Decree No. 164/2013/ND-CP Amending and supplementing some articles of Decree No. 29/2008/NĐ-CP dated March 14, 2008 of the Government on industrial zones, export processing zones, and economic zones.

DECREE

Amending and supplementing some articles of Government Decree No. 29/2008/NĐ-CP dated March 14, 2008

on industrial zones, export processing zones, and economic zones

The Government promulgates this Decree to amend and supplement some articles of Government Decree No. 29/2008/NĐ-CP dated March 14, 2008 on industrial zones, export processing zones, and economic zones.

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Pursuant to the Law on Organization of the Government dated December 25, 2001;

Based on the Investment Law dated November 29, 2005;

Pursuant to the Enterprise Law dated November 29, 2005;

At the proposal of the Minister of Planning and Investment,

The Government promulgates this Decree to amend and supplement some articles of Government Decree No. 29/2008/NĐ-CP dated March 14, 2008 on industrial zones, export processing zones, and economic zones.

Article 1. Amending and supplementing some articles of Government Decree No. 29/2008/NĐ-CP dated March 14, 2008 on industrial zones, export processing zones, and economic zones:

1. Amending Clause 4, Clause 5, and adding Clause 8 of Article 2 as follows:

“4. Coastal economic zone is an economic zone established in coastal areas and adjacent areas, formed according to conditions, procedures, and formalities prescribed in Government Decree No. 29/2008/NĐ-CP.

Border-gate economic zone is an economic zone established in border areas and adjacent areas with international border gates or main border gates, formed according to conditions, procedures, and formalities prescribed in Government Decree No. 29/2008/NĐ-CP.

Coastal economic zones and border-gate economic zones are collectively referred to as economic zones, except where otherwise specified.”

“5. Industrial land area is the area of industrial zones for investors to lease or sublease for implementing investment projects for production and business within industrial zones, determined in detailed construction planning of industrial zones approved by competent state authorities.”

“8. Industrial zone occupancy rate is the percentage (%) of industrial land area that has been leased or subleased to investors for production and business activities over the total industrial land area of the industrial zone.”

2. Amending and supplementing Clause 5 as follows:

“Article 5. Conditions for issuing Investment Certificate for establishing new or expanding industrial zones:

1. Conditions for issuing Investment Certificate for projects investing in construction and operation of infrastructure in industrial zones:

- In accordance with the overall planning for development of industrial zones; planning and land use plans already approved by competent authorities.

- The total area of industrial land in existing industrial zones in the territory of provinces and centrally-run cities that have been leased or subleased for registered investment projects and issued Investment Certificates for land leasing shall be at least 60%.

2. Conditions for issuing Investment Certificate for expanding industrial zones:

- In accordance with the overall planning for development of industrial zones; planning and land use plans already approved by competent authorities.

- The industrial zone must achieve a minimum occupancy rate of 60%.

- The industrial zone must have constructed and put into use centralized wastewater treatment facilities.

3. For industrial zones with an area of 500 hectares or more and with multiple investors participating in constructing and operating infrastructure in separate areas or industrial zones linked to urban areas or other concentrated business zones within an overall project, a general planning for construction must be prepared according to the guidance of the Ministry of Construction before preparing detailed planning.

4. For industrial zones with an area of 200 hectares or more or located near national highways, close to defense areas, historical relic conservation areas, scenic spots, ecological conservation areas of regions and the country, and within cities classified as Type II, Type I, and Special Type, there must be written opinions from the Ministry of Construction, the Ministry of Planning and Investment, and related ministries and sectors regarding the detailed planning for construction of industrial zones before submitting to the People's Committee of the province for approval.

5. In cases where the established industrial zone and its expansion do not have the same developer for infrastructure development, the conditions for issuing Investment Certificate for projects investing in construction and expansion of industrial zones shall be applied as those for newly established industrial zones as stipulated in Clause 1 of this Article.

6. Procedures, formalities, and authority for establishment and expansion of industrial zones shall be implemented according to the provisions of Articles 8, 10, and 15 of Government Decree No. 29/2008/NĐ-CP.”

3. Amending Clause 2 and Clause 5 of Article 6 as follows:

“2. In accordance with socio-economic development planning; national land use planning; regional and urban construction planning; infrastructure and technical planning; mineral resource utilization planning and other natural resources.”

“5. Ensuring compliance with defense arrangements, defense and security requirements, environmental protection, natural resource conservation, and historical and cultural relics.”

4. Amending Clause 1 of Article 8 as follows:

“1. Procedures for issuing Investment Certificate for projects investing in construction and operation of infrastructure in industrial zones shall be carried out in accordance with laws on investment:

In cases where the industrial zone or its expansion is included in the overall planning for development of industrial zones or in the general planning for construction of economic zones already approved, the issuing authority for Investment Certificate shall seek the review opinion of the Ministry of Planning and Investment and related ministries and sectors during the implementation of investment procedures for projects investing in construction and operation of infrastructure.

In cases where the industrial zone or its expansion is not included in the overall planning for development of industrial zones already approved, the provincial People's Committee shall implement procedures for supplementing or expanding the industrial zone into the overall planning for development of industrial zones according to the provisions of Articles 6 and 12 of Government Decree No. 29/2008/NĐ-CP.”

5. Amending Clause 1 of Article 9 as follows:

“1. In cases where establishing or expanding economic zones is included in the overall planning for development of economic zones already approved, the Ministry of Planning and Investment shall carry out procedures for reviewing the establishment or expansion of economic zones according to the provisions of Article 13 of this Decree.

In cases where establishing or expanding economic zones is not included in the overall planning for development of economic zones already approved, procedures for supplementing or expanding economic zones into the overall planning for development of economic zones must be carried out according to laws on planning, approving, and managing the overall socio-economic development planning, including explanations on meeting the conditions stipulated in Article 7 of Government Decree No. 29/2008/NĐ-CP.”

6. Amending Clause 2 of Article 14 as follows:

"2. During the process of preparing detailed construction planning for industrial zones, if the actual area of the industrial zone, measured, differs from the approved planned area by less than 10% but not exceeding 20 hectares, before approving the detailed construction planning for the industrial zone, the provincial People's Committee shall seek opinions from the Ministry of Construction, the Ministry of Planning and Investment, and decide to adjust the planned area to match the actual area without having to submit to the Prime Minister."

7. Amend Article 18 as follows:

"Article 18. Departure, entry, movement, and residence, temporary residence in economic zones

1. Foreign nationals and overseas Vietnamese working, investing, or doing business in economic zones and their family members shall be granted multiple-entry visas with validity periods as prescribed; they may reside temporarily or permanently within the economic zones and in Vietnam according to the laws on residence and the laws on departure, entry, and residence of foreigners in Vietnam.

2. For border economic zones, departure, entry, and residence shall be carried out as follows:

a) Citizens of neighboring countries whose borders face the border economic zone may enter and exit the border economic zone using border crossing permits issued by the competent authority of the neighboring country and other valid documents as prescribed by law, consistent with international treaties between Vietnam and the relevant neighboring country; if they wish to visit other areas of the province where the border economic zone is located, the provincial police will issue a single-use permit valid for a specified period.

b) Individuals holding passports that are not exempt from visa requirements (citizens of neighboring countries or third countries) shall be exempt from visa requirements upon entry and allowed to stay in the border economic zone for up to 15 days; if traveling to other regions of Vietnam under programs organized by Vietnamese international travel agencies, the competent immigration authorities may grant entry visas at the border economic zone.

c) Cargo transport vehicles from neighboring countries and third countries may enter the border economic zone based on business contracts between foreign partners and Vietnamese enterprises, complying with the Road and Inland Waterway Transport Agreements between Vietnam and countries sharing land borders, subject to inspection, control, and supervision by functional forces at the border gate. If these transport vehicles need to deliver goods at locations outside the border economic zone, they must comply with current regulations.

The operators of such means of transport (crew members on ships, drivers, and assistants) may enter and exit the border economic zone using passports, seamen’s books, border crossing permits, or other valid documents issued by the competent authority of the foreign country, consistent with international treaties between Vietnam and the relevant neighboring country.

d) Expand the reception of tourists from neighboring countries who travel to the border economic zone using passports, cards, or equivalent documents to visit provinces and cities throughout the country as stipulated in point b, Clause 2 of this Article.

đ) Vietnamese owners of goods and means of transport engaged in business relations with neighboring countries may bring goods and means of transport across the border to neighboring countries for delivery and receipt of goods using border crossing permits or other valid documents issued by the competent authority of Vietnam.

e) Vietnamese citizens residing and working in communes, wards, towns with border economic zones may cross into neighboring countries using border crossing permits or other valid documents consistent with international treaties between Vietnam and the relevant neighboring country, or if permitted by that country.

9. Amend Clause 2, Clause 3, Clause 5, and add Clause 7 of Article 21 as follows:

"2. Export processing zones or export processing enterprises shall be separated from the external territory by a fence system, with gates and entrances, ensuring conditions for customs and related functional agencies to inspect, supervise, and control.

3. Export processing enterprises may purchase building materials, office supplies, foodstuffs, and consumer goods from domestic Vietnam to construct projects, serve the operation of office machinery, and the living needs of employees working at the enterprise.

Export processing enterprises and sellers supplying goods to export processing enterprises may choose whether or not to perform export and import procedures and customs formalities for building materials, office supplies, foodstuffs, and consumer goods from domestic Vietnam."

"5. Export processing enterprises may sell residual assets and goods as prescribed by laws on investment and trade to the domestic market. The exchange of goods produced in export processing zones and export processing enterprises with other areas within Vietnam, except for duty-free zones, shall be treated as import and export transactions."

"7. Export processing enterprises wishing to engage in trading activities and related direct trading activities in Vietnam must establish a separate branch outside the export processing enterprise or export processing zone to carry out these activities.

The Ministry of Finance, the Ministry of Industry and Trade, and the Ministry of Planning and Investment shall provide specific guidance on this matter."

10. Add Article 21b and Article 21c after Article 21 as follows:

"Article 21b. Rights and Obligations of Enterprises Operating in Industrial Zones and Economic Zones and Investors Building and Operating Infrastructure in Industrial Zones and Economic Zones

1. Enterprises operating in industrial zones and economic zones and investors building and operating infrastructure in industrial zones and economic zones shall have full rights and obligations of investors as prescribed by laws on investment, enterprises, and related laws."

2. The investor shall construct and operate industrial infrastructure in industrial zones and economic zones, set rental prices for land that has been developed with technical infrastructure, and other related infrastructure usage fees according to the provisions of the law and register with the Management Board regarding the pricing framework and types of fees. The registration of the pricing framework and fees shall be conducted periodically every six months or when there are changes different from the previously registered framework.

3. Fulfill financial obligations towards the State.

4. Implement accounting, statistical, and insurance systems as prescribed by law.

5. Adhere to regulations on security, public order, labor safety, corporate culture, industrial hygiene, environmental protection, and fire prevention and explosion control. Coordinate with police forces and local authorities to develop plans for fire prevention and explosion control, ensuring security and public order within the area.

6. Submit monthly, quarterly, and annual reports on the operation of the enterprise to the Ministry of Planning and Investment, provincial People's Committees, and the Management Board, as well as specialized reports as required by relevant ministries and sectors.

Article 21c. Development of Housing for Industrial Zone Workers

1. The State encourages households and individuals to invest in building housing for lease to workers in industrial zones.

2. Housing constructed by households and individuals for lease as stipulated in Clause 1 of this Article must meet standards concerning area, construction quality, aesthetics, safety, and environment.

3. Local People's Committees at all levels have the responsibility to create favorable conditions for workers to access healthcare, cultural, and social services in their locality.

4. Housing planning for industrial zone workers should be integrated with the planning of industrial zones in the locality. Provincial People's Committees plan and allocate suitable land areas for agencies, organizations, and enterprises to build housing for industrial zone workers. During the process of issuing investment certificates for projects to construct and operate industrial infrastructure, investors constructing and operating industrial infrastructure must report to the issuing authority on the plan to address housing for industrial zone workers.

5. For industrial zones facing difficulties in providing housing for workers, based on specific conditions, upon the proposal of investors constructing and operating industrial infrastructure, provincial People's Committees adjust detailed construction plans for industrial zones to reserve part of the land area that has been cleared for the development of social housing for workers after obtaining written consensus from the Ministry of Construction and the Ministry of Planning and Investment, and proceed with procedures to adjust the planned area of the industrial zone according to regulations.

In cases where the housing development planning area is adjacent to an industrial zone, provincial People's Committees approve detailed construction plans for industrial zones in conjunction with the planning for housing development for industrial zone workers.

The Ministry of Construction and the Ministry of Planning and Investment shall provide detailed guidance on this matter."

11. Supplement Clause 8, Clause 9, and Clause 10 to Article 24 as follows:

"8. Take the lead, coordinate with the Ministry of Home Affairs to draft Circulars guiding the functions, tasks, powers, and organizational structure of the Management Board.

9. Take the lead in drafting the Project to improve the management machinery of industrial zones and economic zones from central to local levels.

10. Issue guidelines for implementing reporting and statistical systems for industrial zones and economic zones."

12. Supplement Clause 4 and Clause 5 to Article 25 as follows:

"4. Coordinate with the Ministry of Planning and Investment to draft Circulars guiding the functions, tasks, powers, and organizational structure of the Management Board.

5. Coordinate with the Ministry of Planning and Investment to draft the Project to improve the management machinery of industrial zones and economic zones from central to local levels."

13. Supplement Clause 3 to Article 27 as follows:

"3. Guide the delegation of authority to the Management Board to perform state management tasks regarding construction as stipulated in Clause 2 of Article 37 of Decree No. 29/2008/NĐ-CP amended and supplemented by this Decree, and some state management tasks regarding construction in industrial zones and economic zones as prescribed by laws on construction."

14. Amend Clause 2 and Clause 3 of Article 28 as follows:

"2. Delegate authority to the Management Board to issue Certificates of Origin for goods produced in industrial zones and economic zones; issue, reissue, amend, supplement, and extend Licenses for establishing representative offices of foreign organizations and traders located in industrial zones and economic zones; issue Certificates of Eligibility to Operate for restricted trade items and conditional trade items as prescribed by law.

"3. Guide the Management Board in issuing, reissuing, amending, and supplementing Licenses for trading activities and related activities directly linked to trading for foreign-invested enterprises and foreign investors investing in industrial zones and economic zones."

15. Amending Clause 3 Article 29 as follows:

"3. Guide the delegation of authority to the Management Board to perform state management tasks regarding the environment as stipulated in Clause 2 of Article 37 of Decree No. 29/2008/NĐ-CP amended and supplemented by this Decree, and some state management tasks regarding natural resources and the environment in industrial zones and economic zones as prescribed by laws on environmental protection."

16. Amend Article 31 as follows:

Guide the delegation of authority to the Management Board to perform state management tasks regarding labor as stipulated in Clause 2 of Article 37 of Decree No. 29/2008/NĐ-CP amended and supplemented by this Decree, and some state management tasks regarding labor in industrial zones and economic zones as prescribed by laws on labor.

17. Supplement Clause 3 to Article 32 as follows:

"3. Take the lead, coordinate with the Ministry of National Defense to guide the implementation of regulations on departure, entry, transit, and residence for foreigners in economic zones."

18. Supplement Article 32a as follows:

"Article 32a. Powers and Responsibilities of the Ministry of National Defense

1. Perform state management functions regarding national defense and coordinate with the Ministry of Public Security in safeguarding national security, maintaining public order and social safety in economic zones, border economic zones, and seaport gates within economic zones as prescribed by law.

2. Direct and guide the Border Guard Force to organize, deploy, and utilize forces and means to cooperate in performing tasks related to border control, inspection, supervision of persons and means entering and exiting, and operating within border economic zones and seaport gates within economic zones.

3. Coordinate with the Ministry of Public Security to guide the implementation of legal provisions on exit, entry, transit, and residence for foreigners in economic zones.

19. Amend Clause 2 of Article 33 as follows:

“2. Guide the delegation of authority for the Management Board to issue, reissue, amend, supplement, and extend the Business Registration Certificate for establishing representative offices and branches of foreign tourism enterprises within economic zones.”

20. Supplement Article 33a as follows:

“Article 33a. State Management Powers and Responsibilities of the Government Inspectorate

Coordinate with relevant ministries and sectors to guide inspection activities concerning industrial parks and economic zones.”

21. Amend Clause 2 and supplement Clause 3 of Article 37 as follows:

“2. The Management Board shall perform the following tasks in accordance with the law:

a) Manage, disseminate, guide, inspect, and supervise the implementation of regulations, plans, and programs related to industrial parks and economic zones that have been approved by competent state authorities;

b) Register investment; examine and issue, adjust, and revoke Investment Certificates for projects under its jurisdiction in accordance with the law on investment;

c) Coordinate with functional agencies when such agencies conduct inspections of the implementation of regulations, plans, and programs related to industrial parks and economic zones;

d) Inspect and supervise the implementation of investment objectives specified in the Investment Certificate, progress of capital contribution, and project implementation; compliance with contractual terms for projects benefiting from investment incentives, and adherence to laws on construction, labor, wages, social insurance for workers, protection of legitimate rights of workers and employers, activities of political-social organizations, fire prevention and control, security and public order, environmental protection in industrial parks and economic zones; propose administrative penalties according to regulations for violations in areas under the management of industrial parks and economic zones;

đ) Coordinate with police units in checking security and public order maintenance work, and propose measures to ensure security and public order, organize protective forces, firefighting forces in industrial parks and economic zones;

e) Resolve difficulties and obstacles faced by investors in industrial parks and economic zones and recommend solutions to the Prime Minister, relevant ministries, and provincial People's Committees for issues beyond their jurisdiction;

g) Receive statistical reports and financial statements of enterprises operating in industrial parks and economic zones; evaluate the effectiveness of investment in industrial parks and economic zones;

h) Coordinate with the Ministry of Planning and Investment in building and managing information systems for industrial parks and economic zones under its jurisdiction;

i) Report periodically to the Ministry of Planning and Investment, relevant ministries, and provincial People's Committees on the situation of: Industrial park and economic zone development; issuance, adjustment, and revocation of Investment Certificates; implementation and operation of investment projects; fulfillment of obligations to the state; attraction and utilization of labor; compliance with labor laws and resolution of labor disputes; implementation of measures to protect the ecological environment in industrial parks and economic zones;

k) Organize competitive movements and awards for enterprises in industrial parks and economic zones;

l) Organize and coordinate with state management agencies in conducting inspections, resolving complaints and denunciations, preventing corruption, waste, and misconduct, and handling administrative violations within the area;

m) Perform tasks in accordance with the law and directives of the provincial People's Committee on financial management, assets, budget; collect and manage the use of various fees and charges; research, apply scientific and technological advancements; cooperate with domestic and foreign organizations and individuals in areas related to investment, construction, and development of industrial parks and economic zones; manage organizational structure, staffing, cadres, civil servants, and training and professional development for cadres, civil servants, and employees of the Management Board; introduce job opportunities for workers employed in industrial parks and economic zones;

n) Perform other tasks assigned by the provincial People's Committee.”

“3. The Management Board shall perform the following tasks pursuant to delegated authority and guidance from ministries, sectors, provincial People's Committees, and competent state authorities:

a) Issue, reissue, amend, supplement, and extend licenses for establishing representative offices of foreign organizations and traders located in industrial parks and economic zones; business licenses for trading activities and directly related activities for foreign-invested enterprises and foreign investors investing in industrial parks and economic zones; certificates of eligibility to operate restricted goods and conditional business activities;

b) Issue various certificates of origin for goods produced in industrial parks and economic zones;

c) Adjust the detailed construction planning of industrial zones and functional areas within economic zones that have been approved but without changing the land use function and planning structure; review the basic design for projects in Group B and C, or issue, extend Construction Permits for construction works that require such permits according to the laws on project management and construction work;

d) Issue, reissue, revoke Labor Permits for foreign citizens working in industrial zones and economic zones; register labor regulations; accept collective labor agreements; accept wage scales, labor norms; register plans for sending workers abroad for internships under 90 days for enterprises in industrial zones and economic zones;

e) Issue certain types of licenses, certificates, and certifications in industrial zones and economic zones;

g) Confirm contracts and real estate documents in industrial zones and economic zones for related organizations; accept registration of rental price frameworks, sub-rental prices, and infrastructure fees in industrial zones and economic zones from investors who build and operate industrial zone infrastructure;

h) Organize the assessment and approval of environmental impact reports for investment projects within the jurisdiction of provincial People's Committees in industrial zones and economic zones; issue confirmation papers for entities required to register environmental protection commitments operating in industrial zones and economic zones; assess, approve, inspect, and confirm detailed environmental protection programs and simple environmental protection programs for projects in industrial zones and economic zones;

“4. The Management Board is the lead agency managing investment activities in industrial zones and economic zones within its jurisdiction. Ministries, sectors, and local state management agencies when implementing specialized tasks in industrial zones and economic zones shall coordinate with and seek the opinions of the Management Board to ensure unified state management of industrial zones and economic zones, avoid overlapping, and facilitate business operations according to the law.”

Article 2. Effective Date

1. This Decree takes effect from January 1, 2014.

2. Within six months from the date this Decree takes effect, relevant ministries and sectors shall be responsible for guiding or delegating provincial People's Committees and Management Boards to implement the tasks stipulated in this Decree.

Article 3. Responsibility for Implementation

Ministers, Heads of ministerial-level agencies, Heads of government agencies, Chairpersons of provincial and centrally-run city People's Committees, Directors of industrial zone, export processing zone, and economic zone Management Boards, and related organizations and individuals are responsible for enforcing this Decree./.