Vietnam is expected to have approximately 1,500 industrial clusters by 2020 covering 49,000 hectares. But the progress of infrastructure for industrial construction remains slow and the number of operational industrial clusters is not as large as expected.

Decree 68, which came into force in July, is expected to address shortcomings. Nguyen Van Thinh, Head of the Industrial Cluster Management Section of the Ministry of Industry and Trade, said the decree offers several incentives and support for industrial clusters, identifies investors in technical infrastructure in disadvantaged localities, and stipulates stricter requirements for the establishment of industrial clusters. The decree also clarifies authorities and responsibilities in industrial cluster management of the Department of Industry and Trade and the District People’s Committee. It also stipulates the data compilation mechanism and one-stop-shop services in carrying out administrative procedures to improve the business environment.

Under the decree, investors in technical infrastructure for industrial clusters will be exempted from land lease fees for 11 years, can access credits worth up to 70% of their total investment and will get other incentives. The same incentives are offered to producers in craft village industrial clusters. Meanwhile, investors in technical infrastructure for craft village industrial clusters will be exempted from land lease fees for 15 years.

The government has also implemented a project to boost rural trade until 2020 which enables localities to develop industrial clusters.

The Ministry of Industry and Trade said that its local departments will organize training courses to explain the Decree.