Conditions for establishment or expansion of an industrial cluster in Vietnam

“Industrial cluster” means a place in which services are provided for industrial and cottage-industrial production, with defined geographical boundaries and without any inhabitant living in the cluster, and which is constructed to attract and relocate small and medium-sized enterprises, cooperatives and cooperative associations to conduct production and business activities.

1. Conditions for establishing an industrial cluster:

- The industrial cluster is included in the approved industrial cluster development planning;

- There is an enterprise or cooperative that has a legal status, capacity and experience to invest in construction of technical infrastructure or a unit that is assigned to invest in construction of technical infrastructure;

- In the event industrial clusters have been established within a district, the average occupancy rate of those industrial clusters must exceed 50% or the clusters’ total industrial land fund yet to be leased out must be less than 50 ha.

2. Conditions for expansion of an industrial cluster:

- The industrial cluster must not exceed 75 ha and there is a land fund conforming to the land use planning and land use plan within the district;

- There is an enterprise or cooperative that has a legal status, capacity and experience to invest in construction of technical infrastructure or a unit that is assigned to invest in construction of technical infrastructure;

- The occupancy rate is at least 60% or the demand for leasing the industrial land in the industrial cluster exceeds the area of current land of the industrial cluster;

- The industrial cluster has completed construction of and put common shared technical infrastructure constructions into normal operation in line with the approved detailed plan.

Decree No. 68/2017/NĐ-CP of Vietnam’s Government takes effect from July 15, 2017.

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