, and guide the implementation of, regulations on making reports and statistics on industrial parks and economic zones.

Article 48. Powers and state management responsibilities of the Ministry of Home Affairs

1. To guide the establishment, classification, grading and reorganization of Industrial Park and Economic Zone Management Boards.

2. To appraise schemes on establishment and reorganization of Industrial Park and Economic Zone Management Boards and submit them to the Prime Minister for consideration and decision.

Article 49. Powers and state management responsibilities of the Ministry of Finance 

1. To specify financial mechanisms and policies applicable to Industrial Park and Economic Zone Management Boards and non-business economic units acting as investors of investment projects on development of infrastructure facilities of industrial parks and economic zones in accordance with law.

3. To guide the implementation of the provisions of Clause 4, Article 24 of this Decree.

Article 50. Powers and state management responsibilities of the Ministry of Construction

1. To promulgate regulations guiding Industrial Park and Economic Zone Management Boards in performing the state management of the construction of technical infrastructure works and other facilities in industrial parks and economic zones; construction and development of houses and cultural and sports facilities for industrial park and economic zone workers; and the urban management and development in economic zones.

2. To promulgate regulations guiding the construction of multi-story workshops in industrial parks and economic zones referred to in Clause 4, Article 31 of this Decree.

3. To promulgate regulations on, and guide the assignment and authorization of Industrial Park and Economic Zone Management Boards to perform the tasks of state management of construction activities in industrial parks and economic zones in accordance with the construction law.

4. To guide construction standards applicable to eco-industrial parks.

Article 51. Powers and state management responsibilities of the Ministry of Industry and Trade

1. To perform the state management of industrial, import, export and trade activities in industrial parks and economic zones; to direct and set orientations for development of industries in industrial parks and economic zones in line with the approved region- and territory-based industrial development strategies, master plans and plans.

2. To authorize Industrial Park and Economic Zone Management Boards to grant certificates of origin for goods produced in industrial parks and economic zones when conditions for such authorization are fully met.

3. To guide the grant of business licenses and papers of equivalent validity for goods subject to specialized management by the Ministry of Industry and Trade.

4. To guide the sale and purchase of goods and activities directly related to sale and purchase of goods by foreign-invested economic entities and investors headquartered in industrial parks and economic zones.

Article 52. Powers and state management responsibilities of the Ministry of Natural Resources and Environment

1. To issue guidance on management and protection of the environment in industrial parks and economic zones.

2. To guide the authorization of Industrial Park and Economic Zone Management Boards to perform the tasks of state management of  environmental issues prescribed at Point dd, Clause 3, Article 63 of this Decree and a number of tasks of state management of natural resources and environment in industrial parks and economic zones in accordance with the law on environmental protection.

3. To guide the reuse of wastes, scraps and surplus energies in eco-industrial parks falling under its state management powers and responsibilities.

Article 53. Powers and state management responsibilities of the Ministry of Science and Technology

1. To assume the prime responsibility for, and coordinate with and guiding localities in, conducting technology appraisal and assessment, assessment of technological levels and appraisal of technology transfer contracts in industrial parks and economic zones.

2. To guide Industrial Park and Economic Zone Management Boards in performing the state management of science and technology in industrial parks and economic zones.

3. To guide the reuse of wastes, scraps and surplus energies in eco-industrial parks falling under its state management powers and responsibilities.

Article 54. Powers and state management responsibilities of the Ministry of Labor, War Invalids and Social Affairs

To guide the authorization of Industrial Park and Economic Zone Management Boards in performing the tasks of state management of labor prescribed at Point c, Clause 3, Article 63 of this Decree and other relevant legal documents.

Article 55. Powers and state management responsibilities of the Ministry of Public Security

1. To perform the function of state management of security, order and fire prevention and fighting in industrial parks and economic zones.

2. To promulgate guiding regulations on and perform the state management of entry, exit, residence and temporary residence applicable to economic zones.

3. To assume the prime responsibility for, and coordinate with the Ministry of Public Defense in, guiding the implementation of regulations on foreigners’ entry, exit, residence and temporary residence in economic zones.

Article 56. Powers and responsibilities of the Ministry of National Defense

1. To perform the function of state management of national defense and coordinate with the Ministry of Public Security in protecting national security and maintaining social order and safety in economic zones and seaports therein in accordance with law.

2. To direct and guide the Border Guard Force to organize, arrange and use forces and equipment to control entry and exit and to inspect, control and  supervise people and vehicles entering, leaving and operating in economic zones and seaports in economic zones in accordance with law. To assume the prime responsibility for, and coordinate with the public security forces, related sectors and local administrations in, ensuring security, order and social safety in economic zones and seaports therein in accordance with law.

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

 Article 57. Powers and state management responsibilities of the Ministry of Culture, Sports and Tourism

1. To guide Industrial Park and Economic Zone Management Boards in performing the state management of tourist activities in economic zones.

2. To guide Industrial Park and Economic Zone Management Boards to grant, renew, modify and extend licenses for establishment of representative offices and branches of foreign tourist companies in economic zones.

Article 58. Powers and state management responsibilities of the Government Inspectorate

To coordinate with related ministries and sectors in guiding the inspection and settlement of complaints and denunciations and corruption prevention and control in industrial parks and economic zones in accordance with law.

 Article 59. Powers and state management responsibilities of line ministries

In addition to the tasks and powers specified in Articles 48, 49, 50, 51, 52, 53, 54, 55, 56, 57, and 58 of this Decree, ministries and ministerial-level agencies also have powers and responsibilities for state management of industrial parks and economic zones, specifically:

1. To give written opinions on investment projects subject to investment policy decision by the Prime Minister, projects in areas subject to conditional investment and other projects implemented in industrial parks and economic zones in accordance with the investment law.

2. To promulgate regulations on conditions, order and procedures for provision of public administrative services by Industrial Park and Economic Zone Management Boards.

3. To guide, examine, supervise, inspect and handle administrative violations according to their competence.

4. To guide the reuse of wastes, scraps and surplus energies in eco-industrial parks falling under their state management powers and responsibilities.

Article 60. Powers and state management responsibilities of provincial-level People’s Committees

1. To assume the prime responsibility for elaborating master plans on development of industrial parks and economic zones in their localities; to decide on the establishment or expansion of industrial parks.

2. To organize the elaboration of general construction plans for the industrial parks specified in Clause 5, Article 12 of this Decree and for economic zones.

3. To direct the elaboration and approval of detailed construction plans of industrial parks and functional areas of economic zones; to decide on the use of state budget funds to support investors of inside- and outside-the-fence technical infrastructure systems of industrial parks and economic zones.

4. To direct the performance of investment procedures for investment projects on development of infrastructure facilities of industrial parks and functional areas of economic zones pending the establishment of Industrial Park and Economic Zone Management Boards in accordance with the investment law.

5. To promulgate specific preferential and incentive policies consistent with regulations on prioritized recruitment and employment of local people and highly qualified and skilled workers; to provide job training supports for  industrial park and economic zone workers.

6. To plan land areas for the construction of resettlement areas, houses as well as service and public-utility facilities for industrial park and economic zone workers; to support investment in the construction of  houses for workers, resettlement areas, socio-technical infrastructure works in accordance with law; to support investment, trade and tourism promotion activities; to support the payment of compensations for ground clearance in order to accelerate the investment in and development of industrial parks and economic zones.

7. To instruct the recovery of land and water surface areas, payment of compensations for ground clearance and resettlement, and carry out procedures for lease or allocation of land in industrial parks and economic zones in accordance with the land law and relevant laws.

8. To direct related organizations in elaborating and implementing plans on investment in the construction of outside-the-fence technical and social infrastructure systems of industrial parks and economic zones, such as: roads, power supply systems, water supply and drainage systems, information and communications systems, points of technical connection with inside-the-fence infrastructure works of industrial parks and economic zones, vocational training institutions, houses, social, cultural and sports facilities, medical examination and treatment establishments, schools and other public facilities to meet the needs for development of industrial parks and economic zones.

9. To assume the prime responsibility for working out plans on and allocate support funds for investment in inside-the-fence technical infrastructure systems of industrial parks or socio-technical infrastructure systems of economic zones in accordance with the laws on public investment and state budget and this Decree.

10. To direct the implementation of the administrative mechanism of “on-the-spot single-window”; to promulgate, and supervise the implementation of, regulations on coordination between Industrial Park and Economic Zone Management Boards and bodies under provincial-level People’s Committees; to guide and assign or authorize Industrial Park and Economic Zone Management Boards to perform a number of tasks of state management in certain areas as prescribed in this Decree.

11. To direct the implementation of master plans and regulations on construction, labor and environmental protection, fire and explosion prevention and fighting, maintenance of security and order in industrial parks and economic zones.

12. To organize and coordinate with other agencies in organizing vocational training institutions in their localities in order to meet labor demands of industrial parks and economic zones.

13. To organize, examine, inspect and supervise the settlement of problems arising in the establishment and development of industrial parks and economic zones; to coordinate with ministries and ministerial-level agencies in settling problems or submitting those falling beyond their competence to the Prime Minister for consideration and decision.

14. To elaborate schemes on establishment or reorganization of Industrial Park and Economic Zone Management Boards to ensure that each province or centrally run city has a sole Industrial Park and Economic Zone Management Board; to decide on the appointment of heads and deputy heads of Industrial Park and Economic Zone Management Boards.

15. To allocate funds for administrative and non-business activities and development investment capital for Industrial Park and Economic Zone Management Boards in accordance the law on public investment and the law on the state budget; to approve plans, allocate funds and organize investment, trade and tourism promotion activities so as to develop industrial parks and economic zones.

16. To direct local specialized and professional agencies in charge of trade, finance, customs, banking, public security and other relevant agencies to nominate their competent representatives to handle relevant matters in each industrial park or economic zone when necessary.

17. To perform other tasks and powers of state management of industrial parks and economic zones in accordance with law.

Chapter V

FUNCTIONS, TASKS, POWERS AND ORGANIZATIONAL STRUCTURES OF MANAGEMENT BOARDS OF INDUSTRIAL PARKS, EXPORT PROCESSING ZONES AND ECONOMIC ZONES

Article 61. Functions of Industrial Park and Economic Zone Management Boards

1. Industrial Park and Economic Zone Management Boards shall be attached to provincial-level People’s Committees and perform the function of direct state management of industrial parks and economic zones in provinces or centrally run cities under this Decree and relevant laws; manage and organize the provision of public administrative services and other supportive services related to investment, production and business activities in industrial parks and economic zones.

2. Industrial Park and Economic Zone Management Boards shall be established under the Prime Minister’s decisions and subject to provincial-level People’s Committees’ direction and management of organization, payrolls, working programs and plans and operating funds; submit to the professional direction, guidance and inspection by related line ministries and branches; and closely coordinate with professional agencies of provincial-level People’s Committees in managing industrial parks and economic zones.

3. Industrial Park and Economic Zone Management Boards have the legal entity status, bank accounts, seals bearing the national emblem, and shall be allocated state budget funds for state administration and non-business activities, and development investment capital under annual plans and other funds as prescribed by competent state agencies.

Article 62. Assignment and authorization of Industrial Park and Economic Zone Management Boards to perform specialized functions and tasks in industrial parks and economic zones

1. The assignment and authorization of Industrial Park and Economic Zone Management Boards to perform specialized functions and tasks in industrial parks and economic zones must take into account their capacity, qualification and organization, ensuring stability and facilitating the implementation of the “on-the-spot single-window” mechanism, and supporting investors in carrying out investment and business activities in industrial parks and economic zones.

2. Ministries and sectors shall assume the prime responsibilities for, and coordinate with the Ministry of Planning and Investment and the Ministry of Home Affairs in, promulgating regulations on conditions and criteria for assignment and authorization in each management sector on the principle of creating conditions for Industrial Park and Economic Zone Management Boards to implement the “on-the-spot single-window” mechanism and ensure effectiveness and efficiency of the state management of industrial parks and economic zones. 

Article 63. Tasks and powers of Industrial Park and Economic Zone Management Boards

1. To contribute opinions on, plan and propose to ministries, sectors and provincial-level People’s Committees for approval and organization the performance of the following tasks:

a/ Giving opinions to ministries, sectors and provincial-level People’s Committees on formulation of legal documents, policies and master plans relating to investment in and development of industrial parks and economic zones;

b/ Assuming the prime responsibility for, and coordinating with related agencies in, drafting regulations on coordination with specialized agencies of provincial-level People’s Committees and relevant agencies in performing assigned tasks and vested powers under the single-window and inter-disciplinary single-window mechanism, then submitting these regulations to provincial-level People’s Committees for approval, and organizing their implementation;

c/ Formulating programs and plans on promotion of investment in the development of industrial parks and economic zones, and submitting them to provincial-level People’s Committees for approval, and organizing their implementation;

d/ Annually, forecasting labor demands of industrial parks and economic zones and coordinating with competent agencies in supplying labor for enterprises in industrial parks and economic zones;

dd/ Estimating budget allocations and funds for annual non-business activities and development investment capital amounts and other funding sources (if any), and submitting them to competent agencies for approval in accordance with the Law on the State Budget and relevant laws;

e/ Coordinating with related agencies in conducting technology appraisal and evaluation, evaluation of technological levels and appraisal of technology transfer contracts; inspecting and controlling technologies and technology transfer under investment projects and research and development activities of enterprises.

2. Industrial Park and Economic Zone Management Boards have the following tasks:

a/ Managing, disseminating, guiding, examining, supervising and inspecting the implementation of regulations as well as master plans and plans on industrial parks and economic zones already approved by competent state agencies;

b/ Making investment registration; granting and revoking investment policy decisions, investment registration certificates and deposit agreements for implementation of investment projects under their competence in accordance with law;

c/ Granting, renewing, modifying and extending licenses for establishment and termination of operation of representative offices of foreign organizations and traders in industrial parks and economic zones; requesting competent agencies to handle administrative violations in the fields under their management for industrial parks and economic zones;

d/ Carrying out inspections and coordinating with functional agencies in case the latter inspect the implementation of regulations, master plans and plans related to industrial parks and economic zones; proposing competent agencies to sanction administrative violations in the fields under their management;

dd/ Receiving registrations for land rent rates and charge rates for use of infrastructure facilities of industrial parks and economic zones from investors that develop infrastructure facilities of industrial parks and economic zones;

e/ Examining, inspecting and supervising the achievement of investment objectives specified in investment policy approving documents, investment registration certificates, schedules of capital contribution and implementation of investment projects; examining and inspecting the realization of the commitments by projects enjoying investment incentives and the observance of the laws on construction, labor, wage and social insurance for workers, protection of lawful interests of workers and employers, assurance of occupational safety and health, fire and explosion prevention and fighting, security and order maintenance and protection of the ecological environment by projects in industrial parks and economic zones;

g/ Coordinating with public security units and other competent agencies and units in inspecting the maintenance of security and order, fire and explosion prevention and fighting and proposing measures for maintaining public security and order; organizing security forces and fire prevention and fighting forces in industrial parks and economic zones;

h/ Solving problems and difficulties facing investors in industrial parks and economic zones, and proposing the Prime Minister, related ministries, sectors  and provincial-level People’s Committees in solving problems falling beyond their competence;

i/ Receiving statistical reports and financial statements of enterprises operating in industrial parks and economic zones; appraising the efficiency of investment in industrial parks and economic zones;

k/ Coordinating with the Ministry of Planning and Investment in building and managing the system of information on industrial parks and economic zones under their management;

l/ Sending periodical reports to the Ministry of Planning and Investment, related ministries, sectors and provincial-level People’s Committees on the construction and development of industrial parks and economic zones; the grant, modification and revocation of investment registration certificates; organization and implementation of investment projects; performance of obligations toward the State; implementation of the labor law and implementation of environmental protection measures in industrial parks and economic zones;

m/ Supporting and providing information for enterprises operating in industrial parks and economic zones to coordinate with one another in implementing industrial symbiosis, applying cleaner production methods and forming eco-industrial parks, supporting industries clusters and associated industrial zones and clusters; assuming the prime responsibility for, and coordinating with related agencies in adjusting construction plans of industrial parks in case such adjustment is needed for these parks to be converted into eco-industrial ones;

n/ Organizing emulation movements and commendation and reward for enterprises in industrial parks and economic zones;

o/ Organizing and coordinating with state management agencies in conducting inspection, examination and settlement of complaints and denunciations, prevention and combat of corruption, waste, negative acts, and handling of administrative violations in their zones according to their competence;

p/ Performing tasks in accordance with law and provincial-level People’s Committees’ regulations on management of finance, assets and budget funds allocated to them; collecting, and managing the use of, various charges and fees; conducting scientific research and applying scientific and technological advances; cooperating with domestic and foreign organizations and individuals in the investment in the construction and development of industrial parks and economic zones; managing the organizational structure, payrolls, officials, civil servants and public employees, and providing professional training for their officials, civil servants and public employees;

q/ Acting as the focal point in assisting provincial-level People’s Committees in formulating plans, managing and supporting the transformation and development of new models of industrial parks and economic zones;

r/ Performing other tasks as prescribed by law or assigned by provincial-level People’s Committees.

3. Ministries, sectors and provincial-level People’s Committees and competent agencies shall authorize Industrial Park and Economic Zone Management Boards to perform the following tasks:

a/ To grant certificates of origin for goods manufactured in industrial parks and economic zones as authorized by the Ministry of Industry and Trade;

b/ To adjust approved construction plans of industrial parks and functional areas of economic zones, which must not lead to change in the planning structure; to approve planning tasks and detailed construction plans of projects in industrial parks and functional areas of economic zones which are subject to elaboration of detailed construction plans in accordance with the construction law; to grant permits for elaboration of construction plans for construction investment projects in industrial parks and functional areas of economic zones, which are subject to licensing; to appraise projects and construction designs and cost estimates of provincial-level departments performing specialized management of projects and works in industrial parks and economic zones; to grant, modify, extend and re-grant construction permits for works requiring construction permits in accordance with the law on construction; to perform the quality management of works for projects in industrial parks and economic zones;

c/ To grant, re-grant and revoke work permits to/from foreigners and overseas Vietnamese working in industrial parks and economic zones and certifications to those not required  to have work permits; to receive explanatory reports of enterprises in industrial parks and economic zones on the demand for foreign workers for each position which Vietnamese cannot fill in; to organize the registration of working rules; to receive collective labor accords, wage scales, wage tables, labor norms and reports on labor employment, change in labor employment; to receive and process dossiers for registration of performance of contracts on receipt of interns and sending of workers abroad for internship for less than 90 days from enterprises in industrial parks and economic zones; to receive reports on dismissal of large numbers of workers, and hiring of workers, results of annual training and re-training to raise professional qualifications and job skills; to receive notifications of the place, area and time of operation commencement and managers and key personnel of enterprises employing outsourced laborers, and notifications of arranging extra-work for between 200 hours and 300 hours in a year from enterprises in industrial parks and economic zones;

d/ To grant a number of licenses, certificates and other certifications in industrial parks and economic zones;

dd/ To appraise and approve environmental impact assessment reports for investment projects in industrial parks and economic zones to be decided by provincial-level People’s Committees; to receive registrations of environmental protection plans and certify such plans for investment projects in industrial parks and economic zones, which are subject to registration; to appraise, approve, inspect and certify detailed environmental protection plans and simplified environmental protection plans for investment projects in industrial parks and economic zones; to inspect and certify the construction of environmental protection facilities and implementation of environmental protection measures serving the operation of investment projects in industrial parks and economic zones.

4. Industrial Park and Economic Zone Management Boards shall act as the focal agencies managing investment activities in industrial parks and economic zones in their localities. Ministries, sectors and state management agencies in localities, when performing specialized tasks in industrial parks and economic zones, shall coordinate with and consult Industrial Park and Economic Zone Management Boards so as to ensure that state management activities are carried out in a coordinated manner in industrial parks and economic zones, avoiding overlapping and creating conditions for enterprises to operate in accordance with law.

Article 64. Tasks and powers of Economic Zone Management Boards

In addition to the tasks and powers of Industrial Park and Economic Zone Management Boards prescribed in Article 63 of Decree, the management board of an economic zone also has the following tasks and powers:

1. To elaborate and submit to the provincial-level People’s Committee for submission to the Prime Minister for decision according to its competence:

a/ A general construction plan of the economic zone;

b/ Plans on issuance of project bonds; plans on mobilization of other capital sources for investment in the development of the system of key technical and social infrastructure works in the economic zone.

2. To elaborate and submit to ministries, sectors and the provincial-level People’s Committee for approval, and organize the implementation of:

a/ Detailed plans on construction of functional areas in line with the approved general construction plan of the economic zone, detailed plan and plan on land use in the economic zone, for approval by the provincial-level People’s Committee;

b/ Annual and five-year plans on development of the economic zone, for submission and approval by the provincial-level People’s Committee and competent state agencies;

c/ A list of investment projects and annual and five-year development investment capital plans, for approval by competent agencies or approval by the Board itself according to its competence;

d/ Price brackets and charge and fee rates to be applied in the economic zone, for promulgation by competent agencies in accordance with law.

3. The management board of an economic zone shall direct or organize the performance of the following tasks:

a/ Granting, re-granting, modifying and extending licenses for establishment of representative offices and branches of foreign tourism businesses in the economic zone in accordance with law and under the guidance or authorization of ministries, sectors and provincial-level People’s Committees;

b/ Hiring foreign consultants to provide advice on investment promotion or the strategy on investment in the construction and development of the economic zone;

c/ Deciding on investment in group-B or group-C projects using public investment funds in the economic zone as authorized by the provincial-level People’s Committee;

d/ Proposing a list of projects to be implemented in the forms of BOT, BTO and BT and other contracts in accordance with the law on public-private partnership, and group-B or group-C projects as authorized by the provincial-level People’s Committee; directly receiving, managing and using ODA loans;

dd/ Managing and using funds for investment in the development of the economic zone falling under its competence; managing investment in the construction of and bidding for investment projects in the economic zone funded with development investment capital from the state budget and falling under its competence; managing administrative and non-business revenues and expenditures, funds for target programs and other funding sources assigned to it in accordance with law;

e/ Assuming the prime responsibility for, and coordinating with related agencies in, conducting regular repair and maintenance of technical and social infrastructure works, service and public-utility facilities invested with state budget funds in the economic zone;

g/ Managing and effectively using the special-use land and water surface areas already assigned to it for proper purposes and in conformity with the general construction plan of the economic zone, detailed construction plans of functional areas, land use master plans and plans approved by competent authorities;

h/ Reallocating land with or without collection of land use levy, leasing land and water surface areas, and performing the management of land in the economic zone in accordance with the land law;

i/ Coordinating with local administrations and related agencies in ensuring that all activities in the economic zone are carried out in compliance with the master plan and plan on construction and development of the economic zone already approved by competent state agencies and with relevant regulations.

Article 65. Organizational structure and payrolls of Industrial Park and Economic Zone Management Boards                                                     

1. An Industrial Park and Economic Zone Management Board shall be composed of a head, at most 3 deputy heads and an assisting apparatus.

The head shall be appointed or dismissed by the provincial-level People’s Committee chairperson. Deputy heads shall be appointed or dismissed by the provincial-level People’s Committee chairperson at the proposal of the head.

2. The head shall administer all activities of the management board and take responsibility before the provincial-level People’s Committee and law for the operation and operation efficiency of industrial parks and economic zones.

3. The organizational structure of an Industrial Park and Economic Zone Management Board shall consist of an assisting apparatus (the office, professional and specialized sections and a representative of the management board in the industrial or economic zone); attached non-business units performing public and public-utility tasks, providing investment or business support services for investors in industrial parks and economic zones and other organizations suitable to the development of industrial parks and economic zones as well as tasks and powers of each type of management board as guided by the Ministry of Home Affairs and specified by law.

4. The establishment of professional divisions must satisfy the following conditions and criteria:

a/ Each division must take charge of multiple sectors and trades; for each sector or trade, it must work out specific management processes or identify specific subjects in conformity with the tasks and powers of the Industrial Park and Economic Zone Management Board;

b/ Each division’s workload requires at least 7 staff members on the payroll;

c/ A division with a payroll of between 7 and 9 staff members must have 1 deputy head; a division with a payroll of 10 or more staff members must have 2 deputy heads at most;

d/ The number of deputy heads of the Industrial Park and Economic Zone Management Board Office and its representative office at an industrial park is the same as that of a professional division;

dd/ The number of deputy heads of a public non-business unit under an Industrial Park and Economic Zone Management Board must not exceed 2.

5. Civil servant payrolls and the number of employees of public non-business units under an Industrial Park and Economic Zone Management Board shall be assigned on the basis of employment positions as well as their functions, tasks and scope of operation and incorporated in the assigned or approved civil servant payrolls and number of employees of agencies, administrative organizations and public non-business units of the concerned province or centrally run city.

Chapter VII

IMPLEMENTATION PROVISIONS

Article 66. Transitional provisions

1. For industrial parks and economic zones for which planning, investment and establishment procedures have been completed in accordance with the law effective at the time before this Decree takes effect, it is not required to carry out planning, investment and establishment procedures prescribed in this Decree for these parks and zones.

2. The adjustment and implementation of master plans on development of industrial parks, master plans on development of coastal economic zones, master plans on development of border-gate economic zones and other master plans of industrial parks and economic zones already approved by competent authorities must comply with these approved master plans and this Decree through December 31, 2020, except for industrial park and economic zone master plans of localities which have their regional or provincial master plans approved under the Law on Planning prior to this point of time.

3. The formulation of master plans on development of industrial parks, master plans on development of coastal economic zones and master plans on development of border-gate economic zones and other master plans on industrial parks and economic zones after December 31, 2020, must comply with the law on management of planning activities.

Article 67. Effect

1. This Decree takes effect on July 10, 2018.

2. The Government’s Decree No. 29/2008/ND-CP of March 14, 2008, on  industrial parks, export processing zones and economic zones, Decree No. 164/2013/ND-CP of December 11, 2013, amending and supplementing Decree No. 29/2008/ND-CP, and Decree No. 114/2015/ND-CP of November 9, 2015, amending and supplementing Article 21 of Decree No. 29/2008/ND-CP, cease to be effective on the effective date of this Decree.

Article 68. Organization of implementation 

Ministers, heads of ministerial-level agencies, heads of government-attached agencies, provincial-level People’s Committee chairpersons, 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 XUAN PHUC