Today, economic development has always been the top concern of all countries in the world. Industry is one of the driving forces behind economic growth. In particular, industrial parks are strategically important and have positive impacts on the economy and society of each country. With the current integration era, Vietnam has provided investor-friendly policies aimed at attracting investments from foreign individuals, organizations and companies with a view to create a healthy environment focusing favorably on economic development. There have been many project investments in industrial parks from foreign investors when the Vietnamese investment market has expanded. In this article, NPLaw will give readers a more comprehensive understanding of this issue.
I. What is project investment in industrial parks?
Investment project means a collection of proposals for the expenditure of mid-term or long-term capital to perform investment activities in a particular area over a certain period of time according to Clause 4, Article 3 of the Law on Investment 2020.
Pursuant to Clause 16, Article 3 of the Law on Investment 2020: "Industrial park” means an area with a defined geographical boundary specialized in production of industrial goods and provision of services for industrial production, is established by the Government or the Prime Minister's decision."
Thus, investment in an industrial park means an individual or an organization shall perform investment activities in such an industrial park which is a defined geographical boundary specialized in production of industrial goods and provision of services for industrial production.
II. Regulations on investment projects in industrial parks
1. What entities are allowed to perform investment projects in industrial parks?
Clauses 18, 19 and 20, Article 3 of the Law on Investment 2020 stipulating entities performing investment projects in industrial parks include domestic and foreign investors; in addition, based on this Law, economic organizations with foreign investment capital are also allowed to conduct such projects.
Therefore, according to the current Law on Investment in industrial parks, entities are divided into 3 types including domestic investors, foreign investors and economic organizations with foreign investment capital. The classification of investors is important in determining investment conditions and procedures as well as investment incentive benefits for each entity. In particular, although there are three types of investors, there are only two types of applicable procedures for domestic and foreign investors without including general provisions applying to all types of investors. Therefore, investors who are economic organizations with foreign capital will choose to apply one of the above two procedures depending on case-by-case.
You are reading information about investing in projects in industrial parks that is currently of interest.
2. What activities are investors allowed to perform when investing in industrial parks?
Pursuant to Article 62 of Decree 31/2021 ND-CP, activities are allowed to perform for investment projects in industrial parks including:
+ Lease or purchase of factories, offices, warehouses, yards to serve production and business activities.
+ Use and payment for technical infrastructure buildings and service buildings including systems of road, power supply, water supply, drainage, communication and wastewater and waste treatment, and other public utility buildings (collectively, infrastructure usage fees).
+ Transfer (transferee and transferor) of the rights of land use, lease of land and lease out of land already built technical infrastructure for factories, offices and other buildings for production and business activities in accordance with the Law on Land and the Law on Real Estate Business.
+ Lease out of factories, offices, warehouses and other buildings already built for production and business activities in accordance with the Law on Land and the Law on Real Estate Business.
+ Other activities as prescribed by the Law on Investment.
Thus, when individuals and organizations make project investments in industrial parks, they should pay close attention to the activities entitled to perform according to the Law on Investment. If the activities contravene the above regulations, they will be considered unlawful and may incur fine in accordance with regulations of the Law. 
3. Dossiers for Investment Registration Certificate for projects
For investment registration in industrial parks: investors agree directly with the industrial parks infrastructure development companies about expected locations for investment projects, areas of land expected to be leased and locations of land plots based on the approved planning for the implementation of projects. After determining investment locations, enterprises (investors) shall sign land lease agreements for construction.
At the same time, investors must apply for issuance of the Investment Registration Certificate in the industrial parks of projects.
+ Firstly, dossiers for issuance of the Investment Registration Certificate for projects not subject to approval for their investment policies in accordance with Article 36 of Decree 31/2021/ND-CP includes:
+ A written request for performance of the investment project;
+ A copy of ID card or Passport with individual investor; copy of the Business Registration Certificate or documents equivalent to confirm legal entity for an investor as an organization;
+ A proposal for the investment project;
+ A copy of one of the following documents: the latest 02-year financial statements of investor, financial support commitment of the parent company (holding company) or financial support commitment of a financial institution, guarantee for the investor’s financial capability, and a document describing the investor’s financial capability.
+ A copy of the location lease agreement or another document confirming that investor has the right to use the location for performing project;
+ BCC contract for BCC investment projects;
+ Other documents relating to investment projects, requirements on conditions and capacity of investor in accordance with the Law (if any).
+ Secondly, dossiers for issuance of the Investment Registration Certificate for projects subject to approval for investment policies as prescribed in Article 35 of Decree 31/2021/ND-CP includes:
+ A decision on approval for investment policies;
+ A written proposal for issuance of the Investment Registration Certificate. …
According to general regulations, the procedures for investing in industrial parks across the country are basically the same. However, in some specific areas with specific development orientations, industrial parks may require investors to provide more relevant documents. Therefore, learning about the necessary legal documents before investing in an industrial park should be a prerequisite that investors when investing in an industrial park should be aware of.
With experience in consulting in law, investment procedures and business for many foreign and domestic enterprises when investing projects in industrial parks in Vietnam. NPLaw can consult and fulfill all requests from customers in the most practical way. We can anticipate potential risks so that customers can achieve the final result most effectively and easily, please contact NPLaw. Hopefully this article has provided useful information for you.
