Consolidated Decree on Management and Development of Industrial Clusters (Consolidated Text No. 71/2026/VBHN-ND-BCT)
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Based on:71/2026/VBHN-ND-BCT - Government Official Gazette
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The Ministry of Industry and Trade has issued Consolidated Text No. 71/2026/VBHN-ND-BCT, merging Decree 32/2024/ND-CP on the management and development of industrial clusters with the amendments in Decree 303/2026/ND-CP (effective September 15, 2026). The decree governs the full lifecycle of an industrial cluster: its legal definition (a site of 5 to 75 hectares with no resident population), priority cluster types (craft-village, specialized, supporting-industry, high-tech, and eco-industrial clusters), the conditions and application file needed to establish or expand a cluster, and the investment incentives that apply. For SMEs, cooperatives, and foreign investors looking for production sites, this matters because it sets the conditions under which a province may approve a new cluster (existing clusters in the area must already be over 50 percent occupied, or unleased industrial land must not exceed 50 hectares), and it spells out the rights of businesses that lease land inside a cluster - including eligibility for investment incentives under land, tax, and credit law, since industrial clusters are legally classified as an area with difficult socio-economic conditions that qualifies for the highest incentive tier. The notable change in the 2026 amendment is a nationwide terminology update replacing district-level administrative language with commune-level language, reflecting Vietnam's elimination of the district tier of local government; a rename of the cluster development plan to development direction; new definitions for supporting-industry and high-tech clusters; and a streamlined appraisal process that now routes applications through commune-level People's Committees and the provincial Department of Industry and Trade. Businesses planning to lease land or invest in cluster infrastructure should review the new commune-level filing channel that takes effect September 15, 2026.
Consolidated Text and Legal Basis
Consolidated Text No. 71/2026/VBHN-ND-BCT, issued by the Ministry of Industry and Trade on August 5, 2026, merges two legal instruments: Decree 32/2024/ND-CP dated March 15, 2024 (effective May 1, 2024) and Decree 303/2026/ND-CP dated August 1, 2026, which amends and supplements a number of articles of Decree 32 (effective September 15, 2026). This consolidated text is a reference document, not an independent piece of legislation, but it presents the complete rules on industrial cluster management and development that are currently in force and about to take effect in Vietnam.
Scope
The decree governs: the development direction for industrial clusters; the establishment and expansion of industrial clusters; investment in technical infrastructure and production or business activity within clusters; incentive and support policies; and state management of industrial clusters. It applies to enterprises, cooperatives, and organizations that invest in cluster infrastructure; organizations and individuals conducting production or business inside a cluster; and the relevant management agencies.
Definition of an Industrial Cluster
An industrial cluster is a site for industrial and handicraft production with defined geographic boundaries, no resident population, and a total area of between 5 and 75 hectares. Decree 303/2026 adds two new cluster types: supporting-industry clusters (at least 60 percent of industrial land reserved for supporting-industry projects) and high-tech clusters (at least 30 percent of industrial land reserved for high-tech research and production projects), alongside the existing craft-village, specialized, and eco-industrial cluster types.
Priority Sectors and Investors
The state encourages processing and manufacturing, mechanical engineering, supporting industries, textiles and footwear, information technology, renewable energy, digital technology, and new materials to locate inside industrial clusters. Priority investors include SMEs, cooperatives, craft-village production households, as well as high-tech enterprises and innovative startups. Provincial People's Committees decide the specific sectors and cluster types suited to their locality.
Development Direction and Provincial Planning
The development direction for industrial clusters (renamed from development plan under Decree 303/2026) is a mandatory component that must be integrated into the provincial master plan. The Department of Industry and Trade leads the drafting of a list of proposed clusters (name, location down to commune level, size, and sector), which is submitted to the Provincial People's Committee for integration into the provincial plan under planning law.
Conditions for Establishing or Expanding a Cluster
To establish a new cluster, a locality must: have the cluster listed in the approved provincial plan; have a qualified enterprise, cooperative, or organization to act as the infrastructure investor; and, if the commune already has an industrial cluster, show an average occupancy rate above 50 percent or unleased industrial land not exceeding 50 hectares (this condition does not apply to high-tech or eco-industrial clusters). To expand a cluster, it must reach at least 50 percent occupancy, its total area after expansion must not exceed 75 hectares, and essential technical infrastructure must already be completed.
Application File and Procedure
An enterprise submits an application file (investment report, location map, and evidence of financial capacity) to the commune-level People's Committee. The commune-level committee publicly announces the intake for two working days, accepts files for five working days, then forwards the file to the Department of Industry and Trade for appraisal within 20 working days. The Provincial People's Committee issues its decision within five working days of receiving the appraisal report. This is a key change under Decree 303/2026: the intake point that used to sit at district level now sits at commune level, reflecting Vietnam's elimination of the district tier of local government.
Rights and Obligations
Both the cluster infrastructure investor and the businesses that lease land inside a cluster are entitled to the incentive and support policies under this decree and related law, and both carry an obligation to use the land and carry out their projects as committed.
Investment Incentive Policy
An industrial cluster is legally classified as an area with difficult socio-economic conditions, and investment in cluster technical infrastructure is classified as a specially encouraged sector. The specific incentives (land, tax, credit) apply under the relevant specialized law, and where multiple incentive levels could apply, the highest level governs. Localities may use local budget funds to support cluster infrastructure investment under the State Budget Law and the Public Investment Law.
Effective Dates
Decree 32/2024/ND-CP took effect on May 1, 2024. The amendments in Decree 303/2026/ND-CP take effect on September 15, 2026. Enterprises and cooperatives planning to establish or expand an industrial cluster should prepare their filings under the new commune-level procedure ahead of that date.