HCMC – The Ministry of Finance has proposed new rules for developing industrial zones on land currently used for two-crop rice cultivation.
The ministry is drafting a Government decree on the management of industrial and economic zones. The proposal introduces two options for projects that need to convert more than 200 hectares of rice land.
Under the first option, the total area of two-crop rice land that can be converted in each investment phase would be capped at 200 hectares nationwide. The second option would allow provincial governments to decide the conversion area for each phase, but not exceeding 200 hectares.
The ministry said current regulations require investors to split large-scale industrial zone projects into multiple phases to obtain investment approval, which has caused delays and complications.
This requirement has limited large, experienced investors and made land clearance more difficult due to changing policies between phases, it said.
Industrial zone plans often concentrate infrastructure such as power supply, wastewater treatment, and transport in specific areas, making phased development difficult and inefficient, the ministry added.
Most industrial zones in the Red River Delta, North Central, and Central Coastal regions are located in coastal plains where farmland—mainly two-crop rice fields—accounts for 60% to 70% of total area.
The ministry said the current limits on rice land conversion have restricted the scale of industrial development and reduced investment appeal. The proposed regulation seeks to create more flexibility while ensuring effective land use.
