HCMC – The Ministry of Industry and Trade (MOIT) has proposed amending Decree 32 on industrial cluster management, including expanded land access, tax incentives, and infrastructure support to attract investment and promote sustainable development.
The ministry said Decree 32 has helped decentralize state management and introduced policies that support cluster development. Some provinces have simplified administrative procedures, enabling firms to invest in infrastructure and production.
Implementation, however, has faced obstacles. Land allocation for high-tech companies, small and medium-sized enterprises, and startups remains limited. Several localities have yet to issue detailed regulations or approve land-use planning, creating barriers to investment.
The ministry also cited overlaps with land, construction, investment, and public asset laws. Some clusters have underperformed, not meeting economic targets and, in some cases, causing environmental issues.
The draft amendment proposes reserving either 20 hectares per cluster or 5% of total cluster land for priority businesses. It also includes state support for essential infrastructure such as transport, power, water, and wastewater treatment.
Tax incentives would be applied under specific conditions, including when occupancy reaches 50% or when demand for land exceeds supply. Investor selection would be made more transparent through bidding or investment policy approvals, with clearer rules on managing public assets.
The revised decree also targets sustainable development, seeking to attract strategic investors and environmentally friendly projects. The ministry aims to finalize the amendment by December 2025.
