Incentives and assistance provided to industrial clusters in Vietnam

1. Investment incentives for production and business projects in industrial clusters

Production and business projects in an industrial cluster shall be exempted from land rents for 7 years and entitled to other incentives as prescribed by law. In case a project is eligible for multiple incentives, the incentive that is most beneficial shall apply.

2. Investment policies for projects on investment in commercial operation of industrial cluster infrastructure

- Projects on investment in commercial operation of industrial cluster infrastructure shall be exempted from land rents for 11 years and may be eligible for state investment loans of up to 70% of the total investment capital and other incentives prescribed by law. In case a project is eligible for multiple incentives, the incentive that is most beneficial shall apply.

- The investment in construction of industrial cluster infrastructure may be made in the form of public-private partnership.

3. Assistance in investment in construction of industrial cluster infrastructure

- Scope, eligible entities, contents and level of investment assistance from the central government budget for construction of technical infrastructure of industrial clusters in service of relocation of enterprises and production establishments that cause or are likely to cause environmental pollution in craft villages, populated areas or urban areas, and industrial clusters in disadvantaged or extremely disadvantaged areas or areas incapable of attracting enterprises to invest in technical infrastructure shall comply with the target program for investment in industrial cluster infrastructure approved in each period.

- The provincial People’s Committee shall balance the local government budget to assist investment in and development of technical infrastructure systems inside and outside the industrial clusters within the province.

4. Assistance in development of industrial clusters

- Investigation, establishment and operation of database; organization of conferences and seminars and cooperation in investment promotion; communications, printing and publishing documents; provision of professional training in laws and policies on industrial clusters;

- Review, assessment and formulation of management policies and models, and experience in development of domestic and foreign industrial clusters;

- Investment promotion activities; investigation and survey into organizations and individuals wishing to relocate to and invest in industrial clusters; formulation and approval of plans on establishment or expansion of industrial clusters; formulation of detailed planning for industrial cluster construction; assistance in completion of administrative procedures related to industrial clusters;

- Provision of financial assistance in setting up investment projects for enterprises and production establishments that cause or are likely to cause environmental pollution in craft villages or populated areas, and then encouraged to relocate to an industrial cluster.

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

- Ngoc Duyen -

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