Perfecting Legal and Policy Framework for Industrial Cluster Development

On April 23rd, the Ministry of Industry and Trade organized a conference at their headquarter to promulgate Decree 32/CP and Decree 43/CP issued by the Government.

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A general view of the conference

In his report at the online conference to disseminate Decree No. 32/2024/NĐ-CP on the management and development of industrial clusters (ICs), Mr. Nguyen Van Thinh, Deputy Director of the Provincial Department of Industry and Trade, said: Decree No. 32/2024/NĐ-CP (Decree No. 32) dated March 15, 2024, of the Government on the management and development of industrial clusters is built on the foundation of Decree No. 68/2017/NĐ-CP on the management and development of industrial clusters (Decree 68) and Decree No. 66/2020/NĐ-CP of the Government, amending and supplementing a number of articles of Decree 68 (Decree No. 66). Decree No. 32 focuses on addressing some important issues such as increasing governance and efficiency in management of industrial clusters.

“The development of Decree No. 32 adheres to a number of principles such as continuing to inherit current regulations that are proving effective, only amending existing problems; substantial decentralization to local governments, but not increasing staff and budget for localities. At the same time, ensuring compliance with the provisions of law,” Mr. Thinh emphasized.

In addition, enterprises and cooperatives are organizations that invest in business and infrastructure of industrial clusters, both ensuring the Land Law and developing the private economy. In socio-economically disadvantaged areas, fiscal policies will be implemented to provide support.

“This is the major content of Decree No. 32 compared to Decree No. 68”, said the leader of the Department of Industry and Trade.

Decree No. 32, with its many new features, was highly appreciated by representatives of ministries, branches, and localities for the Ministry of Industry and Trade’s efforts in research, development, and especially its consistency with current documents.

According to Mr. Pham Hong Phong, Deputy Head of the Department of Industrial Economics (Ministry of Planning and Investment), during the development of Decree No. 32, the Ministry of Industry and Trade has received and closely coordinated with the Ministry of Planning and Investment in developing the contents.

In the past, the development and management of industrial clusters were implemented according to Decree No. 66 and Decree No. 68, but many legal documents have changed, such as the Investment Law, the Construction Law, the Planning Law, etc. Therefore, it is necessary to amend these two decrees.

Mr. Phong also said that the Ministry of Planning and Investment also received comments on industrial investment projects of localities in industrial clusters, mainly related to 3 issues: Investment incentives, investors in technical infrastructure of industrial clusters, and establishment of industrial clusters.

From the local perspective, a representative of the Hanoi Department of Industry and Trade affirmed that the issuance of Decree No. 32 has significantly improved the policy on management and development of industrial clusters, which has timely resolved difficulties and obstacles in establishing new industrial clusters.

Decree No. 32 has a very important new point when it stipulates that the model of investors in building infrastructure for industrial clusters is enterprises and cooperatives, not assigning the center for industrial cluster development or public units as investors in technical infrastructure.

“For the smooth implementation of Decree No. 32, it is recommended that the Ministry of Industry and Trade issue guidelines for implementation soon,” proposed the leader of the Hanoi Department of Industry and Trade.

Minister of Industry and Trade Nguyen Hong Dien speaks at the conference

According to the Minister of Industry and Trade Nguyen Hong Dien, although Decree 32 has basically resolved and overcome the obstacles and shortcomings arising in the practical management and development of industrial clusters in the past, there are still a number of issues that localities have reflected as not being thoroughly resolved. Regarding this issue, the Ministry of Industry and Trade will continue to coordinate with ministries, branches, and localities to synthesize and propose to competent authorities during the process of developing and completing related laws and regulations in the near future.

Decree 32 will take effect from the beginning of May and the beginning of June this year. In order to fully and strictly implement the provisions of the Decree in a timely manner, contributing to promoting the socio-economic development of localities, Minister Nguyen Hong Dien requested that relevant ministries, branches, and localities pay attention to directing and organizing the implementation of tasks of managing industrial clusters and considering conferring the title of artisan according to the authority stipulated in Decree No. 32 of the Government and other relevant legal regulations. Closely coordinate with the Ministry of Industry and Trade and the People’s Committees of provinces/cities in directing and strictly managing in accordance with the provisions of law on management and development of industrial clusters and the work of emulation and rewards.

The Minister requests that local Party committees and authorities: Step up the dissemination of Decree No. 32 and the views and policies of the Party and the State in order to help local departments, agencies, People’s Committees at all levels, and related organizations and individuals to fully understand and implement strictly and effectively the new regulations of the State on the management and development of industrial clusters.

At the same time, raising awareness and responsibility of Party committees, authorities, socio-political organizations, and all classes of people about the role and significance of developing industrial clusters in the process of agricultural and rural industrialization and modernization, creating social consensus in the organization and implementation of and conferring artisans during the implementation process.

The Minister requested that localities direct the review, amendment, supplementation, or development of new regulations on the management of industrial clusters in the locality and policies and mechanisms on supporting the development of industrial clusters and craft villages in the locality, ensuring compliance with the provisions of Decree No. 32 and other relevant regulations of the State to mobilize and effectively use resources, especially social resources, for investment in infrastructure development of industrial clusters in order to promote the attraction of secondary investment projects, contributing to the development of industrial and handicraft production and the construction of new rural areas…