Vietnam Factory Construction Legal Consulting For Foreign Investors

Vietnam Factory Construction Legal Consulting Assists Investors Overcome Challenges When Developing New Industrial Parks

Decree No. 35/2022/ND-CP represents a significant step forward in simplifying the regulations concerning the establishment of industrial parks in Vietnam. This decree has streamlined the conditions, procedures, and investment processes related to infrastructure, providing clearer and more accessible guidelines for investors. The aim is to make the investment environment more favorable by reducing bureaucratic hurdles and facilitating smoother project approvals.

Despite these improvements, many obstacles still persist, presenting considerable challenges for industrial park projects. These challenges are particularly prominent when it comes to navigating the complexities of legal requirements and regulations. While the decree has created a more investor-friendly environment, it has also introduced new layers of complexity that require expert guidance to address effectively. This is where the role of industrial investment legal consultants becomes crucial. Experts like IDCo play a vital role in helping investors overcome these challenges and ensure compliance with the evolving legal landscape.

Expanding & Converting Old Industrial Parks

The process of expanding existing industrial parks or converting them into more specialized zones, such as eco-industrial parks, presents its own set of challenges. According to Decree 35, the appraisal and approval processes for adjusting zoning plans can be cumbersome and complex. These processes often involve multiple stakeholders and detailed assessments, which can delay project timelines and increase costs.

For industrial park expansion projects, investors are frequently required to meet additional mandatory conditions. These conditions may include constructing new housing facilities for foreign experts and workers or upgrading existing infrastructure to support increased capacity. However, space constraints and regulatory requirements often create significant hurdles. Limited space can restrict the ability to develop new facilities or upgrade existing ones, posing challenges in managing and expanding industrial parks effectively.

In the case of converting traditional industrial parks into eco-industrial parks, the requirements become even more stringent. Eco-industrial parks must adhere to rigorous criteria concerning resource usage, waste management, and cleaner production practices. While these standards are crucial for promoting sustainable development, they can place substantial pressure on businesses, particularly small and medium-sized enterprises (SMEs). The cost of implementing these green practices, combined with the need to comply with additional regulations, can be overwhelming for many businesses.