It is one of many new regulations in Decree No. 35/2022/ND-CP (“Decree 35”) of the Government, dated May 28, 2022, on management of industrial parks (“IPs”), economics zones (“EZs”). Decree 35 shall replace Decree No. 82/2018/ND-CP (“Decree 82”) and take effect as of July 17, 2022. Compared to Decree 82, Decree 35 is considered to be more complete and effective as its regulations are determined to be consistent with what happens in practice, reducing administrative procedures for enterprises. This Decree contains significant amendments and supplements that enterprises need to pay attention to as follows:
1. Supplement of some contents relating to IPs and new IP models
a. Supplement of the model of specialized IPs. This is a type of IP specializing in manufacturing and providing services for the production of products of a certain industry or profession such as: textiles, footwear, electronics, automobiles... The ratio of industrial land area for investment projects in this industry or profession to be leased, subleased is at least 60% of the IP’s leasable industrial land area. The supplement of this model of IP aims to form production links and promote production and business cooperation between enterprises in the same industry in IPs.
b. Supplement of the model of high-tech IPs. This is a type of IP with investment projects in science and technology, high technology, technology transfer, environmental protection, creative start-up, innovation, research and development, education and training, production of industrial goods and providing of services for industrial production. The ratio of industrial land area for science and technology investment projects, high technology, technology transfer, environmental protection, creative start-up, innovation, research and development, education and training to be leased, subleased training is at least 30% of the industrial land area of the IP. The supplement of this model of IP aims to improve the technological level and capacity, current advanced production skills of enterprises in the IP.
c. Supplement of non-tariff zones in EZs. This is an area with geographical boundaries determined in the general planning on construction of an EZ, separated from the outside area by hard fences, ensuring conditions for customs inspection, supervision and control activities of customs offices and relevant agencies relating to imported and exported goods and means of transport, passengers on exit and entry, goods, means of transport and people entering and leaving; the relationship of buying and selling, exchanging goods between the non-tariff zones and others is an import and export relationship.
d. Supplements of regulations on development cooperation and support policies, criteria for determination, incentives, certification, procedures for registration of certification of ecological IP[1]. This supplement promotes the transformation of existing IPs into ecological IPs, aiming for the goal of sustainable development in Vietnam.
These are supplements that directly benefit investors, enabling investors to choose the right development model for their business.
2. Allowing employees to temporarily reside and stay in IPs
Unlike the current regulations, which do not allow residents to live in IPs and export processing zones, Article 25 of Decree 35 stipulates: Experts and employees are allowed to temporarily reside and stay at accommodation facilities in IPs to serve production and business activities of enterprises and comply with regulations.
Regarding accommodation facilities, Decree 35 stipulates that when determining IPs in the scope of province and centrally run cities, it must be ensured that the land fund for planning the construction of houses, service constructions and public utilities for employees is at least 2% of the total area of IPs[2].
These new regulations are a progressive innovation to promote the economic development of IPs as in order to stabilize production and business of enterprises, employees must be able to settle down, and at the same time be consistent with the new orientation of the Government on converting IPs to developing urban-service zones in accordance with Article 13 of this Decree.
3. Supplements of regulations on the authority to manage employees in IPs
Supplements of regulations on authority, responsibilities of Management Board of IPs, EZs towards employees working in IPs, EZs[3] as follows:
a. Issuance, re-issuance, extension, revocation of work permits and certification of foreign employees not eligible for work permits to foreigners working in IPs and EZs.
b. Organization of the registration of internal labor rules.
c. Receiving reports on the results of training to improve vocational skills
d. Receiving notification of overtime work from over 200 hours to 300 hours in a year of the enterprise.
4. Amendment of regulations on the authority to monitor the employment situation of enterprises
Article 73 of Decree 35 supplements the authority to assess, supervise reports on labor changes, reports on the non-employment outsourcing activities of enterprises in IPs, EZs of these following agencies: the district-level social insurance agency where the head office is located, branches, representative offices and Management Board of IPs, EZs.
This Decree shall take effect as of July 15, 2022.
[1] Section 4 of Chapter IV of Decree 35.
[2] Article 4.4(d) of Decree 35.
[3] Article 72 of Decree 35.
Comment: