GUIDANCE FOR THE PROCEDURE FOR THE TRANSFORMATION OF INDUSTRIAL PARKS INTO ECONOMIC ZONES

Since 10^th July 2018, Decree 82/2018/ND-CP (“Decree 82”) on Management of industrial parks and  economic zones became effective and replaced (i) Decree 29/2008/ND-CP dated 14^th March 2008 on Industrial parks, export processing zones and economic zones; (ii) Decree 164/2013/ND-CP dated 11^th December 2013 Amending and supplementing Decree 29/2008/ND-CP; and (iii) Decree 114/2015/ND-CP dated 9^th November 2015 on mending article 21 of Decree 29/2008/ND-CP

Pursuant to Clause 7 Article 2 Decree 82:

“Economic zone means an area which is defined by geographical boundaries, includes functional zones and is established to serve the purpose of calling for investments, promoting socio-economic development and maintaining national defence and security.

Economic zone referred to in this Decree shall encompass coastal economic zones and border-gate economic zones (hereinafter referred to as economic zone, unless particular regulations otherwise apply to each classification of economic zone);

a) A coastal economic zone is an economic zone which is formed in the coastal area and adjacent areas of the coastal zone, established according to the conditions, processes and procedures prescribed in this Decree;

b) The border-gate economic zone is an economic zone formed in the land border areas and adjacent areas of the land border areas with international border gates or principal border gates, and established according to the conditions, processes and procedures as prescribed in this Decree.”

Thus , in Vietnam, for the type of economic zone, the law only recognizes two forms which are coastal economic zone and border-gate economic zone. Also pursuant to Decree 82, in order to transform the industrial park into an economic zone, the investor should pay attention to meet the following conditions:

1. Coastal economic zone:

- Conform to the socio-economic development planning and orientation of a centrally-affiliated city and province

- Have geographical advantages for the regional economic growth (including deepwater ports or airports); easy connection with main national and international traffic axes;

- Promote easy control, domestic and international exchange; have favorite conditions and resources for investment in and development of technical infrastructure

- Cover an area of 10,000 ha or more and meet general requirements for development of economic zones;

• Have capability of attracting construction and other projects which are large in scale, important and affect the socio-economic development of the whole region;
• Have capability of promoting local potentials and creating influence of development over adjacent areas;
• Cause no adverse impact on natural reserves; cause no negative impact on and damage to tangible cultural heritages, scenic places, architectural ensembles of historical or aesthetic or scientific value;
• Correspond to requirements concerning national defense structure and maintenance of national defense and security; have conditions necessary to satisfy requirements regarding environment, biophysical environment and sustainable development.

1. Border-gate economic zone:

• Conform to the socio-economic development planning and orientation of the entire nation and specific centrally-affiliated cities and provinces
• Have international border gates or principal border gates according to the provisions of law on management of land border gates; encompass adjacent administrative units which are not spatially separated
• Have easy connection to national traffic axes; stimulate transactions with neighboring countries’ land border gates; have favorable conditions and resources for investment in development of technical infrastructure
• Conform to requirements for general development of bordergate economic zones, including trade, import and export, temporary import for re-export, transport of goods in transit, industrial production, tourism and services;
• Have conditions necessary to promote local and other adjacent areas’ potentials; have capability of commercial development and investment attraction
• Link economic development with maintenance of security, politics, social order and safety, and protection of national sovereignty at border areas
• Cause no adverse impact on natural reserves; cause no negative impact on and damage to tangible cultural heritages, spectacular scenes, and architectural ensembles of historical or aesthetic or scientific value;
• Have conditions necessary to satisfy requirements regarding environment, biophysical environment and sustainable development.

 After satisfying the conditions of the form of economic zone that the investor chooses to transform, the investor should prepare the following documents: