Chapter II
POLICIES ON INVESTMENT INCENTIVES AND SUBSIDIES
Article 5. Exemption or reduction of land levy
An enterprise that has an agriculture project (which is eligible for either special investment incentives or investment incentives, or is an encouraged agriculture project) shall have a land area allocated by the Government or be permitted to change the use purpose of an existing land area for building house for workers as prescribed in Article 55 of the Law on land and exempted from payment of fees for changing land use purpose and the land levy of that land area after change of use purpose.
Article 6. Exemption or reduction of land rental and water surface rental payable to the Government
1. If an enterprise that has an agriculture project eligible for investment incentives or an encouraged agriculture project leases land and/or water surface from the Government, land rental and/or water surface rental shall be calculated according to preferential land prices announced by the Provincial-level People's Committee and fixed for at least 05 years.
2. An enterprise that has an agriculture project eligible for special investment incentives shall be exempted from payment of land rental and/or water surface rental from the date on which it has land and/or water surface leased by the Government.
3. An enterprise that has an agriculture project eligible for investment incentives shall be exempted from payment of land rental and/or water surface rental for the first fifteen years from the date on which it has land and/or water surface leased by the Government and shall have 50% of land rental and/or water surface rental reduced in subsequent 07 years.
4. An enterprise that has an encouraged agriculture project shall be exempted from payment of land rental and/or water surface rental for the first eleven years from the date on which it has land and/or water surface leased by the Government and shall have 50% of land rental and/or water surface rental reduced in subsequent 05 years.
5. An enterprise that has an agriculture project (which is eligible for either special investment incentives or investment incentives, or is an encouraged agriculture project) and has land leased by the Government to build house for workers or to use for non-farm purposes (construction of warehouse, workshop, drying ground, road or planting of trees), or changes the use purpose of an existing land area to serve the purposes specified in this Clause, shall be exempted from payment of land rental.
6. A new small and medium-sized agricultural enterprise shall be exempted from payment of land rental and/or water surface rental for the first five years from the date on which the project officially starts its operation and shall have 50% of land rental and/or water surface rental reduced in subsequent 10 years.
Article 7. Subsidies for land consolidation
1. An enterprise that has an agriculture project eligible for special investment incentives and leases or sub-leases land and/or water surface from households or individuals for implementing such project may receive a subsidy from the Government, equivalent to 20% of the land rental and/or water surface rental for the first five years from the date on which the project officially starts its operation. The land rental and/or water surface rental shall be calculated as regulated in Clause 1 Article 6 herein.
2. An enterprise that has an agriculture project (which is eligible for either special investment incentives or investment incentives, or is an encouraged agriculture project) and receives land contributed as capital by a household or individual for establishment of a material zone shall be eligible to receive a subsidy which is VND 50 million/ha but shall not exceed VND 10 billion/project from the Government, and is not required to convert the form of use of such land area into leased land.
3. If an enterprise that consolidates land under both forms specified in Clause 1 and Clause 2 of this Article, it shall receive all of the subsidies granted according to these clauses from the Government.
4. During the lease period of an enterprise investing in agriculture and rural development sector, the Government shall not adjust the land use plan so as to avoid adverse influence on the project, except the case where the Government must appropriate the land according to regulations in Article 61 and Article 62 of the Law on land and special case where the land use plan must be adjusted according to regulations in Clause 1 and Clause 2 Article 46 of the Law on land.
5. Enterprises using land for agricultural or aquaculture purposes are encouraged to build accompanying agricultural product processing plant and infrastructure facilities (such as warehouse, head office, internal roads and waste treatment systems). Procedures for change of land use purpose and construction shall be carried out in accordance with the Law on land and the Construction Law.
Article 8. Credit subsidies
1. An enterprise investing in agriculture and rural development sector shall receive interest rate subsidies on commercial loans from local government budget upon the completion of investment project. To be specific:
a) The subsidy is equal to the difference between the commercial loan interest rate and the Government's concessional loan interest rate on the actual outstanding loan balance at the time of considering the application for subsidy.
b) The period for receiving interest rate subsidy, calculated from the disbursement date specified in the credit contract signed with the commercial bank, shall not exceed:
- 08 years for an agriculture project eligible for special investment incentives; 06 years for an agriculture project eligible for investment incentives; 05 years for an encouraged agriculture project. A new small and medium-sized agricultural enterprise shall receive interest rate subsidy on its project for a period of 08 years.
- An enterprise joining a value chain shall receive interest rate subsidy for a period equal to the production cycle of related product.
c) Subsidized loan limit: The maximum loan amount shall not exceed 70% of total investment of a project.
d) Policies and method of granting interest rate subsidies shall be promulgated by the Provincial-level People’s Council in conformity with local conditions.
2. Structures on land (including net house, green house, poly house and hydraulic structures) of an enterprise receiving subsidies shall be considered as collaterals offered to commercial banks for loans.
Article 9. Subsidies on research, transfer and application of hi tech to agriculture
1. Subsidies will be given to implement scientific research themes or acquire patents, technologies or scientific research and technological development findings for generating new products or innovating technology, technologies for minimizing environmental pollution and saving materials, fuels and energy. To be specific:
a) The subsidy is equal to 80% of the funding for implementation but shall not exceed VND 300 million/ project (or patent or technology).
b) Eligibility requirements for subsidy:
- The revenue earned by the enterprise in previous year must be 10 times the subsidy amount.
- The patient or technology to be acquired or transferred by the enterprise must be conformable with its business orientations.
- If a scientific research theme’s outputs are applied to reality, the full amount of subsidy shall be paid. Otherwise, 50% of the subsidy shall be paid.
2. Subsidies will be given to enterprises that implement projects on trial production with application of advanced technologies, hi tech or production of new products:
a) Enterprises that participate in or take charge of science and technology projects funded by state budget shall be given priority.
- Enterprises are invited to perform contents of a science and technology project or construct models of a science and technology scheme implemented in the local area where the enterprise’s head office is located;
- The priority is given to enterprises’ proposals for the procurement of science and technology projects to be approved and implemented in the form of selection or direct assignment;
- The priority is given to enterprises that own valuable and rare genetic resources to implement national genetic resource projects with the aims of generating new commercial products.
b) The subsidy is equal to 70% of the funding for implementing science and technology tasks under an agriculture project eligible for special investment incentives, and 50% of the same under an agriculture project eligible for investment incentives or an encouraged agriculture project provided that it shall not VND 01 billion. c) Eligibility requirements for subsidy:
- A project on trial production with application of advanced technologies or hi tech or production of new products must be given a written approval by a scientific agency affiliated to a Ministry or Provincial-level People's Committee.
- Science and technology tasks must be conformable with business orientations of the enterprise applying for subsidy.
3. Enterprises are entitled to own outputs from their scientific research themes which have been duly assessed and accepted and given priority to develop science and technology products thereof:
a) An enterprise that leads a state-funded science and technology project is entitled to develop the plant varieties or animal breeds, which are the project’s outputs and duly assessed as satisfactory, in a large scale within a period of 03 years from the completion of its project.
b) An enterprise that leads a state-funded science and technology project is entitled to develop the new products, which are the project’s outputs, duly assessed as satisfactory and acceptable in markets, in a large scale within a period of 02 years from the completion of its project.
c) Product quality testing results provided by an enterprise that leads a state-funded science and technology project and has laboratories meeting ISO/IEC 17025 standards will be accepted when it submits the application for product registration to a competent authority.
4. An enterprise that has a project on plant propagation by tissue culture shall receive the following subsidy:
a) The subsidy is equal to 80% of the funding for construction of infrastructure facilities, equipment and environmental remediation but shall not exceed VND 05 billion/project.
b) Eligibility requirements for subsidy: At least 01 million plants are propagated per year. The subsidy will increase in proportion to the project's scale provided that it shall not exceed VND 10 billion/project.
5. An enterprise that has a project on production of plant varieties, animal breeds or aquatic species or trial cultivation of new plant species with high economic value, which has been given approval by the Provincial-level People's Committee, shall receive a subsidy equal to 70% of funding for construction of infrastructure facilities, equipment, environmental remediation and plant varieties provided that it shall not VND 03 billion/project.
6. An enterprise investing in hi-tech agricultural park, zone or project shall receive a subsidy equal to VND 300 million/ha for covering expenditure for building infrastructure facilities, equipment and environmental remediation.
Article 10. Subsidies on personnel training and market development
1. An enterprise that has an agriculture project eligible for special investment incentives or investment incentives or an encouraged agriculture project shall receive the following subsidies from state budget:
a) A subsidy as VND 02 million/month/employee is given to the enterprise directly organizing personnel training courses for a period of not more than 03 months.
If an enterprise joining a value chain provides training and technical instructions for farmers, it shall receive a subsidy equal to VND 500 thousand/farmer to be trained. Period for receiving subsidy is 03 months.
b) The enterprise shall receive a subsidy as 50% of expenses for advertising and creating brand names of national and provincial key products, and a subsidy as 50% of expenses for attending domestic and/or overseas trade fairs or exhibitions upon the approval by a competent authority.
2. The subsidies specified in Clause 1 of this Article shall be given to every eligible investment project. Total amount of subsidies given to each project shall not exceed 10% of total investment of that project and not exceed VND 01 billion.
3. Subsidy shall be given to an enterprise in charge of establishing and managing the electronic portal for “National agricultural market” (or eNAM portal).
a) Eligibility requirements for subsidy:
- The enterprise must have at least 05 years of experience in e-commerce and at least VND 10 billion as collateral.
- The eNAM portal must be created in at least three languages (including Vietnamese, English and Chinese) and maintained for at least 10 years. Information concerning products provided by enterprises must be retained for at least 03 years.
- The Government shall give subsidy when there are at least 500 enterprises introducing their products on this eNAM portal.
b) The Government shall give subsidy which is equal to VND 05 million/enterprise introducing its products on eNAM portal to the enterprise in charge of creating and managing this eNAM portal. Total amount of subsidies shall not exceed VND 05 billion. c) In case there are several enterprises wishing to participate in building and management of eNAM portal, the qualified one shall be selected via bidding.
4. Enterprises investing in agriculture and rural development sector are entitled to proactively purchase raw agricultural products generated by cultivation and breeding for storing and processing according to their standards.
Agricultural products generated by cultivation and breeding of plants and animals shall be freely sold in the market. Competent authorities shall not adopt administrative procedures for certification of origin of raw agricultural products and other administrative procedures to cause difficulties in harvesting, transport, sale and export of agricultural products, except the case concerning national security and epidemics harming community health as prescribed in specialized laws.
Article 11. Subsidies on investment in agricultural product processing and storage facilities, slaughterhouses, manufacturing of agricultural machinery, equipment and parts, and production of auxiliary products
1. The Government shall give subsidies to enterprises having investment projects in agricultural product processing facilities, slaughterhouses, manufacturing facilities of agricultural machinery, equipment and parts thereof, or production facilities of auxiliary products. To be specific:
a) With regard to agricultural product processing facilities and slaughterhouses: The subsidy equal to 60% of investment funding but not exceeding VND 15 billion/project is given to construct waste treatment systems, traffic, electrical and water systems, workshops and acquire necessary equipment.
b) With regard to manufacturing facilities of agricultural machinery, equipment and parts thereof, and production facilities of auxiliary products: The subsidy equal to 60% of investment funding but not exceeding VND 05 billion/project is given to construct waste treatment systems, traffic, electrical and water systems, workshops and acquire necessary equipment.
c) Each investment project in agricultural product processing facility must satisfy the requirement that the value of processed agricultural products increases at least 1.5 times the value of raw agricultural products.
2. Subsidies on storage of agricultural products:
An enterprise investing in agricultural product storage facilities (including drying, irradiation, chilling, freezing and biopreservation of foods) may receive the following subsidy from state budget.
a) The subsidy equal to 70% of investment funding but not exceeding VND 02 billion/project is given to construct waste treatment systems, traffic, electrical and water systems, workshops and acquire necessary equipment.
b) Eligibility requirements for subsidy:
- Capacity of a drying plant must be at least 100 tons/ day if drying rice, maize, potatoes, cassava and forest products; or 50 tons/day if drying aquatic by-products.
- Capacity of storage facility must be at least 1,000 tons/ facility if it is used to preserve fresh vegetables, fruits, teas, peppers and cashew nuts; or 100 tons/ facility if it is used to store plant varieties.
3. Subsidies on purchase of vessels: An enterprise that purchases fishing vessel may receive a subsidy from state budget, which shall not exceed 60% of purchasing amount and is calculated according to the vessel’s capacity: VND 30 million/ DWT; the vessel’s loading capacity is at least 200 DWT; the maximum level of subsidy is VND 10 billion/vessel.
4. In case an enterprise, which is established under regulations in Article 6 of the Government's Decree No. 118/2014/ND-CP dated December 17, 2014 on re-structuring, development and improvement of performance of agriculture and forestry companies, has constructed a processing facility as prescribed in Clause 1 of this Article, it may receive an additional subsidy to build infrastructure facility for its material zone; the subsidy is VND 50 million/ha and shall not exceed VND 05 billion/project.
5. When processed agricultural products prescribed in Point a Clause 1 of this Article are certified as national key products, the investment project is given an additional subsidy as VND 03 billion in addition to the abovementioned subsidies to invest in infrastructure facilities.
Article 12. Subsidies on investment in beef and dairy cattle farms
Each enterprise investing in dairy or beef cattle farm shall receive the following subsidy from state budget:
1. The subsidy as VND 05 billion/project is given to construct waste treatment systems, traffic, electrical and water systems, workshops and acquire necessary equipment.
2. In addition to the subsidy specified in Clause 1 of this Article, if an enterprise imports and directly breeds or cooperates with farmers in breeding of high-yielding cattle breeds, it may receive an additional subsidy as VND 10 million/cow.
Article 13. Subsidies given to enterprises providing public services and investing in infrastructure facilities in rural areas.
1. An enterprise having project on supply of clean water to a rural area shall receive subsidies as follows:
a) A subsidy as VND 03 million/m3/day-night is given to a new water supply plant or a subsidy as VND 02 million/m3/day-night is given to upgrade and expand an existing water supply plant.
b) A subsidy of not exceeding 50% of total expenses for installing major pipelines transporting water to residential areas where there are at least 10 households each shall be given.
2. An enterprise investing in a project on collection and treatment of municipal solid water or domestic wastewater in a rural area, or collection and treatment of waste from trade villages, shall receive a subsidy which is equal to 60% of expenses for purchasing equipment and building treatment systems but not exceeding VND 05 billion/project.
3. An enterprise investing in an aquaculture project whose scale is not less than 05 ha receives a subsidy as VND 200 million/ha to build infrastructure facilities, water supply and drainage systems and environmental remediation systems. This subsidy increases in proportion to the aquaculture area. The subsidy shall not exceed VND 10 billion/project.
4. An enterprise investing in projects on construction of wharf to serve the transport of agricultural, forest and aquatic products, anchoring zone, advanced irrigation and drainage system or hydraulic structure serving agricultural production may receive a subsidy equal to 50% of total funding of an investment project approved by a competent authority. The subsidy shall not exceed VND 20 billion/project.
5. Subsidies on construction of social houses for workers: If an enterprise invests in agriculture and rural development sector and employs at least 100 workers who work at its factories on a regular basis, it may receive subsidies to build social houses for workers. The subsidy is VND 01 million/m2 of building area of a grade-4 house and VND 02 million/m2 of building area of a house of two stories or taller.
6. Outside-the-fence subsidies: If an enterprise has an investment project in agriculture and rural development sector as regulated herein but the traffic system meeting grade-V standards for mountainous region, electrical system and water supply and drainage system outside the project fence are not available to serve the project's operations, the enterprise shall receive an additional subsidy which is equal to 70% of expenses for constructing these work items but not exceeding VND 05 billion.
Tìm kiếm
Nghị định 57/2018/NĐ-CP (Bản Word)
Nghị định 57/2018/NĐ-CP (Bản Pdf)