Vietnam Law & Legal Forum Magazine is your gateway to the law of Vietnam

Official Gazette

Friday, November 24, 2017

Agriculture investors to receive more incentives from the State

Updated: 10:58’ - 23/05/2017
Enterprises established and registering operation under Vietnamese law and having agricultural projects eligible for investment incentives would receive more supports from the State, according to a draft decree prepared by the Ministry of Planning and Investment to replace Decree No. 210 of 2013.

Investors might receive VND 5 billion per project on milch cow rearing__Photo: Internet

As per the draft, which provides incentive policies toward investors in agriculture and rural areas, enterprises that have agricultural projects eligible for special investment incentives, investment incentives or investment promotion, would be entitled to exemption from, a reduction of 70 percent or 50 percent of, land use levy for land areas allocated by the State, respectively.

Particularly, these enterprises would be exempted from land rental for land areas used for building worker dormitories and land areas of non-agricultural production establishments in the project implementation duration.

Enterprises having agricultural projects eligible for special investment incentives would be exempted from land or water surface rental from the date such projects commence operation.

For enterprises having agricultural projects eligible for investment incentives or investment promotion, land or water surface rental would be exempted for the first 15 years and reduced by 50 percent for seven subsequent years, or the first 11 years and five subsequent years, respectively. When renting land or water surface of the State, these enterprises may apply the lowest prices of corresponding land categories in the land price tables issued by provincial-level People’s Committees.

In the field of animal husbandry, state budget funds would be provided for enterprises that invest in concentrated livestock farms, comply with the law on environmental protection and have at least 30 percent of their staff employees are local inhabitants.

Specifically, they would receive VND 3 billion per project on pig raising or VND 5 billion per project on milch cow, buffalo, goat or sheep rearing, for building waste treatment systems, roads, electricity supply and water supply and drainage systems and workshops, and for equipment procurement.

If no roads, electricity supply and water supply and drainage systems are available at project sites, enterprises would, in addition to the above supports, receive an amount equal to 70 percent of the expense for building those systems, which, however, must not exceed VND 5 billion.

The central state budget would reserve at least 2 percent of annual development investment funds while provinces and centrally run cities would earmark at least 1 percent of their budgets to support investment in agriculture and rural areas, according to the draft.- (VLLF)
 

Send Us Your Comments:

See also:

Video

Vietnam Law & Legal Forum