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Official Gazette

Tuesday, June 15, 2021

Incentives proposed to attract investment in agriculture

Updated: 14:31’ - 03/06/2021
Animal husbandry project owners would be entitled to a support at most equaling 50 percent of their projects’ total investment, which, however, must not exceed VND 10 billion (USD 435,000).

It is one of the incentives for investors in the agriculture sector introduced in a draft decree designed by the Ministry of Planning and Investment to replace Decree 57 of 2018.

Vinamilk dairy cow farm in Tay Ninh province__Photo: https://baotayninh.vn/

Specifically, businesses having agricultural projects eligible for special investment incentives would be exempted from land or water surface rental for such projects from the date of land or water surface lease by the State.

Firms investing in agricultural projects eligible for investment incentives would be exempted from land or water surface rental for such projects for the first 15 years from the date of land or water surface lease by the State and a 50 percent-reduction of the payable land or water surface rental amount for the subsequent seven years. As for projects eligible for investment promotion, the periods of tax exemption and reduction would be 11 years and five years, respectively.

Regarding credit support policy, under the draft, agriculture and rural development project owners would be entitled to interest-rate support at the level equivalent to the difference between the commercial loan interest rate and the interest rate on state investment credit. The support amount for a specific project would be calculated based on the project owner’s actual outstanding loan balance at the time competent authorities consider providing support, which, however, must not exceed 70 percent of the project’s total investment. The project owner would enjoy the interest-rate support for a period starting from the date of first disbursement under the loan agreement signed with the commercial bank, which would be at most eight years, for projects eligible for special investment incentives; six years, for projects eligible for investment incentives; or four years, for projects eligible for investment promotion.

As for aquaculture businesses, the draft decree says enterprises with a farming area of at least 5 hectares would be entitled to support at the rate of VND 200 million (USD 8,700) per hectare for construction of infrastructure facilities, water supply and drainage and environmental treatment. The support amount per project would increase correspondingly to the farming area but must not exceed 50 percent of the projects’ investment fund and VND 10 billion at most.- (VLLF) 

 

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