What are conditions for investment in infrastructure facilities of industrial park projects in Vietnam?

What are conditions for investment in infrastructure facilities of industrial park projects in Vietnam?

Pursuant to Article 9 of the Decree 35/2022/ND-CP (takes effect from 15/07/2022) stipulating conditions for investment in infrastructure facilities of industrial park projects in Vietnam as follows: 

1. An industrial park project must satisfy planning requirements, and conform to the planning items and schemes as follows:

a) It is in line with regional or provincial planning schemes;

b) It appears on the list of industrial parks in provinces or centrally-affiliated cities, or is mentioned in the master plan for development of economic zones that has obtained approval from a competent authority if it is located within the boundaries of an economic zone;

c) It conforms to the planning scheme for construction of an industrial park that has been approved by a competent authority.

2. The industrial park project other than the one referred to in clause 3 of this Article must be subject to the investment phasing requirements if it falls into one of the following circumstances:

a) For any industrial park covering an area of more than 500 ha, it is developed in multiple phases in each of which no more than 500 ha land is used;

b) For any industrial park subject to the requirement of repurposing of the piece of paddy land covering an area of more than 200 ha which is intended for at least two cropping seasons in the Red River and Mekong River Delta regions, it is developed in multiple phases in each of which no more than 200 ha of such land is repurposed;

c) For any industrial park subject to the requirement of repurposing of the piece of paddy land covering an area of more than 150 ha which is intended for at least two cropping seasons in the North Central Coast, Central Coast and Southeast regions, it is developed in multiple phases in each of which no more than 200 ha of such land is repurposed;

d) For any industrial park subject to the requirement of repurposing of the piece of paddy land covering an area of more than 100 ha which is intended for at least two cropping seasons in the Northern Midland and Mountainous and Central Highland regions, it is developed in multiple phases in each of which no more than 100 ha of such land is repurposed.

3. For the industrial park attracting investment projects that help to create the industrial cluster, if total investment in these projects approximately equals at least USD 02 billion or VND 45,000 billion, no more than 1,000 ha of the land may be accepted for use to develop that industrial park in the first investment phase. In the subsequent investment phases (if any), regulations laid down in clause 2 herein shall apply.

4. At least 5 ha of industrial land or at least 3% of total industrial land of the industrial park (including land intended for industrial premises, office, storage yards or facilities) must be reserved for small and medium-sized enterprises; supporting industrial enterprises; innovative enterprises; beneficiaries of investment incentives stated in point e and g of clause 2 of Article 15 in the Law on Investment; other enterprises eligible for preferential treatment and aid concerning production and business premises under law on land lease and sublease. As an eco-industrial park, supporting industrial park, specialized industrial park or hi-tech industrial park, it shall not be subject to the investment requirements set out in this clause.

5. The industrial park must satisfy land repurposing requirements set out in law on land, legislation on forestry and other relevant regulatory provisions.

6. As reported on the date of submission of the pre-feasibility study report for the project on development of infrastructure facilities of an industrial park required by law on public investment, or the valid application for approval of the investment policy for the project on construction and business of infrastructure facilities of an industrial park required by law on investment, the average occupancy rate of industrial parks already established in the province or centrally-run city where the industrial park to be developed is located must be at least 60%, except in the following cases:

a) The investment in infrastructure facilities of the preexisting industrial park may be accepted if its operation is terminated; its Investment Registration Certificate, Investment Certificate, Investment Permit or others having equivalent validity under law on investment; or it is subject to the project cancellation decision issued in accordance with legislation on public investment;

b) The maximum total area of land intended for industrial parks built within that province or centrally-affiliated city must be 1,000 ha;

c) The project site of the industrial park must be located at the district on the list of local jurisdictions having access to investment incentives prescribed in law on investment or within the existing economic zone;

d) Investment in infrastructure facilities of the industrial park must be the same as the investment in an eco-industrial park, supporting industrial park, specialized industrial park or hi-tech industrial park that is prescribed herein;

dd) The industrial park project falls into the case specified in clause 8 of this Article.

7. The industrial park project must zone spaces for development of accommodation buildings, public service and utility facilities available for use by staff and workers of the single industrial park or the complex of industrial parks by the competent state agency’s consent according to law on housing and other relevant regulatory provisions.

8. Regarding investment in infrastructure facilities for an industrial park expanded from the preexisting industrial park, if such investment is made by the same investor or funded by public investment capital, the following requirements must be satisfied:

a) The preexisting industrial park reaches 60% in the occupancy rate, and has its environmental protection infrastructure that has already been developed and brought into operation under legislation on environmental protection; or has its infrastructure system that has been completely built according to the planning scheme for development of industrial parks already approved by the competent authority;

b) The expanded industrial park must be capable of being connected and having access to the preexisting industrial park;

c) Accommodation buildings, public service and utility facilities intended for staff and workers of the preexisting industrial park or complex of industrial parks have been completely built and put to use according to the planning scheme approved by the competent state agency as per clause 7 of this Article.

What are eligibility requirements of investors in projects on development and business of infrastructure facilities of industrial parks in Vietnam? 

Pursuant to Article 10 of the Decree 35/2022/ND-CP stipulating eligibility requirements of investors in projects on development and business of infrastructure facilities of industrial parks in Vietnam as follows: 

1. An investor in an investment project on construction and business of infrastructure facilities of an industrial park must satisfy the following requirements:

a) Real estate business requirements set out in law on real property business;

b) Requirements for conformance to regulatory regulations on access to land allocated, leased or repurposed by the State for execution of investment projects on construction and business of infrastructure facilities of industrial parks under the regulatory provisions of law on land, legislation on forestry and other relevant ones.

If the investor in the investment project on construction and business of infrastructure facilities of the industrial park is an economic organization that a foreign investor intends to set up under law on investment and corporate law, that economic organization-to-be must be capable of satisfying the aforesaid requirements.

2. When there is the need for the bidding process to be carried out for investor selection, evaluation standards for selection of the investor qualified for implementation of an investment project on construction and business of infrastructure facilities of an industrial park shall comprise:

a) Competence evaluation standards which are set based on those requirements referred to in clause 1 of this Article;

b) Qualification and past performance evaluation standards which are set according to the investment size, progress and process of completion of investment projects on construction and business of infrastructure facilities of industrial parks and other real property projects which the candidate investor executed or made its equity participation in; of which any project owner, founding member and shareholder is an institutional entity of the candidate investor that executed or made their equity contribution in these projects;

c) Technical evaluation standards which are set according to the Decisions on approval of the planning schemes for construction of industrial parks, the Decisions on approval of investment policies for implementation of investment projects on construction and business of infrastructure facilities of industrial parks of competent authorities and other relevant regulatory provisions;

d) Finance - business evaluation standards which are set according to the Decisions on approval of investment policies for implementation of investment projects on construction and business of infrastructure facilities of industrial parks of competent authorities and other regulatory provisions related to selection of investors qualified for implementation of investment projects using land.

Best regards!