With its position as a developing country, the focus on investment and development of industrial parks is being paid much attention by the state to contribute to promoting the industrialization and modernization of the country. Therefore, investment in projects in industrial parks is also the choice of many domestic and foreign investors.
Understanding that, AMI would like to share with investors about investment conditions in the industrial park in today’s article.
What is an industrial park?
First of all, in order to understand the conditions and investment activities in the industrial park, investors need to understand the concept and characteristics of the industrial park.
Clause 11 Article 3 of Law on Investment 2014 stipulates: “Industrial park means an area which has a delimited geographical boundary and is specialized in producing industrial goods and providing services for industrial production”
Accordingly, it is understandable that industrial zone is an area for industrial development under a specific plan to ensure the harmony and balance between economic, social and environmental objectives. Industrial zones are usually licensed by the Government to invest with the separate technical infrastructure and legal framework.
Investment activities in industrial parks
The fields that investors are allowed to operate in industrial zones are stipulated in Article 47, Article 48 of Decree 118/2015/ND-CP, including:
Activities and conditions to invest projects in industrial parks:
- Leasing or purchasing ready-built workshops, offices, warehouses and storing yards to serve their production and business activities in industrial parks.
- Paying for the use of technical infrastructure and service facilities, including roads, electricity supply, water supply and drainage, communications, treatment of wastewater and wastes, and other public facilities.
- Transferring or acquiring the rights to use land or lease land with available infrastructure to construct workshops, offices and other works serving their production and business activities in accordance with the laws on land and real estate business.
- Leasing and subleasing out their workshops, offices, warehouses and storing yards and other already-built works to serve production and business activities in accordance with the laws on land and real estate business.
- Carrying out other investment activities.
Activities of investors implementing investment projects on construction and commercial operation of infrastructure of industrial parks:
- Constructing workshops, offices, warehouses and storing yards for sale or lease.
- Fixing rental rates for land with available technical infrastructure facilities; infrastructure charges; rental rates and selling prices for workshops, offices, warehouses and storing yards and other service charges as prescribed by law and registering price brackets and infrastructure charges with the management board (Price brackets and infrastructure charges shall be registered every 6 months or when there are changes therein)
- Collecting infrastructure charges.
- Transferring the rights to use land, lease land, sublease land with available technical infrastructure facilities in industrial parks, export processing zones, hi-tech parks and economic zones to other investors in accordance with the laws on land and real estate business.
- Carrying out other investment project activities on construction and commercial operation of infrastructure.
Hopefully, the article on conditions of investing project in the industrial zone above will bring you useful knowledge. If you have any questions, please contact AMI Law Firm.
