Decree fosters industrial cluster development

New preferences

Nguyen Van Thinh, Deputy Director of the Agency for Regional Industry and Trade, said that Decree 32 is based on Government Decree 68/2017/ND-CP on the management and development of industrial clusters (Decree 68), and Government Decree 66/2020/ND-CP amending and supplementing certain provisions of Decree 68 (Decree 66). Decree 32 focuses on tightening and improving the efficiency of IC management.

The online conference introducing Decree 32/2024/ND-CP - photo: Can Dung

“Decree 32 maintains current regulations which have had good effects and only modifies issues that need improvement. It delegates more power to local authorities without causing an increase in bureaucracy and financial burden for them. At the same time, it ensures compliance with legal provisions,” Thinh emphasized.

Enterprises and cooperatives are encouraged to invest in IC infrastructure in compliance with the Land Law to promote private economic development. Appropriate fiscal policies will be implemented to provide support for areas facing difficult socioeconomic conditions. “This is a significant provision in Decree 32 compared to Decree 68,” Thinh said.

Alongside general regulations, Decree 32 provides specific provisions regarding the main content of the IC development plan, as well the identification of investors responsible for building IC technical infrastructure. Notably, the decree specifies incentives for investment in IC technical infrastructure construction as well as manufacturing and trading projects based in ICs. It also provides support for IC development activities.

An open legal corridor expected

Decree 32 with new provisions has been highly appreciated by representatives of ministries, sectors and localities, and it is expected to facilitate the management and development of ICs.

According to Pham Hong Phong, Deputy Head of the Ministry of Planning and Investment’s Department of Industrial Economy, this ministry has received feedback on industrial investment projects from localities within ICs, primarily concerning three issues: investment incentives, IC technical infrastructure investors, and the establishment of ICs.

“After receiving the feedback, the Ministry of Planning and Investment has coordinated with the Ministry of Industry and Trade (MoIT) to address each specific case through official correspondence. During the process of drafting the decree, the MoIT has been flexible in raising issues for further proposals and making appropriate amendments to related laws,” Phong said.

An artist’s view of Van Phong Industrial Cluster in Ninh Binh Province’s Nho Quan District

From a local perspective, a representative of the Hanoi Department of Industry and Trade affirmed that Decree 32 has significantly improved policies on the management and development of ICs. It has addressed difficulties and obstacles in establishing new ICs in a timely manner.

Decree 32 introduces an important new provision by specifying that enterprises and cooperatives, but not public entities, are responsible for investing in the construction of IC technical infrastructure. “To facilitate the smooth implementation of Decree 32, it is recommended that the MoIT issue implementation guidelines as soon as possible,” proposed the leader of the Hanoi Department of Industry and Trade.

Ngo Van Tong, Director of Binh Dinh Province’s Department of Industry and Trade, said that as soon as Decree 32 was issued, the department provided recommendations for the provincial People’s Committee to issue an implementation plan, to deal with ICs formed before the Prime Minister issued Decision 105/2009/QD-TTg, and to issue regulations on the management of provincial ICs.

To successfully implement Decree 32, based on local experience, Tong recommended that in the planning stage, it is important to consider a scale of 50-75 hectares for each cluster. This enables the optimization of land area advantages and helps attract infrastructure investors, as well as secondary investment.

When developing industrial clusters, it is necessary to limit the use of agricultural land and residential areas to reduce costs associated with land clearance. It is also important to enhance transportation infrastructure connectivity while limiting the pace of urbanization in areas near ICs to prevent environmental pollution.

Ngo Quang Trung, Director of the Agency for Regional Industry and Trade, emphasized that Decree 32 cannot address specific issues but provides general directions. The MoIT has sent a draft circular guiding the implementation of Decree 32 to localities for their opinion contribution.