What is industrial land? All the information you need to know.
“What is industrial land?”, “What is industrial land?” These are the questions we often ask when learning about industrial real estate. Vietnam’s economy is growing strongly with different industries, in which one of the industries that greatly contributes to the above development is industry. However, in order to serve industrial production activities, enterprises need to have facilities such as factories and warehouses to serve all of its activities. So what is industrial land? The following article will help you better understand industrial land.
Mục lục
1. General information about industrial land
Soil is an abundant source of raw materials in the process of human activities and living. Soil is classified into many different types based on properties such as: clay, red basalt soil, alluvial soil, … or classified based on economic purposes, the land is divided into types such as: Agricultural land, industrial land, forestry land and residential land. In particular, industrial land has an important impact on Vietnam’s economy.
What is industrial land?
Industrial land is used for the main purpose of industry today. Or you can understand more simply that this type of land is used to build factories, factories, facilities or buildings or land used as raw materials for industry. In addition, there is industrial land. Industrial zone land means land for construction of industrial clusters, industrial parks, export processing zones and other concentrated production and business zones with the same land use regime. [according to the Land Law No. 45/2013/QH13 promulgated on November 29, 2013].
In other words, industrial park land is the place to build concentrated business zones and all share the same land use regime.
2. Characteristics of industrial park land
Industrial parks are areas with clear geographical boundaries and conditions for natural development with synchronous transport infrastructure. The industrial zone will be independent and separate from the residential area. This is considered as one of the main characteristics of concentrated industrial zones. The industrial park will include many industrial enterprises and production facilities with high cooperation capacity and most of them will have a relatively large scale from 50ha to several hundred hectares. This place also focuses mainly on many enterprises specializing in the production of industrial and consumer goods for domestic use or for export with relatively low production costs. The State also has many priority policies to promote and create favorable conditions for industrial parks to develop sustainably in the near future.
The construction, development and expansion of industrial parks in our country is considered an important and decisive orientation in the process of realizing the goal of industrialization and modernization of the country in the near future. . Industrial parks have increasingly affirmed their role as the leading factor to promote economic development and social development.
3. Legal provisions on industrial land.
Industrial land is currently regulated in detail in Decree 43/2014 ND-CP and Law on Land 2014. Accordingly:
- Term of land use: Will follow the term of the investment project, but must not exceed 70 years. In case the investment term is longer than the remaining time of the land plot, the investor will have to ask permission from the competent authorities and pay full tax and land use levy for that overdue period. Land use: The planning on the use of industrial land must be approved by a competent state agency and when planning will have to comply with what is committed on paper. When establishing an industrial park, it must concurrently plan the construction of residential areas and public works located outside that industrial park.
- Entities with the right to lease industrial land are organizations and individuals who are Vietnamese citizens, overseas Vietnamese or foreign-invested enterprises.
- Tax obligation: Can be paid annually or once for the entire rental period.
- Tenant’s responsibilities: Land must be used in accordance with the original purpose of use. Even in the future, if there is no need to rent anymore and sublease the land to another person, the later tenant will have to continue to use it according to the purpose determined from the beginning. If you deliberately violate the regulations, your future use of land will be made difficult by sanctions according to the provisions of the Land Law.
- Tax incentives: Usually entering the Industrial Park will enjoy CIT exemption for the first 2 years, 50% reduction for the next 4 years. Besides. For industrial zones in economic zones, the tax exemption period can be longer, CIT exemption for the first 4 years and CIT reduction for the next 9 years.
4. Some difficulties of investors when approaching and investing in industrial parks
- There is no general information about the situation of industrial zones in Vietnam as well as the advantages and disadvantages of the zones
- Do not understand the investment process and procedures like
- Want to build a factory but don’t know where to start?
- Don’t know where to choose the right land for your needs, good infrastructure and competitive quality?
- Difficulty in working with too many service units (private fire protection consulting, private DTM, …)
- Not knowing the legal procedures leads to spending a lot of time researching, doing it over and over again, spending a lot of extra fees, etc.
5. Consulting service of VKI
Understanding the concerns of customers, VKI provides investment location consulting services, together with customers to survey locations and work with Industrial Parks. If you have any needs, please contact us via Zalo/Hotline: 0967413186/0346406622 or leave your information below and we will contact you soon.
