IZ guidelines clash with other regulations, must be amended

09:01 | 13/12/2018 Industry

(VEN) - The Ministry of Industry and Trade is proposing that relevant authorities revise government guidelines on management and development of industrial zones (IZ) for small to medium-sized enterprises nationwide.

iz guidelines clash with other regulations must be amended

Problems

At a recent seminar sponsored by the Ministry of Industry and Trade to review implementation of Government Decree 68/2017/ND-CP after its first year, representatives of many localities said contradictions between some provisions of the directive and other laws and regulations have caused their localities problems managing and developing IZs.

Dam Tien Thang, Deputy Director of the Hanoi Department of Industry and Trade said that according to Decree 68, when two or more enterprises register technical infrastructure development in the same IZ, the local department of industry and trade must choose one of the registered firms as the project contractor by verifying the contractor’s financial capability and experience. “Although we followed the decree, some said at the city people’s committee’s meetings that we didn’t observe the law, and what we must do is to issue bids for choosing a contractor,” Thang said.

Phan Van Hung, Deputy Director of the Bac Giang Province Department of Industry and Trade said Decree 68 contradicts some aspects of a Ministry of Natural Resources and Environment circular. While Circular 31/2016/TT-BTNMT says expansion of an IZ and additional investment projects is banned unless the IZ does not have environmental protection infrastructure, Decree 68 allows IZ expansion and additional investment projects under agreements with investors on project location, area, and land rent.

Hung said it usually takes IZ developers 18-24 months to accomplish administrative procedures for IZ technical infrastructure construction and about 12 more months to build workshops and train workers, meaning it takes them about three years to put an IZ into operation. This hampers IZ investors’ efforts to mobilize capital and affects the provincial competitiveness index, Hung said.

Representatives of localities said at the seminar that they also encountered difficulties in implementing the regulation according to which provincial and city departments of industry and trade preside over project verification and provincial and city people’s committees issue investment registration certificates for IZ projects.

Investment incentives

Director of the Ministry of Industry and Trade’s Agency for Regional Industry and Trade (ARID) Ngo Quang Trung said that based on opinions and proposals of localities, sectors and ministries, the ministry will propose that competent agencies amend and improve Decree 68 to create a consistent and specific legal corridor for IZ management and development.

Localities should provide suggestions towards simplifying administrative procedures and increasing business convenience, he said.

Trung suggested that the Prime Minister instruct ministries and sectors to continue revising and supplementing IZ regulations. The Ministry of Planning and Investment needs to ask relevant authorities to make IZ infrastructure development and IZs eligible for investment incentives, he said. The Ministry of Finance needs to supplement enterprise income tax incentives for IZ infrastructure projects and other IZ-based investment projects, Trung said.

Localities need to implement Decree 68 efficiently, and leaders of provincial or city departments of industry and trade need to inform provincial or city people’s committees of any problems so solutions can be found as soon as possible. They also need to review, amend, supplement or promulgate new regulations on cooperation in IZ management and development in accordance with the one-stop policy, and keep an eye on the pace and efficiency of IZs and IZ planning in their regions.

Viet Nga