The Government has just issued Decree 35/2022/ND-CP regulating the management of Industrial Parks and Economic Zones
On May 28, 2022, Decree 35/2022/ND-CP (“Decree 35”)
stipulating the management of industrial parks and economic zones was signed
and promulgated. Decree 35 includes 08 Chapters and 76 Articles.
This is an important legal framework stipulating the
construction direction and development plan for the system of industrial parks
(“IP”) and economic zones (“EZ”); infrastructure investment,
establishment, operation, development policies and state management.
In particular,
regarding infrastructure investment and IP construction, Decree 35 abolishes
the procedure for establishing industrial zones (“IZ”) to reduce
administrative formalities for businesses. Accordingly, an
industrial park is determined to have been established since the competent
authority:
a) Decide the
investment policy of industrial park infrastructure projects using public
investment capital in accordance with the law on public investment;
b) Approving the
investment policy, concurrently approving the investor, approving the investor
or granting an investment registration certificate to execute the investment
project on construction and business of infrastructure of the industrial park
in accordance with regulations. investment law.
Conditions for
investors to build and operate industrial park infrastructure
Decree 35/2022/ND-CP
stipulates that investors implementing investment projects on construction and
business of infrastructure of industrial parks must satisfy the following
conditions:
1- Conditions for real
estate business in accordance with the law on real estate business.
2- Conditions to be
allocated land, leased land, change land use purpose by the State for the
implementation of investment projects on construction and business of
infrastructure of industrial zones according to the provisions of the law on
land, forestry law and other relevant laws.
In case the investor
implementing the investment project on construction and business of
infrastructure of an industrial park is an economic organization that is
expected to be established by the foreign investor in accordance with the
provisions of the law on investment and the law on investment. Regarding
enterprises, the economic organization to be established must be able to
satisfy the conditions to be allocated or leased land by the State, or permitted
to change the land use purpose according to the provisions of the law on land
and legislation. forestry law and other relevant laws.
In case of choosing to
apply investor selection bidding, the evaluation criteria for selecting
investors to implement investment projects on construction and business of
infrastructure of industrial parks include:
+ The criteria for
evaluating the investor’s capacity are built on the basis of the prescribed
conditions.
+ The criteria for
assessing investor’s experience are established on the basis of the size of the
area, the implementation progress, and the implementation situation of the
investment project, construction and business of infrastructure of the
industrial park, or other real estate projects in which the investor has
implemented or contributed equity to implement the project; Owners, members,
founding shareholders are organizations of investors that have implemented or
contributed equity to implement the project.
+ Technical evaluation
criteria are built on the basis of the decision approving the planning for
construction of industrial zones, the decision approving the investment policy
of investment projects on construction and business of infrastructure of the
zone. industry of the competent authority and other relevant laws.
+ The
financial-commercial evaluation criteria are built on the basis of the content
of the decision approving the investment policy of the competent authority and
other provisions of law related to the selection of investor. investment
projects using land.
Conditions for
converting industrial parks to developing urban-service zones
The Decree also
stipulates the conditions for converting industrial parks to developing
urban-service zones, including:
1. The conversion must
be suitable for provincial planning and urban planning on the areas of
provinces or central-affiliated cities;
2. The industrial zone must be located in the area of an inner city of a
special urban are, class-I central-affiliated urban area or class-I provincial
urban area;
3. Operational period started from the day on which the industrial zone is
established to the day of consideration of conversion is 15 years or a half of
the operational time limit of the industrial zone;
4. The conversion must be agreed by investors who invest in development and
business of industrial zone’s infrastructures and more than 2/3 of enterprises
in the industrial zone prepare for the conversion. Except for the
following cases:
+ Investment projects
have expired as prescribed in law on investment;
+ Investment projects are ineligible for land sublease extension according to
laws on land and civil;
+ Investment projects
causing serious environmental pollution are subject to relocation under
regulations of the law on environmental protection;
5. The conversion
brings about effects in terms of economy – society and environment.
The transformation of
an industrial park into an urban-service zone development shall be carried out
for part or the entire area of the industrial park.
After the Prime Minister decides to convert all or part of the area of the
industrial park to the development of an urban-service zone, the investor of
the infrastructure project of the industrial park or the investor shall carry
out the investment project. Investors in construction and business of
infrastructure of industrial zones shall carry out the order and procedures for
project adjustment in accordance with the law on public investment, the law on
investment and other relevant laws. The selection of investors to implement
urban-service projects must comply with the provisions of the law on
investment, the law on bidding, the law on land, the law on housing and the law
on real estate business and other relevant laws.
Source: Industry and Trade Newspaper
