Circular No. 08/TT-KHĐT guiding the list of industries encouraged, restricted, or prohibited from investment in industrial zones and high-tech zones.

CIRCULAR

Guidelines on the list of industries encouraged, restricted, or prohibited from investment in industrial zones, high-tech zones

Pursuant to Decree 74/CP dated November 1, 1995 of the Government on the functions, tasks, powers, and organizational structure of the Ministry of Industry.
Pursuant to Decree 36/CP dated April 24, 1997 of the Government on the issuance of regulations for industrial zones, export processing zones, and high-tech zones.
Pursuant to Directive 264/TTg dated April 24, 1997 of the Prime Minister on the issuance of guiding documents and implementation of certain tasks related to the regulations for industrial zones, export processing zones, and high-tech zones.
The Ministry of Industry provides guidelines on the regulations concerning the list of industries encouraged, restricted, or prohibited from investment in industrial zones, export processing zones, and high-tech zones as follows:

A. GENERAL PROVISIONS.

I. GENERAL PRINCIPLES:

All industries that meet at least one of the following requirements are generally encouraged to invest in industrial zones:

1. Industries producing goods according to the overall national planning direction approved by the Government.

2. Industries utilizing domestic raw materials and materials (including finished products, semi-finished products, by-products, waste, and residues from other industries).

3. Industries promoting the development of other domestic economic sectors (supplying raw materials, machinery, equipment, parts, components, semi-finished products, etc., to other industries; providing processing services for other industries...).

4. Industries producing goods for export or substituting imported goods.

5. Industries using advanced technology and producing high-quality products with high technological content, new materials.

6. Industries attracting a large number of workers and generating high added value.

II. INDUSTRIES ENCOURAGED FOR INVESTMENT:

1. Machinery:

- Manufacturing equipment and spare parts for agricultural mechanization; processing foodstuffs and agricultural products; fishing and seafood processing.

- Manufacturing power machines and spare parts for power machines.

- Manufacturing equipment and spare parts for various industries:

+ Equipment and spare parts for the construction industry (machinery and equipment for construction mechanization) and the building materials industry (primarily cement, tiles, crushed stone screening, interior decoration materials...).

+ Equipment and spare parts for the metallurgical industry.

+ Equipment and spare parts for the chemical and petrochemical industry.

+ Equipment and spare parts for the mining and mineral processing industry.

+ Equipment and spare parts for power plants; electrical engineering equipment, accessories, and tools serving the electrification program.

+ Equipment and spare parts for the oil and gas extraction industry.

+ Equipment and spare parts for light industries (textiles, paper, leather, footwear, plastics, processed foods).

+ Equipment and spare parts for the machinery industry itself.

- Manufacturing products for the transportation industry:

+ Manufacturing spare parts, components, and assemblies for the localization program of the automobile and motorcycle industry.

+ Shipbuilding, railway car manufacturing, and other transport means; manufacturing replacement and repair parts.

+ Manufacturing equipment and spare parts for lifting and handling equipment (cranes, forklifts, conveyors, pipeline transport systems...); warehouse equipment, docks... Optical machinery and precision machinery.

- Manufacturing consumer mechanical and electromechanical products.

2. Metallurgy:

- Steel industry:

+ Steelmaking (including machine steel, alloy steel...).

- Rolling sheets, pipes, sections, and round bars; wire drawing.

+ Post-rolling processed products.

+ Production of raw materials for steelmaking.

- Non-ferrous metallurgy:

+ Smelting, rolling, and drawing non-ferrous metals and alloys (aluminum, copper, zinc, lead...).

3. Electronics and Information Technology:

- Manufacturing industrial electronics and specialized electronics (medical equipment, measuring and testing devices, control and automation equipment...).

- Manufacturing telecommunications, broadcasting, television, and office equipment.

- Manufacturing electronic components, accessories, and materials.

- Manufacturing computer equipment.

- Manufacturing consumer electronics.

- Information technology services and software.

- Industrial and specialized electronic services.

4. Chemicals and Petrochemicals:

- Manufacturing basic industrial chemicals.

- Fertilizers and plant protection products (including microbial fertilizers and microbial plant protection products).

- Petrochemical industry.

- Manufacturing chemical consumer products and cosmetics.

- Manufacturing tires and technical rubber products.

- Industrial gases.

5. Consumer Goods Industry:

- Textile and Garment Industry:

+ Manufacturing yarn and wool.

+ Weaving high-quality fabrics.

+ Garment exports.

- Manufacturing shoes and leather products for export; high-end leather products.

- Paper Industry: mainly high-quality paper such as offset paper, art paper, Kraft paper, cigarette paper... and recycled paper packaging.

- Processing agricultural, forestry, and marine products (sugar, milk, cooking oil, confectionery, canned fruits, frozen products...).

- Plastics Industry: plastic parts and components for other industries and plastic products for construction and consumption.

- Ceramics, Porcelain, and Glass Industry: mainly high-end products such as technical ceramics, high-grade glass, porcelain insulation, crystal...

6. Other Industries:

- Biotechnology.

- Manufacturing high-quality building materials and decorative materials for indoor and outdoor use.

- Manufacturing medical equipment and pharmaceuticals; veterinary drugs.

- Wood processing from imported raw wood or rubber wood; manufacturing composite panels and wood substitutes.

- Industrial waste treatment.

- Manufacturing packaging (especially recyclable packaging for export goods).

- Manufacturing sports equipment, teaching aids, and children's toys.

III. INDUSTRIES RESTRICTED FROM INVESTMENT IN INDUSTRIAL ZONES:

- Manufacturing ordinary building materials (cement, roof tiles, ceramic-porcelain pipes and pipe fittings for construction...).

- Manufacturing tobacco products (except for export purposes).

- Manufacturing alcohol and beer (except for export purposes).

- Small-scale industries (ordinary ceramics, rattan and bamboo products, handicrafts).

IV. INDUSTRIES PROHIBITED FROM INVESTMENT IN INDUSTRIAL ZONES:

- Nuclear Power.

- Manufacturing radioactive substances.

- Manufacturing industrial explosives.

- Manufacturing hazardous chemicals (as specified by the State).

- Leather tanning and dyeing.

Note: For industries not listed in the above catalog, investment in industrial parks will be specifically guided by the Ministry of Industry and the Vietnam Industrial Park Management Board based on each project and according to the principles stated in Part A.I.

B. SPECIFIC GUIDANCE FOR DIFFERENT TYPES OF INDUSTRIAL PARKS

I. FOR EXPORT PROCESSING ZONES AND MANUFACTURING EXPORT ZONES:

Apply the entire catalog defined in Part A.

II. FOR HIGH-TECH INDUSTRIAL ZONES:

Industries producing high-tech products using modern and latest technologies and inventions related to high technology, aimed at replacing imports and creating export products, specifically:

1. Encouraged Investment:

- Machinery: Manufacturing high-tech equipment and machinery for various industries; applying CAD/CAM technology, numerical control techniques (NC), robots... Designing and manufacturing automatic control systems for industrial plants... Manufacturing optical machines, laser equipment, micro machines, and highly precise mechanical products; research and experimental equipment; medical machines and tools.

- Electronics and Information Technology: Producing industrial and specialized electronic equipment, digital communication devices; manufacturing computers, electronic materials, components, and parts... (including types of circuits such as ASIC, VLSI, optical discs, lasers...); software production, etc.

- New Material Manufacturing: Super-clean, super-durable, superconducting, technical ceramics, new alloys, composite materials, carbon fibers, high-molecular materials, etc.

- Manufacturing new principle products.

- Biotechnology (gene, cell, microbial applications in food, agriculture, forestry, pharmaceuticals...).

- Other industries: aerospace technology.

2. Restricted Investment:

- Pharmaceutical production.

3. Prohibited Investment: All other industries as specified in the catalog in Part A.

III. FOR OTHER CONCENTRATED INDUSTRIAL ZONES:

1. Industrial parks prioritized for investment until the year 2000 approved by the Prime Minister:

a. Encouraged Investment:

- Industrial parks in Hanoi and Ho Chi Minh City: industries in the fields of machinery, electronics and information technology, consumer goods industry, and other industries mentioned in Section A.I.6. Specifically, in the chemical and petrochemical field, only encourage the production of consumer chemical products - cosmetics and tire and technical rubber production.

- Industrial parks in Quang Ninh, Hai Phong, Ba Ria-Vung Tau, Da Nang, Quang Ngai: prioritize heavy machinery industries (manufacturing equipment and spare parts for various industries, shipbuilding), metallurgy, chemical and petrochemical, construction materials, and consumer goods industries, processing agricultural, forestry, and seafood products.

- Industrial parks in Dong Nai and Song Be: prioritize machinery industries serving processing technology and agricultural mechanization; machinery serving construction and light industry; electrical equipment manufacturing; chemical industry; electronics and information technology industry; consumer goods industry (including consumer machinery).

- Industrial parks in Ha Tay, Bac Ninh, Hue: industries in the fields of machinery, consumer goods production, construction material production, processing of agricultural and forestry products.

b. Restricted and Prohibited Investment:

Apply Sections A.II and A.III.

2. Industrial parks to be established:

The Ministry of Industry and the Vietnam Industrial Park Management Board will base their specific guidance for planning and approving industrial park zoning on the above Part A and the characteristics of each region where the industrial parks are located.

This Circular takes effect from the date of issuance.