Procedures for setting up an industrial park

Definition 

According to Decree 35/2022/ND-CP, industrial area is an area with a defined geographical boundary, specializing in the production of industrial goods and the provision of services for industrial production

In particular, Industrial Parks are classified by law according to their functions and characteristics as follows:

(1) Manufacturing park is an industrial park specializing in the production of export goods, providing services for export production and export activities; separated from the outside area according to the regulations applicable to the non-tariff zone specified in the law on export tax and import tax.

(2) Supporting Industrial Park is an industrial park specializing in the production of supporting industry products and providing services for the production of supporting industry products; at least 60% of the total industrial land area of the industrial park is used to attract investment projects to produce supporting industry products in accordance with the law on development of supporting industries.

(3) Specialized industrial park means an industrial park specializing in the production and provision of services for the production of products in a particular industry or trade; at least 60% of the industrial land area of the industrial park is used to attract investment projects in this industry.

(4) Eco-industrial park is an industrial park, in which there are enterprises in the industrial park engaged in cleaner production activities and efficient use of resources, with linkages and cooperation in production to carry out industrial symbiosis activities; meet the criteria specified in this Decree.

(5) High-tech industrial park is an industrial park attracting high-tech and information technology investment projects on the list of industries and trades with special investment incentives under the provisions of the law on investment, projects with technology transfer on the list of investment projects of technology that are encouraged to be transferred in accordance with the law on technology transfer, technology incubators, science and technology business incubators in accordance with the law on high technology, the law on science and technology, innovative start-up investment projects, innovation, research and development, education and training; at least 30% of the industrial land area of the industrial park is used to attract these investment projects.

Legal basis for the establishment of an Industrial Park

– Investment Law 2020;

– Law on Real Estate Business 2014;

– Decree 35/2022/ND-CP regulations on management of industrial parks and economic zones

Conditions for establishment of an Industrial Park

Pursuant to Clause 6, Article 6 Decree 35/2022/ND-CP, then the Industrial Park is determined to have been established since the competent authority:

a) Decide the investment policy of industrial park infrastructure projects using public investment capital in accordance with the law on public investment;

b) Approving the investment policy and at the same time approving the investor, approving the investor or granting the Investment Registration Certificate to execute the investment project on construction and business of infrastructure of the industrial park in accordance with regulations of investment law.

Thus, for an Industrial Park to be established, it is necessary to have an industrial park infrastructure investment project.

According to article 9 Decree 35/2022/ND-CP, conditions for investment in industrial park infrastructure are regulated:

(1) Conform to the approved planning;

(2) Industrial parks must be phased in investment according to the provisions of law;

(3) Set aside at least 5 hectares of industrial land or at least 3% of the total industrial land area of the industrial park (including factories, offices, and warehouses) for small and medium-sized enterprises and supporting industries, innovative enterprises, beneficiaries of investment incentives, other enterprises eligible for priority and support in terms of production and business premises in accordance with the law on land lease, sublease land.

(4) Capable of meeting the conditions for changing the land use purpose in accordance with the law on land, the law on forestry and other relevant laws.

(5) At the time of submitting the pre-feasibility study report of the industrial park infrastructure project in accordance with the law on public investment or submitting the application for approval of the investment policy of the construction investment project and business in infrastructure of industrial parks is valid according to the provisions of the law on investment, the average occupancy rate of industrial parks already established in the province or centrally run city reaches at least is 60%, except for some specific statutory cases

(6) Having planning on construction of residential areas and public service and utility works for employees working in industrial parks or clusters of industrial parks approved by competent state agencies in accordance with regulations of housing law and other relevant laws.

Conditions for investors to implement investment projects 

According to Article 10 Decree 35/2022/ND-CP Investors implementing investment projects on construction and business of infrastructure of industrial parks must satisfy the following conditions:

(1) Conditions for real estate business in accordance with the law on real estate business;

(2) Conditions for land allocation, land lease or change of land use purpose by the State for the implementation of investment projects on construction and business of infrastructure of industrial parks in accordance with the law on land, forestry legislation and other relevant laws.

In case the investor implementing the investment project on construction and business of infrastructure of the industrial park is an economic organization that is expected to be established by the foreign investor in accordance with the provisions of the law on investment and the law on investment. Regarding enterprises, the economic organization to be established must be able to meet the conditions to be allocated or leased land by the State, or permitted to change the land use purpose in accordance with the provisions of the law on land and legislation. forestry law and other relevant laws.

In addition, in the case of choosing to apply investor selection bidding, the evaluation criteria for selecting investors to implement investment projects on construction and business of infrastructure of industrial parks include:

(a) The criteria for assessing the investor’s capacity are developed on the basis of the conditions specified in Clause 1, Article 10 Decree 35/2022/ND-CP;

(b) The criteria for evaluation of investor’s experience are established on the basis of the size of the area, the progress of implementation, the performance of the investment project, construction and business of infrastructure of the industrial park or the other real estate projects in which the investor has implemented or contributed equity to implement the project; owners, members, founding shareholders being organizations of the investors who have implemented or contributed equity capital to implement the project;

(c) Technical evaluation criteria are developed on the basis of the contents of the Decision approving the planning for construction of industrial zones, the decision approving the investment policy of the infrastructure construction and business investment project industrial park floors of competent authorities and other relevant laws;

(d) The financial-commercial evaluation criteria are developed on the basis of the competent authority’s decision on approval of investment policy for construction and business infrastructure investment projects of industrial parks and other provisions of law related to the selection of investors to implement investment projects using land.

Order and procedures for establishment of an Industrial Park

Because the industrial park is established after the investor of the technical infrastructure project of the industrial park is granted the approval of investment policy and concurrently approves the investor, approves the investor or issues the registration certificate invest in the implementation of investment projects on construction and business of infrastructure of industrial parks according to the provisions of the law on investment. So the order and procedures will be followed in Investment law about Approval of investment policy, Certificate of investment registration and satisfaction of a number of regulations under Decree 35/2022/ND-CP.

Pursuant to the provisions of Article 8 Decree 35/2022/ND-CP Regarding the order and procedures for investment in industrial park infrastructure, in some cases, the following procedures will be carried out:

(1) The order and procedures for deciding and adjusting the investment policy of industrial park infrastructure projects using public investment capital shall comply with the law on public investment and the following provisions: :

– The pre-feasibility study report of an industrial park infrastructure project must contain explanations for the satisfaction of the conditions specified in Article 9 of this Decree;

– The contents of appraisal of the pre-feasibility study report include the contents prescribed by the law on public investment and the satisfaction of the corresponding conditions specified in Article 9 of this Decree..

(2) For the order and procedures for investment in investment projects, construction and business of infrastructure of industrial parks, including industrial parks in economic zones that do not fall into the above cases, comply with regulations of law and the following regulations:

– The investment project proposal or the pre-feasibility study report in the application file for approval of the investment policy must contain explanations for the satisfaction of the conditions specified in Article 9 of this Decree; explain the satisfaction of the conditions specified in Clause 1, Article 10 of this Decree (for the case where the investment policy is approved at the same time as the investor’s approval);

– Contents of appraisal for approval of investment policies include those as prescribed by the law on investment and the satisfaction of the corresponding conditions specified in Articles 9 and 1, Article 10 of this Decree (for in case of approval of investment policy and investor approval).

In addition, industrial parks in the case of investment divergence shall follow the order and procedures for deciding on investment policies, approving investment policies, and granting investment registration certificates for each stage.

Note that:In case an industrial park using public investment capital or the next stage has the same investor as the previous stage, it is entitled to decide on investment policies, approve investment policies, and issue an investment registration certificate after the previous stage reaches the minimum occupancy rate of 60% or the investment in the construction of the infrastructure system has been completed according to the industrial park construction planning approved by a competent authority. In this case, the investor in the previous stage is given priority to choose the implementation of the next stage, except for the case where an auction or bidding is required to select the investor as prescribed by law.

(3) The industrial park falls into the case specified in Clause 3, Article 9 of Decree shall carry out the order and procedures for deciding on investment policies, approving investment policies, and granting Investment Registration Certificates for each stage and shall comply with the following regulations:

– The project dossier must contain a commitment on the progress of attracting investment projects to implement the industry cluster specified in Clause 3, Article 9 of this Decree;

– The decision on investment policies, the decision on approval of investment policies, and the investment registration certificate must specify the commitment contents in the project file. The handling of violations of commitments shall comply with the contents of the commitments, the provisions of the law on investment and other relevant laws;

– In case the industrial park uses public investment capital or the next phase has the same investor as the previous phase, it is entitled to decide on investment policies, approve investment policies, and issue an investment registration certificate. After the first phase has approved the investment policy, granted the investment registration certificate, implemented the investment project to lease or sublease land for implementation of the industry cluster as prescribed in Clause 1 of this Article. Clause 3 Article 9 of Decree and at the same time achieve a minimum occupancy rate of 60% or have completed the investment in the construction of the infrastructure system according to the industrial park construction planning approved by the competent authority. In this case, the investor in the previous stage is given priority to choose the implementation of the next stage, except for the case where an auction or bidding is required to select the investor according to the provisions of law.

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