Conditions for Establishing Centralized Digital Technology Zones

Conditions for Establishing Centralized Digital Technology Zones play a key role in standardizing investment activities in digital infrastructure in Vietnam. The legal document establishes technical standards and administrative procedures that investors and state management agencies must follow. Adherence to indicators on human resources, area, and planning ensures project feasibility. In the following article, Long Phan Consulting Company provides current regulations on conditions for establishing and expanding centralized digital technology zones.

What is a concentrated digital technology zone?

Pursuant to Clause 6, Article 3 of the Law on Digital Technology Industry 2025, a concentrated digital technology zone is defined as a functional zone that concentrates activities of research and development; support and training; promotion of innovation; incubation of digital technologies and digital technology enterprises; production and trading of digital technology products and services; provision of infrastructure; supply of services to organizations, enterprises, and individuals; and other activities conducted within the zone.

Criteria for a concentrated digital technology zone

To ensure formation and development align with the national digital transformation orientation, the law stipulates specific criteria.

Functional Criteria According to Article 6 of Decree 354/2025/ND-CP, the zone has functions such as:

• R&D, application, and transfer of digital technology.
• Production and trading of digital products/services (software, key hardware/electronic products).
• Semiconductor R&D, design, manufacturing, packaging, and testing.
• HR training and business incubation.
• Providing modern digital infrastructure (high-speed internet, 5G/6G, stable power, standard A water treatment, cybersecurity standards).
• Providing services and necessary conditions for organizations and workers (smart/green governance, administrative support).

Criteria on Scale, Area, and Human Resources According to Article 7 of Decree 354/2025/ND-CP:

• Area: Minimum 05 ha. For zones focused only on software/digital content/services, minimum 01 ha.
• Human Resources: Minimum 2,000 digital workers. For software/digital content zones, minimum 1,000 workers. Digital workers must account for at least 60% of total labor.

Criteria on Functional Zoning Planning According to Article 8 of Decree 354/2025/ND-CP, the zone must be organized into 02 main functional subdivision groups:

• Digital Industry Activities Group: Production/business, R&D/incubation, management offices, technical infrastructure, product display. This group must occupy at least 50% of the land area.
• Service Provision Group: Residential services (education, health), accommodation, finance, etc.
• Construction Density: Max 60% net density for buildings; min 21% for greenery/traffic.

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What conditions must be met to establish a concentrated digital technology zone?

According to Article 9 of Decree 354/2025/ND-CP, conditions for establishing centralized digital technology zones:

• Policy Alignment: Consistent with state policies and strategies on digital technology, innovation, and digital economy.
• Planning Conformity: Consistent with info/comm infrastructure planning, provincial planning, and land use planning. If not, planning adjustments must be made first.
• Sustainability & Security: Meet regulations on defense, security, environment, climate change, and resource protection.
• Scale & Function: Meet criteria on area/HR (Article 7) and functional zoning (Article 8).
• Feasibility: Have an establishment plan suitable for the zone’s functions (Article 6).

Authority, procedures, and processes for establishing and expanding concentrated digital technology zones

According to Article 11 of Decree 354/2025/ND-CP:

• Establishment Point: The zone is considered established/expanded from the date of investment policy approval (for public/PPP projects) or investor approval (for private capital projects).
• Authority:
  • Public/PPP projects: Competent agencies decide under Public Investment/PPP Laws.
  • Private capital projects: Provincial People’s Committee Chairman approves investment policy/investor.
• Dossier Requirements: Feasibility study reports or investment proposals must explain compliance with conditions in Article 9 (Establishment) or Article 10 (Expansion).

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Long Phan Consulting Company provides consulting services on the conditions for establishing and expanding concentrated digital technology zones

Establishing and expanding a concentrated digital technology zone can be challenging without a thorough understanding of the regulations. Therefore, Long Phan Consulting provides clients with consulting services including:

• Consulting on the conditions for establishing centralized digital technology zones.
• Support in submitting applications for the establishment and expansion of concentrated digital technology zones.
• Guidance and implementation of procedures for registering the establishment and expansion of concentrated digital technology zones.
• Assisting companies in registering and expanding concentrated digital technology zones.
• The representative will work with the competent authorities.

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Frequently asked questions about the conditions for establishing centralized digital technology zones

Below, Long Phan Consulting Company provides some frequently asked questions regarding the conditions for establishing centralized digital technology zones. We invite interested clients to refer to this information:

Are concentrated digital technology zones included in investment incentive areas?

Based on Clause 2, Article 16 of the 2020 Investment Law, as amended by Point d, Clause 1, Article 6 of the Law amending the Law on Bidding; the Law on Investment under the Public-Private Partnership Method; the Customs Law; the Value Added Tax Law; the Export and Import Tax Law; the Investment Law; the Public Investment Law; and the 2025 Law on Management and Use of Public Assets, the regulations on investment incentive areas include:

• Areas with difficult socio-economic conditions, areas with particularly difficult socio-economic conditions;
• Industrial parks, export processing zones, high-tech zones, concentrated digital technology zones, economic zones.

Therefore, the concentrated digital technology zone is located in an area eligible for investment incentives.

Can private enterprises be the main investors in the infrastructure of concentrated digital technology zones?

According to Clause 6, Article 3 of the 2025 Law on Digital Technology Industry, organizations and enterprises (including foreign-invested enterprises and private enterprises) with sufficient financial capacity and experience can register to be investors in the construction and operation of concentrated digital technology park infrastructure. However, the project must be approved by the Prime Minister and be consistent with the local development plan.

What is the minimum percentage of IT personnel required in the area?

According to Article 7 of Decree 354/2025/ND-CP, to meet the requirements regarding area and human resources, a digital technology park must ensure that the number of employees working in digital technology enterprises accounts for an overwhelming proportion. Typically, the percentage of employees with a university degree in information technology must reach at least 50% to 60% of the total workforce in the park to ensure the park’s function of researching and producing digital content products is properly fulfilled.

What are the conditions for an existing area to be allowed to expand?

According to Article 10 of Decree 354/2025/ND-CP, the expansion of concentrated digital technology zones will only be considered when the following standards are simultaneously met:

• Comply with the provisions of Article 6 and Clauses 1, 2, 3, 4 and 5 of Article 9 of Decree 354/2025/ND-CP.
• The infrastructure system of the concentrated digital technology zone has been fully invested in accordance with the approved zoning plan (if any) or detailed plan in accordance with the law on urban and rural planning.
• The land area of ​​the functional zone group for carrying out digital technology industrial activities as stipulated in point a, clause 1, Article 8 of this Decree that has been leased or subleased has reached at least 70%.

How long does it take to review applications for establishing a concentrated digital technology zone?

According to Article 11 of Decree 354/2025/ND-CP regulating the authority, procedures, and processes for establishing and expanding concentrated digital technology zones: The process from submitting the application to the provincial People’s Committee, obtaining the appraisal opinion of the Ministry of Information and Communications, to submitting it to the Prime Minister for approval usually takes 45 to 60 working days (excluding the time for amending and supplementing the application). Thorough preparation of the application from the outset will significantly shorten this time.

Conclusion

Regulations on conditions for establishing centralized digital technology zones require careful preparation of legal dossiers and technical infrastructure. Strict compliance ensures project sustainability.

Long Phan Consulting Company is ready to accompany clients in all stages. Please contact the hotline  1900636389 for in-depth advice.