Many incentives for industrial cluster development

14:29 | 04/06/2017 Industry

Decree No. 68/2017/NÐ-CP, recently issued by the Government, offers a range of preferential policies designed to support enterprises in their development and management of industrial clusters.

Decree No. 68/2017/NÐ-CP offers a range of preferential policies to support industrial cluster development

Accordingly, production and business investment projects, in such industrial complexes, are exempt from paying land rent for seven years and also benefit from other incentives in accordance with current laws.

Investment projects on industrial zones’ technical infrastructure will be exempt from land rent for 11 years. They will also be considered eligible for credit loans from the State, at a level not exceeding 70% of their total investment, along with enjoying other preferences under the current provisions of law.

Meanwhile, construction projects for technical infrastructure within industrial zones will be considered for investment in the form of public–private partnerships.

In particular, the Decree defines special preferential treatment for craft village clusters, with investment projects on production and business in craft villages exempt from paying land rent for 11 years and also being considered eligible for State's credit loans, at a level not exceeding 70% of their total investment.

The Decree specifies that investment projects on technical infrastructure in craft village industrial clusters shall be exempt from paying land rent for 15 years and will also be considered eligible for State's loans of no more than 70% of their total investment.

Local budgets, to be specified by the local provincial People’s Committees, will support the relocation of enterprises, cooperatives, households and individuals from craft villages into industrial clusters.

In addition to these preferential policies, investment projects on technical infrastructure and production and business in craft village clusters are also entitled to incentives and supports for industrial clusters. The highest level of preference and support shall be applied in every case.

The decree takes effect from July 15, 2017.

Theo NDO