Headlines 08/06/2022 15:22 CH

Requirements for conversion from industrial zones to urban service areas in Vietnam

Thùy Trang

The Government of Vietnam has recently promulgated Decree No. 35/2022/ND-CP on management of industrial zones and economic areas.

According to the Decree, 05 requirements for conversion from an industrial zone to an urban service area include:

- The conversion must be suitable for provincial planning and urban planning on the areas of provinces or central-affiliated cities;

- The industrial zone must be located in the area of an inner city of a special urban are, class-I central-affiliated urban area or class-I provincial urban area;

- Operational period started from the day on which the industrial zone is established to the day of consideration of conversion is 15 years or a half of the operational time limit of the industrial zone;

- The conversion must be agreed by investors who invest in development and business of industrial zone’s infrastructures and more than 2/3 of enterprises in the industrial zone prepare for the conversion.  Except for the following cases:

+ Investment projects have expired as prescribed in law on investment;

+ Investment projects are ineligible for land sublease extension according to laws on land and civil;

+ Investment projects causing serious environmental pollution are subject to relocation under regulations of the law on environmental protection;

- The conversion brings about effects in terms of economy - society and environment.

For more details, see Decree No. 35/2022/ND-CP , which comes into force from July 15, 2022 and replaces Decree No. 82/2018/ND-CP .

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