Procedures for establishment or expansion of an industrial cluster in Vietnam (Latest)

Procedures for establishment or expansion of an industrial cluster in Vietnam (Latest)
Quoc Tuan

The article below will provide detailed information on the procedures for establishment or expansion of an industrial cluster in Vietnam (Latest)

Procedures for establishment or expansion of an industrial cluster in Vietnam (Latest) (Image from the internet)

On September 09, 2024, the Minister of Industry and Trade of Vietnam issued Decision 2404/QD-BCT announcing the revised administrative procedures in the field of industrial clusters within the scope of management of the Ministry of Industry and Trade of Vietnam.

Procedures for establishment or expansion of an industrial cluster in Vietnam (Latest)

(1) Implementation process

Step 1: Enterprises, cooperatives, and organizations submit dossiers for the establishment/expansion of industrial clusters (including an application to be the investor for building technical infrastructure of the industrial cluster according to Form No. 01 Appendix II attached to Circular 14/2024/TT-BCT* )* to the District People's Committee:

Within 05 working days from the date of receiving the first document from the enterprise, cooperative, or organization requesting to be the investor for technical infrastructure construction of the industrial cluster, the District People’s Committee is responsible for widely announcing the receipt of the application for the establishment/expansion of the industrial cluster on local mass media. The application receipt period is within 15 days from the date of the announcement.

Step 2: Within 05 working days from the date of the end of the application receipt period for the establishment/expansion of the industrial cluster, the District People’s Committee chairs, cooperates with enterprises, cooperatives, and organizations requesting to be the investor for technical infrastructure construction of the industrial cluster to set up 02 sets of dossiers for the establishment/expansion of the industrial cluster according to Clause 1, Article 9 Decree 32/2024/ND-CP dated March 15, 2024, of the Government of Vietnam on the management and development of industrial clusters, along with an electronic file of the dossier, sent to the Department of Industry and Trade to chair and coordinate with related provincial departments and authorities to appraise.

Step 3: Within 25 days from the date of receiving the complete dossier for the establishment/expansion of the industrial cluster, the Department of Industry and Trade completes the appraisal, and compiles a report to the Provincial People’s Committee on the establishment/expansion of the industrial cluster. If the dossier and the content of the report on the establishment/expansion of the industrial cluster do not meet the requirements, the Department of Industry and Trade shall send a document to the District People’s Committee to supplement and complete the dossier. The time for supplementing and completing the dossier is not included in the appraisal period.

Selecting the investor for the technical infrastructure construction of the industrial cluster is a part of the appraisal content for the establishment/expansion of the industrial cluster; it is carried out during the establishment/expansion of the industrial cluster. For industrial clusters with enterprises, cooperatives, or organizations having dossiers requesting the establishment/expansion of the industrial cluster that meet the regulations of Decree 32/2024/ND-CP, the selection of the investor for technical infrastructure construction shall be as follows:

The Provincial People’s Committee establishes a Council to evaluate and select the investor for the technical infrastructure construction of the industrial cluster (including the Chairman of the Council being the leader of the Provincial People’s Committee, Vice Chairman of the Council being the leaders of the Departments of Industry and Trade, Department of Planning and Investment, other members representing some relevant departments and agencies; the Secretary of the Council is the representative of the specialized division of the Department of Industry and Trade and is not a member of the Council) to score with a 100-point scale for criteria: technical infrastructure construction plan (maximum 15 points); industrial cluster environmental management and protection plan (maximum 15 points); capacity and experience of enterprises, cooperatives (maximum 30 points); and financial plan for technical infrastructure construction (maximum 40 points). Based on the actual conditions of the locality and relevant legal regulations, the Council shall agree on the principles, methods of operation, the content of each criterion and the corresponding maximum score for suitability.

Enterprises, cooperatives, and organizations with scores of 50 or above are considered by the Provincial People’s Committee for appointment as the investor for the technical infrastructure construction of the industrial cluster in the Decision on the establishment/expansion of the industrial cluster (in case there are 02 or more enterprises, cooperatives, or organizations requesting to be the investor for the technical infrastructure construction of the industrial cluster, the enterprise, cooperative, or organization with the highest score shall be appointed; if there are two or more enterprises, cooperatives, or organizations with the highest equal score, the enterprise, cooperative, or organization will be appointed according to the proposal of the Chairman of the Council evaluating and selecting the investor).

The Provincial People’s Committee stipulates the notice to enterprises, cooperatives, and organizations requesting to be the investor for the technical infrastructure construction of the industrial cluster on the results of the investor selection.

Step 4: Within 07 working days from the date of receiving 01 set of dossiers for the establishment/expansion of the industrial cluster with the appraisal report from the Department of Industry and Trade, the Provincial People’s Committee considers and decides on the establishment/expansion of the industrial cluster (including the appointment of the investor for technical infrastructure construction of the industrial cluster). The Decision on the establishment/expansion of the industrial cluster (according to Form No. 02 Appendix II attached to Circular 14/2024/TT-BCT) is sent to the Ministry of Industry and Trade in 01 copy.

(2) Method of implementation: Submit via post, directly.

(3) Components and number of dossiers:

- Dossier requesting the establishment/expansion of the industrial cluster (made by the enterprise, cooperative, organization) includes:

+ Document from the enterprise, cooperative, organization requesting to be the investor for the technical infrastructure construction of the industrial cluster according to Form No. 01 Appendix II attached to Circular 14/2024/TT-BCT (including a commitment not to violate legal regulations and to bear all costs and risks if not approved) attached with the investment report for the establishment/expansion of the industrial cluster and a map identifying the location and boundaries of the industrial cluster;

+ Valid copies of the legal documents proving the legal status of the enterprise, cooperative, organization requesting to be the investor for technical infrastructure construction of the industrial cluster;

+ Valid copies of documents proving the financial capacity of the enterprise, cooperative, organization requesting to be the investor for technical infrastructure construction including at least one of the following documents: Financial reports for the last 02 years; financial support commitment from the parent company; financial support commitment from financial institutions; financial capacity guarantee; or other documents proving financial capacity (if any);

+ Valid copies of documents proving the experience of the enterprise, cooperative, organization requesting to be the investor for technical infrastructure construction of the industrial cluster and other related documents and materials (if any).

- Number of dossiers: 02 sets.

(4) Time limit for settlement:

From the date of receiving a complete and valid dossier as prescribed in Decree 32/2024/ND-CP, the settlement time includes: Step 1 to be completed within 5 working days for notification of dossier receipt and 15 days for dossier submission; Step 2 to be completed within 5 working days; Step 3 to be completed within 25 days; Step 4 to be completed within 7 working days.

More details can be found in Decision 2404/QD-BCT which comes into force in Vietnam from October 01, 2024.

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