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Why does the model of specialized industrial park appear?

Following the topic “Learning about industrial parks in Vietnam”, after having a preliminary understanding of industrial parks, in the next articles, ATIM LAW FIRM will help the readers and investors to learn about each specific type of industrial park. Therefore, ATIM LAW FIRM wants to deliver to the readers and investors some knowledge about specialized industrial parks.

At the initial stage of the country's development with the orientation of industrialization - modernization, one of the necessary goals to promote industry is to establish industrial parks. However, when the production capacity has been gradually improved, the demand for large-scale production with modern production line and huge amount of land. Thus, industrial parks need to be specialized to meet the demand for production in specific fields.

This is one of the reasons why lawmakers created specialized industrial park model to the system of industrial parks in Vietnam to build a legal framework for the implementation of this model in reality.

Particularly, Article 2.4 Decree 35/2022/ND-CP stipulates that “Specialized industrial park refers to an industrial park which specializes in and supplying services needed for the manufacturing of products in a specified industry or sector; has at least 60% of its industrial land intended to attract investment projects in such industry or sector”.

The addition of these industrial park models can take a big step in the development of Vietnam’s economy thanks to the following impacts:

• Nowadays, industrial parks in Vietnam still focus on developing multi-sector and multi-area with the primary goal of increasing the occupied area. The concentration on specialized industrial parks helps to restructure the industrial park model towards specialized industrial clusters. Therefore, the businesses in the same field and “satellite” companies will be able to work closely, which facilitates the production and completion of products, to create competitive advantages in the market.
• The growth trend of specialized industrial clusters will be able to solve many problems related to production premises, waste treatment, attracting domestic and foreign investors, especially enterprises that have a demand for a large-scale area for production and business with modern production lines.

Currently, Phu My 3 Specialized Industrial Park located in Phuoc Hoa Ward, Phu My Town, Ba Ria - Vung Tau Province, Vietnam is the only specialized industrial park in Vietnam, established since 11 December 2014 based on the Cooperation and Development Agreement signed between Vietnamese Prime Minister Nguyen Tan Dung and Japanese Prime Minister Yoshihiko Noda in November 2021. Phu My 3 Specialized Industrial Park focuses on heavy industries, supporting industries, logistics. Although Phu My 3 Industrial Park has not yet met the criteria under the definition of a specialized industrial park in Decree 35, specifically, Phu My 3 Industrial Park has not focused on one specific industry but still in the orientation to multi-sectors, but this is also considered as a precursor of the model of specialized industrial park in Vietnam.

In general, in Vietnam, the law on the management of industrial park development has been promulgated quite fully. Regulations from time to time have been supplemented, adjusted, and completed to meet the real situation but still ensure stability. And the addition of a specialized industrial park model also contributes to completing that legal framework.

Nguyen Pham Quynh Trang (Paralegal)