MANAGEMENT AND DEVELOPMENT OF INDUSTRIAL CLUSTERS

1. This Decree 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.

2. This Decree applies to:

a) Enterprises, cooperatives, units investing in construction of technical infrastructure of industrial clusters (hereinafter referred to as “industrial cluster infrastructure”);

b) Organizations and individuals carrying out production and business (hereinafter referred to as “businesses”) in industrial clusters;

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

For the purposes of this Decree, the terms below are construed as follows:

1. “industrial cluster” means a place in which industrial production activities are carried out and services are provided for industrial and cottage-industrial production, with defined geographical boundaries and without any inhabitant living in the cluster, and which is constructed to attract and relocate small and medium-sized enterprises, cooperatives and cooperative associations to conduct production and business activities.

An industrial cluster has an area exceeding 10 ha but not exceeding 75 ha. An industrial cluster in a mountainous district or a craft village industrial cluster has an area exceeding 05 ha but not exceeding 75 ha.

2. “craft village industrial cluster” means an industrial cluster 60% of industrial land of which is intended for the relocation of and expansion of production and business by small and medium-sized enterprises, cooperatives, cooperative associations, production establishments of households and individuals in the craft village practicing traditional craft.

3. “investor in construction of industrial cluster infrastructure” (hereinafter referred to as “technical infrastructure investor”) means an enterprise, cooperative or organization that is established and operates in accordance with Vietnam’s law, and invests in and commercially operates technical infrastructure of an industrial cluster.

4. “system of shared technical infrastructural constructions of an industrial cluster” includes the system of internal traffic works, sidewalks, trees, constructions for water supply and drainage, wastewater and solid waste treatment, electric power supply, public lighting or internal communications, and other constructions serving activities of the industrial cluster.

5. “project on investment in construction of industrial cluster infrastructure” (hereinafter referred to as “industrial cluster infrastructure construction project”) means an investment project that uses land to synchronously build technical infrastructure of an industrial cluster; the land in which is leased out or subleased to investors for execution of production and business investment projects, operating and managing industrial cluster infrastructure in accordance with regulations of law.

6. “industrial land area” means land area of an industrial cluster that is leased out or subleased to an organization or individual for their industrial production or provision of services for industrial production and is determined in the detailed construction planning approved by the competent authority.

7. “occupancy rate of an industrial cluster” means the ratio of the industrial land area which is leased or subleased to an organization or individual, or for which investment guidelines are approved, or to which investment registration certificate is issued for production and business to the total area of industrial land of the industrial cluster.

8. “industrial cluster development plan” means the rational arrangement or allocation of space for industrial clusters, which must be associated with policies and solutions for synchronous management and investment in construction of technical infrastructure of a province or central-affiliated city (hereinafter referred to as “province”) from time to time on the basis of environmental protection, economical and efficient use of land and other local human and natural resources. The industrial cluster development plan is an integral part of, formulated and integrated with, the provincial planning in accordance with regulations of law on planning.

9. “Decision on industrial cluster establishment or Decision on industrial cluster expansion” means a document issued by a competent authority recording legal information about an industrial cluster as the basis for making investment in construction of industrial cluster infrastructure and applying State’s policies and regulations to the industrial cluster.

10. “industrial cluster database” includes information about the plan for development, establishment or expansion of industrial clusters, investment in construction of technical infrastructure and activities of industrial clusters in provinces and nationwide.

1. Industries and business and production establishments encouraged to make their investment in and relocate to industrial clusters consist of:

a) Processing and manufacturing industries supporting agriculture; mechanical industry (such as: automobiles, agricultural machines, construction equipment, industrial equipment, electrical equipment, medical equipment, etc.); supporting industry; textile and apparel and footwear industry;

b) Information technology and communications, electronics industry; smart energy; digital technology, automation, high-end equipment, new materials, biotechnology;

c) Local industries and cottage industries to be preserved and developed; warehousing services, packaging, transport of goods, repair and maintenance of machinery, industrial equipment and other services directly serving local industrial and cottage-industrial production with a total area not exceeding 10% of the industrial cluster area;

d) Other industries employing high, clean and energy-efficient technologies resulting in high value and sustainable development;

dd) Industrial and cottage-industrial production establishments which cause pollution or are likely to cause pollution in craft villages and populated areas are encouraged relocated to industrial clusters.

2. Provincial People’s Committees shall specify industries and business and production establishments in industrial clusters in conformity with the industrial cluster development plan under the provincial planning and local socio - economic development orientations. Such industries shall be stated in the Decision on establish or expansion of industrial cluster.

1. An industrial cluster development plan is formulated on the following grounds:

a) Vietnam's industrial development strategy, and provincial strategy for development of priority industries and sectors;  

b) Socio - economic development orientations, regional planning, and provincial technical and specialized planning;

c) c) The demand for ground area, conditions concerning geography, traffic and human resources for attracting and relocating organizations and individuals to provincial industrial clusters for their investment in production and business;

d) The ability to mobilize sources of investment capital from enterprises and the State, and other lawful capital sources to invest in construction of industrial cluster infrastructure of provincial industrial clusters;

dd) Requirements for environmental protection, economical and efficient use of land and other local human and natural resources.

2. An industrial cluster development plan shall include, inter alia, the following contents:

a) Legal grounds and necessity for formulation of an industrial cluster development plan;

b) The assessment of current status of investment in technical infrastructure; investment attraction, occupancy rate and production and business situations; fire prevention and fighting and prevention and rescue in industrial clusters; socio-economic efficiency of each planned industrial cluster; management of industrial clusters in the province; achievements, shortcomings and causes thereof;

c) Forecasted factors that may impact the development of industrial clusters in each planning period; estimated demand for ground space of organizations and individuals making investment in industrial clusters, area of land available to develop industrial clusters in the district and province; estimated demand for labor in industrial clusters during the planning period;

d) Viewpoints, objectives and orientations for development of industrial clusters in the province during the planning period;

dd) List of industrial clusters expected to be developed in the province during the planning period, including: names, locations (down to commune; maintaining an environmental safety distance from neighboring populated areas, national historical sites/monuments, rivers, lakes; only placing industrial clusters next to each other when there is a connection in terms of industries, environmental remediation, energy, etc. between industrial clusters), area, industries. Detailed description of each industrial cluster, clearly stating: land use status (on the principle that the use of land planned for rice cultivation and land in wildlife sanctuaries, historical - cultural sites/monuments, scenic landscape, etc. is restricted); industries (with orientations towards industries that can be linked or of the same value chain of products and services given priority for production of the locality or its vicinity); explanation for grounds for removing and adding industrial clusters from/to the List of industrial clusters in the locality; estimated total investment for construction of industrial cluster infrastructure;

e) Displaying status of and planning for industrial clusters expected to be developed on the provincial planning maps;

g) Solutions for developing industrial clusters in the province during the planning period (including mobilizing sources of capital for investment in infrastructure; mechanisms and policies to support the development of industrial clusters; environmental protection; management and implementation thereof).

3. Funding and phasing of an industrial cluster development plan shall adhere to regulations on provincial planning.

1. Each provincial Department of Industry and Trade shall preside over and cooperate with relevant provincial departments, agencies, district-level People’s Committees, and relevant units in formulating and completing the provincial industrial cluster development plan in accordance with the provisions of Article 4 hereof, and then submitting a report on the plan to the provincial People’s Committee.

2. The provincial People’s Committee shall direct the provincial planning agency to process and integrate the industrial cluster development plan into the provincial planning, and get opinions about such provincial planning (which includes the industrial cluster development plan) in accordance with regulations of law on planning for completing and submitting it to competent authorities for approval.

3. The decision on approval for the provincial planning must include contents of the industrial cluster development plan and the enclosed list of industrial clusters during the planning period, including names, locations and area of industrial clusters and relevant contents (if any).

1. Grounds for adjustment of an industrial cluster development plan:

a) There are adjustments to Vietnam's industrial development strategy, local strategy for development of priority industries and sectors; regional planning, provincial planning, and other local technical and specialized planning;

b) There are changes in the land area used for development of industrial clusters to meet demands for lease of land to serve production and business activities of organizations and individuals and match the efficiency of investment in infrastructure and ability to lease spaces of industrial clusters of the district;

c) There is possibility of attracting enterprises and cooperatives to the industrial clusters expected to be added for their investment in construction of technical infrastructure and organizations and individuals for their production and business; there is a feasible industrial cluster relocation plan if an industrial cluster is removed from the planning.

2. The adjustment of an industrial cluster development plan shall mainly cover:

a) Legal grounds, necessity and explanation about grounds for adjustment of an industrial cluster development plan;

b) The assessment of progress and efficiency of investment in technical infrastructure; investment attraction, occupancy rate and production and business situations; fire prevention and fighting and prevention and rescue in industrial clusters; socio-economic efficiency of each planned industrial cluster; achievements, shortcomings and causes thereof;

c) Estimated demands for production premises for investment attraction, relocation to the industrial cluster, current use of land, industries, ability to attract investors, estimated total investment in industrial clusters expected to be adjusted under or added to the planning; assessment of current status and efficiency of investment in industrial clusters to be removed from the planning, grounds for proposing and feasibility of the industrial cluster relocation plan;

d) Proposed List of industrial clusters during the planning period in the province (after the adjustment), including: names, locations (down to commune; maintaining an environmental safety distance from neighboring populated areas, national historical sites/monuments, rivers, lakes, etc.; only placing industrial clusters next to each other when there is a connection between industrial clusters), area, industries.

dd) Implementation solutions.

1. Each provincial Department of Industry and Trade shall preside over and cooperate with relevant provincial departments, agencies, district-level People’s Committees, and relevant units in formulating and completing the report on adjustment of provincial industrial cluster development plan in accordance with the provisions of Article 6 hereof, and then submitting it to the provincial People’s Committee.

2. The provincial People’s Committee shall direct the provincial planning agency to process and integrate the adjusted industrial cluster development plan into the adjusted provincial planning, and get opinions about such adjusted provincial planning (which includes the adjusted industrial cluster development plan) in accordance with regulations of law on planning for completing and submitting it to competent authorities for approval.

3. The decision on approval for the adjusted provincial planning must include contents of the adjusted industrial cluster development plan and the enclosed list of industrial clusters during the planning period, including names, locations and area of industrial clusters and relevant contents (if any).

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

a) 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;

b) 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;

c) 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:

a) 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;

b) 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;

c) 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;

d) Essential shared technical infrastructural 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.

1. An application for establishment or expansion of an industrial cluster includes:

a) An application form for establishment or expansion of industrial cluster, which is submitted by the district-level People’s Committee. If the industrial cluster is located in two district-level administrative divisions or more, the provincial People's Committee shall assign the People's Committee of one district to apply for establishment or expansion of the industrial cluster;

b) The application form submitted by the enterprise, cooperative or organization for approval as technical infrastructure investor (including a commitment not to violate law and commitment to bear all costs and risks if not approved) enclosed with a report on investment in establishment or expansion of industrial cluster and a map determining the location and boundaries of the industrial cluster;

c) A legitimate copy of the document proving legal status of the enterprise, cooperative or organization applying for approval as technical infrastructure investor;

d) A legitimate copy of the documentation proving financial capacity of the enterprise, cooperative or organization applying for approval as the technical infrastructure investor, consisting one of the following documents: financial statement of the last 02 years; parent company's commitment to provide financial assistance; financial institution’s commitment to provide financial assistance; guarantee for investor’s financial capacity; other document proving financial capacity (if any);

dd) A legitimate copy of the document proving experience of the enterprise, cooperative or organization applying for approval as the technical infrastructure investor and other relevant document (if any).

2. Main contents of the report on investment in establishment or expansion of the industrial cluster:

a) Legal grounds, necessity and assessment of conformity with and satisfaction of the conditions for establishment or expansion of the industrial cluster; impacts of industrial parks and industrial cluster in the locality on the investment efficiency and occupancy rate of the industrial cluster;

b) Current use of land, conditions for land expropriation, estimated demand for land, orientation for arranging industries that prove connective and supportive to production; land use structure and expected attraction of investment in the industrial cluster; assessment of ability to connect technical infrastructure inside and outside the industrial cluster;

c) Determination of the objectives, area, location and scope of investment in technical infrastructure construction; analysis and selection of an alternative on investment in construction of system of technical infrastructural constructions; plan on land clearance and relocation assistance (if any); deadline and schedule for project execution in conformity with reality and ability to mobilize resources; plan and schedule for attracting investment in and relocation to the industrial cluster, and its occupancy rate; plan for water source pollution, deterioration and depletion prevention and control; plan for fire prevention and fighting prevention and rescue in the industrial cluster; housing plan for workers in the industrial cluster;

d) Determination of legal status, capacity and experience of the enterprise, cooperative or organization applying for approval as technical infrastructure investor; expected total investment, structure and ability to balance and mobilize sources of investment capital for project execution;

dd) Costs of servicing, maintenance and operation of the system of technical infrastructural constructions, other relevant costs; methods of managing and operating such system after being put into operation;

e) Preliminary assessment of environmental impacts in accordance with regulations of law on environmental protection; estimated capacity for receiving and treating waste around the area where the industrial cluster is expected to be established or expanded; forecasted sources of waste and environmental impacts of industries in which investment is expected to made in the industrial cluster and environmental management plan; assessment of the suitability for the water source functions;

g) Proposed investment incentives, special mechanisms and policies (if any); analysis and assessment of socio-economic impacts and efficiency of the industrial cluster; solutions for implementation thereof.

1. Within 05 working days from the date of receiving the first document of the enterprise, cooperative or organization applying for approval as technical infrastructure investor, the district-level People’s Committee shall publicly announce its receipt of the application for establishment or expansion of industrial cluster on local mass media. The time limit for receiving applications is 15 days from the date of announcement.

2. Within 05 working days from the ending date of receiving the application establishment or expansion of industrial cluster, the district-level People’s Committee shall preside over and cooperate with the enterprise, cooperative or organization applying for approval as the technical infrastructure investor to prepare 02 sets of application for establishment or expansion of the industrial cluster as prescribed in clause 1 Article 9 of this Decree enclosed with electronic files thereof, and submit them to the provincial Department of Industry and Trade, which will preside over and cooperate with relevant Departments and agencies to carry out appraisal.

3. Within 25 days from the date of receiving a sufficient application for establishment and expansion of industrial cluster, the provincial Department of Industry and Trade shall complete the appraisal and submit to the provincial People's Committee a consolidated report on establishment or expansion of industrial cluster. If the report on establishment or expansion of industrial cluster is unsatisfactory, the provincial Department of Industry and Trade shall request the district-level People’s Committee in writing to complete the application. The length of time over which the application is completed shall not be included in the time limit for appraisal.

The selection of an enterprise, cooperative or organization as a technical infrastructure investor shall comply with clause 2 Article 13 of this Decree. The provincial People’s Committee shall decide the disclosure of results of investor selection to the enterprise, cooperative or organization as technical infrastructure investor.

4. Within 07 working days from the date of receiving 01 set of application for establishment and expansion of industrial cluster enclosed with the appraisal report submitted by the provincial Department of Industry and Trade, the provincial People’s Committee shall consider deciding the establishment or expansion of industrial cluster.  A copy of the decision on establishment or expansion of industrial cluster shall be submitted to the Ministry of Industry and Trade.

In case name of the industrial cluster or its location within a district-level administrative division is changed or its area is 05 ha more than the area mentioned in the approved planning and in conformity with the district-level land use planning and other planning in the locality, the provincial People's Committee shall consider making its decision under the decision on establishment or expansion of the industrial cluster; at the same time update the change for reporting to the Prime Minister in the next period of formulating and approving the provincial planning.

1. The legitimacy and validity of the application for establishment and expansion of an industrial cluster.

2. Contents and feasibility of the report on investment in establishment or expansion of the industrial cluster:

a) Legal grounds, necessity and conformity with provincial planning and other related planning;

b) Assessment of satisfaction of conditions for establishment or expansion of industrial cluster; demand for land, capacity for land lease or land repurposing;

c) Name, area, objectives, industries and selection of an alternative for investment in industrial cluster infrastructure construction;

d) Legal status and capacity of the enterprise, cooperative or organization applying for approval as technical infrastructure investor, total investment, structure and ability to balance and solutions for mobilizing sources of investment capital for completion of the industrial cluster infrastructure; feasibility of the plan for environmental protection, fire prevention and fighting prevention and rescue, and housing for workers in the industrial cluster;

dd) Relevant costs and methods for management, operation and use of industrial cluster infrastructure after being put into operation;

e) Solutions for attracting investment and relocation of projects and establishment which cause pollution or are likely to cause pollution in the province (if any); preliminary assessment of socio-economic efficiency in establishment or expansion of the industrial cluster and environmental impacts of the industrial cluster;

g) Assessment of investment incentives and conditions for enjoyment thereof (if any).

1. Main contents of a Decision on establishment or expansion of industrial cluster:

a) Name, area, location and main industries;

b) Technical infrastructure investor;

c) Scale of investment in technical infrastructure construction, expected total investment capital and structure of investment capital sources;

d) Schedule for execution of the industrial cluster infrastructure construction project;

dd) Investment incentives and assistance and conditions for application thereof (if any);

e) Responsibility of the technical infrastructure investor and relevant authorities for execution of the industrial cluster infrastructure construction project;

g) Effective date of the Decision on establishment or expansion of industrial cluster;

h) Other contents (if any).

2. Adjustment or annulment of Decision on establishment or expansion of industrial cluster:

a) Under its authority and regulations of law, the provincial People's Committee shall decide to adjust or annul the Decision on establishment or expansion of industrial cluster in a manner as to suit local actual situation;

b) In the case of change of the technical infrastructure investor, the investor assessment and selection shall comply with clause 2 Article 13 of this Decree.

If the industrial cluster has a technical infrastructural construction formed using the state budget, the Provincial People's Committee shall assign the selected technical infrastructure investor to manage, repair and operate it to serve activities of the industrial cluster. Funding for construction of industrial cluster infrastructure is covered by the state budget must be excluded when fixing the rents for land rent and shared industrial cluster infrastructure; the costs of management, repair and operation of technical infrastructural constructions shall be included when fixing the rent for shared industrial cluster infrastructure. If special legislation specifies this regulation, it shall be complied with.

1. The State provide incentives and assistance to enterprises, cooperatives and organizations acting as technical infrastructure investors.

2. The selection of technical infrastructure investors constitutes part of the process of appraising applications for establishment or expansion of an industrial cluster; shall be carried out during the process of establishing or expanding an industrial cluster. For an industrial cluster for which an enterprise, cooperative or organization prepares an application for establishment or expansion in accordance with regulations enshrined in this Decree, a technical infrastructure investor shall be selected as follows:

The provincial People's Committee shall establish an Assessment Council for selecting a qualified technical infrastructure investor (the assessment council is comprised of a Chairperson who is a leader of the provincial People's Committee, a Deputy Chairperson who is a leader of the provincial Department of Industry and Trade, and other members who are representatives of relevant provincial departments and agencies; a Secretary who is a representative of the specialized division of the provincial Department of Industry and Trade and is not a Council’s member) for marking on a scale of 100 points according to the following criteria: the plan for investment in technical infrastructure construction (maximum 15 points), the plan for environmental protection and management of the industrial cluster (maximum 15 points), capacity and experience of the enterprise or cooperative (maximum 30 points) and the financial plan for construction of technical infrastructure (maximum 40 points). According to the actual condition of the locality and relevant regulations of law, the Council shall agree upon the working principles and methods, contents of each criterion and appropriate corresponding maximum point.

An enterprise, cooperative or organization given 50 points or higher shall be considered and selected as the technical infrastructure investor by the provincial People’s Committee according to the Decision on establishment or expansion of the industrial cluster (if 02 or more enterprises, cooperatives or organizations jointly apply for approval as technical infrastructure investor, the enterprise, cooperate or organization with the highest mark shall be selected; if there are at least two enterprises, cooperatives or organizations with the same highest mark, the enterprise, cooperative, or organization shall be selected according to the proposal of the Chairperson of the Assessment Council).

The investment in construction of industrial cluster infrastructure shall be made following the basic sequence below:

1. Prepare and approve the report on investment in establishment or expansion of the industrial cluster, other investment procedures (if any).

2. Formulate and approve the detailed planning for industrial cluster construction.

3. Set up and approve the industrial cluster infrastructure construction project and procedures for project investment preparation.

4. Organize construction of technical infrastructural constructions, and manage and operate such technical infrastructural constructions after their completion.

1. The district-level People’s Committee shall direct agencies and units to organize formulation of the detailed planning for industrial cluster construction within its district and submit it to a competent authority for approval. Contents of the detailed planning must conform to the report on investment in establishment or expansion of the industrial cluster, include technical infrastructural constructions serving environmental protection suitable for the industries of the industrial cluster and regulations on treatment and discharge of wastewater into water sources in accordance with regulations of law.

2. The formulation and adjustment of the detailed planning for industrial cluster construction shall comply with regulations on detailed planning for construction of functional areas specified under the law on construction without having to determine planning tasks. The approved construction detailed planning shall serve as the basis for issuing construction permits and setting up construction investment projects.

3. Funding for formulation of the detailed planning for industrial cluster construction shall comply with regulations of law. 

1. The system of shared technical infrastructure system of an industrial cluster shall be designed synchronously to save costs, ensure land and water use efficiency, and facilitate the construction, repair and operation of technical infrastructural constructions. The industrial cluster infrastructure construction project shall conform to the Decision on establishment or expansion of industrial cluster and detailed construction planning approved by the competent authority.

The technical infrastructure investor shall set up and execute the industrial cluster infrastructure construction project. Contents and sequence of setting up, appraising, approving and managing the project shall comply with regulations of law on investment and construction.

2. During the stages of preparation and execution of the project, the technical infrastructure investor shall adhere to procedures and regulations on land, construction and environment, formulate plan to prevent and control pollution, deterioration and depletion of water sources and fire prevention and fighting plan and comply with other regulations applicable to the project as prescribed.

1. Shared public services and utilities in an industrial cluster include security and order protection and maintenance; communications; water supply and drainage; environmental hygiene, waste treatment; fire prevention and fighting; maintenance, servicing and operation of technical infrastructural constructions and other services and utilities. Fees for use of shared public services and utilities are determined under an agreement signed between service users and the technical infrastructure investor.

2. The technical infrastructure investor shall organize provision and management of shared public services and utilities in the industrial cluster; shall make and approve the Regulation on management of public services and utilities before receiving organizations and individuals investing in production and business into the industrial cluster in accordance with regulations of law and submit 01 copy thereof to the provincial Department of Industry and Trade and the district-level People's Committee within 05 working days from the date of approval for monitoring and management purposes; if organizations or individuals investing in production and business are present in the industrial cluster, before approving the Regulation on management of public services and utilities, their comments shall be collected.

3. The settlement of complaints and disputes that arise from the management, supply and use of shared public services and utilities in the industrial cluster shall comply with regulations of law.

Every technical infrastructure investor has the right to:

1. encourage and receive investment projects into the industrial cluster according to the detailed planning and industries approved by the competent authority.

2. raise capital for construction of industrial cluster infrastructure in accordance with law.

3. invest in construction of factories, warehouses and offices for lease by enterprises or for sale and trading in other public services and utilities in the industrial cluster in accordance with the law.

4. Decide on the sublease and rents for land on which shared technical infrastructure exists, rents or selling prices for factories, warehouses and offices and prices for other public services and utilities. For an industrial cluster in which the investor is not an enterprise, cooperative or organization conducting investment and business activities, the land lease shall comply with regulations of law on land; fees for use of shared technical infrastructure and other public services and utilities in the industrial cluster shall be decided by competent authorities.

5. request a competent authority to revoke the investment guideline or the investment registration certificate (if any) or take actions against the investment projects in the industrial cluster which violate the law, have been terminated or have not been executed or have been delayed according to regulations of law on investment.

6. receive incentives and assistance as prescribed in this Decree and have common interests in accordance with relevant regulations of law.

Every technical infrastructure investor has the obligation to:

1. establish a department that manages and operates industrial cluster infrastructure construction projects; organize execution of projects according to the approved detailed planning, ensuring that they are executed on schedule; in case of violation of the law, delay in execution or termination or failure to execute the project, incur penalties as prescribed by law.

2. maintain, service and operate the system of shared technical infrastructure systems of the industrial cluster throughout its operation duration; provide public services and utilities in the industrial cluster.

3. comply with regulations of law on investment, land, construction, environmental protection, protection of water resources, fire fighting and prevention and rescue, finance, accounting, audit, statistics, insurance, labor, occupational safety, industrial hygiene, security and order, social safety in the industrial cluster.

4. assist and enable organizations and individuals to follow the procedures for making their investment in production and business in the industrial cluster.

5. Submit periodic reports on activities of industrial cluster infrastructure construction projects to the statistics authority in the locality according to regulations of Law on Statistics, and to the provincial Department of Industry and Trade and district-level People’s Committee for management purposes; make publicly available information on area of land yet to be leased out or subleased in the industrial cluster on the websites of enterprises and local governments.

6. comply with other obligations and regulations of law.

Organizations and individuals wishing to relocate to or invest in an industrial cluster shall contact the technical infrastructure investor for instructions on planning, on arrangement of industries, on rents for land and factories, warehouses and offices, fees for use of public services and utilities and on procedures for executing investment projects in the industrial cluster, and shall sign an in-principle agreement on the locations and area of industrial land expected to be leased.

1. Organizations and individuals making investment in an industrial cluster shall follow the procedures for leasing land on which shared technical infrastructure exists in accordance with requirements for environmental protection imposed by the technical infrastructure investor. For an industrial cluster in which the investor is not an enterprise, cooperative or organization conducting investment and business activities, the land lease shall comply with regulations of law on land.

2. For non-linear construction works in the industrial cluster, the issuance of construction permits shall comply with regulations of law on construction.

Every business in an industrial cluster has the right to:

1. use land and have land use term extended in accordance with regulations of law on land; sublease a piece of land, a factory, warehouse, office and property on such land in accordance with law.

2. use and pay fees for technical infrastructural constructions, public services and other services as prescribed.

3. advance or contribute capital to construct and commercially operate technical infrastructure by agreement with the technical infrastructure investor.

4. receive assistance in recruiting and training employees to meet production and business requirements.

5. receive instructions and assistance in following procedures for investment in production and business in the industrial cluster.

6. receive incentives and assistance prescribed in this Decree and law and enjoy other rights in accordance with relevant regulations of law.

Every business in an industrial cluster has the obligation to:

1. use land and execute investment projects, and carry out business and production activities under economic contracts signed with the technical infrastructure investor, Regulation on management of public services and utilities in the industrial cluster and decision on approval of investment guidelines or the investment registration certificate (if any); if any term or time limit is exceeded, inform the investor and the competent authority for extension.

2. comply with regulations of law on investment, land, construction, environmental protection, protection of water resources, fire fighting and prevention and rescue, finance, accounting, audit, statistics, insurance, labor, occupational safety, industrial hygiene, security and order, social safety regarding investment projects in the industrial cluster; pay fees for use of infrastructure, public services and other utilities as agreed.

3. actively participate in attracting employees and creating jobs in the locality, give priority to employees who are policy beneficiaries and households whose land has been expropriated for construction of the industrial cluster.

4. submit periodic reports on activities of investment projects in the industrial cluster to the statistics authority in the locality according to regulations of Law on Statistics, and to the district-level People’s Committee for management purposes.

5. comply with other obligations and regulations of law.

1. Production and business activities in an industrial cluster shall comply with applicable regulations of law.

2. Specialized inspection of businesses shall be conducted in accordance with the plan approved by the competent authority and once a year unless any violation against the law is suspected. The inspecting authority shall regularly cooperate with the provincial Department of Industry and Trade, the district-level People’s Committees and technical infrastructure in preventing and taking actions against violations of law committed in the industrial cluster.

3. Organizations and individuals in an industrial cluster shall submit a report on their production and business to a local statistics authority as prescribed by the Law on Statistics. Quarterly and annually, the local statistics authority shall submit consolidated reports on production and business to the district-level People’s Committee and the provincial Department of Industry and Trade for management.

1. An industrial cluster which is a disadvantaged area; investment in construction of industrial cluster infrastructure is a business line eligible for special investment incentives.

2. The application of incentives to industrial cluster infrastructure construction projects and production and business investment projects in an industrial cluster shall comply with regulations of law on land, law on taxation, law on credit and other relevant regulations of law. In case the law stipulates different incentives, the incentive that is most beneficial shall apply.

1. The local government budget (including extra funding from the central government) shall provide financial assistance in investment and development of technical infrastructure systems inside and outside industrial clusters in the locality (prioritize the provision of assistance in investment in technical infrastructural constructions serving environmental protection of industrial clusters that have been put into operation; assistance in investment in essential shared technical infrastructural constructions of industrial clusters in disadvantaged and extremely disadvantaged areas, industrial clusters developing in the direction of linking industries, specialization, assistance, ecology, preservation of traditional craft) according to the provisions of the Law on Public Investment and the Law on State Budget.

The financial assistance provided by the State does not exceed 30% of the total investment capital of the industrial cluster infrastructure construction project. The financial assistance shall be excluded from the total investment of the project to determine the rents for subleased land and infrastructure regarding investment projects in the industrial cluster. The technical infrastructure investor shall manage, repair and regularly operate technical infrastructural constructions provided with financial assistance to serve common activities of the industrial cluster.

2. The provincial People’s Committee shall decide under its authority and regulations of law or request the provincial People’s Council to decide the provision of assistance in investment in construction of technical infrastructure in industrial clusters within its province.

1. The central government budget shall cover funding for development of industrial clusters by the Ministry of Industry and Trade, including:

a) Investigation, establishment and operation of industrial cluster database; organization of conferences and seminars and cooperation in investment promotion; communications, printing and publishing documents, provision of professional training in laws and policies on industrial clusters;

b) Review, assessment and formulation of management policies and models, and experience in development of industrial clusters in the country and foreign countries; formulation and dissemination of policies and laws on management and development of industrial clusters;

c) Studying and establishing criteria for determining effective industrial cluster development models which protect the environment (such as specialized industrial clusters, supporting industrial clusters, ecological industrial clusters, etc.); provision of guidance on and recognition of industrial cluster development models; provision of rewards, conduct of final review, and preparation of reports on industrial cluster development orientations.

2. The local government budget shall cover funding for development of industrial clusters by local governments, including:

a) The activities prescribed in points a and b clause 1 of this Article;

b) Investment promotion activities; investigation and survey into organizations and individuals wishing to relocate to and invest in industrial clusters; preparation and appraisal of applications for establishment or expansion of industrial clusters; formulation of detailed planning for industrial cluster construction; assistance in completion of administrative procedures related to industrial clusters;

c) Provision of financial assistance in setting up investment projects, transport and installation of machinery and equipment for enterprises, cooperatives, cooperative associations and households in craft villages or populated areas so as for them to relocate to an industrial cluster or craft village industrial cluster. Specific financial assistance shall be decided by the provincial People’s Committee.

3. Funding for development of industrial clusters is the public service budget; is managed and used in accordance with the Law on State Budget and its guiding documents.

1. Formulating and organizing implementation of schemes, plans, programs, laws, policies, standards and technical regulations on management and development of industrial clusters.

2. Deciding, issuing, adjusting and revoking permits and certificates related to investment in and commercial operation of industrial clusters; establishing and operating database, performance of state administrative procedures, public services and utilities of industrial clusters.

3. Organizing apparatus for and providing guidance on and professional training in management and development of industrial clusters.

4. Inspecting and assessing investment efficiency, settling complaints and denunciations, providing rewards, handling recommendations, violations against the law and other issues concerning industrial clusters.

1. The Government shall unify state management of industrial clusters nationwide; delegate responsibilities and powers to each ministry, provincial People’s Committee, and relevant agencies; promulgate policies and legislative documents on industrial clusters.

2. The Prime Minister shall direct the formulation and completion of policies and laws on management and sustainable development of industrial clusters; orient and assist in investment in construction of industrial cluster infrastructure in localities in line with development requirements and ability to balance the state budget in each period; handle violations and issues that are beyond the power of ministries and provincial People's Committees.

3. In addition to the powers and responsibilities mentioned in Articles 30, 31 and 32 of this Decree, ministries and provincial People’s Committees shall perform state management of business lines and manage industrial clusters by regions; inspect and impose penalties for administrative violations within their power; instruct or authorize provincial Departments of Industry and Trade and district-level People's Committees to perform state management tasks within their power as prescribed in this Decree and relevant law.

The Ministry of Industry and Trade acts as an agency in charge of state management of industrial clusters nationwide and has the following powers and responsibilities:

1. Formulate, promulgate or request competent agencies to promulgate policies, laws, programs, plans, document templates, statistical reporting regimes and database related to management and development of industrial clusters nationwide; give opinions about local industrial cluster development plans as prescribed.

2. Annually make a plan and cost estimate for development of industrial clusters funded by the central government budget, and submit them to a competent authority for approval, and organize the implementation thereof after obtaining approval.

3. Conduct international cooperation and investment promotion activities meant for industrial cluster development.

4. Carry out periodic or ad hoc inspection and assessment of implementation of plans for development, policies for management and development of industrial clusters in provinces; provide rewards, deal with recommendations and violations against law on industrial clusters under its authority and relevant regulations of law.

1. The Ministry of Planning and Investment shall suggest the Prime Minister to direct the provision of assistance in investment in construction of industrial cluster infrastructure in localities from the state budget according to the medium-term and annual public investment plans in accordance with requirements for socio-economic development needs in each period; suggest competent authorities to stipulate that an industrial cluster infrastructure construction project is suitable for the approved report on investment in establishment or expansion of industrial cluster is not required to undergo the procedures for granting approval for investment guidelines in accordance with regulations of law on investment; cooperate with the Ministry of Industry and Trade to carry out periodic or ad hoc inspection and assessment of the implementation of plans and policies for development and management of industrial clusters.

2. The Ministry of Finance shall consolidate costs estimates for development of industrial clusters on an annual basis in accordance with regulations of law on state budget.

3. The Ministry of Construction shall provide guidelines for technical regulations on construction, procedures for formulating and approving detailed planning for construction and issuance of construction permits in industrial clusters and investment rates for construction of industrial cluster infrastructure.

4. The Ministry of Natural Resources and Environment shall provide guidelines for land management and environmental protection in industrial clusters.

5. The Ministry of Public Security shall provide guidelines for security, order, fire fighting and prevention and rescue in industrial clusters.

The provincial People’s Committee acts as an agency in charge of state management of industrial clusters in its province and has the following powers and responsibilities:

1. Direct formulation and implementation of industrial cluster development plans in its province; issue decisions on establishment or expansion of industrial clusters, adjust or annul such decisions; regulate or request competent authorities regulate the provision of financial assistance covered by the local government budget for construction of technical infrastructure inside and outside industrial clusters in its province; organize the implementation of policies, laws, and plans for industrial cluster development in its province.

2. Promulgate regulations on management of industrial clusters, adopt single-window system or inter-agency single-window system to handle procedures for executing technical infrastructure construction projects and production and business projects in industrial clusters.

3. Direct, instruct and assist enterprises, cooperatives, organizations and production facilities to implement technical infrastructure construction projects and production and business projects in industrial clusters, and carry out land clearance, provide compensation, implement agricultural resettlement and residential settlement plans, build transportation, electricity supply, water supply and drainage, post and telecommunications systems; provide land in its province to build housing for workers in industrial clusters where necessary; organize investment promotion activities in industrial clusters in its province.

4. Organize review, work out plans and solutions to completely handle industrial clusters and investment projects in industrial clusters that cause environmental pollution, use land ineffectively land and violate the law; take effective measures to handle and manage industrial clusters in its province which was formed before the Prime Minister’s Decision No. 105/2009/QD-TTg dated August 19, 2009 promulgating Regulation on management of industrial clusters without technical infrastructure investors.

5. Direct authorities to carry out periodic or ad hoc inspection and audit of the compliance with laws on land, investment, construction, environmental protection, fire fighting and prevention, rescue, and other State’s regulations on industrial clusters in its province; handle violations under its authority.

6. Submit to the Ministry of Industry and Trade periodic or ad hoc reports on the current situation of industrial clusters in its province; reward and propose rewards to organizations and individuals with achievements in industrial cluster development; exercise other tasks and powers regarding industrial clusters according to regulations.

1. Formulate, submit and organize the implementation of the industrial cluster development plan, Regulation on industrial cluster management, policies to provide assistance in industrial cluster investment and development and cost estimates for industrial cluster development activities in its province.

2. Regarding handling of procedures for making investment in construction of technical infrastructure, and production and business in industrial clusters:

a) Preside over appraising of applications for and submit to the provincial People's Committee for decision on establishment or expansion of industrial cluster, adjustment or annulment of decisions on establishment or expansion of industrial cluster; participate in commenting on documents and procedures related to investment in construction of industrial cluster infrastructure (including land expropriation, land lease, approval of detailed planning, fundamental design of investment project, approval of environmental procedures, approval of fire fighting and prevention plan, etc.) according to the provisions of law and the provincial People's Committee.

b) Participate in commenting on applications and procedures for issuance, adjustment and revocation of investment guideline decisions, investment certificates (if any) and other investment documents and procedures for production and business projects in industrial clusters according to the provisions of law and the provincial People's Committee.

3. Carry out periodic or ad hoc inspection and assessment of implementation of plans for development, policies for management and development of industrial clusters in their provinces as prescribed by law; review and propose rewards to organizations and individuals with achievements in industrial cluster development; handle or request competent authorities to handle recommendations and violations against law in accordance with regulations.

4. Submit periodic or ad hoc reports to the Ministry of Industry and Trade and provincial People’s Committee on the current situation of industrial clusters; build and operate database of industrial clusters in their provinces; exercise other tasks and powers regarding industrial clusters according to regulations of this Decree and law.

1. Propose the formulation of plans to develop, establish and expand industrial clusters in their districts; assist investors in investing in construction of technical infrastructure and effectively managing industrial clusters in their districts; receive, process or request competent authorities to process procedures for implementing investment projects in industrial clusters.

2. Decide to provide investment assistance or request competent authorities to decide to provide assistance in investment in technical infrastructure inside and outside industrial clusters; approve and implement the plan to relocate enterprises and production establishments into industrial clusters and industrial cluster development activities in their districts.

3. Carry out periodic or ad hoc inspection and audit and impose penalties for violations against law on land, investment, construction, environmental protection, fire fighting and prevention, rescue, and other regulations on industrial clusters in their districts under their authority; submit periodic or ad hoc reports on current situation of industrial clusters in their districts to provincial People's Committees and provincial Departments of Industry and Trade.

1. Any industrial cluster with an area of less than 10 ha or industrial cluster in a mountainous district or a craft village industrial cluster with an area of less than 5 ha that was established or expanded before the effective date of the Government’s Decree No. 68/2017/ND-CP and any industrial cluster formed before the effective date of the Prime Minister’s Decision No. 105/2009/QD-TTg and established by a competent authority with an area of more than 75 shall operate and be managed as prescribed by this Decree.

2. Any industrial cluster pending approval for establishment or expansion under the Government’s Decree No. 68/2017/ND-CP and Decree No. 66/2020/ND-CP, the regulations of this Decree shall continue to be complied with.

3. Any unit assigned to act as a technical infrastructure investor as prescribed in clause 2 Article 15 of the Decree No. 68/2017/ND-CP shall continue to operate until the decision on arrangement and handling issued by a competent authority is available; exercise the rights and fulfill the obligations of the technical infrastructure investor specified under this Decree and relevant laws.

4. The establishment of industrial clusters under the industrial cluster development plan in the provincial planning which were formed before the Decision No. 105/2009/QD-TTG (including industrial clusters for which the industrial cluster infrastructure construction project was approved by the competent authority before October 05, 2009, for which the detailed construction planning was approved before October 05, 2009, which were included in the local industrial cluster development planning or industrial development planning and in which an investment project was executed before October 05, 2009) shall be decided as follows:

a) According to the actual situation and operational efficiency of the industrial clusters, the provincial People's Committee shall review the investment in technical infrastructure construction and legal documents related to the industrial clusters to clarify the necessity, conformity with regulations of law and feasibility, and decide the establishment of the industrial clusters.

In the course of implementation, contents of the decision on industrial cluster establishment shall adhere to the regulations enshrined under clause 1 Article 12 of this Decree. Where an industrial cluster has an area of more than 75 ha fully covering the area of industrial land or for which the detailed planning is approved and the compensation and land clearance are completed, the provincial People’s Committee shall decide to maintain or decrease the area to make it conformable with local managerial requirements. The assessment and selection of a technical infrastructure investor shall comply with clause 3 Article 2 and clause 2 Article 13 of this Decree. In case there is a technical infrastructural construction in the industrial cluster is formed using the state budget, the regulations enshrined in point b clause 2 Article 12 of this Decree shall apply.

b) The deadline for deciding the establishment of an industrial cluster as specified in this clause is before December 31, 2026.

1. Organizations and individuals with achievements in investment in construction of industrial cluster infrastructure, production and business in industrial clusters shall be rewarded according to the provisions of law.

2. Any organization or individual that violates the provisions of this Decree shall, depending on nature and severity of the violation, be disciplined, incur an administrative penalty or face a criminal prosecution; in case of causing any damage, compensation must be provided according to the provisions of law.

1. This Decree comes into force from May 01, 2024.

2. The Decree No. 68/2017/ND-CP and Decree No. 66/2020/ND-CP shall cease to have effect from the effective date of this Decree.

Ministers, heads of ministerial agencies, heads of Governmental agencies, Chairpersons of People’s Committees of provinces and central-affiliated cities, and organizations and individuals concerned are responsible for the implementation of this Decree.