Vietnam’s new Decree on management and development of industrial clusters

New Decree on management and development of industrial clusters

Decree No. 32/2024/ND-CP of Vietnam’s Government provides for the industrial cluster development plan, establishment and expansion of industrial clusters; investment in construction of technical infrastructure, business and production facilities in industrial clusters; incentives for and policies to provide assistance in development of industrial clusters, and state management of industrial clusters.

** Regulated entities of Decree No. 32/2024/ND-CP:

- Enterprises, cooperatives, units investing in construction of technical infrastructure of industrial clusters;

- Organizations and individuals carrying out production and business in industrial clusters;

- Other agencies, organizations and individuals related to management and operation of industrial clusters.

Conditions for establishment or expansion of an industrial cluster

(1) The following conditions must be met when establishing an industrial cluster:

- The industrial cluster is on the List of industrial clusters in a province approved by a competent authority; available land is suitable for the land use planning in a district;

- An enterprise, cooperative or organization that has a legal status and capacity for investment in construction of technical infrastructure applies for approval as a technical infrastructure investor;

- In the event industrial clusters have been established within a district, the average occupancy rate of those industrial clusters must exceed 50% or the clusters’ total area of industrial land yet to be leased out must not exceed 100 ha.

(2) The following conditions must be met when expanding an industrial cluster:

- Total area of the industrial cluster after expansion must not exceed 75 ha; available land is suitable for the land use planning in a district;

- An enterprise, cooperative or organization that has a legal status and capacity for investment in construction of technical infrastructure applies for approval as a technical infrastructure investor;

- The occupancy rate is at least 60% or the demand for leasing industrial land in the industrial cluster exceeds the area of current industrial land of the industrial cluster;

- Essential shared technical infrastructure constructions have been completed and put into service (including internal roads, constructions for water supply and wastewater collection and treatment) in line with the approved detailed planning.

Decree No. 32/2024/ND-CP of Vietnam’s Government replaces Decree No. 68/2017/ND-CP and Decree No. 66/2020/ND-CP.

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