On 22 May 2018, the Government issued Decree 82/2018 on industrial zones and economic zones in Vietnam. Decree 82/2018 replaces Decree 29/2008 as amended from 10 July 2018. The salient points of Decree 82/2018 are as follows:
- An economic zone located in an area entitled to investment incentive policies is now entitled to be regarded as an area facing extreme socio-economic difficulties.
- Decree 82/2018 introduces three new kinds of industrial zones which are supporting industrial zone, eco-industrial zone, and industrial-urban-service zone. Certain investment incentives will be available to supporting industrial zones and eco-industrial zones (e.g., land rental exemption, soft loans, or maximum land lease term). An industrial-urban-service area may include a residential and service area which must not exceed one third of the area size of the industrial zone. In addition, an exporting processing zone is now regarded as a type of industrial zone instead of being classified as a separate type of zone.
- The amended definition of export processing enterprise (EPE) seems to suggest that an EPE does not need to export all of its products. Instead, an EPE only needs to be specializing in manufacturing exported products.
- Decree 82/2018 allows an industrial zone to have separate dwelling facilities for foreign managers, chief officers and experts.
This post is contributed by Ha Kieu Anh, a trainee at Venture North Law.