Several incentives and assistance provided to industrial clusters in Vietnam

According to Decree No. 68/2017/NĐ-CP of Vietnam’s Government, projects on investment in production and business in a craft village industrial cluster 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.

Projects on investment in commercial operation of industrial cluster infrastructure shall be exempted from land rents for 15 years and may be eligible for state investment loans of up to 70% of the total investment capital.

The local government budget shall cover funding for relocation of enterprises, cooperatives, cooperative associations, production establishments of households and individuals in a craft village to a craft village industrial cluster; the level of assistance shall be decided by the provincial People's Committee. The central and local government budget shall consider giving priority to providing assistance in investment in construction of technical infrastructure of a craft village industrial cluster.

In addition to receiving the incentives and assistance mentioned above, projects on investment in commercial operation of industrial cluster infrastructure and projects on investment in production and business in a craft village industrial cluster are entitled to the incentives and assistance mentioned in Articles 27 to 30 of this Decree and relevant laws. In case a project is eligible for multiple incentives or levels of assistance, the incentive or assistance that is most beneficial shall apply.

Decree No. 68/2017/NĐ-CP clearly states: The clusters which are eligible for incentives and assistance must be included in the planning, established and operate in accordance with regulations of law on industrial cluster management.

The number of enterprises, cooperatives, cooperative association, production establishments of households and individuals must take up over 60% of the number of enterprises and production facilities which have already relocated to or registered for relocation to a craft village industrial cluster.

By the time of considering providing incentives and assistance, the registered occupancy rate is over 80%, including over 60% of enterprises, cooperatives, cooperative associations, production establishments of households and individuals in the craft village as confirmed by the district-level People's Committee.

Source: Vietnam Financial Times Online

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