Decision No. 132/2000/QD-TTg On Certain Policies to Encourage the Development of Rural Industries

DECISION OF THE PRIME MINISTER

On certain policies to encourage the development of rural industries

PRIME MINISTER

Based on the Government Organization Law dated September 30, 1992;

At the proposal of the Minister of Agriculture and Rural Development,

 DECISION:

Article 1. Rural industries and applicable subjects

1.Rural industries specified in this Decision include:

a)Small-scale and handicraft production in rural areas:

Processing and preserving agricultural, forestry, and aquatic products;

Producing construction materials, wooden goods, woven bamboo and rattan products, ceramics, glassware, textiles, small machinery in rural areas;

Processing raw materials for rural industry production;

b)Handicraft production;

c)Construction, transportation within villages and inter-village areas, and other services supporting production and rural residents' living conditions.

2.Applicable subjects:

a)Households, individuals;

b)Groups, cooperative teams, cooperatives, private enterprises, joint-stock companies, limited liability companies, partnerships.

Hereinafter referred to collectively as Rural Industry Establishments.

Article 2. Policy on the development of rural industries

1.The State shall plan and guide the development of rural industry establishments under market mechanisms, ensuring sustainable development, maintaining good rural environmental hygiene, implementing industrialization and modernization of agriculture and rural areas; at the same time, planning traditional rural industry establishments must be linked with cultural tourism development.

2.The State shall have policies to encourage the consumption and use of rural industry products, especially those using natural domestic raw materials (wood, bamboo, rattan, leaves, etc.) to reduce part of the environmental harm caused by chemical plastic industrial waste products.

3.The State shall encourage, create favorable conditions, and implement policies to protect the legitimate rights and interests of rural industry production and business establishments as stipulated in Article 1 of this Decision, particularly traditional industries, to meet domestic consumption needs and exports, attract more labor, contribute to solving employment issues in rural areas, alleviate poverty, preserve and promote ethnic cultural values.

4.The State shall protect the legitimate rights and interests, safeguard property ownership, trade secrets, inventions, patents, copyrights, and industrial property rights, designs, and models of individuals and organizations investing in developing rural industries.

5.Encourage voluntary establishment of associations based on industries or regions to provide practical support for the development of rural industry establishments, reflect their aspirations, and participate in opinions with state agencies in planning mechanisms and policies for the development of rural industries.

6.Encourage and create conditions for organizations and individuals to mobilize social resources to implement assistance activities, consulting, information dissemination, marketing, vocational training, promoting industry, technological research, design, and modeling for the development of rural industries.

Article 3. Land

1.Rural industry establishments currently using land stably without disputes shall be granted certificates of land use rights by the competent People's Committee (province, district) to ensure they can invest confidently in production development. Within 10 working days from the date of receipt of the dossier as mentioned in Sub-clause b, Clause 1, Article 3 above, the Ministry of Foreign Affairs will review and submit to the competent authority for decision (Issues exceeding the Ministry of Foreign Affairs' jurisdiction will be referred to the Prime Minister for consideration and decision).2.Every year, according to the provincial or centrally-administered city land use planning and plans, the State allows a portion of agricultural and forest land to be converted for the development of rural industries.

For regions with many rural industry establishments,

The provincial People's Committee assigns the district or commune People's Committee to plan land use and invest in constructing technical infrastructure for small-scale and handicraft industrial zones, creating favorable conditions for rural industry establishments to lease land and build production facilities. Within 10 working days from the date of receipt of the dossier as mentioned in Sub-clause b, Clause 1, Article 3 above, the Ministry of Foreign Affairs will review and submit to the competent authority for decision (Issues exceeding the Ministry of Foreign Affairs' jurisdiction will be referred to the Prime Minister for consideration and decision).3.Rural industry establishments needing land to relocate old cramped and environmentally polluting production facilities or requiring leased land to construct new production facilities for protecting, caring for, restoring, and planting raw material areas shall be given priority leasing at the lowest possible rental price by the competent People's Committee.

4.Leasing procedures:Within 10 working days from the date of receipt of the dossier as mentioned in Sub-clause b, Clause 1, Article 3 above, the Ministry of Foreign Affairs will review and submit to the competent authority for decision (Issues exceeding the Ministry of Foreign Affairs' jurisdiction will be referred to the Prime Minister for consideration and decision).The land lease application includes the following contents:

-Name of organization or individual (regardless of whether the lessee has permanent residence registration in the locality).

-Purpose of land use.

-Location and area of land to be leased.

-Lease term.

-Commitment to use the land for its intended purpose.

After receiving the land lease applications from rural industry establishments, within 15 days,

the commune People's Committee shall review and propose to the district People's Committee (if the application is from households, individuals, cooperative groups, cooperatives) or the provincial People's Committee (if the application is from private enterprises, joint-stock companies, limited liability companies, partnerships).

After receiving the land lease applications from rural industry establishments and the proposals ofWithin 10 working days from the date of receipt of the dossier as mentioned in Sub-clause b, Clause 1, Article 3 above, the Ministry of Foreign Affairs will review and submit to the competent authority for decision (Issues exceeding the Ministry of Foreign Affairs' jurisdiction will be referred to the Prime Minister for consideration and decision).the commune People's Committee, the district or provincial People's Committee must respond and guide the rural industry establishments to complete subsequent procedures for leasing land within 15 days. Within 10 working days from the date of receipt of the dossier as mentioned in Sub-clause b, Clause 1, Article 3 above, the Ministry of Foreign Affairs will review and submit to the competent authority for decision (Issues exceeding the Ministry of Foreign Affairs' jurisdiction will be referred to the Prime Minister for consideration and decision).5.Rental land fees shall be retained in the commune budget to invest in local infrastructure development in accordance with the State Budget Law.

The Land Administration General Department and the Ministry of Finance shall be responsible for monitoring and guiding localities in implementing land leasing procedures and policies regarding the use of rental land fees as stipulated in this Article. The People's Committee of the commune, the People's Committee of the district or province must respond and guide the rural industry establishments on the subsequent procedures for leasing land within fifteen days.

5. Rent payment for land shall be retained in the commune budget to invest in developing local infrastructure in accordance with the provisions of the State Budget Law.

The National Land Administration and the Ministry of Finance are responsible for monitoring and guiding localities in implementing the procedures for leasing land and the policy on the use of rent payments for land as stipulated in this Article.

Article 4. Raw materials for production

1. Provinces and centrally governed cities shall base on the requirements for thedevelopment of rural industries in their localities to establish plans and plansfor developing areas of agricultural, forestry, and aquatic raw materials toensure local raw material sources and stabilize the development of ruralindustries.

2. Rural industry establishments that require exploitation of raw materials frommineral resources shall be prioritized for issuance of permits for exploitationand use in accordance with the provisions of the law.

3. For raw materials from forest resources, apart from the portion of raw materialsfrom natural forests coordinated by the Ministry of Agriculture and RuralDevelopment in the annual plan for exploitation and use, it is encouraged thatestablishments utilize raw materials from planted forests and imported rawmaterials.

For forest products not listed in the export prohibition list, when exporting,establishments are not required to declare the origin of raw materials and arenot subject to export quota restrictions.

4. Encouragement is given to the development of industries, small-scale, andhandicraft industries producing or processing raw materials for ruralindustries.

Article 5. Investment and Credit

1. Rural industry establishments shall enjoy investment incentives in accordancewith Decree No. 51/1999/ND-CP dated July 8, 1999, detailing the implementationof the Law on Encouraging Domestic Investment (Amended) No. 03/1998/QH10.

2. The agency receiving and processing registration files for investment incentivesshall have the responsibility to clearly determine the right to enjoy investmentincentives of rural industry establishments in the Certificate of InvestmentIncentives; subsequent enforcement agencies shall have the responsibility toprotect those rights for rural industry establishments and shall not demandany additional procedures.

3. For rural industry establishments with good investment projects, after beingapproved by the People's Committee of the district, they will be eligible forloans from the Development Support Fund; interest rate support after investment;guaranteed credit investment according to the conditions, procedures, andprocedures stipulated in Decree No. 43/1999/ND-CP dated June 29, 1999, on stateinvestment credit development. The Ministry of Finance shall guide specific conditions for rural industryestablishments to benefit from this policy.

4. Rural industry establishments that do not meet the conditions to guarantee loanswith collateral assets may borrow funds under the regulations on third-partyasset guarantees.

5. Rural industry establishments may borrow funds from financial organizations inthe form of credit guarantees provided by organizations and political-socialgroups in accordance with Article 26 of Decree No. 178/1999/ND-CP dated December29, 1999, on ensuring loan funds for financial organizations.

6. The State Bank of Vietnam shall direct financial organizations to guide ruralindustry establishments on simple loan procedures, publicly announce them,provide suitable forms of loans, and create favorable conditions for theseestablishments to borrow funds for production development.

Article 6. Tax and Fees

1. Rural industry establishments shall enjoy preferential tax rates as prescribed inDecree No. 51/1999/ND-CP dated July 8, 1999, detailing the implementation of theLaw on Encouraging Domestic Investment (Amended) No. 03/1998/QH10 regarding taxpolicies on natural resources as stipulated by the law.

2. Rural industry establishments shall implement payment of fees and charges inaccordance with Decree No. 04/1999/ND-CP dated January 30, 1999, of theGovernment, abolishing and strictly prohibiting the collection of various typesof fees and charges contrary to the law against rural industry establishments.

3. Regarding fees and charges related to rural transportation infrastructureinvested by localities and relevant to rural industry establishments, theMinistry of Transport shall take the lead in coordinating with the Ministry ofFinance and the Ministry of Agriculture and Rural Development to provideguidance and appropriate regulations.

Information and Market for Product Consumption

Article 7.1. Ministries, sectors, and people's committees at all levels shall createconditions for rural industry establishments to promptly access information onmarkets, prices, product specifications, and standards in domestic and internationalsupply and demand.

2. Rural industry establishments shall be entitled to a reduction of 50% or more incosts for leasing space to participate in domestic trade fairs and exhibitions tointroduce products. The State encourages and creates favorable conditions forprocedures for entry and exit and partially subsidizes costs for rural industryestablishments and artisans to visit, study, participate in trade fairs andexhibitions, introduce products, and understand foreign markets. Within 10 working days from the date of receipt of the dossier as mentioned in Sub-clause b, Clause 1, Article 3 above, the Ministry of Foreign Affairs will review and submit to the competent authority for decision (Issues exceeding the Ministry of Foreign Affairs' jurisdiction will be referred to the Prime Minister for consideration and decision).3. Rural industry establishments are permitted to form joint ventures andassociations with individuals and organizations both domestically andinternationally for production and consumption of products.

4. The Ministry of Commerce shall direct commercial attachés abroad to researchlocal markets, introduce to domestic rural industry establishments to expandexport trading relations; stipulate favorable conditions for rural industryestablishments to be allowed to export directly. The Ministry of Commerce shalltake the lead in coordinating with relevant agencies to consider organizingannual awards for establishments with outstanding achievements in exportinghandicrafts.

3. Rural industry establishments are permitted to form joint ventures and associations with individuals and organizations both domestically and internationally for production and product sales.

4. The Ministry of Trade shall direct trade counsellors abroad to investigate local markets, introduce domestic industry establishments to expand export transaction relationships; provide favorable conditions for rural industry establishments to export directly. The Ministry of Trade, in collaboration with relevant agencies, will organize annual awards for establishments that achieve outstanding results in exporting handicraft products.

Article 8. Science, technology, and environment

1.The Ministry of Science, Technology, and Environment organizes, directs, andallocates necessary financial resources in the annual plan for research, technologynovation, model improvement, and the use of domestic raw materials; guides theapplication of appropriate technologies to increase labor productivity, reducecosts, diversify products, enhance aesthetic value and precision of handicraftproducts; studies and transfers waste treatment technologies to addressenvironmental pollution in rural industries.

2.The Ministry of Agriculture and Rural Development, in collaboration with theMinistry of Culture, Sports and Tourism, and the Vietnam Federation of LaborUnions, guides households, individuals, and organizations in investing in anddeveloping rural industries, selecting, perfecting, and preserving traditionaltechnologies that reflect the cultural identity of the nation.

3.The State has policies to reward and assist individuals and organizations inimplementing activities related to research, design, model improvement, productdesign, and technology transfer to households, individuals, and organizationsthat invest in developing rural industries according to laws on intellectualproperty rights and science and technology.

4.The State encourages rural industry establishments to import advanced machineries, equipment, and production lines to modernize production.

5.Rural industry establishments must implement measures to treat waste and ensureenvironmental hygiene, relocate facilities causing environmental pollution tosuitable locations.

Article 9. Product Quality

1.Rural industry establishments must continuously improve product quality,diversify products, make handicraft products increasingly sophisticated, reflectthe cultural and traditional characteristics of the nation, and enhancecompetitiveness both domestically and in export markets.

2.Establishments investing in and developing rural industries bearresponsibility towards consumers for the quality of products they produce.

3.Households, individuals, and organizations investing in and developing ruralestablishments must register product quality standards, packaging designs, andindustrial styles with competent state authorities at the local level.

Article 10. Labor and Training

1.On labor: prioritize training and employment for households whose land wasreclaimed by the State for rural industry development, and for local residents.

2.On training:

a)Artisans are organized to directly pass down their skills and can charge feesfrom students based on mutual agreement; they are exempt from various taxes intheir teaching activities;

b)Encourage artisans, cooperatives, organizations, and associations to openclasses to teach skills to workers;

c)State vocational schools prioritize training for rural industry establishments;industrial fine arts schools must focus on improving teaching quality regardingproduct design and styling for small-scale and handicraft export items;

d)Depending on each locality's conditions and capabilities, each district mayestablish a vocational training center, especially for traditional trades.

3.The State recognizes and has policies to honor artisans and skilled workers whohave contributed to training, preserving, and passing down traditional trades toyounger generations; owners of rural industry establishments with many marketaccepted products; those attracting many workers and contributing significantlyto the State; the State periodically reviews and confers titles such as "Artisan"and "Skilled Worker."

-The State encourages and creates favorable conditions for foreign experts andartisans to teach traditional small-scale and handicraft production techniquesand secrets to Vietnam.

4.The Ministry of Agriculture and Rural Development collaborates with theMinistries of Culture, Sports and Tourism, and Labor, Invalids and Social Affairs,Vietnam Federation of Labor Unions to define titles and mechanisms to honorartisans and skilled workers.

Article 11.Implementation

1.The Ministry of Agriculture and Rural Development is responsible for:

a)Developing plans and proposing mechanisms and policies to encourage thedevelopment of rural industries nationwide for government approval; guidinglocalities in implementing planning and project development for rural industries;determining criteria for traditional handicraft industries to implement preferentialpolicies for their preservation and development;

b)Coordinating with relevant ministries and sectors to plan and develop infras-tructure for rural areas to serve the development of rural industries;

c)Leading and coordinating with relevant ministries and sectors: Industry,Science, Technology, and Environment; Vietnam Federation of Labor Unions toimplement promotional work in each locality and industry association, providingmarket information, exchanging management and production experiences, purchasingequipment, and selling products for rural industry establishments;

d)Guiding the training, upgrading, vocational training, and business managementfor rural industry establishments.

2.The Ministry of Trade leads together with the Ministry of Finance and otherrelevant ministries and sectors to study and implement mechanisms and policies tohelp rural industry establishments, especially traditional handicraft industries,understand the market, sell products domestically and for export with simplifiedprocedures and preferential tax rates.

3.The Vietnam Federation of Labor Unions participates with relevant ministriesand sectors in building and implementing plans and policies for the developmentof rural industries; guiding, promoting, and assisting rural industry establishmentsin implementing national plans and policies for rural industry development.

4.Within 10 working days from the date of receipt of the dossier as mentioned in Sub-clause b, Clause 1, Article 3 above, the Ministry of Foreign Affairs will review and submit to the competent authority for decision (Issues exceeding the Ministry of Foreign Affairs' jurisdiction will be referred to the Prime Minister for consideration and decision).Provincial People's Committees have the responsibility:

a)Detailed planning for the development of craft villages and rural industries, instructuring specific industrial area development projects;

b)Building infrastructure for rural areas to support the development of craftvillages and rural industries; directing districts and communes to establishsmall-scale industrial clusters to provide space for the development of ruralestablishments;

c)Directing localities and rural industry establishments to ensure order, security,production protection, and environmental hygiene in their areas.

d) Conduct inspections, audits, and provide guidance to rural industry bases and craft villages in their compliance with laws and state regulations.

Article 12.Implementation Provisions

1. This Decision takes effect fifteen days from the date of signature.

2. Ministries, ministerial-level agencies, and government agencies shall implement state policies in accordance with this Decision within their respective functions and tasks.

3. Ministers, heads of ministerial-level agencies, heads of government agencies, and Chairmen Within 10 working days from the date of receipt of the dossier as mentioned in Sub-clause b, Clause 1, Article 3 above, the Ministry of Foreign Affairs will review and submit to the competent authority for decision (Issues exceeding the Ministry of Foreign Affairs' jurisdiction will be referred to the Prime Minister for consideration and decision).of provincial people's committees directly under the central government are responsible for enforcing this Decision ./