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