Some new points in Decree No. 32/2024/ND-CP of the Government on management and development of industrial clusters...

Decree No. 32/2024/ND-CP takes effect from May 1, 2024, with some outstanding new points and some notable changes compared to previous Decrees on management and development of industrial clusters as follows:

1. In order to comply with the provisions of the current Land Law (Clause 2, Article 149) on the mechanism for leasing land for investment in industrial cluster infrastructure and promoting the operational efficiency of industrial clusters in which enterprises are the infrastructure investors in the past, Decree No. 32/2024/ND-CP stipulates that the model of investors in the construction of technical infrastructure of industrial clusters is enterprises, cooperatives, and organizations established and operating in accordance with the provisions of Vietnamese law to carry out investment and business activities in technical infrastructure of industrial clusters.

For units that have been assigned to be investors in the construction of technical infrastructure of industrial clusters as prescribed in Clause 2, Article 15 of Decree No. 68/2017/ND-CP, they shall continue to operate until there is a decision on arrangement and handling by the competent authority; exercise the rights and obligations of investors in the construction of technical infrastructure of industrial clusters as prescribed in Decree No. 32/2024/ND-CP and related laws.

2. To comply with the provisions of the Investment Law; inherit and maintain the principles and management contents stipulated in Decree No. 68/2017/ND-CP and Decree No. 66/2020/ND-CP which are being effective; continue to institutionalize the Party and State's direction on improving the business investment environment, administrative reform, enhancing the responsibility of local industry and trade management agencies in managing industrial clusters, etc. Decree No. 32/2024/ND-CP continues to regulate the procedures for establishing and expanding industrial clusters (including selecting investors to build technical infrastructure for industrial clusters) and at the same time assigns the responsibility of the Ministry of Planning and Investment to study and propose competent authorities to regulate investment projects to build technical infrastructure for industrial clusters in accordance with the content of the approved Investment Report on establishing and expanding industrial clusters without having to carry out investment policy approval procedures according to the law on investment.

3. Decentralize to the Provincial People's Committee to decide (in the Decision on establishment and expansion of industrial clusters) on the adjustment of names, location changes within the administrative boundaries of the district level, the area increase not exceeding 05 hectares compared to the approved planning, in accordance with the district-level land use planning and other planning in the area; at the same time, update the changed content to report to the Prime Minister at the next provincial planning establishment and approval period.

4. The Provincial People's Committee shall, based on its authority and legal provisions, decide to adjust the content or abolish the Decision on establishment or expansion of industrial clusters to suit local conditions.

Regarding the adjustment of investors in the construction of technical infrastructure of industrial clusters, if the industrial cluster has technical infrastructure works formed from the state budget, the Provincial People's Committee shall assign the selected investor in the construction of technical infrastructure to manage, repair and operate to serve the common activities of the industrial cluster. The cost of constructing technical infrastructure works of industrial clusters from the state budget shall not be included in the land rental price or the price of using common technical infrastructure of the industrial cluster; the cost of managing, repairing and operating technical infrastructure works shall be included in the price of using common technical infrastructure of the industrial cluster. In case specialized laws stipulate this content, the specialized laws shall apply.

5. Regarding investment incentives for investment projects on construction of technical infrastructure of industrial clusters and investment projects on production and business in industrial clusters: Decree No. 32/2024/ND-CP stipulates that industrial clusters are areas with difficult socio -economic conditions; investment in construction of technical infrastructure of industrial clusters is an industry and trade with special investment incentives. The application of incentives for investment projects on construction of technical infrastructure of industrial clusters and investment projects on production and business in industrial clusters is implemented in accordance with the provisions of specialized laws (laws on land, laws on taxes, laws on credit and other relevant provisions of law) to ensure the consistency and uniformity of the legal system. In cases where the law stipulates different levels of incentives, the highest level of incentives shall apply.

6. Decree No. 32/2024/ND-CP continues to provide transitional regulations on handling the establishment of industrial clusters formed before Decision No. 105/2009/QD-TTg dated August 19, 2009 of the Prime Minister promulgating the Regulation on management of industrial clusters in a simple and flexible manner for localities, but still ensuring the general principles in managing industrial clusters (unifying the contents of the Decision on establishing industrial clusters, handling cases of industrial clusters with an area larger than 75 hectares, selecting investors to build technical infrastructure for industrial clusters and handling technical infrastructure works formed from the state budget - if any). Accordingly, the Decree assigns the Provincial People's Committee to, based on the actual situation and operational efficiency of the industrial cluster, review the current status of investment in technical infrastructure construction and related legal documents of the industrial cluster to clarify the necessity, compliance with legal regulations, feasibility and decide on the establishment of the industrial cluster.

Decree No. 32/2024/ND-CP was developed and issued as a legal basis for localities to continue to strengthen management and efficiency of investment in technical infrastructure construction, develop industrial clusters in the area; improve the investment and business environment; promote strong economic and labor restructuring towards industrialization in rural areas associated with implementing the Party and State's policy of "leaving agriculture but not leaving home" and building new rural areas.

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