Conditions for transformation from an industrial park into an urban – service zone in Vietnam

Conditions for transformation from an industrial park into an urban – service zone in Vietnam (Internet image) 

1. What is industrial park?

According to Clause 1, Article 2 of Decree 35/2022/ND-CP, industrial park refers to an area that is enclosed by definite boundaries, specializes in production of industrial goods and provision of services satisfying the industrial production needs.

2. Conditions for transformation from an industrial park into an urban – service zone in Vietnam

Conditions for transformation from an industrial park into an urban – service zone according to Clause 1, Article 13 of Decree 35/2022/ND-CP are as follows:

- Conform to the provincial or urban development planning scheme of the centrally-affiliated city and province where such transformation occurs;

- The industrial park to be transformed is the one located within the urban area of a special-category city, central category-I city and provincial category-I city;

- The minimum period from its establishment date to the date of consideration of transformation must be 15 years or half (1/2) of the permissible life of the industrial park to be transformed;

- Such transformation is agreed upon by the investor executing the investment project on construction and business of infrastructure facilities of the industrial park to be transformed and more than two-thirds (2/3) of businesses of the industrial park to be transformed, except in the following cases:

+ The investment project's life prescribed in law on investment expires;

+ The investment project does not meet statutory requirements for extension of the land sub-lease under the regulatory provisions of law on land and civil legislation;

+ The investment project causes serious environmental pollution to the extent that its relocation is needed as per law on environmental protection;

- Such transformation proves socio-economic and environmental effectiveness.

3. Documentation requirements for transformation from an industrial park into an urban – service zone in Vietnam

According to Clause 2, Article 13 of Decree 35/2022/ND-CP, request documentation requirements for transformation from an industrial park into an urban – service zone, including:

- The full text of the proposal to transform the industrial park into the urban - service zone that contains the following information:

+ Legal basis and necessity of transformation from the industrial park into the urban – service zone;

+ Assessment and interpretation of possibilities of conformance to the conditions specified in Section 2 (enclosing relevant documents);

+ Relocation, compensation, site clearance and fund mobilization plans;

+ Recommendations about dedicated solutions, regulatory mechanisms and policies (if any) and implementation thereof;

- Transmittal form of the provincial People’s Committee that requests the transformation from the industrial park into an urban – service zone;

- Application documents made into 10 sets, including at least 02 original sets thereof (01 original set submitted to the Prime Minister) and 09 sets submitted to the Ministry of Planning and Investment for the purpose of review prescribed in Section 4 and 5.

4. Items subject to the review of transformation from the industrial park into the urban - service zone in Vietnam

According to Clause 4, Article 13 of  of Decree 35/2022/ND-CP, the items subject to the review of transformation from the industrial park into the urban - service zone shall include:

- Legal basis and necessity of transformation from the industrial park into the urban – service zone;

- Assessment of conformance to the conditions specified in Section 2;

- Assessment of feasibility of the relocation, compensation, site clearance and fund mobilization plan;

- Assessment of particular solutions, regulatory mechanisms or policies (if any) and implementation thereof.

5. Processes and procedures for review of transformation from an industrial park into an urban – service zone in Vietnam

According to Clause 3, Article 13 of Decree 35/2022/ND-CP, the processes and procedures for review of transformation from an industrial park into an urban – service zone are as follows:

- Within the maximum duration of 03 working days of receipt of all required request documents prescribed in clause 2 of this Article, the Ministry of Planning and Investment sends consultation request documentation to the Ministry of Natural Resources and Environment, the Ministry of Construction and other relevant state authorities;

- Where request documentation for transformation fails to meet the regulations laid down in Article 2 hereof, the Ministry of Planning and Investment advises the provincial People’s Committee of such failure in writing in order to request it to revise the submitted documents. The document revision period shall not be included in the review time;

- Within 15 days of receipt of consultation request documents prescribed in point a of this clause, the consulted agency gives its comments on items falling within its remit and sends them to the Ministry of Planning and Investment;

- Within 45 days of receipt of all required application documents, the Ministry of Planning and Investment conducts the review of the request documentation for transformation and prepares the review report including the information specified in clause 4 of this Article for submission to the Prime Minister to seek his decision on approval of the transformation from the industrial park into the urban – service zone.

Where necessary, the Ministry of Planning and Investment can set up the Review Council or organize a meeting with other relevant state authorities and the People’s Committee of the province where the project is located to clarify concerned issues.

Quoc Dat

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