Decree No. 68/2017/ND-CP On Management and Development of Industrial Clusters

DECREE

ON MANAGEMENT AND DEVELOPMENT OF INDUSTRIAL CLUSTERS

Pursuant to the Law on Government Organization dated June 19, 2015;

Pursuant to the Investment Law dated November 26, 2014;

Pursuant to the Law on Public Investment dated June 18, 2014;

Pursuant to the Enterprise Law dated November 26, 2014;

Pursuant to the Construction Law dated June 18, 2014;

Pursuant to the Law on Land dated November 29, 2013;

On the basis of Decision No. 130/2007/QĐ-TTg dated August 2, 2007, issued by the Prime Minister, concerning some mechanisms and financial policies for investment projects under the Clean Development Mechanism;

At the proposal of the Minister of Industry and Trade;

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

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation and Applicability

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

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

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

b) Organizations and individuals producing and doing business within industrial clusters;

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

Article 2. Interpretation of Terms

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

1. An industrial cluster is a place for production and provision of services for industrial and small-scale industrial production, with clearly defined geographical boundaries, without residential population, established through investment aimed at attracting and relocating small and medium-sized enterprises, cooperatives, and production groups to engage in production and business activities.

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 village craft industrial clusters, the area does not exceed 75 hectares and is not less than 5 hectares.

2. A village craft industrial cluster is an industrial cluster serving relocation and expansion of production and business activities of small and medium-sized enterprises, cooperatives, production groups, household-based production facilities, and individuals in village crafts to address environmental pollution, promote crafts, and village industries in local areas.

3. The investor constructing technical infrastructure of an industrial cluster is an enterprise, cooperative, or unit established and operating in accordance with Vietnamese laws, responsible for investment in construction, management, and exploitation of the technical infrastructure system of the industrial cluster.

4. The Industrial Cluster Development Center at the district level is an economic public service unit under the People's Committee of the district, established according to the Management Regulation of Industrial Clusters issued together with Decision No. 105/2009/QĐ-TTg dated August 19, 2009 of the Prime Minister.

5. The Industrial Cluster Management Board at the district level is a unit directly under the People's Committee of the district, decided to be established by the People's Committee of the district to assign or delegate the role of the investor in constructing technical infrastructure of the industrial cluster within its jurisdiction.

6. The common engineering infrastructure system of an industrial cluster includes internal transportation systems, sidewalks, green spaces, water supply, drainage, wastewater treatment, solid waste disposal, power supply, public lighting, internal communication, administrative buildings, security facilities, and other facilities serving the operations of the industrial cluster.

7. Organizations and individuals investing in production and business within an industrial cluster include enterprises, cooperatives, production groups established in accordance with Vietnamese laws; individuals and households (for village craft industrial clusters) registered for business in accordance with the law.

8. Industrial land area is the area of an industrial cluster that can be leased or subleased to enterprises for production and business activities, determined in the detailed planning approved by the competent authority.

9. Construction area of the common engineering infrastructure system of an industrial cluster is the portion of the industrial cluster's land area designated for construction of the common engineering infrastructure system, determined in the detailed planning approved by the competent authority.

10. The occupancy rate of an industrial cluster is the percentage of industrial land area already leased or subleased to organizations and individuals for production and business activities relative to the total industrial land area of the industrial cluster.

11. Industrial cluster development planning is a system of objectives, directions, solutions, and mechanisms and policies for developing industrial clusters in a provincial area during specific periods, aimed at rational distribution and development of a network of industrial clusters based on efficient and effective utilization of local resources and assets.

Article 3. Fields, industries, trades, production and business establishments encouraged to invest in and relocate to industrial clusters

1. Fields, industries, trades, production and business establishments encouraged to invest in and relocate to industrial clusters:

a) Production and business establishments causing pollution or at risk of causing pollution in craft villages, residential areas, urban areas, and other production establishments that need to be relocated to industrial clusters;

b) Production of products, spare parts, assembly, and repair of machinery and equipment serving agricultural production in rural areas;

c) Production of supporting industrial products listed in the Priority Supporting Industrial Products Catalogue issued by the Government;

d) Production of consumer goods using local raw materials and labor;

đ) Industries, trades, and products with strengths of the locality or region, and other fields, industries, and trades consistent with the planning for the development of industry and small-scale industry in the locality;

e) Processing industry for agriculture, forestry, and fisheries.

2. Organizations and individuals investing in production and business within industrial clusters in the fields, industries, trades, and production and business establishments encouraged to invest in and relocate to industrial clusters as stipulated in Clause 1 of this Article shall be prioritized for consideration of investment incentives and support.

Article 4. Industrial Cluster Database

The industrial cluster database includes information on planning, establishment, infrastructure investment construction, and activities of industrial clusters in the provincial and national territories.

Chapter II

PLANNING,

ESTABLISHMENT OF INDUSTRIAL CLUSTERS

Section 1. DEVELOPMENT PLANNING OF INDUSTRIAL CLUSTERS

Article 5. Planning for the Development of Industrial Clusters

1. Basis for Developing the Planning for the Development of Industrial Clusters:

a) Economic and social development planning; industrial and small-scale industry development planning; land use planning; construction planning; and planning for related industries, products, and fields on the territory;

b) Area requirements for attracting and relocating organizations and individuals to invest in production and business within industrial clusters;

c) Capacity to mobilize investment capital from businesses, the state, and other legitimate sources to construct infrastructure systems for industrial clusters on the territory.

2. Content of the Planning for the Development of Industrial Clusters:

a) Legal basis and necessity for developing the planning;

b) Assessment and forecast of the demand for the development of industrial and small-scale industry sectors and factors affecting the development of industrial clusters; area requirements for organizations and individuals investing in industrial clusters;

c) Assessment of current status, progress in implementing planning, infrastructure construction investment, investment attraction situation, occupancy rate, and operational effectiveness of each industrial cluster; achievements, shortcomings, and causes;

d) Orientation for the distribution and development of industrial clusters, justification for the planning of each industrial cluster (including: name, location, area, current land status based on the principle of limiting the use of land already planned for rice cultivation, industry and trade activities, infrastructure construction investment schedule, connectivity with external industrial cluster infrastructure; land rental and subletting needs of the industrial cluster and favorable and unfavorable factors);

đ) Assessment of current environmental conditions and environmental management work of established industrial clusters on the territory; prediction of environmental impacts and measures for handling the environment of planned industrial clusters;

e) Forecast of total investment amount for constructing infrastructure for industrial clusters; solutions regarding mechanisms and policies, capacity to mobilize investment capital; implementation plan for the planning;

g) Forecast of the planning catalog for industrial clusters according to various scenarios; selection of one scenario and its representation on the planning map (including: name, location, area, industry and trade activities, forecasted total investment amount for infrastructure construction, planning phase).

3. Costs for developing the Planning for the Development of Industrial Clusters shall be guaranteed by the local budget and implemented in accordance with current regulations.

4. The Planning for the Development of Industrial Clusters on the provincial territory shall be developed for each ten-year period, taking into account prospects for the next ten years, and shall be published no later than thirty days from the date of the decision approving it.

Article 6. Establishment and Approval of Industrial Cluster Development Plan

1. The procedures for establishing and approving the Industrial Cluster Development Plan shall be carried out in accordance with the laws on overall socio-economic development planning.

2. The Department of Industry and Trade shall take the lead and coordinate with relevant departments, sectors, and district People's Committees to organize the establishment and review of the Industrial Cluster Development Plan within their jurisdiction, and submit it to the provincial People's Committee for submission to the Ministry of Industry and Trade for agreement on the plan in accordance with Clauses 3 and 4 of this Article.

3. Documents for requesting agreement on the Plan:

a) A document from the provincial People's Committee requesting agreement on the Plan;

b) Report on the Plan;

c) Report on the Review of the Plan;

d) Opinions of relevant departments, sectors, and district People's Committees and a report summarizing the incorporation of opinions and explanations;

đ) Other documents and materials (if any).

Three sets of documents shall be sent to the Ministry of Industry and Trade.

4. Within thirty working days from the date of receipt of all documents requesting agreement on the Plan, the Ministry of Industry and Trade shall complete the examination and issue a document agreeing on the Plan.

In cases where the documents or contents of the Plan do not meet the requirements or issues need clarification, the Ministry of Industry and Trade may issue a document requesting supplementation or completion of the documents or contents of the Plan, or request opinions from relevant ministries and sectors. The time for supplementing documents, completing the Plan, or soliciting opinions from relevant ministries and sectors shall not be counted towards the examination and agreement period for the Plan.

5. Based on the document agreeing on the Plan issued by the Ministry of Industry and Trade, the provincial People's Committee shall direct the completion of the documents and contents and approve the Industrial Cluster Development Plan within its jurisdiction. The approval decision on the Plan shall be sent to the Ministry of Industry and Trade for one copy.

Article 7. Conditions for Adjusting and Supplementing the Industrial Cluster Development Plan

1. Conditions for Supplementing an Industrial Cluster into the Plan:

a) Consistent with the Socio-Economic Development Plan; Industrial Development Plan; Small-Scale Industry Development Plan; Land Use Plan at the district and provincial levels; Construction Planning and other related sectoral plans within the jurisdiction;

b) Possess sufficient industrial land to establish a new industrial cluster;

c) Existing industrial clusters within the district do not meet the demand for land leasing for investment and business activities of organizations and individuals;

d) Clearly identify the investor for constructing the technical infrastructure of the industrial cluster.

2. Conditions for Removing an Industrial Cluster from the Plan:

An industrial cluster shall be considered for removal from the Plan if it meets either of the following conditions:

a) The industrial cluster is no longer consistent with the Socio-Economic Development Plan; Industrial Development Plan; Small-Scale Industry Development Plan; Land Use Plan; Construction and Urban Planning and other related sectoral plans within the jurisdiction;

b) There is a need to convert an industrial cluster with low efficiency in infrastructure investment to another purpose of development in line with the direction of socio-economic development planning, construction, and urban planning approved by the competent authority.

Article 8. Documents for Adjusting and Supplementing the Industrial Cluster Development Plan

1. Documents for Requesting Adjustment and Supplement to the Plan:

a) A proposal from the district People's Committee requesting adjustment and supplement to the industrial cluster plan;

b) Report on Adjustment and Supplement to the Plan;

c) Other documents and materials (if any).

2. Main Content of the Report on Adjustment and Supplement to the Plan:

a) The supplementary report on the Plan includes: Legal basis, necessity, explanation of meeting the conditions for supplementing the Plan; anticipated production area needs for attracting investment and relocating to the industrial cluster; supplementary plan scheme (including: Name, location, area, current land use status, industry activities, infrastructure investment schedule, connectivity with external infrastructure, legal entity status, investor capacity, capital sources, capital mobilization solutions, infrastructure construction investment plan, impact forecast, environmental management measures, and cluster management after being supplemented to the Plan);

b) The adjustment report on the Plan includes: Necessity, explanation of meeting the conditions for adjusting the Plan; evaluation of the current situation, effectiveness of infrastructure investment construction, and conversion plan scheme.

Article 9. Procedures for Amending and Supplementing the Industrial Cluster Development Plan

1. The People's Committee at the district level shall prepare a report to the People's Committee at the provincial level, accompanied by eight sets of files requesting amendments and supplements to the Plan (including two original sets of files), to be sent to the Department of Industry and Trade to take the lead and coordinate with relevant departments to organize the review. The contents of the review include: the legality and validity of the files and their content, and the feasibility of the Report on Amending and Supplementing the Plan.

2. Within fifteen working days from the date of receiving all the files, the Department of Industry and Trade shall complete the review and submit it to the People's Committee at the provincial level for amending and supplementing the Plan. Within five working days from the date of receiving the review report from the Department of Industry and Trade, the People's Committee at the provincial level shall send a document along with one set of files and related documents to seek the agreement of the Ministry of Industry and Trade.

3. Within fifteen working days from the date of receiving the document, files, and materials requesting agreement from the People's Committee at the provincial level, the Ministry of Industry and Trade shall issue an agreement on amending and supplementing the Plan.

4. Within five working days from the date of receiving the agreement document from the Ministry of Industry and Trade, the People's Committee at the provincial level shall decide on amending and supplementing the Plan; the Decision on Amending and Supplementing the Plan shall be sent to the Ministry of Industry and Trade for one copy.

Section 2. ESTABLISHING AND EXPANDING INDUSTRIAL CLUSTERS

Article 10. Conditions for Establishing and Expanding Industrial Clusters

1. Conditions for establishing an industrial cluster:

a) Being included in the approved Industrial Cluster Development Plan;

b) Having enterprises or cooperatives with legal status, capacity, and experience in investing in technical infrastructure or units assigned the task of investing in technical infrastructure;

c) In cases where industrial clusters have been established in the district area, the average occupancy rate of the industrial clusters must reach over 50%, or the total industrial land not yet leased in small industrial clusters must be less than 50 hectares.

2. Conditions for Expanding Industrial Clusters:

a) Not exceeding seventy-five hectares, with land funds suitable for the land planning and utilization plan at the district level;

b) Having enterprises or cooperatives with legal status, capacity, and experience in investing in technical infrastructure or units assigned the task of investing in technical infrastructure;

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) Completing the construction and putting into regular operation common technical infrastructure projects according to the detailed planning that has been approved.

Article 11. Documents Requesting the Establishment and Expansion of Industrial Clusters

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

a) A report from the People's Committee at the district level proposing the establishment or expansion of an industrial cluster;

b) A document from the enterprise or cooperative proposing to be the main investor in the project to build technical infrastructure or a document from the unit assigned the task of building technical infrastructure in the industrial cluster, accompanied by an investment report on establishing or expanding the industrial cluster;

c) A copy of the certificate of establishment or evidence of legal status;

d) A copy of one of the following documents: financial statements of the main investor for the two most recent years; a commitment to financial support from the parent company; a commitment to financial support from a financial organization; a guarantee of the main investor's financial capacity; documentation explaining the main investor's financial capacity;

đ) Other related documents and materials.

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

a) Legal basis, necessity, suitability assessment, meeting conditions for establishing and expanding industrial clusters; impact of industrial zones in the area on investment efficiency and occupancy rates of industrial clusters;

b) Current land use status, orientation for arranging industries and trades with interlinking and supportive production; land use structure and expected investment attraction into the industrial cluster; evaluation of the ability to connect technical infrastructure within and outside the industrial cluster;

c) Determination of objectives, area, location, scope of investment in technical infrastructure; analysis and selection of investment construction schemes for technical infrastructure systems; land clearance and resettlement support plans (if applicable); project implementation schedule consistent with reality and resource mobilization capabilities; plans and schedules for attracting investment, relocation, and occupancy rates of the industrial cluster;

d) Evaluation of the main investor's capacity and legal status; projected total investment amount, structure, balance capability, and mobilization of investment capital sources (including public investment if applicable) to implement the project;

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

e) Assessment of current environmental conditions, environmental management work, and the capacity to accept waste around the proposed establishment and expansion areas of the industrial cluster; prediction of potential waste sources, environmental impacts of industries and trades expected to attract investment into the industrial cluster, and environmental management plans;

g) Preliminary economic and social effectiveness analysis of the industrial cluster; organizational implementation solutions.

Article 12. Procedures for Establishing and Expanding Industrial Clusters

1. Enterprises or cooperatives with a proposal to be the main investor in constructing technical infrastructure, or units assigned the task of investing in and constructing technical infrastructure shall submit a proposal along with an Investment Report on establishing and expanding industrial clusters to the People's Committee of the district.

2. Within five working days, the People's Committee of the district shall take the lead and coordinate with enterprises, cooperatives, or units assigned the task of investing in and constructing technical infrastructure to prepare eight sets of documents for establishing and expanding industrial clusters (including at least two original sets) and send them to the Department of Industry and Trade to take the lead and coordinate with relevant departments to organize the review.

3. Within fifteen working days from the date of receiving all documents for establishing and expanding industrial clusters, the Department of Industry and Trade shall complete the review and report to the People's Committee of the province on the establishment and expansion of industrial clusters.

In cases where the documents or contents of the Investment Report on establishing and expanding industrial clusters do not meet requirements, the Department of Industry and Trade shall issue a document requesting the People's Committee of the district to supplement and perfect the documents. The time for supplementation and perfection of documents will not be counted towards the review period.

4. Within five working days from the date of receiving one set of documents for establishing and expanding industrial clusters and the review report of the Department of Industry and Trade, the People's Committee of the province shall decide or not decide on the establishment and expansion of industrial clusters. The decision on establishing and expanding industrial clusters shall be sent to the Ministry of Industry and Trade for one copy.

In cases where the established or expanded industrial cluster has an adjusted area larger than 5 hectares compared to the approved planning, the People's Committee of the province shall issue a document agreeing with the Ministry of Industry and Trade before approving.

Article 13. Content of 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, suitability, and compliance with conditions for establishing and expanding industrial clusters;

b) Name, area, objectives, industries of operation, and selection of investment construction plans for technical infrastructure;

c) Capacity, legal status of the main investor, total investment amount, structure, balance capability, and solutions for mobilizing investment capital to complete technical infrastructure (if there is public investment capital, procedures according to laws on public investment shall be implemented);

d) Related costs and management, exploitation, and utilization methods of technical infrastructure after operation;

đ) Solutions for attracting investment, relocation, and economic, social, and environmental effectiveness of the industrial cluster.

Article 14. Main Content of Decisions on Establishing and Expanding Industrial Clusters

1. Name, area, location, primary industries of operation.

2. Main investor in constructing technical infrastructure.

3. Scale of investment in constructing technical infrastructure, total investment capital, investment capital structure.

4. Implementation schedule for the investment project in constructing technical infrastructure.

5. Investment incentives, support, and application conditions (if applicable).

6. Effective date of the Decision on Establishing and Expanding Industrial Clusters.

Chapter III

INVESTMENT IN CONSTRUCTION OF TECHNICAL INFRASTRUCTURE OF INDUSTRIAL CLUSTERS

Article 15. Main Investor in Constructing Technical Infrastructure of Industrial Clusters

1. Selection of the main investor in constructing technical infrastructure shall be carried out during the establishment and expansion phases of industrial clusters.

2. For areas with difficult socio-economic conditions, particularly difficult conditions, and areas without the ability to attract businesses to invest in industrial cluster technical infrastructure, based on the proposal of the People's Committee of the district and the Department of Industry and Trade, the People's Committee of the province shall assign one of the following units to be the main investor in constructing technical infrastructure of industrial clusters:

a) District-level Industrial Cluster Development Center established according to the Management Regulation of Industrial Clusters issued together with Decision No. 105/2009/QĐ-TTg dated August 19, 2009, of the Government Prime Minister;

b) District-level Industrial Cluster Management Board;

c) Publicly-owned unit under the Department of Industry and Trade.

3. Encouragement and priority shall be given to selecting enterprises or cooperatives as the main investors in constructing technical infrastructure of industrial clusters. In cases where multiple enterprises or cooperatives jointly propose to be the main investors in constructing technical infrastructure of one industrial cluster, based on the financial capacity, experience of each enterprise or cooperative, and the feasibility level of the investment report on establishing and expanding industrial clusters, the Department of Industry and Trade shall report to the People's Committee of the province to decide on selecting the main investor in accordance with the law.

Article 16. Procedures for investment in construction of technical infrastructure for industrial clusters

1. Preparation and approval of the Investment Report for establishing and expanding industrial clusters.

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

3. Preparation and approval of the project for investment in construction of technical infrastructure for industrial clusters.

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

Article 17. Detailed planning for construction of industrial clusters

1. The People's Committee at the district level shall be responsible for directing agencies and units to organize the preparation and approval of detailed planning for construction of industrial clusters on their territory before attracting or relocating enterprises and production establishments into the industrial clusters. The content of the detailed planning must be consistent with the Investment Report for establishing and expanding industrial clusters, and must include arrangements for environmental protection facilities suitable to the industries of the industrial cluster and regulations on wastewater discharge into water sources as stipulated by law.

2. The content, procedures for preparation, review, approval, and management of detailed planning for construction of industrial clusters shall be carried out according to current regulations on construction. Detailed planning for construction serves as the basis for preparing, reviewing, and approving projects for investment in construction of technical infrastructure for industrial clusters.

3. Based on the proposal of the People's Committee at the district level, the People's Committee at the provincial level shall be responsible for directing the planning and allocation of land funds in appropriate locations within its territory for constructing housing for workers in industrial clusters.

4. The budget for preparing detailed planning for construction of industrial clusters shall be balanced in the annual local government budget plan; in cases where enterprises or cooperatives are the main investors in building technical infrastructure for industrial clusters, the budget for preparing detailed planning for construction shall be included in the preparatory investment capital and counted towards the total investment amount of the project.

Article 18. Investment in construction of technical infrastructure for industrial clusters

1. Project management for investment in construction of technical infrastructure:

a) The common technical infrastructure works of the industrial cluster shall be designed simultaneously and coherently in one investment project to save costs, reduce land usage, and facilitate the construction, repair, and operation of technical infrastructure works. The project for investment in construction of technical infrastructure shall be consistent with the content of the Investment Report for establishing and expanding industrial clusters, the approved detailed planning, and does not require the implementation of investment policy decision procedures.

The investor shall be responsible for preparing and implementing the project for investment in construction of technical infrastructure for industrial clusters. The content, procedures for preparation, review, approval, and management of the project for investment in construction of technical infrastructure shall be carried out according to the laws on investment and construction.

b) During the preparation and implementation phases of the project, the investor shall prepare, propose, and organize the implementation of all contents of the Environmental Impact Assessment Report of the project after it has been approved by the competent state agency, implement environmental protection activities, and have measures to prevent pollution, degradation, and depletion of water resources as stipulated by law; the budget for preparing the Environmental Impact Assessment Report shall be allocated from the project's investment capital.

c) The Department of Natural Resources and Environment shall take the lead and coordinate with the Department of Industry and Trade and the People's Committee at the district level to inspect and supervise the investor regarding the construction and implementation of the contents in the Environmental Impact Assessment Report of the industrial cluster; promptly detect and handle violations of environmental protection laws.

2. The investor shall report to the statistical agency on the territory about the situation of investment in construction of technical infrastructure for industrial clusters according to the provisions of the Law on Statistics; and send one copy to the Department of Industry and Trade. The report content includes: Progress of infrastructure investment, actual capital expenditure, results of the project, results of attracting investment into the industrial cluster, tax payment, benefits enjoyed from state incentives and support, labor, environmental protection, and specialized indicators according to the field of activity.

Article 19. Management of public services and utilities

1. Public services and utilities common to industrial clusters include: Security protection and maintenance of public order; telecommunications; water supply and drainage; environmental sanitation, wastewater and waste treatment; fire prevention and firefighting; maintenance and operation of technical infrastructure works and other utility services.

The price for using public services and utilities shall be determined based on the principle of agreement through contracts signed between the service users and the infrastructure construction investors of the industrial cluster. In cases where an agreement cannot be reached, the infrastructure construction investor of the industrial cluster shall have the responsibility to report to the People's Committee of the district for handling according to the provisions of the law.

2. The infrastructure construction investor of the industrial cluster shall be responsible for organizing the provision and management of public services and utilities common to the industrial cluster; establishing and approving the Management Regulations for public services and utilities based on the opinions of organizations and individuals investing in production and business within the industrial cluster, without contravening the provisions of the law. At the latest five working days from the date of the decision approving the Management Regulations for public services and utilities, the investor shall have the responsibility to send them to the Department of Industry and Trade and the People's Committee of the district for monitoring and management.

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 20. Rights of the infrastructure construction investor of the industrial cluster

1. Mobilizing and accepting investment projects into the industrial cluster based on detailed planning and approved production industries 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. Leasing or transferring the right to use land that has been invested in common infrastructure; determining the lease or transfer price for the right to use such land, the lease or sale price for factories, warehouses, offices, and prices for other types of public services and utilities. In cases where the industrial cluster is constructed by the District Industrial Cluster Management Board or the District Industrial Cluster Development Center or a public institution under the Department of Industry and Trade, the decisions regarding leasing or transferring the right to use land, the lease or transfer price for the right to use such land, the lease or sale price for factories, warehouses, offices, and prices for other types of public services and utilities shall be reported by the Department of Industry and Trade to the competent authority for decision-making.

5. Proposing the competent authority to revoke the investment proposal, investment registration certificate, or handle violations of the law by investment projects in the industrial cluster that have ceased operations or not commenced within twelve months.

6. Enjoying preferential policies and support as stipulated in this Decree and related laws.

Article 21. Obligations of the infrastructure construction investor of the industrial cluster

1. Organizing the implementation of the infrastructure construction investment project in accordance with the approved detailed planning, ensuring the implementation schedule specified in the project; in cases exceeding the prescribed time limit, the infrastructure construction investor must request an extension and obtain approval from the competent authority in accordance with the law on investment.

2. Maintaining and servicing the common technical infrastructure works of the industrial cluster throughout its operational period; providing services and utilities to support production and business activities within the industrial cluster (if applicable).

3. Ensuring a water supply sufficient for on-site firefighting; ensuring safe distances from heat sources, electrical equipment, fire barriers with flammable materials and adjacent areas of the industrial cluster.

4. Fulfilling obligations as prescribed by laws on land, finance, accounting, auditing, statistics, insurance, labor, construction standards, occupational safety, industrial hygiene, and environmental protection.

5. Supporting and facilitating organizations and individuals in implementing procedures for investment and production and business activities within the industrial cluster.

6. Annually reporting to the Department of Industry and Trade and publicly disclosing the area of unleased or re-leased land in the industrial cluster on the enterprise's and local government's websites.

7. Fulfilling other obligations as prescribed by law.

Chapter IV

INVESTMENT AND PRODUCTION AND BUSINESS ACTIVITIES WITHIN INDUSTRIAL CLUSTERS

Article 22. Acceptance of investment projects in industrial clusters

Organizations and individuals with investment needs, production facilities requiring relocation to an industrial cluster shall contact the infrastructure construction investor to be guided on planning, industry placement, land rental prices, factory buildings, warehouses, offices, public services, utilities, procedures for implementing investment projects in industrial clusters, and preliminary agreements on location, area, and the expected industrial land lease.

Article 23. Land leasing and construction permit issuance in industrial clusters

1. Organizations and individuals investing in industrial clusters shall carry out state land leasing procedures or lease land that has been developed with technical infrastructure from the infrastructure construction investor; manage and use land in accordance with laws on land.

2. Construction works within industrial clusters that have been approved for detailed planning at a scale of 1/500 and reviewed for design shall be exempted from construction permits. In this case, organizations and individuals are responsible for notifying the commencement date in writing along with the construction design dossier to the People's Committee of the district for monitoring and filing the dossier.

Article 24. 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 Land Law; lease back part of the land, factory buildings, 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 invest capital or contribute capital to build and operate technical infrastructure according to agreements with the infrastructure construction investor.

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 laws.

Article 25. 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 contents of economic contracts with the infrastructure construction investor and the contents of the Decision approving the investment proposal, Investment Registration Certificate (if applicable); in cases exceeding the prescribed time limit, report to the infrastructure construction investor and competent authorities for extension in accordance with regulations.

2. To fulfill obligations as prescribed by laws on business registration, investment, finance, accounting, auditing, statistics, insurance, labor safety and health, environmental protection, fire prevention and explosion control, public security, payment of fees for infrastructure usage, public services, and other utilities according to agreements.

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. Fulfill other obligations as prescribed by law.

Article 26. Management of production and business activities

1. Production and business activities in industrial clusters shall be carried out in accordance with current legal regulations. Organizations and individuals engaged in production and business must prepare and implement environmental protection plans or submit environmental impact assessment reports as prescribed by law.

2. Specialized inspections and audits of organizations and individuals investing in production and business activities shall be conducted according to plans approved by competent state agencies and carried out regularly not more than once a year unless there are signs of law violations. Inspection and audit authorities shall cooperate with the Department of Industry and Trade, the People's Committee of the district, and the infrastructure construction investor to prevent and handle violations of law within industrial clusters.

3. Organizations and individuals within industrial clusters shall report their production and business situations to statistical authorities in accordance with the Statistics Law. Statutory authorities shall compile the situation of production and business activities in industrial clusters quarterly and annually, and send them to the People's Committee of the district and the Department of Industry and Trade for coordinated management.

Chapter V

PREFERENTIAL AND SUPPORT POLICIES FOR DEVELOPING INDUSTRIAL CLUSTERS

Section 1. INCENTIVES AND SUPPORT FOR INDUSTRIAL CLUSTERS

Article 27. Investment incentives for production and business projects within industrial clusters

Production and business investment projects within industrial clusters shall be exempt from land rental fees for seven years and shall enjoy other incentives as prescribed by law. In cases where there are multiple levels of incentives, the highest level of incentive shall be applied.

Article 28. Investment incentives for infrastructure development projects within industrial clusters

1. Infrastructure development investment projects within industrial clusters shall be exempt from land rental fees for eleven years, shall be eligible to consider borrowing state investment credit up to seventy percent of the total investment amount, and shall enjoy other incentives as prescribed by law. In cases where there are multiple levels of incentives, the highest level of incentive shall be applied.

2. Infrastructure development projects within industrial clusters shall be considered for investment under the public-private partnership model.

Article 29. Support for the construction of infrastructure within industrial clusters

1. The scope, subjects, contents, and support standards for central government budget investment to construct technical infrastructure for industrial clusters serving the relocation of businesses and production facilities causing environmental pollution or posing a risk of causing such pollution in craft villages, residential areas, urban areas, and industrial clusters located in economically disadvantaged areas, particularly difficult areas, or areas without the ability to attract businesses to invest in technical infrastructure shall be implemented according to the approved Technical Infrastructure Development Program for Industrial Clusters in each phase.

2. Provincial People's Committees shall balance local budgets to support investment and develop technical infrastructure systems both inside and outside industrial clusters within their jurisdictions.

Article 30. 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) Conducting surveys, building, operating databases; organizing conferences, seminars, coordinating investment promotion activities; disseminating information, printing, publishing materials; training, enhancing professional skills, laws, policies on industrial clusters;

b) Surveying, evaluating, developing policies, management models, experiences in developing industrial clusters domestically and internationally.

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

a) Development activities of industrial clusters as stipulated in Clause 1 of this Article;

b) Organizing investment promotion activities; conducting surveys and investigations of organizations and individuals with relocation or investment needs in industrial clusters; establishing, reviewing the establishment and expansion of industrial clusters; preparing detailed construction planning for industrial clusters; supporting the implementation of administrative procedures related to industrial clusters;

c) Supporting funding for investment project preparation for businesses and production facilities causing environmental pollution or at risk of causing such pollution in craft villages and residential areas relocating into industrial clusters.

3. Funding for the development activities of industrial clusters is sourced from public funds; it shall be managed and utilized in accordance with the State Budget Law and guiding documents.

Section 2. INCENTIVES AND SUPPORT FOR CRAFT VILLAGE INDUSTRIAL CLUSTERS

Article 31. Conditions for incentives and support for craft village industrial clusters

1. Located within the Planning Scheme, established and operated in accordance with the law on industrial cluster management.

2. The number of enterprises, cooperatives, cooperative groups, household production facilities, and individual production facilities in craft villages accounts for more than sixty percent compared to the number of enterprises and production facilities that have relocated or registered to relocate into craft village industrial clusters.

3. As of the time of considering the enjoyment of incentives and support, the registration occupancy rate must be over eighty percent, of which more than sixty percent are enterprises, cooperatives, cooperative groups, household production facilities, and individual production facilities in craft villages confirmed by the District People's Committee.

Article 32. Incentives and support for craft village industrial clusters

1. Investment incentives:

a) Investment projects producing and trading within craft village industrial clusters shall be exempt from land rental fees for 11 years and shall be considered for state investment credit loans up to a maximum of 70% of the total investment amount;

b) Investment projects for technical infrastructure development in craft village industrial clusters shall be exempt from land rental fees for 15 years and shall be considered for state investment credit loans up to a maximum of 70% of the total investment amount.

2. Investment support:

a) Local budgets shall provide funding to relocate enterprises, cooperatives, household production units, and individuals from craft villages into craft village industrial clusters; the specific level of support shall be decided by the provincial People's Committee;

b) Central and local budgets shall consider prioritizing support for the construction of technical infrastructure in craft village industrial clusters.

3. In addition to the incentives and support provided under Clauses 1 and 2 of this Article, investment projects for technical infrastructure development and production and trading activities within craft village industrial clusters shall also benefit from the incentives and support stipulated in Articles 27, 28, 29, and 30 of this Decree and related laws. Where there are multiple levels of incentives and support, the highest level shall apply.

Chapter VI

STATE MANAGEMENT OF INDUSTRIAL CLUSTERS

Article 33. State management content for industrial clusters

1. Issuing and implementing planning, programs, laws, mechanisms, policies, and technical standards regarding the management and development of industrial clusters.

2. Issuing, adjusting, revoking various permits and certificates related to investment and business activities in industrial clusters; building and operating databases, supporting administrative procedures, public services, and utilities related to industrial clusters.

3. Organizing staff, training, and professional development for the management and development of industrial clusters.

4. Inspecting, evaluating the effectiveness of investments, resolving complaints and denunciations, rewarding achievements, handling violations, and addressing emerging issues concerning industrial clusters.

Article 34. State management authority and responsibilities for industrial clusters

1. The Government shall uniformly manage state affairs on industrial clusters nationwide; assigning specific responsibilities and authorities to relevant ministries, sectors, provincial People's Committees, and agencies; issuing policies and normative legal documents on industrial clusters.

2. The Prime Minister shall approve the Target Program for Technical Infrastructure Development in Industrial Clusters during each phase guaranteed by the central budget; directing the resolution of violations and issues beyond the jurisdiction of ministries, sectors, and provincial People's Committees.

3. Ministries, sectors, provincial People's Committees, apart from their responsibilities and authorities specified in Articles 35, 36, 37, 38, 39, 40, 41, and 42 of this Decree, shall have the responsibility to manage state affairs in their respective industries and territorial areas concerning industrial clusters; inspecting, auditing, and administratively penalizing violations within their jurisdiction; guiding, decentralizing, or delegating some state management tasks to Departments of Industry and Trade and district-level People's Committees according to this Decree and related laws.

Article 35. Authorities 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. Developing and promulgating, or proposing competent authorities to issue, programs, plans, mechanisms, policies, laws, certifications, and confirmations related to industrial clusters; agreeing on planning and providing opinions on public-private partnership investment proposals for industrial clusters.

2. Training and professional development for the management and development of industrial clusters.

3. Annually developing plans and budgets for the operation and development of industrial clusters from the central budget, submitting them to competent authorities for approval and organizing implementation after approval.

4. Leading the development, submission to the Prime Minister for approval, and implementation of the Target Program for Technical Infrastructure Development in Industrial Clusters after 2020 guaranteed by the central budget; developing annual and five-year central budget support plans for technical infrastructure development in industrial clusters, sending them to the Ministry of Planning and Investment for consolidation and reporting to the Prime Minister for decision.

5. Regularly or urgently inspecting, evaluating the implementation of planning, policies, laws, and operational effectiveness of industrial clusters; handling localities' requests regarding industrial clusters and reporting to the Prime Minister.

6. Issuing regulations and templates for managing and reporting on industrial clusters; building and operating a national database for industrial clusters.

Article 36. Powers and responsibilities of the Ministry of Planning and Investment

1. To compile the central budget plan to support investment in building industrial zone technical infrastructure over five years and annually based on the proposal of the Ministry of Industry and Trade.

2. To take the lead and coordinate with the Ministry of Industry and Trade to guide the management and implementation of projects for investment in building industrial zone technical infrastructure under the public-private partnership model.

3. To compile, supplement industrial zones (excluding industrial zones located in areas with favorable economic and social conditions such as inner-city districts of special-class cities and first-class cities directly under the central government) into the list of preferential investment locations and the list of industries and trades with special investment incentives according to the provisions of the investment law and provide guidance for their implementation.

Article 37. Powers and responsibilities of the Ministry of Finance

1. To balance the central budget to ensure the implementation of activities related to the development of industrial zones.

2. To compile, supplement, and provide guidance on corporate income tax incentives for projects investing in business technical infrastructure and production and business operations within industrial zones according to the provisions of the law.

Article 38. Powers and responsibilities of the Ministry of Construction

To guide the implementation of construction standards, procedures for detailed planning approval, and construction permit activities within industrial zones.

Article 39. Powers and responsibilities of the Ministry of Natural Resources and Environment

1. To monitor, urge, and guide ministries, sectors, and localities in implementing environmental protection work in industrial zones.

2. To review, compile, and announce a list of industrial zones causing serious environmental pollution nationwide.

Article 40. Powers and responsibilities of the Ministry of Home Affairs

To coordinate with the Ministry of Industry and Trade to guide the organization and operation of Industrial Zone Development Centers, District-level Industrial Zone Management Boards, and public service units under the Department of Industry and Trade assigned tasks for investment in building industrial zone technical infrastructure.

Article 41. Powers and responsibilities of the Ministry of Public Security

To guide and implement state management functions regarding security, public order, fire prevention, and firefighting at industrial zones according to the provisions.

Article 42. Powers and responsibilities of the People's Committee of the province

1. To approve planning, establishment, expansion of industrial zones, mechanisms, policies, activity plans for industrial zone development, and proposals for industrial zone investment under public-private partnerships after obtaining the opinion of the Ministry of Industry and Trade; to submit the provincial People's Council for approval of the Program to support investment in industrial zone technical infrastructure funded by the local budget.

2. To issue regulations on coordination among departments, agencies, and district-level People's Committees regarding industrial zone management, handling procedures for project investment in building technical infrastructure and production and business operations within industrial zones under the one-stop-shop mechanism.

3. To direct levels, sectors, and units within its jurisdiction to guide and support enterprises, cooperatives, and production establishments in implementing projects for investment in building technical infrastructure and production and business operations within industrial zones; to support land clearance, compensation, resettlement, construction of transportation systems, power supply, water supply and drainage, telecommunications, and workers' housing.

4. To direct inspections, investigations, and handling of violations of laws in industrial zones; to direct strict monitoring of industrial zones causing serious environmental pollution within its jurisdiction.

5. To periodically or urgently report to the Ministry of Industry and Trade on the situation of industrial zones within its jurisdiction; to perform other duties and powers concerning industrial zones according to the provisions of the law.

Article 43. Powers and Responsibilities of the Department of Industry and Trade

The Department of Industry and Trade is the lead agency for state management over industrial clusters within its jurisdiction, with powers and responsibilities as follows:

1. To develop, submit for approval, and organize the implementation of planning schemes, regulations, rules, policies, and programs to support investment in technical infrastructure for the development of industrial clusters within its jurisdiction after obtaining approval from competent authorities.

2. To be the focal point for receiving, processing, or coordinating with, or proposing competent authorities to decide on investment policies, issue certificates of investment registration for projects to construct technical infrastructure, production, and business activities within industrial clusters, including procedures for implementing investment in technical infrastructure for industrial clusters (including land recovery, land leasing, detailed planning approval, project approval using public investment funds, environmental impact assessment report approval, fire prevention and firefighting plan approval) according to regulations, decentralization, and delegation by the provincial People's Committee.

3. To take the lead in inspecting, supervising, and evaluating the implementation of planning schemes, policies, laws, and the effectiveness of operations in industrial clusters; to handle violations or propose the provincial People's Committee to handle violations and issues arising in industrial clusters.

4. To regularly or urgently report to the Ministry of Industry and Trade and the provincial People's Committee on the situation of industrial clusters; to register with competent authorities the land usage needs of industrial clusters at each stage; to establish and operate a database of industrial clusters within its jurisdiction.

Article 44. Powers and Responsibilities of the District People's Committee

1. To propose planning, establishment, and expansion of industrial clusters within its jurisdiction; to ensure necessary conditions for the effective operation of district-level Industrial Cluster Development Centers or Industrial Cluster Management Boards.

2. To direct the People's Committees of communes and specialized agencies under its jurisdiction to assist in land recovery, leasing, compensation, resettlement, worker housing, and procedures for implementing investment in industrial clusters.

3. To be the focal point for receiving, processing, or coordinating with, or proposing competent authorities to resolve procedures for implementing investment projects within industrial clusters (including land recovery, land leasing, construction permit issuance, fire prevention and firefighting plan approval, confirmation of environmental protection plans or environmental impact assessment report approval) according to regulations and decentralization by the provincial People's Committee.

4. To invest in or propose competent authorities to decide on investment in technical infrastructure inside and outside industrial clusters; to approve and implement relocation plans for businesses and production facilities and the development of industrial clusters within its jurisdiction.

5. To inspect, supervise, and evaluate compliance with laws and policies regarding industrial clusters within its authority; to regularly or urgently report to the provincial People's Committee and the Department of Industry and Trade on the situation of industrial clusters within its jurisdiction.

Chapter VII

IMPLEMENTING PROVISIONS

Article 45. Rewards and Handling of Violations

1. Organizations and individuals who have made achievements in investing in constructing technical infrastructure and production and business activities within industrial clusters shall be rewarded by competent state authorities 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 liability prosecution depending on the nature and severity of the violation; if damage is caused, they must compensate according to the provisions of the law. Investment projects for constructing technical infrastructure and production and business activities within industrial clusters that operate inefficiently, fail to commence, or progress slowly, repeatedly requesting extensions, or violate the law shall be handled according to the provisions.

Article 46. Transitional Provisions

1. Industrial clusters with an area of less than 10 hectares or industrial clusters located in mountainous districts and village craft industrial clusters with an area of less than 5 hectares that have been established, expanded, or are currently undergoing review for establishment or expansion pursuant to Decision No. 105/2009/QD-TTg dated August 19, 2009, issued by the Prime Minister on the management regulations for industrial clusters shall continue to operate and be managed in accordance with this Decree.

2. Industrial clusters formed before the management regulations for industrial clusters attached to Decision No. 105/2009/QD-TTg dated August 19, 2009, issued by the Prime Minister took effect shall continue to be processed in accordance with Circular Joint Circular No. 31/2012/TTLT-BCT-BKHĐT dated October 10, 2012, issued by the Ministry of Industry and Trade and the Ministry of Planning and Investment, and Circular No. 17/2016/TT-BCT dated August 30, 2016, issued by the Ministry of Industry and Trade amending and supplementing Clause 10 of Joint Circular No. 31/2012/TTLT-BCT-BKHĐT.

Article 47. Effective Date

1. This Decree takes effect from July 15, 2017.

2. This Decree abolishes Decision No. 105/2009/QD-TTg dated August 19, 2009, issued by the Prime Minister on the issuance of the management regulations for industrial clusters.

Article 48. Responsibility for Implementation

1. The Ministry of Industry and Trade shall take the lead and coordinate with relevant ministries, sectors, and localities to guide the implementation of this Decree.

2. Ministers, heads of ministerial-level agencies, heads of agencies under the Government, Chairpersons of provincial People's Committees under the central city, related organizations, and individuals are responsible for implementing this Decree./.