Decree 82/2018/ND-CP on Management of Industrial parks and economic zones (Part 2)

1 Chapter I. GENERAL PROVISIONS
2.1 Article 33. Development of auxiliary industrial parks and eco-industrial parks


Chapter IV. CERTAIN TYPES OF INDUSTRIAL PARKS 

Section 1. GENERAL PROVISIONS

Article 33. Development of auxiliary industrial parks and eco-industrial parks

1.  The State encourages and develops measures to assist organizations and individuals in investing in establishment of new industrial parks, transformation of all or a part of industrial parks existing in the planning approved by competent authorities into those operated in the model of auxiliary industrial parks or eco-industrial parks according to the provisions of this Decree.

2.  Investors in development of Infrastructure and investors that are lessees or sublessees of land with developed infrastructure in auxiliary industrial parks or eco-industrial parks shall enjoy preferences applicable to investment in industrial parks, or those specific to local jurisdictions, industries or sectors as per law, and shall be entitled to support in terms of administrative procedures, technical consultancy, investment promotion and cooperative information supply under the provisions of this Decree.

Section 2. AUXILIARY INDUSTRIAL PARKS

Article 34. Objectives of development of auxiliary industrial parks

1.  Develop auxiliary industrial parks to actualize and effect strategies and plans for development of key industries and auxiliary industries over periods.

2.  Form production links between industrial parks and enterprises in industrial parks; reform the mechanism for attracting foreign investments; carry out transfer of technologies,

advanced and modern know-how through investment and business cooperation between domestic and foreign enterprises in the auxiliary industry sector.

Article 35. Incentive policies for development of auxiliary industrial parks

1.  Investment projects on development of infrastructure of auxiliary industrial parks, including auxiliary industrial subzones, shall be entitled to:

a)  land rent exemption or reduction in accordance with legislation on land; permission for leasing of land within the maximum period of 70 years;

b)  priority to have access to investment loans given by the state, on-lent ODA funds and the Government’s guarantees for mobilization of foreign capital, and to implement other legitimate methods of mobilizing capital under the provisions of law on enterprises, credit and other relevant laws;

c)  be in the list of projects of national importance to seek investment partners.

2.  Investment projects on manufacturing of products in auxiliary industrial parks shall be entitled to:

a)  tax incentives with respect to corporate income tax, export and import duty, and other support, as prescribed in laws on taxes, development of auxiliary industries and other relevant legislation;

b)  In cases where the production of products on the list of auxiliary industrial products of which development is given priority as prescribed in legislation on development of auxiliary industries, they shall be assisted by competent authorities in implementing procedures for acceptance of incentives within the maximum duration of 30 days;

c)  priority to participate in training programs, startup assistance, small and medium-sized enterprise support and other programs implemented by state regulatory authorities.

3.  Investment projects on development of infrastructure of auxiliary industrial parks and subzones thereof that are given incentives in accordance with Clause 1 of this Article shall fully satisfy the following conditions:

a)  Investors developing industrial park infrastructure must specify auxiliary industrial sectors and industries given priority in attracting investment in industrial parks in accordance with the Government's regulations on auxiliary sectors and industries;

b)  The minimum percentage of industrial land area leased out or subleased to investment projects on auxiliary sectors or industries must be 60% of rentable industrial land area in industrial parks;

c)  Those referred to in Point a, b of this Clause and types of auxiliary industrial parks need to be defined in documentation of the investment project on development of infrastructure of industrial parks. Competent authorities shall define the type of auxiliary industrial park in the investment policy decision, the investment registration certificate or the investment

registration body's written document in the event that issuance of the investment registration certificate is mandatory in accordance with laws on investment.

Section 3. INDUSTRIAL URBAN SERVICE ZONES

Article 36. Objectives of development of industrial urban service zones

1.  Establish areas with synchronous technical and social infrastructure, raise the operational efficiency of industrial parks, and associate development of industrial parks with the process of urbanization taking place within local jurisdictions.

2.  Solve issues arising from lack of housing, cultural and sports facilities and other social facilities to maintain the living standards of employees in industrial parks, and develop industrial parks in a sustainable manner.

3.  Contribute to distributing residents appropriately at major areas where a lot of industrial parks are located, and develop new urban areas with synchronous technical and social infrastructure.

4.  Build industrial, urban and service zones having the modern living and working environment, full of public utilities and services for inhabitants and employees; aim at developing into smart industrial cities and urban areas in conformity with international standards.

Article 37. Processes and procedures for formulating the planning for development of industrial urban service zones

1.  Processes and procedures for adjustment to and addition of an industrial urbanservice zone to the planning for development of industrial parks, and establishment of industrial urban service zones shall be the same as procedures and processes for revision and supplementation of the planning for development of industrial parks and establishment of industrial parks defined in this Decree.

2.  Notwithstanding provisions laid down in Article 6 of this Decree, documentation submitted to apply for adjustment to and addition of industrial urbanservice zones to the industrial park development planning shall be supplemented with the followings:

a)  Scale, acreage and structure of land expected to be used in specific functional areas of an industrial urbanservice zone; assessment of correspondence between the demand for providing social utilities or services of an industrial park and the scale of urban service zones;

b)  Relevance of specific functional areas to relevant planning schemes.

Article 38. Processes and procedures for making investment in industrial urban – service zones

1.  An industrialurban service zone may receive investments made by a single or various investors in development of infrastructure of the entire industrial park and its functional areas.

2.  In case of making investment in development of infrastructure in an industrial urban service zone in an overall project, the investor shall make such investment according to the processes and procedures so applied to investment projects on development of infrastructure of an industrial park under the provisions of law on investment.

In cases where investment is made in specific separate projects with respect to specific functional areas, the investor in a functional area shall implement the respective investment processes and procedures so applicable to specific projects stipulated by the investment law and other relevant specialized legislation.

3.  Investment in development of functional urban service areas may be made at the time of or after completion of investment in construction of basic infrastructure of an industrial park.

Investors in functional areas shall bear responsibility to collaborate in ensuring synchronized connection between technical infrastructure facilities; assuring that functional urban service areas must facilitate supply of social utilities to employees in industrial zones.

4.  After completing the investment procedures as stated in the investment law and this Decree, conduct of construction and management of functional sub-zones in industrial urban service zones shall subject to the respective laws on functional areas.

Article 39. Incentives for investment in industrial urban service zones

1.  Investors in investment projects on development of infrastructure of industrial urban service zones should keep independent accounts of production and business activities of functional areas.

Functional areas shall be given tax incentives with respect to corporate income tax, export and import duty, land rent exemption and relief, and other investment incentives as prescribed in respective regulations on functional areas taxes laid down in law on taxes, land and other relevant legislation.

2.  Investors doing business in an industrial urbanservice zone shall be entitled to investment incentives offered to an industrial park under the provisions of this Decree. Investors doing business in other functional areas within an industrial urbanservice zone shall be entitled to investment incentives prescribed in respective law regulations applied to such functional areas.

Section 4. ECO-INDUSTRIAL PARKS

Article 40. Objectives of development of eco-industrial parks

1.  Promote the economic effectiveness of enterprises operating in industrial parks through application of cleaner production methods, effective exploitation of resources and building of industrial symbiosis.

2.  Improve effectiveness in protection of the internal and ambient environment of industrial parks by minimizing polluting sources and wastes, and encourage use of clean technologies, cleaner and eco-friendly production methods.

3.  Build a business community in an industrial park which has capacity to compete with others in the market, protect and develop the living environment for communities within the precinct of the industrial park, and fulfill sustainable development objectives.

Article 41. Encouragement policies on development of eco-industrial parks

1.  Encourage investors to develop infrastructure of industrial parks, improve technical and social infrastructure, provide high-quality public utilities, connect with enterprises located within industrial parks and assist them in creating industrial symbiosis to transform it into an eco-industrial park.

2.  Encourage enterprises in an industrial park to improve management and operation procedures, renovate and apply technologies towards cleaner production, reduce polluting sources, reuse wastes and scrap, and effectively exploit resources.

3.  Enterprises in industrial zones may be encouraged to cooperate with one another or with a third party to use or acquire shared infrastructure or services, raw materials and other inputs; may be entitled to reuse wastes, scrap and surplus energy of their own and other enterprises to reduce costs, improve operational efficiency and their competitiveness.

4.  Construction of new eco-industrial parks shall be carried out through appropriate planning and arrangement of functional sub-zones to attract enterprises operating in similar sectors or industries, or assist in enabling enterprises to effect the industrial symbiosis.

5.  The industrial park and economic zone Management Board shall authorize a public service unit controlled by the Board or another appropriate unit to perform functions in assisting in provision of information available in a database, and building connection between enterprises to effect the industrial symbiosis.

6.  Agencies, organizations and investors may be encouraged to develop a database for efficient use of resources available in industrial parks with the aim of giving assistance for and connection between enterprises effecting the industrial symbiosis.

Article 42. Criteria for determination of eco-industrial parks

1.  Investors developing infrastructure and enterprises within industrial parks shall strictly comply with legislative regulations on business, environmental protection and labor; may be encouraged to apply the production and environmental management system conforming to relevant standards of International Organization for Standardization (ISO).

2.  Investors developing infrastructure of industrial parks shall provide basic services in these industrial zones under the provisions of law, including: basic utilities (e.g., electricity, water, information, fire prevention and control, etc.) and other related services.

3.  At least 90% of enterprises in an industrial park are aware of effective use of resources and cleaner production while at least 20% of them apply measures for effective use of resources and cleaner production, reform and improve management approaches and manufacturing technologies to reduce wastes, pollutants and reuse wastes and scrap.

4.  A minimum of 25% of the industrial park land shall be reserved for greenery, traffic works and public utilities in conformity with construction standards issued by the Ministry of Construction.

5.  At least one industrial symbiosis shall be effected and at least 10% of total number of enterprises in industrial parks shall plan to participate in industrial symbioses.

6.  There must be measures to provide dwellings, social, cultural and sports facilities for employees working in industrial parks.

7.  Investors developing infrastructure and enterprises within industrial parks shall set up the mechanism for collaborating in supervision of input and output energy, water, essential raw materials, and management of hazardous chemicals; periodically prepare annual reports on results obtained by effective use of resources, supervise emissions of industrial parks, report them to the local Management Board of industrial parks and economic zones.

8.  Every year, investors developing infrastructure of industrial parks shall release review reports on environmental protection, social responsibility and contributions to communities residing within the precinct of industrial parks to the local Management Board of industrial parks and economic zones and post them on enterprises’ websites.

Article 43. Incentives granted to enterprises operating within eco-industrial parks

1.  Industrial parks conforming to the criteria specified in Article 42 of this Decree may be certified as an eco-industrial park by the People's Committee of the province where they are located after consulting the Ministry of Planning and Investment and the Ministry of Natural Resources and Environment, the Ministry of Industry and Trade and the Ministry of Construction.

2.  Enterprises operating within eco-industrial parks that participate in cleaner production activities, efficient use of resources and industrial symbioses shall be certified as eco- enterprises operating within industrial parks by the Management Board of industrial parks and economic zones.

3.  Enterprises developing infrastructure of eco-industrial parks and eco-enterprises shall be given priority in borrowing preferential loans from the Vietnam Environment Protection Fund, the Vietnam Development Bank and funds, financial institutions, domestic and international donators to construct technical infrastructure of industrial parks, implement cleaner production methods, efficiently use resources and industrial symbiosis solutions.

4.  Enterprises developing infrastructure of eco-industrial parks and eco-enterprises shall be given priority to participate in technical assistance and investment promotion programs organized and managed by state regulatory authorities.

5.  Enterprises operating within eco-industrial parks shall be given priority in providing information related to the technology market and the possibility of cooperating in effecting industrial symbioses in the scope of production and business activities of these enterprises.

Article 44. Processes and procedures for applying for registration for certification of eco-industrial parks

1.  Investors developing infrastructure of industrial parks are required to make 04 sets of application package for registration for certification of eco-industrial parks which clearly explains conformance to the criteria specified in Article 42 hereof and send them to the local Management Board of industrial parks and economic zones. The local Management Board of industrial parks and economic zones authorizes a standing unit in charge of receiving application documentation for certification of eco-industrial parks.

2.  Within duration of 03 working days of receipt of application documentation, the Management Board of industrial parks and economic zones send them to the Ministry of Planning and Investment, the Ministry of Natural Resources and Environment, the Ministry of Industry and Trade and the Ministry of Construction to collect their opinions.

3.  Within duration of 07 working days of receipt of the requests from the Management Board of industrial parks and economic zones, and authorities specified in Clause 2 of this Article, gives comments on conformance to the criteria for development of eco-industrial parks referred to in Article 42 hereof.

4.  Within duration of 15 working days of receipt of consultations from authorities specified in Clause 2 of this Article, the Management Board of industrial parks and economic zones prepares a evaluation report on conformance to the criteria referred to in Article 42 hereof.

5.  In case where evaluation results are satisfactory, the Management Board of industrial parks and economic zones reports to the provincial People’s Committee to grant the Certificate of eco-industrial park to requesting industrial parks. The Certificate is informed to requesting investors immediately after signing.

6.  If evaluation results are unsatisfactory, within 03 working days after receiving such evaluation results, the industrial park or economic zone Management Board shall be responsible for notifying them in writing to the requesting enterprise and clearly stating the reasons why evaluation results are unsatisfactory.

7.  In case of agreeing to grant eco-enterprise certification as specified in Clause 2, Article 43 of this Decree, within 15 working days of receipt of the application for registration for certification of eco-enterprise, the industrial park or economic zone Management Board consult with concerned agencies to make a decision on grant of the eco-enterprise certificate.

Chapter V. STATE MANAGEMENT OF INDUSTRIAL PARKS AND ECONOMIC ZONES

Article 45. Duties performed in the state management of industrial parks and economic zones

1.  Establish and direct implementation of the planning, proposal and policy for development of industrial parks and economic zones.

2.  Promulgate, guide, disseminate and organize the implementation of policies, laws and technical standards related to establishment, investment, construction, development and management of industrial parks and economic zones; build and manage information systems

of industrial parks and economic zones; organize investment promotion activities in industrial parks and economic zones.

3.  Issue, adjust and revoke the written document stating the decision on investment policy, the investment registration certificate, the enterprise registration certificate, licenses, permits and certificates; organize the implementation of state administrative procedures and auxiliary services related to investment, production and business activities of organizations and individuals in industrial parks and economic zones.

4. Organize the apparatus, professional training and refresher’s courses for State management

agencies in charge of industrial parks and economic zones.

5. Guide, assist and evaluate investment efficiency, examination, supervision, inspection, resolution of complaints and denunciations, reward and commendation, handling of violations and settling of issues arising in the course of establishment and development of industrial zones and economic zones.

Article 46. State management authority and responsibilities for industrial parks and economic zones

1.  The Government shall exercise the uniform State management over industrial parks and economic zones nationwide on the basis of assigning specific tasks and powers to each ministry or sectoral administration, the provincial People's Committee, and the industrial park or economic zone Management Board, as prescribed herein; direct formulation and implementation of the planning and proposal for development of these industrial parks and economic zones, and promulgate policies and legal documents on industrial parks and economic zones.

2.  The Prime Minister shall have the following powers and responsibilities:

a)  Direct ministries, sectoral administrations, provincial People's Committees and industrial park and economic zone Management Boards to implement laws and policies on industrial parks and economic zones;

b)  Approve and adjust the planning for development of Industrial parks and economic zones;

c)  Grant a decision on the investment policy with respect to investment projects under his jurisdiction; grant a decision on establishment and expansion of economic zones; approve and adjust the general planning for construction of economic zones; grant permission for expansion of and decrease in acreage, and transformation of approved land uses of industrial parks and functional areas of economic zones;

d)  Direct the handling and settlement of difficulties and problems arising in the process of planning, investing in, establishing, operating and managing activities of industrial parks and economic zones, which fall beyond the jurisdiction of ministries and sectoral administrations, provincial People's Committees and Management Boards of industrial parks and economic zones.

3.  Ministries, sectoral administrations and provincial People's Committees shall, within the ambit of their respective functions, tasks and powers, have to perform their State

management, specific to sectors, domains and administrative territories, over industrial parks and economic zones; guide, delegate authority to or mandate the Management Board of industrial parks or economic zones to perform a number of State management tasks within their respective competence under the provisions of this Decree and relevant laws.

Article 47. State management authority and responsibilities of the Ministry of Planning and Investment

1.  Assume the prime responsibility for assisting the Government in performing the uniform State management over industrial parks and economic zones.

2.  Assume the prime responsibility for, and collaborate with the Ministry of Construction, the Ministry of Natural Resources and Environment, the Ministry of Defense, the Ministry of Industry and Trade, and concerned ministries, sectoral administrations and provincial People's Committees in, formulating and adjusting the planning for development of industrial parks and economic zones, and submit it to the Prime Minister to seek his approval.

3.  Assume the prime responsibility for and collaborate with the concerned ministries and sectoral administrations in drafting legal documents and policies on development of industrial parks and economic zones and submit them to competent state agencies for promulgation.

4.  Assume the prime responsibility for and cooperate with the concerned ministries and sectoral administrations in providing guidance on construction of eco-industrial parks.

5.  Assume the prime responsibility for and cooperate with the concerned ministries and sectoral administrations in providing guidance on, professional training and refresher’s courses for the Management Board of industrial parks and economic zones.

6.  Assume the prime responsibility for, and collaborate with the Ministry of Finance and concerned ministries and sectoral administrations in, drawing up plans for financial support from the central budget for investment projects on development of industrial park infrastructure at localities which face socio-economic difficulties and extreme difficulties under the Prime Minister’s decision, and plans of financial support from the central budget for investment in development of technical and social infrastructure systems in economic zones according to the provisions of this Decree; formulate a mechanism for mobilizing other capital sources for investment in development of infrastructure of industrial parks and economic zones.

7.  Assume the prime responsibility for, and cooperate with ministries, sectoral administrations, provincial People's Committees and Management Boards of industrial parks and economic zones concerned in, formulating and organizing the implementation of national programs and plans for promotion of investment in industrial parks and economic zones.

8.  Build and manage information systems of industrial zones and economic zones; issue periodical report forms or templates, and provide information on industrial parks and economic zones for relevant Governmental agencies.

9.  Review results and socio-economic efficiency of industrial parks and economic zones.

10.  Assume the prime responsibility for, and cooperate with the Ministry of Home Affairs in, providing guidance on effecting of functions, tasks and organizational structure of the Management Board of industrial parks and economic zones.

11.  Assume the prime responsibility for promulgating the guidance on the regime of reporting and statistics on industrial parks and economic zones.

Article 48. State management authority and responsibilities of the Ministry of Home Affairs

1.  Provide guidance on establishment, classification, ranking and reorganization of the Management Board of industrial parks and economic zones.

2.  Assess the proposal for establishment or reorganization of the Management Board of the industrial park or economic zone and submit it to the Prime Minister for consideration and decision.

Article 49. State management authority and responsibilities of the Ministry of Finance

1.  Impose regulations on financial mechanisms and policies applicable to the Management Board of industrial parks and economic zones, and public non-business units that act as owners of investment projects on development of infrastructure of industrial parks, and economic organizations related to industrial parks or economic zones in uniformity with the provisions of law.

2.  Provide guidance on implementation of provisions laid down in Clause 4 Article 24 hereof.

Article 50. State management authority and responsibilities of the Ministry of Construction

1.  Promulgate regulations guiding the Management Board of industrial parks and economic zones to perform the State management over construction of technical infrastructure, and construction works in industrial parks and economic zones; build and develop housing, cultural and sport works for employees in industrial parks and economic zones; perform tasks of urban management and development at economic zones.

2.  Promulgate regulations on construction of multistory premises within industrial parks and economic zones in accordance with provisions laid down in Clause 4 Article 31 hereof.

3.  Promulgate regulations on, and guide the decentralization and authorization of, the Management Board in performing the tasks of State management over construction as specified in Point b, Clause 3, Article 63 of this Decree and a number of tasks of State management over construction at industrial parks and economic zones in accordance with the law on construction.

4.  Provide instructions for construction standards of eco-industrial parks.

Article 51. State management authority and responsibilities of the Ministry of Industry and Trade

1.  Perform the State management over industry, import and export activities and commercial activities in industrial parks and economic zones; direct and orient the development of industries in industrial parks and economic zones according to approved strategies, planning and plan for regional and national industrial development.

2.  Authorize the Management Board of industrial parks and economic zones to grant the certificate of origin of goods produced in industrial parks or economic zones when they fully satisfy conditions for authorization.

3.  Provide guidance on grant of permits and papers of equivalent value to trading of goods under the specialized management of the Ministry of Industry and Trade.

4.  Provide instructions for purchase and sale of goods, and activities directly related to the purchase and sale of goods to foreign-invested economic organizations and foreign investors located in industrial parks and economic zones.

Article 52. State management authority and responsibilities of the Ministry of Natural Resources and Environment

1.  Issue guides to management and protection of environment within industrial parks and economic zones.

2.  Provide guidance on authorizing the Management Board of industrial parks and economic zones to perform the task of State management over environment defined at Point e, Clause 3, Article 63 of this Decree and a number of State management tasks regarding natural resources and environment in industrial parks and economic zones according to the provisions of law on environmental protection.

3.  Guide reuse of wastes, scrap and abundant energy in eco-industrial parks under the regulatory authority of the Ministry of Natural Resources and Environment.

Article 53. State management authority and responsibilities of the Ministry of Science and Technology

1.  Assume the prime responsibility for, cooperate with and guide local authorities in, conducting technological inspection and evaluation, technological level assessment and evaluation of technological transfer contracts in industrial parks and economic zones.

2.  Guide the Management Board of industrial parks and economic zones to perform the State management over science and technology in industrial parks and economic zones.

3.  Guide reuse of wastes, scrap and abundant energy in eco-industrial parks under the regulatory authority of the Ministry of Science and Technology.

Article 54. State management authority and responsibilities of the Ministry of Labor, War Invalids and Social Affairs

Provide guidance on authorizing the Management Board of industrial parks and economic zones to perform the task of State management over labor defined at Point c, Clause 3, Article 63 of this Decree and other relevant legislative documents.

Article 55. State management authority and responsibilities of the Ministry of Public Security

1.  Exercise the state management over public security, order, fire prevention and control at industrial parks and economic zones.

2.  Issue regulations on guidance on and implementation of state management over entry, exit and residence with respect to economic zones.

3.  Assume the prime responsibility for, and collaborate with the Ministry of Defense in, guiding the implementation of regulations on exit, entry, transit and residence of foreigners in economic zones.

Article 56. Authority and responsibilities of the Ministry of National Defence

1.  Exercise the State management over national defense and cooperate with the Ministry of Public Security in protecting national security and maintaining social order and safety at economic zones and border-crossing seaports of economic zones as per law.

2.  Direct and guide the Border Guard to organize, allocate and use forces and means to perform the task of controlling exit, entry, inspecting, controlling and supervising people and means upon entry or exit, and activities carried out at bordergate economic zones and cross- border seaports within economic zones under the provisions of law. Assume the prime responsibility for, and cooperate with the people's Police force, concerned agencies and local authorities in, in assuring social security and order in economic zones and cross-border seaports controlled by economic zones under provisions of law.

3.  Collaborate with the Ministry of Public Security in guiding the implementation of regulations on exit, entry, transit and residence of foreigners in economic zones.

Article 57. State management authority and responsibilities of the Ministry of Culture, Sports and Tourism

1.  Guide the Management Board of industrial parks and economic zones to perform the task of state management of tourism activities at economic zones.

2.  Guide the Management Board of industrial parks and economic zones to grant, re-grant, amend, supplement and extend the license for establishment of representative offices or branches in economic zones with regard to foreign tourist agencies.

Article 58. State management authority and responsibilities of the Government Inspectorate

Cooperate with the concerned ministries and sectoral administrations in guiding inspection and settlement of complaints and denunciations, and preventing and combating corruption arising in industrial parks and economic zones under the provisions of law.

Article 59. State management authority and responsibilities of sectoral ministries

Ministries and ministerial agencies outside the scope of tasks and powers mentioned in Article 48, Article 49, Article 50, 51, 52, 53, 54, 55, 56, 57 and 58 hereof shall have additional powers and responsibilities of State management over sectors and industries for industrial parks and economic zones as follows:

1.  Make written comments on investment projects falling under the Prime Minister's authority to grant the decision on investment policy and those belonging to the approved list of projects subject to regulatory conditions, and other projects implemented in industrial parks or economic zones in accordance with the law on investment.

2.  Promulgate conditions, order and procedures for managing and organizing provision of administrative public services by the Management Board of industrial parks and economic zones.

3.  Guide, check, supervise, inspect and impose penalties for administrative violations within their jurisdiction.

4.  Guide reuse of wastes, scrap and abundant energy in eco-industrial parks under their respective regulatory authority.

Article 60. State management authority and responsibilities of the provincial People’s Committees

1.  Assume the prime responsibility for drawing up the planning for development of industrial parks and economic zones in localities under their jurisdiction; granting a decision on establishment and expansion of industrial zones.

2.  Formulate the general construction planning with respect to industrial parks defined in Clause 5, Article 12 hereof, and economic zones.

3.  Direct formulation and approval of the planning for construction of industrial parks and functional areas within economic zones; decide on the use of the state budget capital to assist investors in investing in technical infrastructure systems inside and outside the fences of industrial parks or economic zones.

4.  Direct the implementation of investment procedures for investment projects on the development of infrastructure of industrial parks and functional areas in economic zones when the Management Board of industrial parks and economic zones has not been established under law on investment.

5.  Promulgate specific preferential and incentive policies in accordance with the provisions of law with respect to the priority of recruiting and employing local laborers, highly qualified and skilled laborers; provide vocational training for laborers working in industrial parks and economic zones.

6.  Draw up the planning of land intended for construction of resettlement areas, housing, social, cultural and sports facilities for workers in industrial parks and economic zones; provide investment support for the construction of dwelling houses for workers, resettlement quarters, socio-technical infrastructure works in accordance with the provisions of law; support investment promotion, trade and tourism; support the compensation and ground

clearance in order to speed up the process of investment and development of industrial parks and economic zones.

7.  Direct the appropriation of land and water surface, giving of compensation, site clearance and resettlement, and implement procedures for leasing or assigning land in industrial parks or economic zones under law on land and relevant laws.

8.  Direct relevant organizations to prepare investment plans and organize the construction of technical and social infrastructure systems outside the fences of industrial parks or economic zones, such as roads and power supply, water supply and water supply and drainage, communications systems and technical points connected with infrastructure works in the fences of industrial parks, economic zones, vocational training centers, dwelling houses and social works, cultural, sports, medical facilities, educational establishments and other public works to meet the needs of development of industrial parks and economic zones.

9.  Assume the prime responsibility for preparing plans and balancing capital for investment in technical infrastructure systems within the fences of industrial parks, and socio-technical infrastructure systems of economic zones according to the provisions of law on public investment, state budget and the provisions of this Decree.

10.  Guide the implementation of the "single window and one-stop shop" administrative mechanism at the Management Board of industrial parks and economic zones; issue and supervise the implementation of the Regulation on cooperation between the Management Board and the subsidiaries of the provincial People's Committees; guide, assign tasks to or authorize the Management Board to perform a number of State management tasks with respect to sectors as prescribed in this Decree.

11.  Direct the implementation of the planning and regulations on construction, labor, environmental protection, fire and explosion prevention and control, public security and order in industrial parks and economic zones.

12.  Set up and cooperate in setting up local vocational training institutions to meet the labor demands of industrial parks and economic zones.

13.  Organize, examine, inspect and supervise settlement of issues or problems arising in the course of establishment and development of industrial parks and economic zones; as for matters beyond their competence, cooperate with ministries and sectoral administrations in settling them or submitting them to the Prime Minister for consideration and decision.

14.  Formulate a proposal for establishment or reorganization of the Management Board of industrial parks and economic zones so as to ensure that each province or centrally-affiliated city has a management board of an industrial park or economic zone; grant a decision on appointment of personnel to hold the posts of Head and Deputy Heads of the Board.

15.  Provide funding for administrative and non-business activities and development investment capital to the Management Board of industrial parks and economic zones according to the provisions of law on public investment and the state budget; approve plans and allocate funds and conduct promotion of investment, trade and tourism for the development of industrial parks and economic zones.

16.  Direct local professional and specialized agencies in charge of trade, finance, customs, banking, police and other relevant authorities to appoint competent representatives to settle related matters at each industrial zone and economic zone, where necessary.

17.  Implement other duties and powers of State management over industrial parks and economic zones as stipulated by law.

Chapter VI. FUNCTIONS, DUTIES, POWERS AND ORGANIZATION STRUCTURE OF THE MANAGEMENT BOARD OF INDUSTRIAL PARKS AND ECONOMIC ZONES

Article 61. Functions of the Management Board of industrial parks and economic zones

1.  The Management Board of industrial parks and economic zones are an agency affiliated to the provincial People's Committee, which performs the function of direct State management over industrial parks and economic zones located in a province or centrally-affiliated city in accordance with this Decree and other relevant legislation; which manages and organizes provision of public administrative services and other auxiliary services related to investment, production and business activities on behalf of investors in industrial parks and economic zones.

2.  The Management Board of industrial parks and economic zones shall be set up under the Prime Minister’s decision and subject to the direction and management of the provincial People's Committees over organization, staff, work agenda, schedule and operational costs; subject to the direction, guidance and specialized inspection by ministries and sectoral administrations with respect to related fields and sectors; shall assume responsibility for closely cooperating with specialized agencies controlled by the provincial People's Committee in managing industrial parks and economic zones.

3.  The Management Board of industrial parks and economic zones shall be accredited as a legal person, have its own account and seal carrying the national emblem on; shall be operated by using funds from annual State administrative management, public service operation, investment and development capital derived from the state budget’s annual planned allocations and from other financial sources under regulations adopted by competent state agencies.

Article 62. Decentralization of powers and grant of authority to the Management Board of industrial parks and economic zones to perform specialized functions and tasks within industrial parks and economic zones

1.  Decentralization of powers and grant of authority to the Management Board of industrial parks and economic zones must be associated with its competence, qualifications and organization, ensuring stability and creating conditions for the implementation of the “single window and one-stop shop" administrative mechanism, assisting investors in conducting investment and business activities in industrial parks and economic zones.

2.  Ministries and sectoral administrations shall assume the prime responsibility for, and cooperate with the Ministry of Planning and Investment and the Ministry of Home Affairs in, promulgating conditions and criteria for decentralization and authorization in each

management domain according to the principles of creating conditions for the Managing Boards to implement the single-window and one-stop-shop” administrative mechanism, and ensuring the effectiveness and efficiency of the State management over industrial parks and economic zones.

Article 63. Duties and powers of the Management Board of industrial parks and economic zones

1.  Contribute opinions on, prepare and submit a report to ministries, sectoral administrations and provincial People's Committees to request them to approve and implement the followings:

a)  Consult with ministries, sectoral administrations and provincial People's Committees on drafting of legal documents, policies and planning schemes related to investment and development of industrial zones and economic zones;

b)  Assume the prime responsibility for, and cooperate with the concerned agencies in, formulating the Regulation on cooperation with specialized agencies of the provincial People's Committees or concerned agencies in carrying out their assigned tasks and powers according to single-window and one-stop shop single-window mechanism, and submit it to the provincial People's Committees for approval and implementation;

c)  Formulate programs and plans for promotion of investment in development of industrial parks and economic zones, then submit them to the provincial People's Committees for approval and implementation;

d)  Annually forecast the demands for employees working in industrial parks and economic zones, and cooperate with competent agencies to supply human resource to enterprises in industrial parks and economic zones;

dd) Make an annual estimate of budget, non-business expenditure, development investment capital and other sources (if any) of the Management Board of industrial parks or economic zones for submission to competent agencies for approval in accordance with the Law on the state budget and other related legislation;

e)  Within their decentralized powers, cooperate with concerned agencies in conducting technology inspection, technology evaluation, technological level evaluation and evaluation of technology transfer contracts; conducting inspection and control of technology and technology transfer in investment projects, research and development, technology application activities of enterprises.

2.  The Management Board of industrial parks and economic zones shall perform the following duties:

a)  Manage, disseminate, guide, inspect and supervise the implementation of regulations, planning schemes and proposals related to industrial parks and economic zones already approved by competent state agencies;

b)  Apply for investment registration; issue, adjust and revoke investment policy decisions, investment registration certificates and escrow agreements to ensure execution of investment projects with respect to investment projects under its jurisdiction under laws on investment;

c)  Grant, re-grant, adjust, extend and revoke representative office establishment licenses and terminate operation of representative offices of foreign organizations and traders located in industrial parks or economic zones in accordance with laws on trade;

d)  Assume the prime responsibility for inspecting and cooperate with functional agencies when functional agencies conduct inspections on the implementation of regulations, planning schemes and proposals related to industrial parks or economic zones; request competent bodies to impose penalties for administrative violations arising in the domains under their management over industrial parks and economic zones;

dd) Receive applications for registration of the price bracket applied to land leases and subleases, and the bracket of fees for use of infrastructure of industrial parks and economic zones, submitted by investors developing infrastructure of industrial parks or functional areas within economic zones;

e)  Inspect and supervise fulfillment of the investment objectives stated in the written document stating approval of the investment policy, the investment registration certificate, the progress of capital contribution and implementation of investment projects, and implementation of commitments with respect to projects given investment incentives and compliance with the law on construction, labor, wages and social insurance for laborers, protection of legal rights and interests of employees and employers, assurance of labor safety and hygiene, fire prevention and control, maintenance of public security and order, and environmental protection, with respect to investment projects executed in industrial parks and economic zones;

g)  Cooperate with police units, other competent agencies in inspecting maintenance of public security and order, fire and explosion prevention and control, formulate and propose measures to maintain public security, order, and organize security forces and fire prevention and fighting forces in industrial parks and economic zones;

h)  Settle problems and difficulties of investors in industrial parks or economic zones, and recommend the Prime Minister, concerned ministries and sectoral administrations and provincial People's Committees to deal with issues beyond their competence;

i)   Receive statistical reports and financial statements of enterprises operating in industrial parks and economic zones; evaluate efficiency of investments in industrial parks and economic zones;

k)  Cooperate with the Ministry of Planning and Investment in establishing and managing the system of information about industrial parks and economic zones under its jurisdiction;

l)   Periodically report to the Ministry of Planning and Investment, concerned ministries and sectoral administrations as well as provincial People's Committees on the current status of: construction and development of industrial parks and economic zones; issuance, adjustment and revocation of the investment registration certificate; deployment and operation of investment projects; fulfillment of obligations to the state; implementation of the provisions

of labor legislation and measures to protect the environment in industrial parks and economic zones;

m)   Provide support and information for enterprises in industrial parks and economic zones to affiliate and cooperate with each other to effect industrial symbiosis, cleaner production measures, establish eco-industrial parks, auxiliary industrial parks, sectoral clusters and complexes; assume the prime responsibility for, and cooperate with concerned agencies in, adjusting the planning for construction of industrial parks in cases where it is necessary to adjust the planning for construction of industrial parks when being transformed into eco- industrial parks;

n)  Organize emulation and commendation movements with the participation of enterprises in industrial parks and economic zones;

o)  Organize and cooperate with state management agencies in inspection, examination and settling of complaints and denunciations, prevention and combat of corruption, extravagance and misconducts and handling of administrative violations arising within industrial parks and economic zones under its jurisdiction;

p)  Perform tasks under the provisions of law and regulations of the provincial People's Committee on management of assigned finances, assets and budget allocations; collect and manage use of charges and fees; conduct scientific researches, apply scientific and technological advances; cooperate with domestic and foreign organizations and individuals in the fields related to investment in construction and development of industrial parks and economic zones; manage the organizational apparatus, staffing, cadres, civil servants and officials, and provide professional training and refresher’s courses to officials, public servants and employees of the Management Board of industrial parks and economic zones;

q)  Play its role as the main point of advising and helping the provincial People's Committee to formulate plans, manage and support transformation and development of new models of industrial parks and economic zones;

r) Fulfill other relevant duties regulated by law or assigned by the provincial People’s

Committee.

3. Ministries, sectoral administrations, provincial People’s Committees and competent authorities shall authorize the Management Board of industrial parks and economic zones to perform the following duties:

a)  Issue certificates of origin for goods produced in industrial parks or economic zones under their authority delegated by the Ministry of Industry and Trade;

b)  Adjust the approved construction planning of industrial parks and functional areas of economic zones without changing the planning structure; approve the tasks and detailed planning blueprints for construction of projects in industrial parks or functional areas of economic zones which are subject to the requirement that detailed construction planning schemes must be prepared as per the construction law; issue construction planning permits for investment and construction projects eligible for permits in industrial parks or functional areas of economic zones; exercise their powers to evaluate projects, designs and cost estimates of the Departments in charge of specialized management of construction works

with respect to projects and works located in industrial parks or economic zones; issue, adjust, extend and re-grant permits for construction works that must have construction permits according to the provisions of law on construction; perform the task of management of quality of construction works located in industrial parks and economic zones;

c)  Grant, re-grant and revoke labor permits and certify that foreign laborers are not licensed to work for foreigners or Vietnamese expatriates working in industrial parks or economic  zones; receive explanatory reports from enterprises in industrial parks or economic zones on the demand for employing foreigners for each job position which Vietnamese workers are not qualified to take up; apply for registration of labor regulations; receive collective labor agreements, salary systems, scales, labor norms, declare labor use, report on any labor change; receive and process applications for registration for effecting of contracts on reception of interns, sending workers abroad for less than 90 days, submitted by enterprises in industrial parks or economic zones; receive reports on dismissal of employees, subcontracting of laborers, results of professional training and skill development courses held on an annual basis; receive notification of the location, region and time of commencement of operation, and managers or key title holders of enterprise as the labor subcontractor, and notification of overtime work lasting from over 200 hours to 300 hours a year of enterprises operating in industrial parks and economic zones;

d)  Issue certain licenses or certificates allowed to use in industrial parks and economic zones;

dd) Conduct evaluation and approval of environmental impact assessment reports of investment projects under the decision-making authority of the provincial People's Committee in industrial parks or economic zones; receive applications for registration and certify environmental protection plans with respect to investment projects subject to registration requirements in industrial parks or economic zones; assess, approve, inspect and certify detailed or simplified environmental protection schemes for investment projects in industrial parks and economic zones; inspect and certify implementation of construction works and environmental protection measures to arrange for the stage of official operation of investment projects located within industrial parks or economic zones.

4. The Management Board of industrial parks and economic zones shall act as an agency playing the central role in management of investments in industrial parks and economic zones within its jurisdiction. Ministries, sectoral administrations and local State regulatory authorities, when performing professional tasks in industrial parks or economic zones, shall have to cooperate and consult with the Management Board of industrial parks to ensure uniformity in the state management of industrial parks and economic zones, avoidance of overlapping and provision of favorable conditions for enterprises’ operations as per law.

Article 64. Duties and powers of the Management Board of economic zones

Notwithstanding the tasks and powers of the Management Board of industrial parks and economic zones defined in Article 63 of this Decree, the Management Board of economic zones shall additionally have the following duties and powers:

1.  Formulate and, within its jurisdiction, send to the provincial-level People's Committees for submission to the Prime Minister to seek his decision on the followings:

a)  General planning for construction of economic zones;

b)  Plans for issuance of construction bonds; approaches to mobilizing capital other than aforesaid financing sources for investment in development of important technical and social infrastructure systems within economic zones.

2.  Formulate and submit to ministries, sectoral administrations and provincial People’s

Committees for their approval and implementation of:

a)  Planning for construction of functional areas in line with the approved general planning on construction of economic zones, detailed planning schemes and plans of use of land in economic zones, all of which are then submitted to the provincial People's Committee for its approval;

b)  Annual and five-year plans for development of economic zones which are submitted to the provincial People's Committee and competent state agencies for their approval;

c)  List of investment projects, annual and five-year developmental fund estimate submitted to competent agencies for approval or approval at their discretion within their jurisdiction;

d)  Set up brackets of prices, fees and charges applied in economic zones for submission to competent authorities for their approval of issuance as per laws.

3.  The Management Board of economic zones shall direct and implement the following duties:

a)  Grant, re-grant, amend, supplement and extend the license for establishment of representative offices or branches in economic zones with regard to foreign tourist agencies in accordance with laws, and instructions provided or authority delegated by ministries, sectoral administrations and provincial People’s Committees;

b)  Hire foreign consultants rendering investment promotion and investment strategy consultancy services for construction and development of economic zones;

c)  Make a decision on investment in group-B and group-C projects financed by public investment capital in economic zones under its authority delegated by the provincial People's Committee;

d)  Propose the list of projects, organize selection of investors, sign BOT, BTO, BT or other contracts under legislation on public-private partnership, and contracts for implementation of group-B and group-C projects under its authority delegated by the provincial People's Committee; directly receive, manage and use ODA funds;

dd) Manage and use sources of investment capital for development of economic zones under its delegated authority; manage investment, construction and bidding for investment projects funded by development investment capital from the State budget in economic zones under its delegated authority; manage and undertake collection and spending of administrative and non-business revenues and expenditures, and target programs and other capital sources authorized under the provisions of law;

e)  Assume the prime responsibility for, and cooperate with concerned agencies in, repair and maintenance of technical and social infrastructure system as well as public-utility and service works developed by using the state budget’s funds in economic zones;

g)  Effectively manage and use specialized land and water surface areas allocated for proper purposes and in line with the general planning for construction of economic zones, the planning for construction of functional areas and the land use planning and plan approved by the competent authority;

h)  Re-allocate land along with collection of land levies, re-allocate land without collection of land levies or lease out land and exercise other powers related to management of land located within economic zones under laws on land;

i)   Cooperate with local authorities and concerned agencies in ensuring operation of economic zones in line with the planning and plans for construction and development of economic zones already approved by competent state agencies, and in conformity with relevant regulations.

Article 65. Organizational and staffing structure of the Management Board of industrial parks and economic zones

1.  The Management Board of industrial parks and economic zones shall be composed of the Head and no more than 03 Vice Heads; and assistant staff.

The Head shall be appointed or dismissed by the Chair of the provincial People's Committee. Vice Heads shall be appointed or dismissed by the Chair of the provincial People's Committee upon the request of the Head.

2.  The Head shall be responsible for administering all activities of the Management Board of industrial parks and economic zones, and shall be held responsible to the provincial People's Committee and before the law for operation and effectiveness of these industrial parks and economic zones.

3.  The organizational structure of the Management Board of industrial parks and economic zones shall include: assistant staff (e.g., administrative, professional divisions and representatives of the Management Board in industrial parks and economic zones); affiliated non-business units performing public-utility or public-utility tasks, investment or business support services for local investors and other organizations suitable to development of industrial parks and economic zones, and the tasks and powers divided by specific types of the Management Board of industrial parks or economic zones under guidance provided by competent agencies and law regulations.

4.  In order to establish professional and specialized divisions, the following conditions and criteria must be satisfied:

a)  Multi-disciplinary or multi-sectoral management divisions must be established; operational sectors or domains undertaken by these divisions must be managed in conformity with clear management processes or clearly focus on managed entities, and correspond to assigned duties and powers of the Management Board of industrial parks and economic zones;

b)  At least 07 staff members must be available to undertake the required work volume;

c)  01 Vice Head must be appointed to manage the professional or specialized division having from 07 to 09 staff members, and not more than 02 Vice Heads with respect to the professional or specialized division having at least 10 staff members;

d)  The number of vice heads of the Office of the Management Board of industrial parks and economic zones, and the Representative Office in industrial parks, shall be the same as that of a professional and specialized division.;

dd) The number of vice heads of a non-business unit affiliated to the Management Board of industrial parks and economic zones must be no more than 02 persons.

5.  The number of public servants and employees working in public non-business units who are members of the Management Board of industrial parks and economic zones shall be determined on the basis of working position, associated with their functions, tasks and scope of operations, and shall not exceed the number of public servants and employees working for administrative agencies, organizations and non-business units of centrally-affiliated cities and provinces which is allocated or approved by competent authorities.

Chapter VII. IMPLEMENTARY PROVISIONS

Article 66. Transitional provision

1.  Industrial parks and economic zones which have already completed planning, investment and establishment procedures required by laws before the effective date of this Decree shall not have to implement any other planning, investment and establishment procedures as prescribed herein.

2.  Adjustment and implementation of the planning for development of industrial parks, the planning for development of coastal economic zones, the planning for development of border-gate economic zones and other planning for development of industrial parks and economic zones, all of which have been already approved by competent authorities, shall be continued according to the approved planning schemes and regulations laid down herein to the end of December 31, 2020, except the planning for industrial parks and economic zones of localities where there are regional and provincial planning schemes which were approved under the Law on Planning prior to the aforementioned deadline.

3.  Formulation of the planning for development of industrial parks, the planning for development of coastal economic zones, the planning for development of border-gate economic zones and other planning for development of industrial parks after December 31, 2020, shall be subject to legislative regulations on management of planning.

Article 67. Entry into force

1. This Decree shall enter into force on July 10, 2018.

2. The Government’s Decree No. 29/2008/ND-CP dated March 14, 2008 regulating industrial parks, export processing zones and economic zones, the Government’s Decree No.164/2013/ND-CP dated December 11, 2013 amending and supplementing the Government's Decree No. 29/2008/ND-CP, and the Government's Decree No. 114/2015/ND- CP dated November 9, 2015 amending and supplementing Article 21 of the Decree No. 29/2008/ND-CP, shall be repealed from the effective date of this Decree.

Article 68. Implementation

Ministers, Heads of Ministry-level agencies, Heads of Governmental bodies, Chairpersons of People’s Committees of centrally-affiliated cities and provinces, Heads of the Management Boards of industrial parks, export processing zones, economic zones, and organizations and individuals concerned, shall be responsible for implementing this Decree./.