Opportunity to access land funds in industrial parks for small businesses

To access land funds in industrial parks opens up development opportunities for small and medium-sized enterprises. The new Land Law 2024 stipulates that investors must reserve land funds for rent for these businesses, with a policy of reducing rent. This creates conditions for new businesses entering the market to have the opportunity to compete more fairly. This article will analyze in detail the current regulations and opportunities to access land funds in industrial parks.

Significance of land access in industrial zones for small businesses

To access land funds in industrial parks is important for small business development. This creates conditions for businesses to expand production and business scale. At the same time, it also helps businesses access infrastructure and support services in the industrial park.

First, access to land in industrial parks helps small businesses have stable production premises. According to regulations in the Land Law 2024, industrial park investors must reserve land funds for small and medium-sized enterprises to lease. This creates opportunities for small businesses to have suitable production premises to meet the needs of expanding operations.

Second, locating production facilities in industrial parks helps businesses take advantage of modern infrastructure systems. Industrial parks often have synchronous transportation, electricity, water supply, and waste treatment systems. This helps businesses save infrastructure investment costs and focus resources on main production and business activities.

Third, when operating in industrial parks, small businesses have the opportunity to connect and cooperate with other businesses. Geographic proximity creates conditions for businesses to build partnerships and form supply chains. Thereby, businesses can improve their competitiveness.

Challenges to access to land funds in industrial parks

Small and medium-sized enterprises face many challenges when access to land funds in industrial parks. The main barriers include high costs, complicated procedures and fierce competition. However, with support from new policies, businesses can overcome this difficulty.

Land rental costs in industrial parks are often higher than those outside. This creates great financial pressure for small businesses. According to the provisions of the Land Law 2024, the State has a policy to reduce land rent for small and medium enterprises. However, the specific reduction level depends on each locality’s regulations.

Administrative procedures to lease land in industrial zones are still complicated. Businesses must prepare many documents and go through many approval steps. For small businesses, this can be difficult due to limited human resources and experience.

Fierce competition in accessing land funds is also a big challenge. In many industrial zones, the demand for land rental exceeds capacity. This leads to a situation of “unequal competition” between large and small businesses. The Land Law 2024 stipulates that investors must reserve land funds for small and medium-sized enterprises, helping to reduce this competitive pressure.

Opportunity to access land funds in industrial parks for small businesses today

Opportunity to access current land fund for business

The Land Law 2024 has created favorable conditions for small and medium-sized enterprises to access land funds in industrial parks. The new regulations require the investor to set aside a part of the land fund to lease to this enterprise. That is the land fund that has invested in infrastructure.

At the same time, the State will have a policy to reduce land rental fees in industrial parks and industrial clusters for small businesses. The Provincial People’s Committee, based on the actual situation in the locality, determines the land fund for small businesses in the industrial park.

This will open up great opportunities for small-scale enterprises to develop production and business. Besides, to access land funds in industrial parks, businesses need to meet some basic conditions.

First of all, the enterprise must belong to the category of small and medium-sized enterprises according to the provisions of law. Criteria for determining small and medium enterprises are specified in the Law on Support for Small and Medium Enterprises, based on the number of employees and revenue or total capital.

In addition, businesses need to have investment projects consistent with the planning of the industrial park. The project must meet requirements on environmental protection, labor safety and other legal regulations. Enterprises also need to prove their financial capacity to implement the project and the ability to effectively use the allocated land fund.

Regarding procedures, businesses need to submit land lease applications to the Industrial Park Management Board or competent authority. Documents include land lease application, investment project, business registration certificate and other related documents. After the application is approved, the enterprise will sign a land lease contract with the industrial park investor.

Principles of support for small businesses

The State has issued many policies to support small and medium-sized enterprises in accessing land funds in industrial parks. These supporting principles are intended to create favorable conditions for businesses to develop, while ensuring fairness and efficiency in land use. Correct application of these principles will contribute to promoting the development of the small and medium-sized enterprise sector.

Specific principles for supporting small businesses are as follows:

• Support for small and medium-sized enterprises must respect market rules and be consistent with international treaties to which the Socialist Republic of Vietnam is a member.
• Ensure openness and transparency regarding content, subjects, order, procedures, resources, support levels and implementation results.
• The State supports small and medium-sized enterprises with a focus, a time limit, in accordance with support goals and the ability to balance resources.
• Support for small and medium-sized enterprises to use non-state resources sponsored by organizations and individuals is carried out in accordance with the regulations of that organization or individual but must not violate the provisions of law.
• In case a small and medium-sized enterprise simultaneously meets the conditions for different levels of support within the same support content, the enterprise can choose the most beneficial support level.
• In case many small and medium-sized enterprises meet the support conditions according to the provisions of the Law on Support for Small and Medium Enterprises 2017, priority will be given to selecting small and medium-sized enterprises owned by women, small and medium-sized enterprises that use employ more female workers.
• Small and medium-sized enterprises receive support when they have fully implemented the provisions of the 2017 Law on Support for Small and Medium Enterprises and other relevant laws.

Consulting services for small businesses to access land funds in industrial parks

At Long Phan, we provide consulting services for small businesses to access land funds in industrial parks.

Small and medium-sized businesses can take advantage of our professional consulting services to improve their opportunities to access land funds in industrial parks. Consulting services help businesses fully grasp information, comply with legal regulations and optimize benefits when leasing land.

The scope of consulting services usually includes the following contents:

• Consulting on land fund selection in industrial parks
• Instructions for preparing land lease applications and investment projects
• Consulting on preferential and support policies of the State
• Support negotiations with industrial park investors

Accessing land funds in industrial parks is a great opportunity for small and medium-sized enterprises to develop. To make the most of opportunities, businesses need to proactively seek information, prepare carefully and comply with regulations. If you need detailed advice, please contact Long Phan via hotline: 0906735386 to receive dedicated support from our experts.