Management and development of industrial clusters

On March 15, 2024, the Government issued Decree No. 32/2024/ND-CP on management and development of industrial clusters. Some notable provisions in the Decree include:

1)           Conditions for establishing industrial clusters

1. a) Included in the List of industrial clusters in the provincial area approved by competent authorities; have a land fund consistent with land use planning at the district level;
2. b) There is an enterprise, cooperative, or organization with legal status and capacity to invest in the construction of technical infrastructure that requests to be the investor in constructing the technical infrastructure of the industrial cluster;
3. c) In cases where industrial clusters have been established in district-level areas, the average occupancy rate of industrial clusters is over 50% or the total unleased industrial land fund of industrial clusters does not exceed 100 hectares.

2)           Conditions for expanding industrial clusters

1. a) The total area of the industrial cluster after expansion does not exceed 75 hectares; have a land fund consistent with land use planning at the district level;
2. b) There is an enterprise, cooperative, or organization with legal status and capacity to invest in the construction of technical infrastructure that requests to be the investor in constructing the technical infrastructure of the industrial cluster;
3. c) Achieve an occupancy rate of at least 60% or the demand for renting industrial land in the industrial cluster exceeds the existing industrial land area of the industrial cluster;
4. d) Complete construction and put into use essential shared technical infrastructure works (including: internal roads, water supply, wastewater collection and treatment) according to the approved detailed planning.

3)           Application for establishment of industrial cluster

1. a) Proposal for establishment or expansion of the industrial cluster of district People's Committee.
2. b) Document from an enterprise, cooperative, or organization requesting to be the investor in the construction of the industrial cluster’s technical infrastructure, accompanied by an investment report to establish or expand an industrial cluster and a map determining the location, the boundary of the industrial cluster;
3. c) Valid copies of documents on the legal status of the enterprise, cooperative, or organization requesting to be the investor in the construction of the industrial cluster’s technical infrastructure;
4. d) Valid copies of documents proving the financial capacity of the enterprise, cooperative, or organization requesting to be the investor in technical infrastructure construction
5. dd) Valid copies of documents proving the experience of the enterprise, cooperative, or organization applying to be an investor in the construction of industrial cluster technical infrastructure and other relevant documents and materials (if applicable).

4)           Support investment and development of industrial clusters

The State supports no more than 30% of the total investment capital of an investment project to build technical infrastructure of industrial clusters. The central budget ensures funding for industrial cluster development activities carried out by the Ministry of Industry and Trade and the local budget ensures funding for industrial cluster development activities carried out locally.

The Decree takes effect on May 1, 2024.

Read more >> Real Estate and construction