Decree No. 35/2022/ND-CP: A Landmark Step for Vietnam’s Industrial Parks
On May 28, 2022, Vietnam’s government introduced Decree No. 35/2022/ND-CP, marking a significant shift in the management of industrial parks (IPs) and economic zones (EZs). This decree aims to foster growth and development, but its implementation has encountered various challenges.
A Comprehensive Framework for Development
Decree 35 is heralded as a breakthrough, offering new mechanisms and policies designed to enhance the management framework for industrial parks. It emphasizes support for specialized models of industrial zones, including high-tech industrial parks and ecological zones, thus reflecting a more nuanced understanding of modern industrial needs.
New Investment Policies
What sets this decree apart is its detailed approach to regulating investment policies. According to Mr. Tran Quoc Trung, Deputy Director of the Department of Management of Economic Zones, the decree specifies clear guidelines for the approval of construction investment projects in industrial parks. This attention to detail aims to streamline processes, making it easier for investors to navigate the landscape.
Focusing on Infrastructure and Housing
One of the standout features of Decree 35 is its emphasis on employee welfare, particularly regarding housing and public service infrastructure. The decree stipulates that any infrastructure investment project in an industrial park must include plans for residential areas and essential utilities for workers. This requirement is vital for ensuring that employees have access to adequate living conditions, thus enhancing their productivity and overall job satisfaction.
Zoning Investment Simplified
In a bid to make life easier for stakeholders, the decree also amends several regulations related to infrastructure investment. It simplifies the investment process and abolishes unnecessary hoops to jump through, such as the prior requirements for establishing new industrial zones. This streamlined approach aims to make it easier for local authorities and businesses to adapt and expand.
Overcoming Implementation Challenges
Despite its promising framework, Decree 35 has faced challenges during its rollout. One significant issue pertains to the lack of specific guidelines for adjusting local zoning plans for industrial zones. The responsibility falls on the Industrial Zones Authority, but the absence of detailed instructions can slow down progress. Stakeholders are calling for clearer guidance from the Ministry of Planning and Investment to remedy this situation.
Land and Infrastructure Limitations
Another hurdle is related to infrastructure expansion. Industrial parks that were established prior to the enactment of Decree 35 often lack the necessary land for constructing housing or public utilities. This constraint makes it difficult for existing industrial parks to meet new requirements when seeking expansion, as they cannot easily accommodate the mandated public works and utilities.
Worker Accommodation Dilemmas
Companies are also experiencing difficulties associated with worker accommodation, particularly for foreign experts. Many firms have built dedicated living spaces for foreign employees, only to find that Decree 35 requires them to move to designated dormitory areas within the industrial park. This change creates logistical challenges and additional costs, sparking concern among businesses about inefficiency and wasted resources.
Ongoing Commitment to Development
As articulated by Nguyen Thi Hoang, Vice Chair of the Provincial People’s Committee, the development of industrial zones remains a crucial focus for local authorities. Dong Nai Province is committed to working closely with ministries and businesses to identify and address the obstacles arising from the decree’s implementation. Ensuring that industrial parks can flourish is pivotal to promoting socio-economic growth in Vietnam.
While Decree No. 35/2022/ND-CP lays a solid foundation for the future of Vietnam’s industrial landscape, the path to effective implementation involves addressing existing challenges head-on. With collaborative efforts between various stakeholders, it’s possible to unlock the full potential of this transformative policy.