Decree No. 32/2024/NĐ-CP on management and development of industrial clusters

 DECREE

On management and development of industrial clusters

^{_______________}

 

Pursuant to the Law on Organization of the Government dated June 19, 2015; the Law Amending and Supplementing Certain Provisions of the Law on Organization of the Government and the Law on Organization of Local Administration dated November 22, 2019;

Pursuant to the Planning Law on November 24, 2017; the Law amending and supplementing certain articles of 37 related laws on planning on November 20, 2018; Pursuant to the Land Law on November 29, 2013;

Pursuant to the Investment Law dated June 17, 2020;

Pursuant to the Law on Public Investment dated June 13, 2019;

The Government issues this Decree on management and development of industrial clusters.

Pursuant to the Law on Construction dated June 18, 2014; the Law Amending and Supplementing Certain Provisions of the Law on Construction dated June 17, 2020;

Pursuant to the Environmental Protection Law dated November 17, 2020;

At the proposal of the Minister of Industry and Trade;

Article 1. This Decree stipulates the development plan for industrial clusters; establishment and expansion of industrial clusters; investment in construction of technical infrastructure and production and business activities within industrial clusters; preferential policies and support for the development of industrial clusters and state management over industrial clusters.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation and Applicability

Article 2. The subjects to which this Decree applies include:

a) Enterprises, cooperatives, organizations investing in construction of technical infrastructure for industrial clusters;

b) Organizations and individuals engaged in production and business activities within industrial clusters;

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

Article 3. An industrial cluster is a place for industrial production, providing services for industrial production, small-scale handicraft industries, with clearly defined geographical boundaries, without residential population, primarily invested in to attract and relocate small and medium-sized enterprises, cooperatives, production cooperatives, household production units, and individual businesses into production and business activities.

Article 2. Interpretation of Terms

In this Decree, the following terms are understood as follows:

The area of an industrial cluster does not exceed 75 hectares and is not less than 10 hectares. For industrial clusters located in mountainous districts and traditional craft village industrial clusters, the area does not exceed 75 hectares and is not less than 5 hectares.

Article 4. A traditional craft village industrial cluster is an industrial cluster where at least 60% of the industrial land area is allocated for relocation and expansion of production and business activities of small and medium-sized enterprises, cooperatives, production cooperatives, household production units, and individual businesses in traditional craft villages with traditional crafts.

Article 5. The investor in the construction of technical infrastructure for industrial clusters is an enterprise, cooperative, or organization established and operating in accordance with Vietnamese law, implementing investment and business activities in technical infrastructure for industrial clusters.

Article 6. The shared technical infrastructure system of an industrial cluster includes internal transportation systems, sidewalks, green spaces, water supply, wastewater collection and treatment, solid waste management, fire prevention and firefighting, power supply, public lighting, internal communication systems, and other technical infrastructure facilities serving the common operations of the industrial cluster.

Article 7. The project for investment in the construction of technical infrastructure for industrial clusters is an investment project using land to build a comprehensive technical infrastructure system for industrial clusters; leasing land to investors to implement production and business investment projects and operate and manage the technical infrastructure construction works of the industrial cluster in accordance with the law.

Article 8. Industrial land area is the area of the industrial cluster allocated for organizations and individuals to lease or sublease for industrial production and services for industrial production, determined in the detailed construction planning approved by the competent authority.

Article 9. The occupancy rate of an industrial cluster is the percentage of the industrial land area that has been leased or subleased to organizations and individuals or approved for investment proposals and issued investment registration certificates for production and business activities over the total industrial land area of the industrial cluster.

Article 10. The development plan for industrial clusters involves the rational spatial arrangement and distribution of industrial clusters, linked with management policies and solutions for synchronous construction of technical infrastructure in the province/city directly under the central government (hereinafter referred to as provincial level) during each period based on environmental protection, land, water, and other local resource and natural resource conservation and efficient use. The development plan for industrial clusters is a component of the provincial planning, constructed and integrated into the provincial planning in accordance with the planning law.

Article 11. The decision to establish and expand industrial clusters is a document of the competent authority recording the legal information of the industrial cluster, serving as the basis for implementing investment in the construction of technical infrastructure for industrial clusters and applying state policies and regulations to industrial clusters.

Article 12. The database of industrial clusters includes information on the development plans, establishment, and expansion of industrial clusters, investment in the construction of technical infrastructure, and the activities of industrial clusters within the provincial level and nationwide.

10. The industrial cluster database includes information on development plans, establishment, expansion of industrial clusters, investment in construction of technical infrastructure, and activities of industrial clusters within the provincial and national territories.

Article 3. Industries, trades, production and business establishments encouraged to invest and relocate to industrial clusters

1. Industries, trades, production and business establishments encouraged to invest and relocate to industrial clusters:

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

b) Information technology and telecommunications industries; smart energy industries; digital technology, automation, high-end equipment, new materials, and biotechnology industries;

c) Local industries and trades that need to be preserved and developed; warehousing services, packaging, transportation of goods, repair and maintenance of industrial machinery and equipment, and other services directly serving local industrial and small-scale industrial production, with a total area not exceeding 10% of the industrial cluster's area;

d) Other industrial industries with advanced technology, clean processes, low energy consumption, and high added value, promoting sustainable development;

đ) Industrial and small-scale industrial production establishments causing pollution or posing a risk of pollution in craft villages and residential areas are encouraged to relocate to industrial clusters.

2. The People's Committee of the province shall specify in detail the industries, trades, and production and business establishments within industrial clusters in accordance with the development plan for industrial clusters under the provincial planning and the socio-economic development orientation of the locality, and reflected in the Decision on establishment and expansion of industrial clusters.

Chapter II

DEVELOPMENT PLAN, ESTABLISHMENT,

EXPANSION OF INDUSTRIAL CLUSTERS

Section 1

DEVELOPMENT PLAN FOR INDUSTRIAL CLUSTERS

Article 4. Development Plan for Industrial Clusters

1. Basis for developing the development plan for industrial clusters:

a) Vietnam's industrial development strategy, strategies for developing various industrial sectors at the provincial level;

b) Socio-economic development orientation, regional planning, technical and specialized planning at the provincial level;

c) Land area requirements, geographical conditions, transportation, and resources needed to attract and relocate organizations and individuals to invest and operate in industrial clusters within the province;

d) Ability to mobilize investment capital from businesses, the state, and other legitimate sources to build technical infrastructure for industrial clusters within the province;

đ) Environmental protection requirements, efficient and economical use of land and other resources of the locality.

2. Main contents of the development plan for industrial clusters:

a) Legal basis and necessity for developing the development plan for industrial clusters;

b) Evaluation of the current status of technical infrastructure investment; attraction of investment, occupancy rate, business operation situation; environmental treatment and protection work; fire prevention, firefighting, and rescue operations in industrial clusters; economic and social effectiveness of planned industrial clusters; management work of industrial clusters within the province; achievements, limitations, and causes;

c) Forecast of factors affecting the development of industrial clusters during the planning period; forecast of land demand for organizations and individuals investing in industrial clusters, potential land for developing industrial clusters at the district and provincial levels; forecast of labor demand working in industrial clusters during the planning period;

d) Views, goals, and orientations for developing industrial clusters within the province during the planning period;

đ) Establish a list of industrial clusters expected to develop within the province during the planning period, including: name, location (down to commune level; ensuring safe environmental distance from nearby residential areas, national historical sites, rivers, lakes; only arranging adjacent industrial clusters when there is a connection between their industries, trades, environmental treatment, energy, etc.); scale of area, industries and trades operating. Detailed explanation of each industrial cluster, including: current land status (on the principle of limiting the use of land already planned for rice cultivation, natural conservation areas, historical-cultural relics, scenic spots, etc.); industries and trades operating (prioritizing industries and trades with interconnectivity within the same product or service chain preferred for local or neighboring local production); justification for adjusting and supplementing industrial clusters in the list of industrial clusters in the locality; projected total investment in technical infrastructure for industrial clusters;

e) Present the current status and planning of industrial clusters expected to develop in the provincial planning system through maps;

g) Solutions for developing industrial clusters within the province during the planning period (including: Mobilizing investment capital for infrastructure; support policies for developing industrial clusters; environmental protection; management and implementation organization);

3. Funding for building and the period of the development plan for industrial clusters shall be carried out in accordance with regulations on provincial planning.

Article 5. Construction and integration of industrial cluster development plans into provincial planning

1. The Department of Industry and Trade shall take the lead and coordinate with relevant departments, agencies, People's Committees at district level, and related units to construct and complete the industrial cluster development plan on their respective territories in accordance with Article 4; submit a report in writing to the People's Committee at provincial level regarding the industrial cluster development plan.

2. The People's Committee at provincial level shall direct the agency responsible for provincial planning to process and integrate the industrial cluster development plan into the provincial planning, seek opinions on the provincial planning (including the industrial cluster development plan) in accordance with the laws on planning to perfect and submit to the competent authority for approval.

3. The content of the decision approving the provincial planning shall reflect the industrial cluster development plan including a list of industrial clusters within the planning period comprising the name, location, area size of each industrial cluster, and other contents (if any).

Article 6. Adjustment of Industrial Cluster Development Plans

1. Basis for adjusting the industrial cluster development plan:

a) There is an adjustment to the National Industrial Development Strategy, strategies for developing industries and sectors on the territory; regional planning, provincial planning, and technical and specialized planning on the territory;

b) There is an adjustment to the land fund allocated for industrial cluster development to meet the demand for lease land for production and business investment of organizations and individuals, and be consistent with the effectiveness of infrastructure construction investment, and the leasing capacity of industrial clusters at the district level;

c) There is the potential to attract enterprises and cooperatives to invest in technical infrastructure, and individuals and organizations to invest in production and business activities for proposed supplementary industrial clusters; there is a feasible conversion plan for industrial clusters in cases where they are withdrawn from the planning.

2. Main contents of the adjustment of the industrial cluster development plan:

a) Legal basis, necessity, and explanation of the grounds for adjusting the industrial cluster development plan;

b) Evaluation of progress and effectiveness of technical infrastructure investment; attraction of investment, occupancy rate, production and business situation; environmental management and protection work; fire prevention, firefighting, and rescue operations at industrial clusters; economic and social benefits of planned industrial clusters; achievements, shortcomings, and causes;

c) Forecasted demand for production floor space to attract investment and relocation into industrial clusters, current land status, industry activities, ability to attract investors, forecasted total investment amount for proposed adjusted and supplementary industrial clusters; evaluation of current status and investment effectiveness for industrial clusters proposed to be removed from the planning, based on proposals and feasibility of the industrial cluster conversion plan;

d) Proposed list of industrial clusters within the planning period on the provincial territory (after adjustment), including: name, location (down to commune level; ensuring safe distances from nearby residential areas, national historical sites, rivers, lakes...; only arranging adjacent industrial clusters when there is interconnection between them), area size, industry activities;

đ) Implementation solutions.

Article 7. Construction and Integration of Industrial Cluster Development Plans into Provincial Planning Adjustments

1. The Department of Industry and Trade shall take the lead and coordinate with relevant departments, provincial-level People's Committees, and related units to construct and complete reports on adjusting industrial cluster development plans within their jurisdiction in accordance with Article 6; submit written reports to the provincial-level People's Committee regarding adjustments to industrial cluster development plans.

2. The provincial-level People's Committee shall direct the planning agency to process and integrate adjustments to industrial cluster development plans into provincial planning adjustments, seek opinions on provincial planning adjustments (including adjustments to industrial cluster development plans) in accordance with laws on planning to finalize and submit for approval by the competent authority.

3. The content of the decision approving the adjustment of the provincial planning shall reflect the adjustment of the industrial cluster development plan, including a list of industrial clusters in the planning period, comprising names, locations, areas of industrial clusters, and other contents (if any).

Section 2

ESTABLISHMENT AND EXPANSION OF INDUSTRIAL CLUSTERS

Article 8. Conditions for Establishing and Expanding Industrial Clusters

1. To establish an industrial cluster, the following conditions must be met:

a) It must be included in the list of industrial clusters in the province approved by the competent authority; have land funds consistent with the land use plan at the district level;

b) There must be a business enterprise, cooperative, or organization with legal status that has investment capacity to propose itself as the main investor in building technical infrastructure for the industrial cluster;

c) In cases where the district has already established an industrial cluster, the average occupancy rate of the industrial clusters must reach over 50%, or the total area of unused industrial land in the industrial clusters must not exceed 100 hectares.

2. To expand an industrial cluster, the following conditions must be met:

a) The total area of the industrial cluster after expansion must not exceed 75 hectares; have land funds consistent with the land use plan at the district level;

b) There must be a business enterprise, cooperative, or organization with legal status that has investment capacity to propose itself as the main investor in building technical infrastructure for the industrial cluster;

c) Achieve a minimum occupancy rate of 60%, or there must be a demand for leasing industrial land in the industrial cluster exceeding the current area of industrial land in the industrial cluster;

d) Complete construction and put into use essential shared technical infrastructure projects (including internal roads, water supply, wastewater collection and treatment) according to the detailed planning that has been approved.

Article 9. Documents for Requesting Establishment and Expansion of Industrial Clusters

1. Documents for requesting establishment and expansion of industrial clusters:

a) A proposal from the district-level People's Committee to establish or expand an industrial cluster. In cases where the industrial cluster spans two or more district administrative units, the provincial-level People's Committee assigns one district-level People's Committee to submit the proposal to establish or expand the industrial cluster;

b) A document from the business enterprise, cooperative, or organization proposing itself as the main investor in building technical infrastructure for the industrial cluster (including a commitment not to violate legal provisions and to bear all costs and risks if not approved), accompanied by an investment report for establishing or expanding the industrial cluster and a map identifying the location and boundaries of the industrial cluster;

c) A certified copy of the legal status documentation of the business enterprise, cooperative, or organization proposing itself as the main investor in building technical infrastructure for the industrial cluster;

d) A certified copy of the financial capability documentation of the business enterprise, cooperative, or organization proposing itself as the main investor in building technical infrastructure, including at least one of the following: Financial statements for the last two years; a financial support commitment from the parent company; a financial support commitment from a financial institution; a guarantee of financial capability; other documents proving financial capability (if any);

đ) A certified copy of the documentation proving the experience of the business enterprise, cooperative, or organization proposing itself as the main investor in building technical infrastructure for the industrial cluster, and any related documents (if any).

2. Main Content of the Investment Report for Establishing or Expanding an Industrial Cluster:

a) Legal basis, necessity, suitability assessment, compliance with conditions for establishing or expanding an industrial cluster; labor demand; impact of industrial zones and industrial clusters in the area on investment effectiveness and occupancy rates of the industrial cluster;

b) Current land use status, conditions for land recovery, projected land use needs, orientation for arranging industries and trades with interlinkage and support in production; land use structure and projected investment attraction into the industrial cluster; assessment of the ability to connect technical infrastructure inside and outside the industrial cluster;

c) Determination of objectives, area, location, scope of investment in technical infrastructure construction; analysis and selection of investment construction schemes for technical infrastructure systems; land clearance and resettlement support schemes (if any); project implementation timeline and progress consistent with reality and resource mobilization capabilities; plans and progress for attracting investment, relocation, and occupancy rates of the industrial cluster; pollution prevention, environmental degradation, and water depletion management schemes; fire prevention, firefighting, and rescue management schemes at the industrial cluster; housing schemes for workers in the industrial cluster;

d) Clearly define the legal status, capacity, and experience of the business enterprise, cooperative, or organization proposing itself as the main investor in building technical infrastructure for the industrial cluster; estimate the total investment amount, structure, balance, and mobilization of investment capital sources to implement the project;

đ) Maintenance and operation costs for technical infrastructure systems, other related costs; management and utilization methods after operation commencement;

e) Preliminary environmental impact assessment in accordance with environmental protection laws; projected capacity to accept and treat waste around the proposed establishment and expansion areas of the industrial cluster; forecast of potential pollutants and environmental impacts of industries and trades expected to attract investment into the industrial cluster and environmental management schemes; evaluation of water function compatibility;

g) Proposals for investment incentives, special mechanisms and policies (if any); economic and social impact analysis and assessment of the industrial cluster; implementation solutions.

Article 10. Procedures for Establishing and Expanding Industrial Clusters

1. Within five working days from the date of receipt of the first document from the enterprise, cooperative, or organization proposing to be the investor in constructing the technical infrastructure of the industrial cluster, the People's Committee of the district shall have the responsibility to widely announce the acceptance of applications for establishing and expanding the industrial cluster through local mass media. The application acceptance period will be within fifteen days from the announcement date.

2. Within five working days from the end of the application acceptance period for establishing and expanding the industrial cluster, the People's Committee of the district shall take the lead and coordinate with the enterprise, cooperative, or organization proposing to be the investor in constructing the technical infrastructure of the industrial cluster to prepare two sets of documents for establishing and expanding the industrial cluster as stipulated in Clause 1, Article 9 of this Decree, along with an electronic file of the application, to send to the Department of Industry and Trade to take the lead and coordinate with relevant departments to organize the review.

3. Within twenty-five days from the date of receiving all documents for establishing and expanding the industrial cluster, the Department of Industry and Trade shall complete the review and compile a report to the People's Committee of the province on the establishment and expansion of the industrial cluster. In cases where the application documents and contents of the Report on establishing and expanding the industrial cluster do not meet the requirements, the Department of Industry and Trade shall issue a document to the People's Committee of the district to supplement and perfect the documents. The time for supplementation and perfection of the documents will not be counted towards the review period.

The selection of enterprises, cooperatives, or organizations to be the investor in constructing the technical infrastructure of the industrial cluster shall be carried out according to the provisions of Clause 2, Article 13 of this Decree. The People's Committee of the province shall specify the notification to enterprises, cooperatives, or organizations proposing to be the investor in constructing the technical infrastructure of the industrial cluster regarding the results of the investor selection.

4. Within seven working days from the date of receipt of one set of documents for establishing and expanding the industrial cluster accompanied by the review report of the Department of Industry and Trade, the People's Committee of the province shall examine and decide on the establishment and expansion of the industrial cluster. The decision on the establishment and expansion of the industrial cluster shall be sent to the Ministry of Industry and Trade one copy.

In cases where the industrial cluster has adjustments in name, location changes within the administrative boundaries of the district, and an increase in area not exceeding five hectares compared to the approved planning and is consistent with the provincial land use planning and other related plans, the People's Committee of the province shall consider and decide on the establishment and expansion of the industrial cluster in the Decision on the Establishment and Expansion of the Industrial Cluster; at the same time, update the changed content to report.

Article 11. Contents of the Review for Establishing and Expanding Industrial Clusters

1. The legality and validity of the documents for establishing and expanding the industrial cluster.

2. The content and feasibility of the Investment Report for establishing and expanding the industrial cluster:

a) Legal basis, necessity, and consistency with provincial planning and other related planning;

b) Evaluation of compliance with conditions for establishing and expanding the industrial cluster; land use needs, ability to meet lease land conditions, and conditions for changing land use purposes;

c) Name, area, objectives, industries of operation, and investment construction plan for the technical infrastructure of the industrial cluster;

d) Legal status and capacity of the enterprise, cooperative, or organization proposing to be the investor in constructing the technical infrastructure of the industrial cluster, total investment amount, structure, balance capability, and solutions for mobilizing investment capital sources to complete the technical infrastructure of the industrial cluster; feasibility of environmental protection, fire prevention, firefighting, rescue, housing for workers' solutions;

đ) Related costs and management and utilization methods of the technical infrastructure of the industrial cluster after its operation;

e) Solutions for attracting investment, relocating projects and facilities causing environmental pollution or posing a risk of pollution in the province (if applicable); preliminary assessment of the economic and social benefits of establishing and expanding the industrial cluster and the environmental impact of the industrial cluster;

g) Assessment of investment incentives and conditions for enjoying investment incentives (if applicable).

Article 12. Decision on establishment and expansion of industrial clusters

1. Main contents of the Decision on establishment and expansion of industrial clusters:

a) Name, area, location, main business sectors;

b) Investor for construction of technical infrastructure of the industrial cluster;

c) Scale of investment in construction of technical infrastructure, estimated total investment capital, investment capital structure;

d) Progress schedule for the project of investment in construction of technical infrastructure of the industrial cluster;

đ) Investment incentives and support and applicable conditions (if any);

e) Responsibilities of the investor for construction of technical infrastructure of the industrial cluster and relevant agencies in implementing the project of investment in construction of technical infrastructure of the industrial cluster;

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

h) Other contents (if any).

2. Amendment and revocation of the Decision on establishment and expansion of industrial clusters:

a) Based on their authority and legal regulations, the People's Committee of the province decides to amend the content or revoke the Decision on establishment and expansion of industrial clusters in accordance with the actual situation of the locality;

b) For the amendment of the investor for construction of technical infrastructure of the industrial cluster, the evaluation and selection of the investor for construction of technical infrastructure of the industrial cluster shall be carried out in accordance with Clause 2, Article 13 of this Decree.

If the industrial cluster has technical infrastructure projects formed from the state budget, the People's Committee of the province assigns the selected investor for construction of technical infrastructure to manage, repair, and operate to serve the common activities of the industrial cluster. The construction cost of technical infrastructure projects of the industrial cluster from the state budget shall not be included in the land rental price or the common technical infrastructure usage price of the industrial cluster; management, repair, and operation costs of technical infrastructure projects shall be included in the common technical infrastructure usage price of the industrial cluster. In case specialized laws provide for such content, they shall be implemented in accordance with the specialized laws.

Chapter III

INVESTMENT IN CONSTRUCTION OF TECHNICAL INFRASTRUCTURE OF INDUSTRIAL CLUSTERS

Article 13. Investor for construction of technical infrastructure of industrial clusters

1. The State has policies to encourage and support enterprises, cooperatives, organizations to become investors in constructing technical infrastructure of industrial clusters.

2. Selection of the investor for construction of technical infrastructure of industrial clusters is a component of the assessment for establishment and expansion of industrial clusters; it is carried out during the process of establishing and expanding industrial clusters. For industrial clusters where enterprises, cooperatives, organizations have submitted applications for establishment and expansion that meet the provisions of this Decree, the selection of the investor for construction of technical infrastructure of industrial clusters shall be conducted as follows:

The People's Committee of the province establishes an Evaluation and Selection Council for the investor for construction of technical infrastructure of industrial clusters (comprising the Chairman of the Council who is the leadership of the People's Committee of the province, the Vice-Chairman of the Council who is the leadership of the Departments of Industry and Trade, Planning and Investment, other members being representatives of some departments and related agencies; the Secretary of the Council being a representative of the specialized department of the Department of Industry and Trade and not a member of the Council) to score with a maximum of 100 points for the following criteria: investment plan for construction of technical infrastructure (maximum 15 points); management and environmental protection plan for the industrial cluster (maximum 15 points); enterprise capacity and experience (maximum 30 points) and financial plan for investment in construction of technical infrastructure (maximum 40 points). Based on the actual conditions of the locality and relevant legal regulations, the Council unifies principles, working methods, contents of each criterion, and corresponding maximum scores in accordance with the situation.

Enterprises, cooperatives, organizations with scores of 50 or higher will be considered and decided by the People's Committee of the province to assign as the investor for construction of technical infrastructure of the industrial cluster in the Decision on establishment and expansion of the industrial cluster (in cases where two or more enterprises, cooperatives, organizations apply to be the investor for construction of technical infrastructure of the industrial cluster, the enterprise, cooperative, organization with the highest score will be assigned; if there are two or more enterprises, cooperatives, organizations with the same highest score, the enterprise, cooperative, organization proposed by the Chairman of the Evaluation and Selection Council will be assigned).

Article 14. Procedures for Investment in Construction of Industrial Cluster Technical Infrastructure

The investment in construction of industrial cluster technical infrastructure shall be carried out according to the following basic procedures:

1. Preparing and approving the Investment Report on establishing and expanding the industrial cluster, and other investment procedures (if any).

2. Preparing and approving the detailed construction planning for the industrial cluster.

3. Preparing and approving the project for investment in construction of industrial cluster technical infrastructure and investment preparation procedures.

4. Organizing the construction of industrial cluster technical infrastructure projects and managing the operation and exploitation of such infrastructure projects after completion.

Article 15. Detailed Construction Planning for Industrial Clusters

1. The People's Committee at the district level shall direct the investor, relevant agencies, and units to prepare and submit the detailed construction planning for the industrial cluster within their jurisdiction to the competent authority for approval. The content of the detailed planning must align with the Investment Report on establishing and expanding the industrial cluster, and include appropriate arrangements for environmental protection infrastructure systems suitable for the industry and regulations on wastewater discharge into water sources as stipulated by law.

2. The preparation and adjustment of detailed construction planning for industrial clusters shall comply with the detailed construction planning regulations for functional zones under construction laws and do not require the establishment of tasks. The approved detailed construction planning serves as the basis for issuing construction permits and preparing investment construction projects.

3. The funding for the preparation of detailed construction planning for industrial clusters shall be implemented in accordance with the provisions of the law.

Article 16. Management of Projects for Investment in Construction of Industrial Cluster Technical Infrastructure

1. The shared infrastructure works system of the industrial cluster shall be designed in a coordinated manner to reduce costs, land and water usage, and facilitate the construction, repair, and operation of infrastructure works. The project for investment in construction of industrial cluster technical infrastructure must conform to the Decision on establishing and expanding the industrial cluster and the approved detailed construction planning. The investor constructing the industrial cluster technical infrastructure bears responsibility for preparing and implementing the project for investment in construction of industrial cluster technical infrastructure. The content, procedures for preparation, examination, approval, and management of the project for investment in construction of industrial cluster technical infrastructure shall be carried out in accordance with the laws on investment and construction.

2. During the preparation and implementation phases of the project, the investor constructing the industrial cluster technical infrastructure must fulfill land, construction, environment-related procedures and regulations, have plans to prevent and control pollution, degradation, and depletion of water resources, fire prevention and firefighting, and other regulations applicable to the project as stipulated.

Article 17. Management of Public Services and Utilities

1. Common public services and utilities within the industrial cluster include: Security and maintenance of public order; telecommunications; water supply and drainage; environmental sanitation and waste treatment; fire prevention and firefighting; maintenance and operation of infrastructure works, and other utility services. The usage fees for common public services and utilities are determined based on the principle of agreement through contracts signed between service users and the investor constructing the industrial cluster technical infrastructure.

2. The investor constructing the industrial cluster technical infrastructure has the responsibility to organize the provision and management of common public services and utilities within the industrial cluster; establish and approve the Management Regulations for public services and utilities before receiving organizations and individuals investing in production and business activities within the industrial cluster, in compliance with the law, and submit one copy to the Department of Industry and Trade and the People's Committee at the district level within five working days from the date of approval for monitoring and management; if there are already organizations and individuals investing in production and business activities within the industrial cluster, then prior to approving the Management Regulations for public services and utilities, opinions of organizations and individuals within the industrial cluster must be solicited.

3. The resolution of complaints and disputes arising from the management, provision, and use of common public services and utilities within the industrial cluster shall be carried out in accordance with the provisions of the law.

Article 18. Rights of the investor in constructing technical infrastructure for industrial clusters

1. Mobilize and accept investment projects into industrial clusters based on detailed planning and production and business sectors that have been approved by competent authorities.

2. Raise capital to invest in constructing technical infrastructure for industrial clusters in accordance with the provisions of the law.

3. Invest in building factories, warehouses, offices to lease or sell to businesses and provide public services and other utilities within the industrial cluster in accordance with the provisions of the law.

4. Decide on leasing back, the price for leasing back land attached to common technical infrastructure, the price for leasing or selling factories, warehouses, offices, and prices for various types of public services and other utilities within the industrial cluster. In cases where the industrial cluster is not managed by enterprises, cooperatives, or organizations conducting investment and business activities, the leasing of land shall be carried out in accordance with the provisions of the Land Law; the price for using common technical infrastructure and various types of public services and other utilities within the industrial cluster shall be decided by the competent authority.

5. Propose competent authorities to revoke investment policies, investment certificates (if any), or handle investment projects within the industrial cluster that violate laws, cease operations, or fail to implement or delay implementation in accordance with the Investment Law.

6. Enjoy preferential policies and support as stipulated in this Decree and common benefits according to relevant laws.

Article 19. Obligations of the investor in constructing technical infrastructure for industrial clusters

1. Establish a management and operation department for the investment project in constructing technical infrastructure for industrial clusters; organize the implementation of the project according to the detailed planning that has been approved, ensuring the progress of the project; if there is a violation of the law, delays in implementation, cessation of operations, or failure to implement, they will be handled according to the provisions of the law.

2. Maintain, repair, and operate the system of common technical infrastructure facilities within the industrial cluster throughout its operational period; provide public services and common utilities within the industrial cluster.

3. Comply with the provisions of the law regarding investment, land, construction, environmental protection, water resource protection, fire prevention and rescue, financial accounting, auditing, statistics, insurance, labor, occupational safety, industrial hygiene, public security, social safety within the industrial cluster.

4. Support and create favorable conditions for organizations and individuals to carry out procedures for implementing investment and production and business activities within the industrial cluster.

5. Implement regular reporting on the operation status of the investment project in constructing technical infrastructure for the industrial cluster to the statistical agency in the area in accordance with the Statistics Law, while also submitting to the Department of Industry and Trade and the People's Committee of the district for management; publicly announce the area of unleased or leased-back land within the industrial cluster on the enterprise's and local government's electronic information websites.

6. Fulfill other obligations and provisions of the law.

Chapter IV

INVESTMENT AND PRODUCTION AND BUSINESS ACTIVITIES WITHIN INDUSTRIAL CLUSTERS

Article 20. Acceptance of investment projects into industrial clusters

Organizations and individuals who wish to relocate or invest in industrial clusters should contact the investor in constructing technical infrastructure for the industrial cluster to receive guidance on planning, sectoral arrangement, land rental prices, factory, warehouse, office prices, usage of public services and utilities, procedures for implementing investment projects into the industrial cluster, and preliminary agreements on location, site, and the expected area of industrial land to be rented.

Article 21. Leasing Land and Issuing Construction Permits in Industrial Clusters

1. Organizations and individuals investing in industrial clusters shall implement procedures for leasing land tied to common technical infrastructure that meets the environmental protection requirements of the investor constructing the industrial cluster's technical infrastructure. For industrial clusters not managed by enterprises, cooperatives, or organizations engaged in business investment activities, the leasing of land shall be carried out in accordance with the provisions of the Law on Land.

2. The issuance of construction permits for non-linear construction projects within industrial clusters shall be conducted in accordance with the laws on construction.

Article 22. Rights of Organizations and Individuals Investing in Production and Business Activities in Industrial Clusters

1. To use and extend the use of land in accordance with the provisions of the Law on Land; lease part of the land, factories, warehouses, offices, and assets on leased land in accordance with the law.

2. To pay for the use of technical infrastructure works, public services, and other services as prescribed.

3. To contribute capital or invest capital to construct and operate technical infrastructure according to agreements with the investor of the industrial cluster's technical infrastructure.

4. To be supported and facilitated in hiring and training labor to meet production and business needs.

5. To be guided and facilitated in implementing investment, production, and business procedures within the industrial cluster.

6. To enjoy preferential policies and support as stipulated in this Decree and other benefits as provided by relevant laws.

Article 23. Obligations of Organizations and Individuals Investing in Production and Business Activities in Industrial Clusters

1. To use land, implement investment projects, engage in production and business activities in accordance with the economic contract with the investor of the industrial cluster's technical infrastructure, the Management Regulations for Public Services and Utilities in the Industrial Cluster, and the contents of the Decision Approving the Investment Proposal and Investment Registration Certificate (if applicable); in cases exceeding the prescribed time limit, they must request the competent authority and the investor of the industrial cluster's technical infrastructure to extend the period in accordance with regulations.

2. To comply with the provisions of the laws on investment, land, construction, environmental protection, fire prevention, firefighting, rescue, finance, accounting, auditing, statistics, insurance, labor, occupational safety and health, industrial hygiene, public security, and social safety concerning investment projects in the industrial cluster; to pay for the use of infrastructure, public services, and other utilities as agreed.

3. To actively participate in attracting labor and solving employment issues at the local level, prioritizing policy-targeted labor and households whose land was expropriated for the construction of the industrial cluster.

4. To report periodically on the operation status of investment projects in the industrial cluster to the statistical agency in the area in accordance with the Statistics Law, and simultaneously send it to the People's Committee of the district for management.

5. To fulfill other obligations and regulations stipulated by law.

Article 24. Management of Production and Business Activities

1. Production and business activities in industrial clusters shall be conducted in accordance with current legal provisions.

2. Specialized inspections and audits of organizations and individuals investing in production and business activities shall be carried out according to plans approved by authorized state agencies and shall be conducted regularly no more than once a year unless there are signs of law violations. The inspection and audit authorities shall coordinate with the Department of Industry and Trade, the People's Committee of the district, and the investor of the industrial cluster's technical infrastructure to prevent and handle violations of the law within the industrial cluster.

3. Organizations and individuals within the industrial cluster shall report their production and business situation to the statistical agency in the area in accordance with the Statistics Law. Quarterly and annually, the statistical agency in the area shall be responsible for compiling the operational status of production and business activities within the industrial cluster and sending it to the Department of Industry and Trade and the People's Committee of the district for management.

Chapter V

PREFERENTIAL AND SUPPORT POLICIES FOR DEVELOPING INDUSTRIAL CLUSTERS

Article 25. Investment incentives for projects to construct technical infrastructure in industrial clusters and production and business investment projects within industrial clusters

1. An industrial cluster is an area with difficult socio-economic conditions; investment in constructing technical infrastructure in industrial clusters is a special industry or profession that enjoys preferential investment treatment.

2. The application of incentives for projects to construct technical infrastructure in industrial clusters and production and business investment projects within industrial clusters shall be carried out in accordance with the provisions of the Land Law, the Tax Law, the Credit Law, and other relevant laws. In cases where the law stipulates different levels of incentives, the highest level of incentive shall be applied.

Article 26. Support for the construction of technical infrastructure in industrial clusters

1. Local budget (including additional revenue from the central government budget allocated to the local budget) shall balance to support investment and development of technical infrastructure systems both inside and outside industrial clusters on the local territory (priority given to supporting the construction of environmental protection infrastructure projects in operational industrial clusters; supporting the construction of essential common technical infrastructure projects in industrial clusters located in areas with difficult socio-economic conditions, particularly difficult conditions, and industrial clusters developing in a sectoral, specialized, supportive, ecological, and traditional craft preservation direction) in accordance with the provisions of the Public Investment Law and the State Budget Law.

The State shall provide support not exceeding 30% of the total capital investment of the project to construct technical infrastructure in industrial clusters. The support funds shall not be included in the total investment amount of the project for calculating land rental fees and infrastructure usage fees for projects within industrial clusters. The investor constructing technical infrastructure in industrial clusters shall be responsible for managing, repairing, and regularly operating the supported infrastructure projects to serve the common activities of the industrial cluster.

2. The People's Committee of the province shall report to the People's Council at the same level to decide or decide according to its authority and the provisions of the law on the matter of supporting investment in the construction of technical infrastructure in industrial clusters on the local territory.

Article 27. Support for the development activities of industrial clusters

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

a) Surveying, building, and operating industrial cluster database; organizing conferences, seminars, coordinating investment promotion for industrial clusters; information dissemination, printing, publishing materials, training, and professional skills, laws, and policies related to industrial clusters;

b) Surveying, evaluating, building policies, management models, and experiences in developing industrial clusters domestically and internationally; building and disseminating implementation of policies and laws on the management and development of industrial clusters;

c) Researching and building criteria for determining effective industrial cluster development models that protect the environment (such as specialized industrial clusters, supportive industrial clusters, ecological industrial clusters, etc.); organizing guidance and recognition for industrial cluster development models; organizing awards, summarizing, and building reports on the orientation for industrial cluster development.

2. The local government budget shall ensure funding for the development activities of industrial clusters implemented by the locality including:

a) Industrial cluster development activities as specified in point a and b of Clause 1 of this Article;

b) Organizing investment promotion activities for industrial clusters; surveying and investigating organizations and individuals interested in relocating or investing in industrial clusters; establishing, reviewing the establishment and expansion of industrial clusters; preparing detailed construction planning for industrial clusters; supporting the completion of administrative procedures related to industrial clusters;

c) Supporting funding for project investment preparation, transportation, installation of machinery, and equipment lines for enterprises, cooperatives, cooperative groups, and households in craft villages and residential areas relocating into industrial clusters and craft village industrial clusters. The specific level of support shall be decided by the People's Committee of the province.

3. Funding for the development activities of industrial clusters is a source of public service funding; it shall be managed and used in accordance with the provisions of the State Budget Law and guiding documents.

Chapter VI

STATE MANAGEMENT OF INDUSTRIAL CLUSTERS

Article 28. Contents of State Management over Industrial Clusters

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

2. Deciding, issuing, adjusting, revoking various types of permits and certificates related to investment and business activities in industrial clusters; building and operating databases, implementing administrative procedures, public services, utilities concerning industrial clusters.

3. Organizing the machinery, guiding, training, and enhancing professional skills in managing and developing industrial clusters.

4. Inspecting, auditing, evaluating the effectiveness of investments, resolving complaints, accusations, rewarding, handling suggestions, violations of laws, and other emerging issues regarding industrial clusters.

Article 29. Powers and Responsibilities for State Management over Industrial Clusters

1. The Government uniformly manages state affairs over industrial clusters nationwide; assigns specific responsibilities and powers to each ministry, sector, provincial People's Committees, and relevant agencies; promulgates policies and normative legal documents on industrial clusters.

2. The Prime Minister directs the construction and improvement of policies and laws on management and sustainable development of industrial clusters; provides guidance on supporting investment in infrastructure development in industrial clusters at localities according to development requirements and budgetary capacity at each stage; handles and resolves violations and issues beyond the authority of ministries, sectors, and provincial People's Committees.

3. Ministries, sectors, provincial People's Committees, outside the scope of powers and responsibilities stipulated in Articles 30, 31, and 32 of this Decree, have the responsibility to manage state affairs within their respective industries and fields, and territorially within industrial clusters; inspect, audit, and impose administrative penalties within their authority; guide, decentralize, or delegate certain state management tasks to Departments of Industry and Trade, district-level People's Committees according to this Decree and relevant laws.

Article 30. Powers and Responsibilities of the Ministry of Industry and Trade

The Ministry of Industry and Trade is the state agency responsible for managing industrial clusters nationwide with the following powers and responsibilities:

1. Building and submitting to competent authorities for issuance, or issuing according to its authority, policies, laws, programs, plans, templates of documents, reporting and statistical systems, databases on management and development of national industrial clusters; providing opinions on development plans of localities' industrial clusters as prescribed.

2. Annually building plans and budgets for activities to develop industrial clusters from the central government budget, submitting to competent authorities for approval and organizing implementation after approval.

3. Implementing international cooperation activities and supporting investment promotion for industrial cluster development.

4. Periodically or urgently inspecting and evaluating the effectiveness of implementation of development plans, management and development policies of industrial clusters at the provincial level; rewarding, handling suggestions, and dealing with violations of laws on industrial clusters within its authority and according to relevant laws.

Article 31. Powers and Responsibilities of Other Relevant Ministries

1. The Ministry of Planning and Investment proposes

2. The Ministry of Finance compiles annual budgets for activities to develop industrial clusters according to the laws on state budget.

3. The Ministry of Construction guides on construction standards, procedures for detailed planning approval and construction permit issuance in industrial clusters, and capital investment in industrial cluster technical infrastructure.

4. The Ministry of Natural Resources and Environment guides on land management and environmental protection in industrial clusters.

5. The Ministry of Public Security guides on security, public order, fire prevention, firefighting, and rescue operations in industrial clusters.

Article 32. Powers and Responsibilities of the Provincial People's Committee

The provincial people's committee is the state management agency for industrial clusters within its jurisdiction and has the powers and responsibilities:

1. To direct the development and implementation of plans for developing industrial clusters within its jurisdiction; to decide on establishing, expanding, adjusting, or abolishing decisions on establishing or expanding industrial clusters; to stipulate or submit to competent authorities for them to stipulate support for investment from local budgets to build technical infrastructure inside and outside industrial clusters within its jurisdiction; to implement policies, laws, and plans for activities aimed at developing industrial clusters within its jurisdiction.

2. To issue regulations governing industrial clusters, and handle procedures for implementing investment projects to develop technical infrastructure and production and business projects within industrial clusters under a single-window mechanism.

3. To direct, guide, and support enterprises, cooperatives, organizations, and production establishments in implementing investment projects to develop technical infrastructure and production and business activities within industrial clusters, carry out land clearance, compensation, resettlement, construction of transportation systems, power supply, water supply and drainage, postal and telecommunications services; allocate land within its jurisdiction to build housing for workers in industrial clusters when necessary; organize investment promotion activities for industrial clusters within its jurisdiction.

4. To organize reviews, plan, and implement solutions to resolve industrial clusters and investment projects within industrial clusters causing environmental pollution, ineffective land use, and violations of laws; to take measures to effectively manage industrial clusters formed before Decision No. 105/2009/QD-TTg dated August 19, 2009 of the Prime Minister on issuing regulations governing industrial clusters and without investors building technical infrastructure.

5. To direct competent agencies to conduct regular and spot inspections on compliance with laws on land, investment, construction, environmental protection, fire prevention and fighting, rescue operations, and other national regulations concerning industrial clusters within its jurisdiction; to handle violations within its authority.

6. To regularly or promptly report to the Ministry of Industry and Trade on the situation of industrial clusters within its jurisdiction; to commend and propose commendations for organizations and individuals with achievements in developing industrial clusters; to perform other tasks and powers regarding industrial clusters as prescribed.

Article 33. Powers and Responsibilities of the Department of Industry and Trade

1. To build, submit for approval, and organize the implementation of plans for developing industrial clusters, regulations governing industrial clusters, supportive policies for investment and development of industrial clusters, plans and budget estimates for activities aimed at developing industrial clusters within its jurisdiction.

2. Regarding handling procedures for implementing investment projects to develop technical infrastructure and production and business activities within industrial clusters:

a) To lead the review, submit to the provincial people's committee for decisions on establishing, expanding industrial clusters, adjusting, or abolishing decisions on establishing or expanding industrial clusters; to participate in opinions on files and procedures related to implementing investment projects to develop technical infrastructure within industrial clusters (including: land recovery, land leasing, detailed planning approval, basic design approval for investment projects, environmental procedure approval, acceptance of fire prevention and fighting plans,...) as prescribed by law and the provincial people's committee.

b) To participate in opinions on files and procedures for requesting issuance, adjustment, or recovery of investment policy decisions, investment certificates (if any), and other investment implementation files and procedures for production and business projects within industrial clusters as prescribed by law and the provincial people's committee.

3. To inspect and evaluate regularly or promptly the effectiveness of implementing plans for developing, management, and development policies for industrial clusters within its jurisdiction as prescribed by law; to compile and propose commendations for organizations and individuals with achievements in developing industrial clusters; to handle or propose competent authorities to handle complaints and violations of laws as prescribed.

4. To report regularly or promptly to the Ministry of Industry and Trade and the provincial people's committee on the situation of industrial clusters; to establish and operate a database of industrial clusters within its jurisdiction; to perform other tasks and powers regarding industrial clusters as prescribed in this Decree and other laws.

Article 34. Powers and responsibilities of the People's Committee at the district level

1. Proposing the development plan for industrial clusters within its jurisdiction; supporting investors to implement infrastructure investment projects and manage industrial clusters effectively; receiving, handling, or referring to competent authorities for procedures related to investment projects in industrial clusters.

2. Deciding on investment support or proposing competent authorities to decide on investment support for technical infrastructure inside and outside industrial clusters; approving and implementing plans to relocate enterprises and production facilities into industrial clusters and activities for developing industrial clusters within its jurisdiction.

3. Conducting regular or spot inspections, handling violations of laws concerning land, investment, construction, environmental protection, fire prevention and control, rescue operations, and other regulations regarding industrial clusters within the district according to its authority; regularly or promptly reporting to the People's Committee at the provincial level and the Department of Industry and Trade about the situation of industrial clusters within its jurisdiction.

Chapter VII

IMPLEMENTING PROVISIONS

Article 35. Transitional Provisions

1. Industrial clusters with an area of less than 10 hectares or industrial clusters located in mountainous districts, village-based industrial clusters with an area of less than 5 hectares established or expanded before the effective date of Government Decree No. 68/2017/ND-CP dated May 25, 2017 on management and development of industrial clusters, and industrial clusters formed before the effective date of Decision No. 105/2009/QD-TTg dated August 19, 2009 of the Prime Minister on the issuance of regulations on management of industrial clusters shall continue to operate and be managed according to this Decree if they were established by competent authorities with an area exceeding 75 hectares.

2. Industrial clusters currently undergoing review and decision-making for establishment or expansion according to Government Decree No. 68/2017/ND-CP and Government Decree No. 66/2020/ND-CP dated June 11, 2020 amending and supplementing certain articles of Government Decree No. 68/2017/ND-CP shall continue to follow the provisions of these Decrees.

3. Units assigned as investors to construct technical infrastructure of industrial clusters as stipulated in Clause 2, Article 15 of Government Decree No. 68/2017/ND-CP shall continue their activities until a reorganization or disposal decision is made by competent authorities; performing the rights and obligations of investors constructing technical infrastructure of industrial clusters as provided in this Decree and relevant laws.

4. Handling the establishment of industrial clusters included in the Development Plan for Industrial Clusters under the Provincial Master Plan that were formed before Decision No. 105/2009/QD-TTg (including industrial clusters whose technical infrastructure investment projects were approved by competent authorities before October 5, 2009, detailed construction planning was approved before October 5, 2009, are within the Industrial Cluster Development Plan or Local Industrial Development Plan, and have investment projects in industrial clusters before October 5, 2009) shall be handled as follows:

a) Based on actual conditions and the effectiveness of industrial cluster operations, the People's Committee at the provincial level shall organize a review of the current status of technical infrastructure investment and related legal documents of the industrial cluster to clarify the necessity, compliance with legal regulations, feasibility, and decide on the establishment of the industrial cluster. During implementation, the contents of the Decision establishing the industrial cluster must comply with Clause 1, Article 12 of this Decree. In cases where the industrial cluster has an area larger than 75 hectares, has filled all industrial land or has been approved for detailed planning and completed compensation and land clearance procedures, the People's Committee at the provincial level shall decide to maintain or adjust the area downward to meet local management requirements. The evaluation and selection of investors for constructing technical infrastructure of industrial clusters shall be carried out according to the provisions of Clause 3, Article 2 and Clause 2, Article 13 of this Decree. If there are technical infrastructure works formed from state budget funds within the industrial cluster, they shall be handled according to the provisions of Point b, Clause 2, Article 12 of this Decree.

b) The deadline for handling the establishment of industrial clusters as stipulated in this clause shall be completed before December 31, 2026.

Article 36. Awards and Handling of Violations

1. Organizations and individuals with achievements in investing in and constructing technical infrastructure for industrial clusters and production and business activities within industrial clusters shall be awarded according to the provisions of the law.

2. Organizations and individuals who violate the provisions of this Decree shall be subject to disciplinary action, administrative penalties, or criminal prosecution depending on the nature and severity of the violation; in cases where damage is caused, compensation must be provided according to the provisions of the law.

Article 37. Effective Date

1. This Decree takes effect from May 1, 2024.

2. Decree No. 68/2017/NĐ-CP and Decree No. 66/2020/NĐ-CP shall cease to be effective from the date this Decree takes effect.

Article 38. Responsibility for Implementation

The Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of provincial People's Committees under central cities, and related organizations and individuals are responsible for implementing this Decree.