The legal framework governing the management and development of industrial clusters (ICs) has undergone significant changes. In addition to the framework established under Decree No. 32/2024/ND-CP, the Government has recently issued Decree No. 303/2026/ND-CP, officially effective from 15 September 2026, introducing a number of significant amendments aimed at addressing infrastructure bottlenecks and promoting investment in high-tech and green manufacturing.
The following provides a detailed overview of the establishment conditions and key regulatory changes that infrastructure developers and secondary manufacturing enterprises should be aware of.
1. Applicable Legal Grounds
- The 2020 Law on Investment, as amended and supplemented from time to time by the National Assembly;
- The 2024 Land Law and its implementing regulations;
- Decree No. 32/2024/ND-CP dated 15 March 2024 of the Government on the management and development of industrial clusters;
- Decree No. 303/2026/ND-CP dated 1 August 2026 of the Government amending and supplementing a number of provisions of Decree No. 32/2024/ND-CP, effective from 15 September 2026.
2. Standard Size and Latest Establishment Conditions for Industrial Clusters in 2026
Standard Land Area
Under the amendments introduced by Decree No. 303/2026/ND-CP:
- An industrial cluster must have a land area of no more than 75 hectares and no less than 5 hectares. The minimum threshold of 5 hectares is applied more flexibly to facilitate the development of specialized and high-tech industrial clusters and traditional craft village clusters in localities.
Mandatory Conditions for Establishment of an Industrial Cluster
For a provincial-level People’s Committee to issue a decision establishing an industrial cluster, the proposed project must simultaneously satisfy the following criteria:
- Consistency with Planning:
- The proposed industrial cluster must be included in the orientation for industrial cluster development under the approved provincial planning;
- The proposed land area must be consistent with the applicable district-level land use planning and land use plans.
- Capacity of the Infrastructure Developer:
- The infrastructure developer must be an enterprise, cooperative or other legally qualified organization with sufficient financial capacity and experience in investing in and constructing technical infrastructure;
- The application must include documents evidencing financial capacity, such as financial statements for the most recent two years, financial guarantees and the required level of equity capital, and the applicant must obtain the required score in the investor selection process, with a minimum threshold of 50/100 points.
- District-Level Occupancy Criteria:
- Where an industrial cluster has previously been established within the relevant district-level locality, the average occupancy rate of existing industrial clusters must exceed 50%, OR the total area of industrial land remaining unleased in those industrial clusters must not exceed 100 hectares;
- Special exceptions: Certain specialized types of industrial clusters, such as high-tech industrial clusters and eco-industrial clusters, may be subject to more flexible or exempted occupancy requirements in accordance with Decree No. 303/2026/ND-CP.
3. Key Changes Businesses Need to Know from 2026
| Key Change | Specific Regulatory Change | Direct Impact on Businesses |
|---|---|---|
| Introduction of four new types of industrial clusters | Four models are formally recognized: specialized industrial clusters, supporting industrial clusters, high-tech industrial clusters and eco-industrial clusters, in addition to traditional craft village industrial clusters. | Businesses focusing on green manufacturing, the circular economy or R&D may have greater access to specialized land and dedicated support policies. |
| Expansion of priority investment sectors and enterprises | High-tech enterprises, manufacturers of high-tech products, strategic technology enterprises and innovative start-ups are added to the group eligible for investment encouragement. | Eligible businesses may receive priority in land allocation, investment procedures and higher levels of infrastructure investment incentives. |
| More transparent infrastructure developer selection mechanism | The model under which district-level Industrial Cluster Management Boards act as infrastructure developers is discontinued; instead, infrastructure developers with demonstrated financial capacity must be selected through the prescribed bidding or investor selection process. | This is intended to prevent land banking and delayed infrastructure development and to ensure that essential infrastructure, including centralized wastewater collection and treatment systems, is completed before investors commence operations. |
| State budget support for infrastructure development | Local budgets may provide support for essential technical infrastructure outside the industrial cluster and certain shared technical infrastructure for eco-industrial and high-tech industrial clusters. | This may reduce initial infrastructure investment costs and consequently help lower industrial land or infrastructure rental costs for secondary investors. |
4. Procedures for Establishing an Industrial Cluster
The application and approval process for establishing an industrial cluster generally consists of the following steps:
- Step 1: Preparation of the Establishment Application
- An enterprise seeking to become the infrastructure developer submits an application for appointment as the infrastructure developer, together with the investment report for establishment of the industrial cluster, a location map or cadastral extract, and documents evidencing its legal and financial capacity to the competent district-level People’s Committee.
- Step 2: Receipt and Preparation of the Submission
- The district-level People’s Committee conducts a preliminary review of the application and prepares a submission to the Department of Industry and Trade, which acts as the lead appraisal authority.
- Step 3: Inter-agency Appraisal
- The Department of Industry and Trade coordinates with the relevant departments, including the Departments of Planning and Investment, Construction, and Natural Resources and Environment, to assess the project in terms of planning conformity, preliminary environmental impact assessment, the financial capacity of the proposed infrastructure developer, and the proposed infrastructure connection plan.
- Step 4: Decision on Establishment
- The Department of Industry and Trade finalizes the application and submits it to the provincial-level People’s Committee for issuance of a Decision on Establishment of the Industrial Cluster and designation of the infrastructure developer.
5. Legal Recommendations for Businesses
1. For Industrial Cluster Infrastructure Developers
- Prepare substantive evidence of financial capacity: Ensure compliance with the statutory equity capital requirements under land regulations and prepare feasible financing commitments to satisfy the applicable investor appraisal and selection criteria.
- Integrate environmental protection and green infrastructure from the outset: Consider incorporating centralized wastewater treatment facilities, rooftop solar power systems and resource-circulation solutions into the detailed planning stage in order to maximize access to budgetary support available under Decree No. 303/2026/ND-CP.
2. For Manufacturing Enterprises (Secondary Investors)
- Review the applicable business sectors and eligibility: Where an enterprise operates in digital technology, supporting industries or is relocating its manufacturing facilities from residential areas, it should proactively consider applying to industrial clusters included in the relevant priority categories in order to benefit from applicable procedural support and rental incentives.
- Verify the legal status of the infrastructure developer: Enterprises should only enter into land lease or infrastructure sublease agreements in industrial clusters where site clearance has been completed, the relevant land allocation decision has been duly issued, and the essential shared infrastructure facilities have been completed.
The 2026 legal framework for industrial clusters places greater emphasis on standardization, specialization and sustainable development. Understanding the occupancy requirements, infrastructure developer qualification criteria and incentive policies applicable to the four newly recognized industrial cluster models will enable businesses to better capitalize on opportunities to expand manufacturing operations while managing legal and investment risks and optimizing costs.
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Nguyen Thuy Duong