New Policies on the Development and Management of Industrial Clusters under Decree No. 303/2026/ND-CP: Key Updates for Industrial Cluster Infrastructure Developers
On 1 August 2026, the Government issued Decree No. 303/2026/ND-CP (“Decree 303“), effective from 15 September 2026, amending and supplementing a number of provisions of Decree No. 32/2024/ND-CP (“Decree 32“) on the management and development of industrial clusters.
Decree 303 introduces a number of significant amendments relating to the conditions for expansion of industrial clusters, the selection mechanism for infrastructure developers, investment support policies for industrial cluster infrastructure, as well as the rights and obligations of infrastructure developers. The Decree also incorporates new policies implementing Resolution No. 198/2025/QH15 on the development of the private sector.
For enterprises that are developing or planning to invest in industrial cluster infrastructure projects, the following updates deserve particular attention.
1. Revised Conditions for the Expansion of Existing Industrial Clusters
Decree 303 relaxes the conditions for expanding existing industrial clusters by reducing the minimum occupancy rate from 60% to 50%.
Under the new regulation, an industrial cluster may be considered for expansion if:
- the industrial land occupancy rate reaches at least 50%; or
- demand for industrial land exceeds the industrial land currently available within the cluster.
Compared with Decree 32, this amendment enables infrastructure developers to initiate expansion procedures at an earlier stage once occupancy reaches 50%, while maintaining the existing mechanism allowing expansion where actual market demand exceeds the cluster’s available industrial land.
This represents a practical improvement for industrial cluster infrastructure developers, particularly where demand for additional industrial land arises before the cluster reaches a 60% occupancy rate. Lowering the threshold to 50% allows developers to prepare expansion dossiers earlier while giving local authorities greater flexibility in planning additional industrial land supply.
In addition, Decree 303 introduces new requirements that an existing industrial cluster must have completed:
- solid waste collection and treatment facilities; and
- fire prevention and firefighting infrastructure,
before its expansion may be considered.
2. Clarification of the Selection Mechanism for Industrial Cluster Infrastructure Developers
Article 13 has been substantially revised to align the industrial cluster investment regime with the Law on Investment and other sector-specific legislation.
Under the revised provisions, the selection of an industrial cluster infrastructure developer falls into two scenarios.
(i) Selection under the Law on Investment or sector-specific legislation
Where the Law on Investment or other relevant legislation already prescribes a procedure for selecting investors, such procedure must be completed before the industrial cluster establishment or expansion process is carried out.
Once an investor has been lawfully selected under the applicable legislation, it is not required to undergo a separate developer selection process under Decree 303.
(ii) Selection under Decree 303
Where no separate investor selection mechanism is provided under applicable laws, the provincial People’s Committee shall establish an Evaluation Council to select the infrastructure developer through a scoring mechanism.
The evaluation criteria remain unchanged with a total score of 100 points, comprising:
- Infrastructure investment proposal (15 points);
- Environmental management and protection proposal (15 points);
- Capacity and experience of the enterprise (30 points); and
- Financial proposal (40 points).
These amendments help harmonise the developer selection mechanism with the Law on Investment and specialised legislation, thereby reducing duplication where an investor has already been selected through another statutory investment selection process.
3. New Industrial Land Allocation Policy for High-Tech Enterprises and SMEs
A notable amendment is the implementation of Resolution No. 198/2025/QH15 on private sector development.
Accordingly:
- Provincial People’s Committees are responsible for determining the area of industrial land within each industrial cluster to be reserved for lease or sublease by private-sector high-tech enterprises, small and medium-sized enterprises (SMEs), and innovative start-up enterprises.
- The proposed allocation of industrial land for these priority enterprises becomes a mandatory component of the Investment Report for the establishment or expansion of an industrial cluster. Infrastructure developers are responsible for maintaining such reserved land throughout the operation of the industrial cluster.
Where, within two years after completion of the infrastructure works, no eligible priority enterprise leases the reserved land, the infrastructure developer may request the competent authority to amend the industrial cluster establishment decision in order to lease such land to other enterprises.
4. Expanded Local Government Support for Industrial Cluster Infrastructure Investment
Decree 303 reaffirms that local governments may provide financial support for industrial cluster infrastructure investment while providing greater clarity on the scope of such support.
Eligible infrastructure works include:
- transport infrastructure;
- electricity supply;
- water supply;
- drainage;
- wastewater treatment; and
- telecommunications infrastructure.
Priority support is available for:
- industrial clusters located in socio-economically disadvantaged or extremely disadvantaged areas;
- specialised industrial clusters;
- supporting industry clusters;
- high-tech industrial clusters;
- eco-industrial clusters; and
- industrial clusters reserving land for high-tech enterprises, SMEs and innovative start-up enterprises.
Importantly, Decree 303 also provides that government financial support must not be included in the calculation of land sublease prices or infrastructure service charges. This ensures that such support directly benefits secondary investors rather than increasing the infrastructure developer’s commercial return.
5. Adjustments to the Rights and Obligations of Industrial Cluster Infrastructure Developers
Decree 303 introduces a number of additional obligations for infrastructure developers.
Notably, developers are now required to:
- attract investment projects consistent with the industries approved under the industrial cluster establishment decision;
- maintain the reserved industrial land for priority enterprises;
- publicly disclose the area of industrial land available for lease on both the developer’s website and the relevant local authority’s website; and
- continue complying with reporting obligations and infrastructure management requirements.
At the same time, developers are granted greater flexibility in utilising the reserved industrial land where, after two years from completion of infrastructure construction, no eligible priority enterprise has leased such land.
6. Decentralisation of Industrial Cluster Administration under the Two-Tier Local Government Model
Decree 303 also revises numerous provisions to align with the new two-tier local government structure introduced under Decree No. 139/2025/ND-CP.
Under the revised framework, a number of functions previously performed at district level have been transferred to, or adjusted for implementation by, commune-level People’s Committees, including:
- receiving reports;
- coordinating industrial cluster management;
- participating in investment procedures; and
- assisting in inspection and supervision activities.
These amendments mainly concern administrative organisation and do not fundamentally alter investment procedures. Nevertheless, investors should ensure that they engage with the correct competent authorities when implementing industrial cluster projects.
Recommendations for Industrial Cluster Infrastructure Investors
Although Decree 303 does not introduce an entirely new regulatory framework, it significantly refines the existing regime by:
- facilitating earlier expansion of industrial clusters that have completed essential shared infrastructure and satisfied environmental protection and fire safety requirements;
- aligning the developer selection mechanism with the Law on Investment and specialised legislation;
- strengthening policies supporting private sector development through industrial land allocation and infrastructure investment support;
- improving transparency in the management and operation of industrial clusters; and
- updating the regulatory framework to reflect the new two-tier local government system.
For enterprises developing or planning to develop industrial cluster infrastructure, it is advisable to review existing investment plans in light of Decree 303, particularly regarding industrial cluster expansion conditions, infrastructure developer selection procedures, infrastructure investment support policies, industrial land allocation obligations for priority enterprises, and the new operational requirements applicable to industrial cluster infrastructure developers.
Early preparation will enable investors to structure their projects more effectively while minimising legal and regulatory risks during project implementation.
Should you require advice on the establishment or expansion of industrial clusters, the selection of industrial cluster infrastructure developers, or other legal issues arising during the investment and operation of industrial clusters, please contact BFSC Law LLC for assistance.
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