More Incentives for Investments into Agriculture and Rural Areas

The Government has promulgated Decree No. 61/2010/NĐ-CP on incentives and support offered by the State to enterprises making investments into agriculture and rural areas.

Accordingly, enterprises with agricultural projects belonging to prioritized and stimulated for investment projects will be entitled to incentives in terms of land allocation and investment support when making investments into administrative units excluding wards and districts belonging to towns and cities; areas with socio-economic conditions of extreme difficulties; or areas in 28 industries as stipulated in the Decree.

Investors having especially prioritized agricultural projects are exempted from land use fee if they are allocated with land; from land and water surface rental fee since the projects are put into operation. If they rent land or water surface from households and individuals, they will be supported 20 percent of the rental fee according to the regulated price frame in the first five years. They will be exempted from paying land use fee when changing land use purpose if the land is in master plan.

Agricultural projects which are prioritized for investment enjoy a reduction of 70 percent in the land use fee; are applied the lowest rental fee according to the price frame regulated by the provincial People’s Committees; are exempted from rental fee in the first 15 years since the projects come into operation; and are exempted from 50 percent of land use fee when changing land use purpose if the land is in master plan.

Agricultural projects stimulated for investment are entitled to a 50 percent reduction in land use fee; are applied the lowest rental rate according to the price frame set by the provincial People’s Committee; and are exempted from land rental fee in the first 11 years since the projects are put into operation.

Furthermore, investors with above mentioned projects are exempted from land rental fee for areas they use to construct accommodation for workers, plant trees and serve community, etc.

In terms of investment support, enterprises listed above are given a cut of 50-100 percent of vocational training fee according to their company scale; 50% advertisement costs on mass media; up to 70 percent of expenditures for participating in domestic exhibitions and fairs; and 50-100 percent of information access fee.

Enterprises also enjoy exemption and reduction of costs for researching market, law, technology transfer, etc.; are offered budget for conducting researches to create new products, and offered part of transportation fees but not more than VND500 million per enterprise per annum.

The Decree takes effect from July 25th 2010.

VCCI

Tags: Vietnam agriculture