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Decree 35 - More thrust for industrial real estate

Decree 35 - More thrust for industrial real estate

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Faced with development needs and practical requirements, Decree No. 35/2022/ND-CP is said to create opportunities and prospects for the development of Industrial Parks (IZs), Economic Zones (EZs)...

Policy thrust

Vietnam's industrial parks are expected to enter the "rebirth" phase when the Government's Decree 35/2022/ND-CP has many progressive amendments compared to Decree 82/2018/ND-CP on the management of industrial zones and economic zones. Accordingly, Decree 35/2022/ND-CP specifically classifies types of planning for the construction of industrial zones, including general planning for the construction of industrial zones, planning on subdivisions for construction of industrial parks, and detailed construction planning on industrial parks. industrial park construction.

Specifically, Decree 35 includes 08 Chapters and 76 Articles, regulating general issues; infrastructure investment, the establishment of industrial parks and economic zones; policies on the development of industrial parks and economic zones; some types of industrial parks and industrial - service - urban zones; national information system on industrial parks and economic zones; State management of industrial parks and economic zones; functions, tasks, powers and organizational structure of the Management Board of industrial parks, export processing zones and economic zones; and terms of performance.

In particular, Decree 35/2022/ND-CP allows cases where planning tasks are not required, such as making planning on subdivisions for construction of industrial parks in areas where general construction planning or general construction planning is available. construction of approved economic zones; elaborating detailed planning for the construction of industrial parks in the area where the approved construction subdivision planning is available…

According to Mr. Nguyen Van Be, Chairman of Ho Chi Minh City Industrial Park Business Association, in general, Decree 35/2022/ND-CP has solutions to many key problems, including opening a legal corridor. management is open and has a number of policies to facilitate business development and investment.

Decree 35 of the Government with the advice of the Ministry of Planning and Investment, the Ministry of Industry and Trade, and many other ministries will certainly create positive changes in hundreds of industrial parks and economic zones nationwide. create a strong attraction in attracting investment, especially foreign investment.

For example, according to Article 9 of Decree 35/2022/ND-CP, industrial parks, and economic zones must reserve at least 5 hectares or 3% of industrial land for the development of small and medium-sized enterprises and enterprises. supporting industries, and innovative enterprises. Or Article 28 authorizes the management boards of industrial parks and economic zones to certify the origin of goods, to make local adjustments to the zones according to the approved planning, etc.

A new breakthrough of Decree 35/2022/ND-CP is that workers and employees are interested in housing and service and utility works in the industrial park. In particular, in order to be considered and approved for investment policy, an industrial park infrastructure project must have a plan to build housing areas and public service and utility facilities for employees. In addition, one of the conditions for considering the expansion of the industrial park is to have built and put into use a residential area and public service and utility facilities for workers.

According to the Chairman of the Association of Industrial Park Enterprises in Ho Chi Minh City. In Ho Chi Minh City, Decree 35 has promoted decentralization of powers for governments at all levels and grassroots levels, approaching the "one-stop shop, on-site" mechanism. Specifically, for the Management Board of Industrial Parks and Economic Zones, specific tasks and authorizations are assigned to each type, almost "one-stop" work but more specific than before.

Supply increased, demand increased, but still barriers

Hoang Viet Phuong, Director of the Center for Analysis and Investment Consulting, Securities CompanySSI, said that simplifying legal procedures and decentralizing more powers to localities can help reduce licensing procedures. Investment licenses in industrial parks, especially industrial parks, will be able to receive investment licenses as soon as they are approved for investment. Therefore, newly established industrial zones could come into operation by the end of 2023 to 2025.

Although the licensing of industrial parks has been reduced, the legal procedures still exist, but in the immediate future, there are still certain barriers, especially the progress of compensation and clearance is still quite slow due to the increase in compensation costs. strong. According to Ms. Phuong, this may slow down the project progress, affecting the forecasted profit margin in newly established industrial parks, which may decline to 30-35% compared to existing industrial parks. remains above 50%.

On the other hand, in order to contribute to improving the investment and business environment and promoting further investment attraction in industrial parks and economic zones, in the long term, it is necessary to summarize and summarize to form the Law on Management. In order for Decree 35/2022/ND-CP to come into practice effectively, governments at all levels and including management boards of industrial zones must have political determination, and boldly grasp the implementation, especially the stage of decentralization, decentralization, assignment of tasks, and authorization.

From the above facts, with the superiority that has been perfected on the basis of previous Decrees (on the management of IZs and EZs), Decree No. 35/2022/ND-CP is expected to help the construction and development of industrial zones and economic zones


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