Investment projects on commercial operation of technical infrastructure in craft village industrial clusters would be entitled to land rental exemption for the entire rental period, instead of just 15 years as at present.
Project owners might also borrow a loan of up to 70 percent of their projects’ investment capital from the State’s investment credit.
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| A bird’s eye view of Di Nau craft village cluster in Thach That district, Hanoi__Photo: kinhtechungkhoan.vn |
These proposals are made in a draft decree prepared by the Ministry of Industry and Trade (MOIT) to replace Decree 68 of 2017 on management and development of industrial clusters.
As for investment projects on production and business in craft village industrial clusters, the incentive package would include land rental exemption for 11 years, loans of up to 70 percent of their total investment amounts from the State’s investment credit, and other incentives as specified by law.
In case an investment project on commercial operation of technical infrastructure in craft village industrial clusters or an investment project on production and business in craft village industrial clusters is eligible for different levels of incentives, the highest level would prevail.
The draft also stipulates that local budgets would provide financial supports for relocation of enterprises, cooperatives and production facilities of households and individuals from craft villages to craft village industrial clusters. The specific support levels would be decided by provincial-level People’s Committees.
In addition, the central and local budgets would consider prioritizing funds to support the construction of technical infrastructure of craft village industrial clusters.
In order to enjoy incentives and supports, a craft village industrial cluster would have to satisfy three conditions: (i) being included in the plan on industrial cluster development, and established and operating under regulations on management of industrial clusters; (ii) serving the development of the traditional crafts and craft villages recognized by the provincial-level People’s Committee; and (iii) reaching an occupancy rate of over 80 percent at the time of being considered for incentives and supports, with registered tenants being enterprises, cooperatives, cooperative groups, production facilities of households and individuals in the craft village certified by the district-level People’s Committee(s) making up over 60 percent of the total land area.- (VLLF)
