Incentives for making investment into ecological industries

From 10 July 2018, enterprises developing infrastructure and enterprises in the eco-industrial zone will be encouraged to make investment and enjoy the following incentives:

(i) to be preferentially given the loans from Vietnam Environmental Protection Fund, Vietnam Development Bank and financial institutions;

(ii) to be entitled to participate in technical assistance programs, investment promotion programs; and

(iii) to be given priority to being provided with relevant information on the technology market, the possibility of cooperation in the field of production and business activities of enterprises.

This is also one of the highlights of Decree No. 82/2018/ND-CP issued by the Government on 22 May 2018, regulating the management of industrial zones and economic zones (“Decree 82”). Accordingly, the criteria for determining the ecological industries are as follows:

(i) having the fundamental services in industrial zones such as: essential infrastructure services (electricity, water, information, fire prevention and fighting, etc.);

(ii) having at least 90% of the enterprises in the Industrial Zones (“IZs”) being aware of efficient use of natural resources and cleaner production and at least 20% of the enterprises in the IZ applying solutions to effectively use natural resources and carry out cleaner production;

(iii) having at least 25% of the acreage in the IZ used for green trees, transportation and public service infrastructure;

(iv) having at least one industrial symbiosis link and at least 10% of the total number of enterprises in the IZ having a plan to participate in industrial symbiosis links; and

(v) having the solutions to ensure residential houses and social, cultural and sports facilities for workers working in the IZ.

In addition, some other important points are stipulated in Decree 82 are as follows:

  • Providing the conditions to be entitled to preferential treatment in industrial zones for supporting industries and industrial, urban and service complex; and
  • Regulating on the procedures for adjusting the scale of economic zones, reducing the area of ​​IZs and removing IZs from the industrial zone development planning after being appraised and approved by the Prime of Government; and

Decree 82 is to take effect from 10 July 2018 and will replace Decree No. 29/2008/ND-CP dated 14 March 2008 of the Government providing for providing for industrial parks, export processing zones and economic zones and Decree No. 164/2013/ND-CP dated 11 December 2013 of the Government amending and supplementing Decree No. 29/2008/ND-CP, Decree No. 114/2015/ND-CP dated 9 November 2015 of the Government amending and supplementing Article 21 of Decree No. 29/2008/ND-CP will cease its effectiveness.