Many foreign investors only ask “does the land have a certificate” while overlooking the planning layer that directly decides what may be built, how high, and for what purpose: zoning plans and detailed construction plans. Incompatible with these, the project gets no building permit — even with the lease signed.
What are the two planning layers?
Zoning plans (usually 1/2000) divide areas into functional zones: industrial, commercial-service, residential, green, transport land. Detailed plans (1/500) go down to each plot: building lines, building density, maximum height, floor area ratio, setbacks. For FDI projects leasing in industrial parks, the park detailed plan (prepared by the developer, approved by the authority) is the direct “rulebook”.
Concrete project impacts
One, use purpose: a manufacturing project may only sit on land planned as industrial/production-business land — placing a factory on commercial-service planned land violates planning. Two, building indicators: the design density, height and floor area ratio must stay within the detailed plan limits; exceeding means no permit. Three, technical infrastructure: the detailed plan fixes transport connections, water supply/drainage and wastewater treatment points — factory design must comply, affecting layout and cost.
What should the enterprise do?
Before finalising design: obtain a planning conformity document from the construction/park management authority; reconcile the basic design dossier with the 1/500 detailed plan. In the land sublease with the park developer: require the lessor to warrant delivery of land per the approved planning and to support adjustment procedures if planning changes. If the detailed plan is missing or under adjustment — do not rush to build; wait for the official document.
Frequently asked questions
1. How do zoning and detailed plans differ?
Zoning plans (1/2000) allocate land-use functions per area; detailed plans (1/500) regulate each plot: building lines, density, height, floor area ratio. Projects must comply with both.
2. What if the project conflicts with the detailed plan?
No building permit issues; deliberate building invites construction-order violations and forced demolition. Redesign to comply or pursue plan adjustment (very difficult and slow).
3. Who is responsible for planning in an industrial park lease?
The park infrastructure developer prepares and seeks approval of the park detailed plan. Subleasing enterprises should obtain conformity confirmation for their plot and demand warranties in the contract.
4. Should we proceed while the detailed plan is under adjustment?
Wait for the official adjustment document. Building to the old plan risks redesign or demolition of built parts if the adjustment differs.
Key takeaways for investors
- Zoning (1/2000) and detailed (1/500) plans decide what a project may build.
- Non-compliance means no building permit.
- Reconcile design with the detailed plan before finalising.
- Demand developer warranties that land matches approved planning.
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.
