Vietnam: Enterprises are given priority when selecting investors in construction of industrial cluster if there is an application

Currently, the selection of investors to build technical infrastructure is carried out in the stage of establishment and expansion of industrial clusters.

According to Clause 9 Article 1 of Decree No. 66/2020/NĐ-CP of Vietnam’s Government amending Clause 3 Article 15 of Decree No. 68/2017/NĐ-CP: “Enterprises and cooperatives should be given priority in the course of selecting investors in construction of industrial cluster technical infrastructure facilities if an application for establishment or expansion of the industrial cluster meets the requirements herein.”

During the appraisal carried out as prescribed in Clause 3 Article 12 of Decree No. 68/2017/NĐ-CP, the provincial Department of Industry and Trade shall submit a report to the provincial People's Committee for establishing an assessment council for selecting a qualified investor (the assessment council is comprised of a Chairperson who is a leader of the provincial People's Committee, a Deputy Chairperson who is a leader of the provincial Department of Industry and Trade, and other members who are representatives of relevant provincial departments and agencies) for marking on a scale of 100 points according to the following criteria: the plan for investment in technical infrastructure facilities (maximum 15 points), the plan for environmental protection and management of the industrial cluster (maximum 15 points), capacity and experience of the assessed enterprise or cooperative (maximum 30 points) and the financial plan for construction of technical infrastructure facilities (maximum 40 points).

An enterprise or cooperative given 50 points or higher shall be considered and selected as the investor of technical infrastructure facilities by the provincial People’s Committee according to the decision on establishment or expansion of the industrial cluster (if two or more enterprises or cooperatives jointly apply for approval as investor of technical infrastructure facilities, the enterprise or cooperate with the highest mark shall be selected). After a period of 12 months from the establishment or expansion of the industrial cluster, if the selected investor fails to execute the technical infrastructure construction project, suspends or delays the project by 12 months compared to the progress specified in the decision on establishment or expansion of the industrial cluster, the provincial People’s Committee shall consider granting an extension or selecting another investor.

If a technical infrastructure construction project is executed in the form of public-private partnership, the investor shall be selected in accordance with regulations on investment in the form of public-private partnership. The duration of appraisal of proposal for establishment or expansion of an industrial cluster shall exclude the duration of selection of investor in accordance with regulations on investment in the form of public-private partnership.

View more details at Decree No. 66/2020/NĐ-CP of Vietnam’s Government, effective from August 01, 2020.

Thu Ba

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