Capital sources for investment in construction and development of hi-tech parks in Vietnam as of March 25, 2024

Capital sources for investment in construction and development of hi-tech parks in Vietnam as of March 25, 2024 (Internet image)

Regarding this matter, LawNet would like to answer as follows:

On February 1, 2024, the Government issued Decree 10/2024/ND-CP regulating hi-tech parks.

1. Conditions for establishing hi-tech parks in Vietnam as of March 25, 2024

According to Article 5 of Decree 10/2024/ND-CP, conditions for establishing hi-tech parks are as follows:

- General conditions:

+ Conforming with the regional or provincial planning approved by a competent authority;

+ Having appropriate scale of area, land use feasibility, and compatible natural conditions; 

+ Having infrastructure conditions and favorable traffic locations;

+ Being capable of linking with highly qualified research and training facilities;

+ Having feasible schemes for personnel and professional managers for hi-tech parks;

+ Having feasible schemes to mobilize resources for investment in the development of the system of technical and social infrastructures of hi-tech parks, ensuring the capacity for balancing the state budget (if any);

+ Having feasible schemes to construct housing areas and public works adjacent to or surrounding hi-tech parks to serve the life of specialists and employees working in such hi-tech parks according to their needs and construction progress of hi-tech parks;

+ Satisfying environmental protection conditions according to environmental protection laws;

+ Ensuring national defense and security.

- Conditions for establishing hi-tech parks prescribed in Article 31 of the Law on High Technologies:

+ Satisfying the conditions prescribed in Clause 1 of Article 5 of Decree 10/2024/ND-CP;

+ Conforming with policies of the State on the development of high technologies and hi-tech industries;

+ Satisfying the conditions for implementing tasks prescribed in Clause 2 Article 31 of the Law on High Technologies;

+ Having feasible schemes to provide favorable technical infrastructures and services meeting the requirements for research, application, and development of high technologies; incubate high technologies and hi-tech enterprises; experimentally produce hi-tech products; provide hi-tech services.

- Conditions for establishing hi-tech application agricultural parks prescribed in Article 32 of the Law on High Technologies:

+ Satisfying the conditions prescribed in Clause 1 of Article 5 of Decree 10/2024/ND-CP;

+ Conforming with agricultural development strategies and plans;

+ Satisfying the conditions for implementing tasks prescribed in Clause 2 Article 32 of the Law on High Technologies;

+ Having feasible schemes to provide favorable technical infrastructures and services meeting the requirements for research, training, experiment, and showcase of hi-tech applications concerning agriculture.

2. Capital sources for investment in construction and development of hi-tech parks in Vietnam as of March 25, 2024

Pursuant to Article 10 of Decree 10/2024/ND-CP, capital sources for investment in construction and development of hi-tech parks include:

- Hi-tech park development and construction investment capital sources include: the state budget, investment capital of organizations and individuals, and other legal capital sources.

- The State prioritizes development and investment capital support from the state budget, Official Development Assistance (ODA), credit support, subsidies to offset costs incurred from the application of preferential lending interest rates, and other support types as prescribed by laws for preparation for investment, site clearance, construction of the system of technical infrastructures, social infrastructures, and scientific-technological development infrastructures in hi-tech parks.

- The State encourages investors, organizations, and individuals to invest in the construction of the system of technical infrastructures, social infrastructures, and scientific-technological development infrastructures in hi-tech parks in forms of projects on business investment, public-private partnership investment, private investment, and other investment forms as prescribed by laws; voluntarily advance capital for compensation, support, and resettlement regarding site clearance in hi-tech parks.

- Projects on compensation, support, and resettlement and projects on investment in the construction of the system of large-scale technical and social infrastructures with key roles may mobilize capital from the issuance of government bonds or local government bonds as prescribed by laws.

- Regarding the budget for the formulation and adjustment to the hi-tech park construction planning, Management Boards of hi-tech parks may mobilize and directly receive and use sponsorships from organizations and individuals operating in hi-tech parks as prescribed by laws.

- The mobilization and use of capital sources prescribed in this Article shall comply with laws on state budget, public investment, public debt management, investment, public-private partnership investment, land, construction, and other relevant laws.

Nguyen Ngoc Que Anh

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