Navigating the regulations governing the establishment and operation of enterprises in industrial zones, export processing zones, and economic zones is of paramount importance for businesses seeking to tap into these strategic zones. These zones often offer a range of incentives and opportunities for companies but come with specific rules and guidelines. In this discussion, we will explore the key regulations and requirements surrounding the permission to operate in these zones, shedding light on the necessary steps and considerations for businesses looking to leverage their benefits.
Question:
In the case of the limited liability company trading veterinary medicine, industry codes 4669 and 5210 (warehousing), the company is planning to rent a warehouse in the Tan Phu Trung industrial zone. Signing the contract and constructing with the warehouse owner takes about 1 year, and it requires a substantial deposit. So the company asks: How can the company be certain that the competent authority will grant permission for the company to operate in this industrial zone (so that the company can sign a deposit contract for construction here)?
Answer:
According to Clause 1 and Clause 7, Article 2 of Decree No. 82/2018/ND-CP dated May 22, 2018 of the Government on industrial zones, export processing zones, and economic zones:
An industrial zone is a geographically-defined area specializing in industrial production and providing services for industrial production, established according to the conditions, procedures, and regulations specified in this decree. Furthermore, an industrial zone includes various types, such as export processing zones, supporting industrial zones, and ecological industrial zones (referred to collectively as an ‘industrial zone,’ unless otherwise specified for each type).
An export processing zone, on the other hand, is an industrial zone specializing in the production of export goods, providing services for the production of export goods, and engaging in export activities. It is established according to the conditions, procedures, and applicable regulations for industrial zones specified in this decree. Moreover, the export processing zone segregates from the outside area per non-customs zone regulations found in export and import tax laws.
An economic zone is a geographically-defined area consisting of multiple functional zones, established to achieve investment attraction objectives, socio-economic development, and national defense and security. The economic zone specified in this decree includes coastal economic zones and border-gate economic zones (referred to collectively as an ‘economic zone’, unless otherwise specified for each type). Furthermore, based on the Decision approving the zoning and adjustment of the detailed construction plan at a scale of 1/2000 for Export processing zones and industrial zones of Ho Chi Minh City, the enterprise must submit documentation following the procedures outlined in Article 47 of Decree No. 01/2021/ND-CP on business registration at the Business Registration Office. We can then guide the company to register the appropriate industry.
Conclusion
In conclusion, understanding and adhering to the regulations pertaining to enterprises operating in industrial zones, export processing zones, and economic zones are essential for successful and compliant business operations. These regulations ensure businesses fully utilize zone advantages and contribute to regional economic growth. By proactively addressing the requirements and guidelines, companies can establish a strong presence, create jobs, and contribute to the overall development of these strategic zones while reaping the benefits of their unique incentives.
HMLF is always available to offer assistance in understanding the procedures with authorities.
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Phone number: +84 937215585
Website: hmlf.vn Email: miller@hmlf.vn
