Vietnam Law News May 2024 (Industrial clusters, Vietnam National Energy Development Strategy, Tasks of credit institutions in the process of implementing Monetary Policy in 2024)
Vietnam Law News #22 brings you the following information:
LEGAL NEWSLETTER
I. Promulgation of Decree No. 32/2024/ND-CP on management and development of industrial clusters
On March 15, 2024, the Government approved the management and development of industrial clusters, which will take effect from May 1, 2024 with some notable innovations as follows:
1. Industries, occupations, and production and business establishments are encouraged to invest and relocate to industrial clusters
An industrial cluster (“CCN”) is a place of industrial production, providing services for industrial production and handicrafts, with defined geographical boundaries, no population, and invested in construction. built mainly to attract and relocate small and medium-sized enterprises, cooperatives and cooperative groups to invest in production and business.
Industries, occupations, and production and business establishments that are encouraged to invest and relocate into industrial parks include:
Processing industry; mechanical industry (such as: Automobiles, agricultural machines, construction equipment, industrial equipment, electrical equipment, medical equipment,…); textile, garment and footwear industry;
Information technology and telecommunications industry, electronics industry; biotechnology;
Warehousing services, packaging, transportation of goods, repair and maintenance of industrial machinery and equipment directly serving local industrial and handicraft production;
Industrial and handicraft production establishments that pollute or are at risk of polluting craft villages and residential areas; and
Other industrial sectors and occupations according to Decree 32/2024/ND-CP.
Accordingly, the Provincial People’s Committee will specifically regulate industries, occupations, and production and business establishments in industrial clusters in accordance with the industrial cluster development plan under the provincial planning and the local socio-economic development orientation. method and is shown in the Decision to establish and expand industrial clusters.
2. Sequence of investment in building technical infrastructure of industrial clusters
Construction investment project (“Construction Investment”) of industrial cluster technical infrastructure is an investment project that uses land to synchronously build the technical infrastructure of the industrial cluster; Leasing land to investors, subleasing land to implement investment projects in production, business, operation and management of industrial cluster technical infrastructure projects.
The order of implementation of investment in industrial cluster technical infrastructure is as follows:
Step 1: Prepare and approve the Investment Report on establishment and expansion of industrial clusters and other investment procedures (if any).
Step 2: Prepare and approve detailed planning for industrial cluster construction.
Step 3: Prepare and approve the industrial cluster technical infrastructure investment project and project investment preparation procedures.
Step 4: Organize the construction of industrial cluster technical infrastructure works and manage the operation and exploitation of technical infrastructure works after completion.
3. Organizations and individuals investing in production and business in industrial clusters
Organizations and individuals investing in industrial clusters must carry out land sublease procedures associated with common technical infrastructure. The land sublease must meet the investor’s environmental protection requirements.
For industrial clusters that are not owned by enterprises, cooperatives, or organizations carrying out business investment activities, organizations and individuals investing in industrial clusters shall lease land according to the provisions of land law.
3.1. Rights of organizations and individuals investing in production and business in industrial clusters
Organizations and individuals investing in production and business in industrial clusters have a number of important rights as follows:
To use and extend land use according to the provisions of land law; sublease the land, factories, warehouses, offices and assets on leased land according to the provisions of law;
Advance capital or contribute capital to build and operate technical infrastructure according to agreements with investors building technical infrastructure of industrial clusters;
Be supported and facilitated in recruiting and training labor to serve production and business requirements; and
Enjoy preferential policies and support as prescribed in this Decree and other benefits as prescribed by relevant laws.
3.2. Obligations of organizations and individuals investing in production and business in industrial clusters
Organizations and individuals investing in production and business in industrial clusters must ensure the implementation of a number of important obligations as follows:
Implement a regime of periodic reporting on the operational status of investment projects in the cluster. Periodic reports are sent simultaneously to the local statistical agency and the district People’s Committee for management;
Use land, implement investment projects, production and business activities in accordance with the content of the economic contract with the industrial cluster technical infrastructure investor and the content of the Investment Policy Approval Decision and Registration Certificate. investment (if any);
Actively participate in attracting labor, creating local jobs, giving priority to policy-affiliated workers and households whose land is recovered to build industrial clusters; and
Pay fees for using infrastructure, public services, and other utilities as agreed.
4. Preferential policies and development support for CNN
Industrial cluster is an area with difficult socio-economic conditions; Investment in industrial cluster technical infrastructure is a special industry and profession with investment incentives.
The application of incentives for industrial cluster technical infrastructure investment projects, production and business investment projects in industrial clusters is implemented in accordance with the provisions of law on land, taxes, credit and other regulations of the Government. relevant laws. In case the law stipulates different incentive levels, the highest incentive level will apply.
The State supports no more than 30% of the total investment capital of industrial cluster technical infrastructure investment projects. Support funds are not included in the total investment of the project to calculate land sublease prices and infrastructure usage prices for investment projects in industrial parks.
