The Government is working on new decree to bring about greater investment opportunities in Vietnam’s agriculture and rural areas.
According to the decree drafted by the Ministry of Planning and Investment, local and foreign investors would be able to equally invest in agricultural and rural projects, while impediments regarding production sites, capital, workers, materials and technology would be largely removed.
Specifically, investors with projects on the list of investment-incentive projects may borrow from commercial banks preferential loans up to 80 per cent of their investment level. Meanwhile, investors with small-scale projects would have access to preferential loans from the small- and medium-sized enterprise development fund.
The draft paper also stipulates that investors with projects encouraged by the Government would be exempted from land use levy if the land is allocated by the State. If the land has been leased by the State, they would be exempted from land use levy for 10 years. They would also enjoy a 50 per cent land-use tax reduction for the subsequent 10 years. Investors with projects in sectors eligible for investment incentives, particularly in areas meeting with difficulties, will also be exempted from land use levy.
In another move to boost agricultural development, the State Bank of Vietnam is gathering public opinions on a draft decree on credit for agriculture and rural development.
Under the draft paper, the limit of unsecured loans for agriculture and rural areas would be raised to VND 50 million for each agricultural, forestry, fishery or salt-making household, VND 200 million for production and service households in rural areas, and VND 500 million for cooperatives and farm owners, five times the previous VND 10 million under Decision No. 67 issued 10 years ago.
To take unsecured loans, according to the draft paper, borrowers would be also required to present land-use right certificates or written certifications of land-use rights made by local administrations.-