Vietnam: Industrial cluster development plan carried out from August 01, 2020

According to Clause 3 Article 1 of Decree No. 66/2020/NĐ-CP of Vietnam’s Government amending Article 5 of Decree No. 68/2017/NĐ-CP, industrial cluster development plan carried out from August 01, 2020 is as follows:

Firstly, an industrial cluster development plan is formulated on the following grounds:

- Vietnam's industrial development strategy, and local strategies for development of priority industries and sectors;  

- Socio-economic development orientations, regional planning, and local technical and specialized planning;

- The demand for ground area for attracting investment in industrial clusters and serving relocation of business and production facilities to industrial clusters;

- The ability to mobilize investment capital from enterprises and the Government, and other lawful capital sources to build technical infrastructure facilities of local industrial clusters;

- Requirements for environmental protection, economical and efficient use of land and other local human and natural resources.

Secondly, an industrial cluster development plan shall include, inter alia, the following contents:

- Legal grounds for and the necessity to formulate an industrial cluster development plan;

- The assessment of objectives and contents of Vietnam’s industrial development strategy, and of local strategies for development of priority industries and sectors; planned objectives of and the need to develop priority or targeted industries and sectors, and forecasted enabling and disabling factors that may impact on the development of industrial factors in each planning period; estimated demand for ground space serving investment in industrial clusters;  

- The assessment of current status, construction progress and efficiency of investment in technical infrastructure facilities of local industrial clusters; investment attraction, occupancy rate and management of industrial clusters; assessment of business and production situations, environmental protection, environmental remediation measures, socio-economic efficiency of each industrial cluster; achievements, shortcomings and causes thereof;

- Scenarios for development of local industrial clusters; each scenario should provide description of each industrial cluster, including name, location, area and land use status, which should be determined according to the principle that the use of land planned for paddy, protective and reserve forests must be limited; sectors of operation (with orientations towards industries/business sectors that can be linked or of the same value chain of products or services); explanation about grounds for amending an industrial cluster development plan; solutions for investment attraction, planned progress of construction of infrastructure facilities, occupancy and creation of jobs to local workers; assessment of ability to connect socio-economic infrastructure outside industrial clusters as well as enabling and disabling factors;

- The assessment of enabling and disabling factors of industrial cluster development scenarios; a possible scenario shall be proposed as the development plan and enclosed with the list of industrial clusters to be developed and shown on the map, including name, location, area, operation sectors and technical infrastructure construction progress;

- Solutions for raising funding for constructing technical infrastructure facilities, incentive mechanisms and policies for development of industrial clusters; solutions for assessment and treatment of environmental pollution, estimated environmental impacts and environmental remediation measures for industrial clusters included in the development plan, especially established and operating industrial clusters in the province, and implementation thereof.

Thirdly, funding and phasing of an industrial cluster development plan shall adhere to regulations on provincial planning.

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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