Decree No. 134/2004/ND-CP on Encouraging the Development of Rural Industry

DECREE

On encouraging the development of rural industry

______________________

THE GOVERNMENT

Pursuant to the Law on Organization of the Government dated December 25, 2001;

At the proposal of the Minister of Industry,

DECREE:

PART I

GENERAL PROVISIONS

Article 1. The objectives of the promotion activities

The State organizes activities to encourage, guide, support, and create conditions for organizations and individuals to participate in developing rural industrial production (hereinafter referred to as promotion activities) with the following objectives:

1. Mobilizing and utilizing domestic and foreign resources to participate in or support organizations and individuals investing in rural industrial production and promoting industrial services according to national and local industrial development plans.

2. Contributing to the restructuring of the economy towards industrialization and modernization, primarily industrializing agriculture and rural areas, creating jobs, increasing income, and implementing social labor reallocation.

3. Supporting and creating conditions for organizations and individuals from all economic sectors to invest in sustainable rural industrial production, enhancing competitiveness, and effectively implementing the process of international economic integration.

Article 2. Scope and Applicability

1. Organizations and individuals directly investing in and producing industry at districts, towns, townships, and villages (hereinafter referred to as rural industrial production facilities) include:

a) Small and medium enterprises established and operating under the Law on State-Owned Enterprises;

b) Small and medium enterprises established and operating under the Enterprise Law;

c) Cooperatives established and operating under the Law on Cooperatives;

d) Individual business households according to Decree No. 02/2000/NĐ-CP dated February 3, 2000, of the Government on business registration.

2. Organizations and individuals from all economic sectors engaged in promoting industrial services.

Article 3. Contents of promotion activities

1. Guiding and supporting organizations and individuals starting businesses to develop rural industrial projects, seeking production sites, recruiting and training workers, raising capital, applying investment incentives, and other administrative procedures in accordance with the law, consistent with regional, territorial, and local industrial development planning.

2. Guiding and supporting rural industrial production facilities to improve management capacity, rationalize production, and reduce product costs.

3. Guiding and consulting rural industrial production facilities to invest in building new production lines, expanding production scale, innovating and applying scientific and technological progress, enhancing production capacity, managing product quality, and protecting the environment.

4. Organizing vocational training, skill transmission, and developing trades.

5. Supporting information provision, marketing, market search, business partner search, and organizing exhibitions, trade fairs, and product introductions.

6. Organizing experience exchange activities, tours, surveys; supporting and creating conditions for rural industrial production facilities to form joint ventures, linkages, economic cooperation, and join industry associations.

7. Building demonstration models, transferring technology, and implementing scientific and technological advisory services to support organizations and individuals investing in rural industrial production.

Chapter II

POLICIES FOR PROMOTION ACTIVITIES

Article 4. Supporting promotion activities

The State has appropriate policies and measures to support organizations and individuals directly engaged in promotion activities as stipulated in Article 3 of this Decree and those directly investing in industries and trades within the fields specified in Article 6 of this Decree.

Article 5. Encouraging the development of promotion services

1. Promotion services are activities providing services in consultancy, training, technology transfer, information supply, trade promotion, and other related activities concerning rural industrial production investment.

The State encourages organizations and individuals to organize promotion services to implement the contents of promotion activities as stipulated in Article 3 of this Decree.

2. Voluntary promotion organizations are organizations established by mass organizations, socio-economic organizations, agencies, and individuals in accordance with the law, not for profit purposes, to carry out promotion activities.

3. Promotion service organizations are trained professionally, and participate in programs, plans, and projects for promotion activities organized by state management agencies responsible for promotion activities.

Article 6. List of industries and trades eligible for promotion policies

1. Organizations and individuals investing in rural industrial production in the following industries and trades shall enjoy the promotion policies stipulated in Chapter II of this Decree:

a) Agricultural, forestry, and aquatic processing industry;

b) Production of products using local raw materials, employing many workers;

c) Production of new products, substitutes for imported goods, export goods mainly using domestic raw materials;

d) Production of agricultural machinery parts, assembly, and repair;

đ) Small hydropower plants, electricity using new or renewable energy sources with installed capacity below 10,000 kW to supply power to rural areas, remote regions;

e) Production, processing, and services for complete product manufacturing facilities.

g) Investment in infrastructure construction for industrial clusters, small-scale industrial zones, and craft villages.

2. Based on the economic and social development situation and the requirements of promotion work during each period, the Ministry of Industry will submit to the Prime Minister for decision on amending and supplementing the industries and trades eligible for the policies stipulated in Clause 1 of this Article.

Article 7. Funding to ensure promotion activities

Funding for promotion activities includes national promotion funding and local promotion funding:

1. National promotion funding is used for promotion activities and national target programs on promotion managed and implemented by the Ministry of Industry.

2. Local promotion funding is managed by provincial People's Committees (hereinafter referred to as provincial People's Committees) for use in local promotion activities.

Article 8. National promotion funding

1. National promotion funding is formed from the following sources:

a) Annual state budget allocation according to the plan;

b) Sponsorship and contributions from organizations and individuals both domestically and internationally;

c) Other lawful sources as prescribed by law.

2. National promotion funding is used for the following purposes:

a) Allocate for national promotion activities according to the contents stipulated in Article 3 of this Decree;

b) Support the promotion activities of provincial People's Committees according to programs, plans, and projects approved;

c) Other expenses serving promotion activities.

Article 9. Local Promotion Fund

1. The local promotion fund is formed from the following sources:

a) The annual budget of the provincial People's Committee;

b) Sponsorship and contributions from organizations and individuals both domestically and internationally;

c) Support from the national promotion fund for the promotion activities of the provincial People's Committee according to programs, plans, and projects approved;

d) Other lawful sources as prescribed by law.

2. The local promotion fund shall be used for the following purposes:

a) Allocate for promotion activities organized and implemented by localities according to the contents stipulated in Article 3 of this Decree;

b) Other expenses serving promotion activities.

Article 10. Management of the National Promotion Fund and the Local Promotion Fund

1. The plan and budget estimate of the national promotion fund shall be prepared by the Ministry of Industry, incorporated into the annual state budget estimate of the Ministry of Industry, and submitted to competent state agencies as prescribed by law.

2. The plan and budget estimate of the local promotion fund shall be prepared by the provincial People's Committee, incorporated into the annual state budget estimate of the locality, and submitted for approval according to current regulations.

3. Each year, financial agencies at all levels shall base on the approved budget plan and implementation progress to allocate funds to state management agencies responsible for promoting industry in central and local areas.

4. If the national promotion fund and the local promotion fund allocated from the budget are not fully utilized in the planning year, they may be carried over to the next year.

5. The Ministry of Finance shall coordinate with the Ministry of Industry to provide detailed guidance on procedures for establishing, managing, and using the national promotion fund and the local promotion fund.

Article 11. Soil

1. Rural industrial production establishments are entitled to preferential policies in leasing land, transferring, and mortgaging land use rights in accordance with laws on land.

2. Rural industrial production establishments that need land to relocate old, cramped, environmentally polluting facilities or to build new production facilities shall be prioritized for low-cost land lease by the competent People's Committee.

3. Provincial People's Committees have the responsibility to plan land use, reserve land funds, and use land rental fees in accordance with the law to invest in building technical infrastructure for industrial clusters, small-scale industrial zones, and craft villages, thereby facilitating rural industrial production establishments to invest in production.

Article 12. Investment incentives

1. Rural industrial production establishments are entitled to preferential policies in accordance with current state regulations and those stipulated in this Decree.

Agencies receiving and processing investment incentive registration files are responsible for clearly identifying the right to enjoy investment incentives for rural industrial production establishments in the Investment Incentive Certificate without requiring any additional procedures.

2. For rural industrial production establishments with good investment projects proposed by provincial or district People's Committees, they will be assessed for investment loans by the Development Support Fund in accordance with regulations.

Article 13. Information and Market

1. Ministries, sectors, and People's Committees at all levels shall create favorable conditions for rural industrial production establishments to promptly access information about markets, prices, products, and technologies both domestically and internationally.

2. Rural industrial production establishments shall be granted a reduction of 50% or more in costs for renting exhibition space to participate in domestic product fairs and exhibitions.

Article 14. Science and Technology Policy

1. Rural industrial production establishments applying new equipment technology, new materials, or investing in automated equipment, source treatment technology, pollution control, clean energy use, greenhouse gas reduction, energy efficiency improvement, and industrial water recycling shall benefit from support policies under technical-economic programs such as: information technology, automation technology, biotechnology, material technology, and energy conservation.

2. The Ministry of Industry shall take the lead and coordinate with relevant ministries to guide the implementation of these provisions.

Chapter III

STATE MANAGEMENT OF PROMOTION ACTIVITIES

Article 15. State management agency for promotion activities

1. The Ministry of Industry assists the Government in performing state management functions regarding promotion activities as follows:

a) Drafting and promulgating or proposing competent authorities to promulgate strategies, plans, and regulatory documents on rural industrial development, regions, industries, and territories;

b) Drafting national promotion programs and plans for each stage and submitting them to the Prime Minister for approval;

c) Implementing and guiding localities to carry out promotion activities according to approved programs and plans;

d) Managing the national promotion fund;

đ) Serving as the focal point for coordinating with ministries, sectors, and localities to address issues related to investment, finance-credit, science-technology, market, land, labor, and environment in rural industrial development;

e) Organizing activities to disseminate production experience, management, scientific and technological progress, investment advisory services, training, information provision, exhibitions, trade fairs, and product promotion for rural industrial production establishments;

g) Cooperating with domestic and foreign organizations and individuals to attract capital and resources for promotion activities;

h) Monitoring, evaluating, and annually reporting to the Prime Minister on the implementation of promotion programs, plans, and projects;

i) Organizing commendation activities for organizations and individuals with outstanding achievements in rural industrial production and business activities;

k) Organizing inspections of promotion activities and the management and use of the national promotion fund;, local promotion fund;

2. The organizational structure and staffing to perform the state management functions regarding the promotion of small-scale industry as stipulated in Clause 1 of this Article shall be decided by the Minister of Industry within his/her authority.

3. Ministries, ministerial-level agencies, and government agencies within their respective mandates shall have the responsibility to coordinate with the Ministry of Industry in performing state management functions over the promotion of small-scale industry as prescribed by the Government.

4. Provincial People's Committees shall carry out state management functions over the promotion of small-scale industry within their localities and shall have the following tasks and powers:

a) Issuing or proposing competent authorities to issue strategies, plans, and programs for local industrial development and legal instruments to encourage and provide incentives for local industrial development in accordance with the law;

b) Approving and implementing programs and plans for promoting small-scale industry at the local level;

c) Deciding on forms of support from local small-scale industry promotion funds for activities related to the promotion of small-scale industry as provided for in Article 3 of this Decree;

d) Ensuring the source of capital from local small-scale industry promotion funds to support organizations and individuals in carrying out activities related to the promotion of small-scale industry;;

đ) Building and submitting to the Ministry of Industry for consolidation programs and plans for activities related to the promotion of small-scale industry using national small-scale industry promotion funds;

e) Directing local functional agencies to resolve issues related to investment, finance-credit, science-technology, market, land, labor, and environment to serve rural industrial development in the locality;

g) Engaging with domestic and foreign organizations and individuals to attract sources of funding for the promotion of small-scale industry in the locality;

h) Regularly reporting monthly and quarterly to the Ministry of Industry on the situation of local industrial development and activities related to the promotion of small-scale industry in the area;

5. The Department of Industry shall assist the Provincial People's Committee in performing state management functions over the promotion of small-scale industry at the local level.

Article 16. Awards

1. Organizations and individuals who achieve notable results in supporting and encouraging the development of rural industry shall be rewarded according to the regulations of the State.

2. Annually, the Ministry of Industry and the People's Committees of provinces and centrally governed cities shall organize summaries, draw lessons learned, and reward organizations and individuals with outstanding achievements in activities related to investment and production development in rural industry.

Chapter IV

IMPLEMENTING PROVISIONS

Article 17. Effectiveness

This Decree takes effect fifteen days after its publication in the Official Gazette.

Article 18. Implementation and Responsibility for Enforcement

1. The Ministry of Industry shall cooperate with relevant ministries and sectors to guide the implementation of this Decree.

2. Ministers, heads of agencies equivalent to Ministries, heads of government agencies, and Chairpersons of provincial People's Committees and centrally governed city People's Committees are responsible for enforcing this Decree./.