Provinces and cities must annually spend at least two percent of local budgets to support investment in agriculture and rural development.
This is highlighted in a draft circular designed by the Ministry of Planning and Investment to guide Government Decree No. 210/2013/ND-CP on policies to promote investment in agriculture and rural areas.
As provided in the draft, enterprises having investment projects in the sector will enjoy state budget supports in terms of human resource training, market development, application of scientific and technological advances, infrastructure construction, etc.
At the same time, they will be entitled to exemption from or reduction of land use levy and land or water surface rental in accordance with the land law.
The draft paper also specifies support levels for agricultural projects. For example, dairy farming project owners will receive a support of VND 10-15 million for each imported dairy cow, while those growing medicinal plants and macadamia will be entitled to a support of VND 15 million per hectare.
Projects involving the building of electricity systems will be entitled to a support of VND 100-110 million, while those with the construction of roads, workshops of a height of over 5 meters or clean water tanks will receive a support of VND 1-2 million for each square meter of construction.
In another bid to support agricultural investment projects, the Ministry of Finance has recently proposed interest rate support for those who borrow capital to purchase agricultural machinery and equipment. The support level would equal the interest amount in the first two years and then reduce to 50 percent of the interest amount in the third year, counting from the date of disbursement under credit contracts or loan agreements.
As for projects eligible for support for difference between the state investment credit interest rate and commercial loan interest rate, project owners may borrow up to 70 percent of their project value.-