Skip to main content

  • AddRemove
  • Build a Report 
Legal Update

New Decree on Industrial, Export Processing and Economic Zones

3 July 2008
Mayer Brown JSM Legal Update
The Government issued Decree No. 29/2008/ND-CP on 14 March 2008 on industrial, export processing and economic zones ("Decree 29"). Decree 29 provides a managerial regime and basic legal framework for the establishment and operation of industrial, export processing and economic zones. 
Full Update

I. Decree 29 contains:
1. Establishment procedures, policies, and state management criteria for industrial parks and economic zones; and
2. Functions, tasks, authorities and the structural organization for Boards of Management of the industrial and economic zones.
II. Decree 29 clearly defines the scope of an industrial park, export processing zone and economic zone and the conditions and procedures necessary for their establishment:
1. Those conditions are:
(a)  Consistency with the approved master plan for development of industrial zones;
(b)  At least 60% of the total aggregate area of industrial land in the industrial zone being leased or subleased to projects for which investment registration/investment certificates are issued;
(c)  Being attractive to both domestic and foreign investors;
(d)  The local workforce being sufficient to meet the park's labor needs; and
(e)  The park's location plan being in line with local defense and security planning.
2. Conditions for the establishment of an economic zone:
(a)  Being consistent with the approved master plan for the development of economic zones;
(b)  Having favorable conditions on geographic resources for investment and development; and being easy to manage;
(c)  Having an area of ten thousand (10,000) hectares or more and satisfying requirements for general development of the economic zone;
(d)  Having an ability to attract large-scale or important investment projects and project works and improving the socio-economic development of the whole region;
(e)  Having the ability to utilize local advantages and improving development of surrounding areas;
(f)  Not having a negative impact on natural preservation zones and tangible cultural relics;
(g)  Being consistent with arrangements for national defense and ensuring national defense and security; and
(h)  Facilitating satisfaction of requirements relating to the environment, ecology and sustainable development.
3. The following favorable governmental policies are applied towards industrial parks, export processing zone and economic zones, which are  included in the official list of areas with social-economic difficulties:
(a)  A 50% reduction in personal income tax is given to Vietnamese and foreign employees working in economic zones.
(b)  The cost of building, maintaining or renting apartments and infrastructure buildings in order to serve employees working in industrial, economic and processing zones is deducted from the income tax of enterprises.
Decree 29 takes effect as of 10 April 2008.
For further information, please contact:
Dao Nguyen ( );
Ephraim N. Wittman ( ); or
Hanh Bui ( )

The Build a Report feature requires the use of cookies to function properly.  Cookies are small text files that are placed on your computer by websites that you visit. They are widely used in order to make websites work, or work more efficiently.  If you do not accept cookies, this function will not work.  For more information please see our Privacy Policy

You have no pages selected. Please select pages to email then resubmit.