What are the types of economic zone in Vietnam? Conditions for establishment of an economic zone in Vietnam

What are the types of economic zone in Vietnam? Conditions for establishment of an economic zone in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. What are the types of economic zone in Vietnam?

According to Clause 1, Article 14 of Decree 35/2022/ND-CP, an economic zone is classified into:

- Coastal economic zone,

- Bordergate economic zone

- Specialized economic zone

2. Conditions for establishment of an economic zone in Vietnam

Pursuant to Clause 2, Article 14 of Decree 35/2022/ND-CP, an economic zone can be established if the following conditions are satisfied:

- The economic zone-to-be must conform to the provincial or regional development plan; must be on the list of economic zones in a province and centrally-affiliated city;

- The economic zone-to-be has capabilities of mobilizing resources intended for investment in construction of technical utility and social infrastructure facilities of the economic zone and development of the production and business sector;

- The economic zone-to-be must prove its socio-economic efficiency;

- The economic zone-to-be must ensure conformance to environmental protection conditions specified in law on environmental protection;

- The economic zone-to-be must ensure conformity with national defence and security requirements.

3. Documentation requirements for establishment of an economic zone in Vietnam

According to Article 15 of Decree 35/2022/ND-CP, documentation requirements for establishment of an economic zone includes:

- The project on establishment of an economic zone under the control of the provincial People’s Committee must contain the followings:

+ Legal basis for and necessity of establishment of that economic zone;

+ Evaluation of the current state, geographical, natural, resource and socio-economic factors and conditions, comparative advantages and disadvantages of the area to be developed into an economic zone in comparison to others nationwide;

+ Assessment and interpretation of capabilities of satisfying the conditions for establishment of the economic zone that are prescribed in clause 2 of Article 14 of Decree 35/2022/ND-CP (enclosing relevant documents);

+ The proposed plan for development of an economic zone shall contain the followings: developmental objectives, dimensional scale, features and functions of the economic zone; developmental orientations of sectors and industries; plan for spatial development and development of functional sections inside the economic zone; investment, construction and development plan and schedule of the economic zone;

+ Recommended solutions and implementation thereof;

+ Representation of the plan for establishment of the economic zone on the map at scale 1:10.000 - 1:25.000.

- Transmittal form submitted to the Prime Minister by the provincial People’s Committee for proposal for establishment of the economic zone.

- Such documentation shall be made into 10 sets, comprising at least 02 original ones (01 original set submitted to the Prime Minister) and 09 sets submitted to the Ministry of Planning and Investment for evaluation purposes as prescribed in Article 16 hereof.

4. Processes and procedures for establishment of an economic zone in Vietnam

Processes and procedures for establishment of an economic zone are specified in Article 16 of Decree 35/2022/ND-CP as follows:

- Within 03 working days of receipt of all required application documents prescribed in Article 15 of Decree 35/2022/ND-CP, the Ministry of Planning and Investment sends documents on consultation with relevant state authorities.

- Where such consultation documentation fails to meet the regulations laid down in Article 15 of Decree 35/2022/ND-CP, the Ministry of Planning and Investment advises the provincial People’s Committee of such failure in writing in order to request it to revise such submitted documents. Period of such supplementation or revision shall not be included in the review time.

- Within the maximum duration of 20 working days of receipt of consultation documentation prescribed in clause 1 of Article 16 of Decree 35/2022/ND-CP, the consulted agency gives its comments about 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 prepares the review report including the information specified in clause 5 of this Article for submission to the Prime Minister to seek his decision on approval of establishment of the economic 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.

- The items subject to the pre-approval review of establishment of an economic zone shall include:

+ Legal basis for and necessity of establishment of that economic zone;

+ Assessment of conformance to the establishment conditions specified in clause 2 of Article 14 of Decree 35/2022/ND-CP;

+ Assessment of the orientation for development of the economic zone;

+ Assessment of solutions and implementation thereof.

Ho Quoc Tuan

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