Under Government Decree No. 29/2008/ND-CP of March 14, on the establishment, operation and state management of, and policies toward, industrial parks, export processing zones, economic zones and border-gate economic zones, for a new industrial park to be established in a province, at least 60% of the total industrial land area of industrial parks already established in this province must have been leased or subleased to registered investment projects.
For industrial parks occupying 500 hectares or more each in which many investors join in constructing and commercially operating infrastructure works or those located near national highways, defense zones or historical sites, the Construction Ministry’s guidance on elaboration of general plans or written consent to detailed plans of these industrial parks is required before these plans are approved by provincial People’s Committees.
Minimum conditions for developing an industrial park include: There is a sufficient land area for this park, which can be linkable with surrounding industrial parks; this park is attractive to both domestic and foreign investors; local workforce is sufficient to meet the park’s labor needs; and the park’s location plan is in line with local defense and security planning.
An economic zone must occupy a land area of 10,000 hectares or more and a location favorable for regional economic development. A border-gate economic zone must be located on or near strategic national highways or hubs for economic exchange with neighboring countries and must not cause any harms to nearby natural reserves and tangible cultural heritages.
A 50% reduction of personal income tax is offered to Vietnamese and foreigners working in economic zones, the Decree stipulates.-