Foreign Investment

Industrial park infrastructure fee disputes between developers and tenants

Beyond land rent, enterprises in industrial parks (IPs) pay infrastructure service fees: internal road maintenance, lighting, greenery, security, centralised wastewater treatment. Collected by the IP developer, these fees spark disputes when tenants find the rates unreasonable, overlapping with rent, or mismatched with service quality.

The legal basis of the fee

IP infrastructure fees are essentially contractually agreed service charges, recorded in the land sublease/infrastructure lease between the IP developer and the enterprise. The current IP management framework is Decree 35/2022/ND-CP on industrial and economic zone management — developers must invest in and maintain infrastructure and publish the IP’s regulations and service fee schedules. When verifying correctness, three bases apply in priority order: (1) the signed contract (fee rates, service scope, adjustment mechanics); (2) the published fee schedule and IP regulations; (3) actual records of services delivered.

Typical dispute patterns

Unilateral fee hikes: the developer raises fees where the contract has no adjustment clause — handled under the Article 428 Civil Code 2015 principle: no unilateral change to agreed contents. Double charging: infrastructure fees overlapping rent that already covers maintenance — separate each sum’s scope in the original contract. Quality mismatch: deteriorated roads, substandard wastewater treatment — tenants may demand proper performance, a basis for negotiating fee reductions.

May fees be withheld during a dispute?

The general rule: contractual payment duties continue while the disputed difference is contested — refusing all payment can put the enterprise in breach, attracting late-payment interest or service suspension (if the contract allows). The safe course: keep paying the undisputed portion, reserve objections in writing on the difference, and accelerate negotiation and mediation. Suspend payment only with clear evidence of wrongful charging, notified in writing.

Frequently asked questions

1. Where are IP infrastructure fee disputes with developers resolved?
Per the contract’s dispute clause: negotiation and mediation first; failing that, litigation before the People’s Court or commercial arbitration under an arbitration agreement.

2. What bases verify whether infrastructure fees are correct?
In order: the signed contract, the published fee schedule and IP regulations, and actual service-delivery records. Developers must publish fee schedules under Decree 35/2022/ND-CP.

3. May payment be refused while disputing?
Refusing everything is unwise. Keep paying the undisputed portion, reserve written objections on the difference, and suspend only with clear evidence of wrongful charging.

4. Which court hears suits against IP developers for wrongful fees?
Infrastructure service contract disputes are business/commercial disputes — sued before the competent People’s Court under the 2015 Civil Procedure Code, or commercial arbitration under an arbitration clause.

This article has been quality-reviewed by the FLAW AI Legal Council. Content is for legal reference only and does not replace lawyer advice for specific cases.