Decree No. 210/2013/ND-CP on policies to encourage enterprises to invest in agriculture and rural areas

DECREE

Von policies to encourage enterprises to invest in agriculture and rural areas issued on November 29, 2005;For power plants invested under the Build-Operate-Transfer (BOT) model, n is determined according to the operational period of the power plant stipulated in the BOT contract.

______________________

Pursuant to the Law Torganization C"b) In addition to the lists of public services issued according to the provisions of Clause 2, Article 4 of this Decree, specialized agencies under provincial People's Committees shall report to the provincial People's Committee for decision-making on amending, supplementing, or issuing the list of public services funded by the state budget within their jurisdiction and consistent with the local budget capacity within the approved budget by the Provincial People's Assembly, and send it to the Ministry of Finance and relevant ministries and sectors for supervision during implementation."pursuant to the Government's Resolution dated December 25, 2001;

Pursuant to the Law 3. Amend Clause 3 Article 2 as follows:land issued on November 26, 2003;June 2024;of the Minister of Planning and Investment

Pursuant to the Law 3. Amend Clause 3 Article 2 as follows:government issued the Decree on

Pursuant to the proposal of the Director of the Department of Ethnic Affairs and Religion Propaganda;on policies to encourage enterprises to invest in agriculture and rural areas;

C- Government;This Decree stipulates certain additional investment incentives and support provided by the State for enterprises investing in agriculture and rural areas."b) In addition to the lists of public services issued according to the provisions of Clause 2, Article 4 of this Decree, specialized agencies under provincial People's Committees shall report to the provincial People's Committee for decision-making on amending, supplementing, or issuing the list of public services funded by the state budget within their jurisdiction and consistent with the local budget capacity within the approved budget by the Provincial People's Assembly, and send it to the Ministry of Finance and relevant ministries and sectors for supervision during implementation."1. This Decree applies to investors receiving incentives and support, which are enterprises established and registered for operation in accordance with Vietnamese law.,

Chapter I

GENERAL PROVISIONS

Article 1. Scope of Regulation

2. Agencies, organizations, and individuals related to the implementation of preferential policies and support under this Decree.

Article 2. Scope of Application

1. Rural area refers to administrative territorial units not including the territory of wards and districts within towns and cities.

2. Priority investment sectors in agriculture include industries and trades specified in the Appendix attached to this Decree and other industries and trades determined by the Prime Minister's Decision during each period.

Article 3. Explanation of Terms

3. Special priority investment agricultural project is an agricultural project in special priority investment sectors implemented in areas listed in the List of Areas with Particularly Difficult Economic and Social Conditions as prescribed by investment laws.

4. Preferential investment agricultural project is an agricultural project in special priority investment sectors implemented in areas listed in the List of Areas with Difficult Economic and Social Conditions as prescribed by investment laws.

5. Encouraged investment agricultural project is an investment project in special priority investment sectors implemented in rural areas.

Article 4. Principles for applying incentives and investment support

1. Investors who build raw material production zones and have stable production material supply contracts with local people shall be given priority consideration for investment incentives and support.

2. Within the same period, if an enterprise has an investment project eligible for multiple levels of investment incentives and support, the enterprise may choose to apply the most beneficial level.

3. Projects that have already utilized preferential credit capital and state-guaranteed credit capital are not eligible to use the budgetary support funds as prescribed in this Decree.

Article 5. Exemption and reduction of land use fees

1. Investors with special priority investment agricultural projects, if granted land by the State, shall be exempt from land use fees for such investment projects.

Chapter II

LAND INCENTIVES

2. Investors with preferential investment agricultural projects, if granted land by the State, shall be entitled to a 70% reduction in land use fees payable to the state budget for such investment projects.

3. Investors with encouraged investment agricultural projects, if granted land by the State, shall be entitled to a 50% reduction in land use fees payable to the state budget for such investment projects.

Article 6. Exemption and reduction of land rental fees and water surface rental fees of the State

1. Investors with preferential investment agricultural projects and encouraged investment agricultural projects, when renting land and water surfaces from the State, shall be subject to the lowest price of the corresponding land type as stipulated in the land price list promulgated by the People's Committee of the province or centrally-administered city.

2. Investors with special priority investment agricultural projects shall be exempt from land rental fees and water surface rental fees from the date the project commences operations.

3. Investors with preferential investment agricultural projects shall be exempt from land rental fees and water surface rental fees for the first 15 years from the date the project commences operations.

4. Investors with encouraged investment agricultural projects shall be exempt from land rental fees and water surface rental fees for the first 11 years from the date the project commences operations.

5. Investors with special priority investment agricultural projects, preferential investment agricultural projects, and encouraged investment agricultural projects shall be exempt from land rental fees for the area used to construct housing for workers, green planting areas, and areas serving public welfare.

4. An investor with an encouraged agricultural investment project shall be exempted from land rent and water surface rent for the first eleven years starting from the date the project becomes operational.

5. Investors with exceptionally favored agricultural investment projects, favored agricultural investment projects, and encouraged agricultural investment projects shall be exempted from land rent for the area used to construct housing for workers, greenery planting land, and land serving public welfare purposes.

Article 7. Support for land and water surface rental by households and individuals

1. Investors with particularly preferential investment projects in agriculture who lease land and water surfaces from households and individuals to implement such investment projects shall be supported by the State with 20% of the land and water surface rental fees according to Clause 1 of Article 6 of this Decree for the first five years starting from the completion of basic construction.

2. It is encouraged for investors with particularly preferential investment projects in agriculture, preferential investment projects in agriculture, and investment-promoted projects in agriculture to accumulate land to form raw material areas through the form of households and individuals contributing capital by their land use rights for projects not subject to land recovery by the State.

Article 8. Exemption and reduction of land use fees when changing land use purposes

1. Investors with particularly preferential investment projects in agriculture included in the planning approved by competent state agencies are exempted from paying land use fees when changing land use purposes to implement the project according to this Decree.

2. Investors with preferential investment projects in agriculture included in the planning approved by competent state agencies are entitled to a 50% reduction in land use fees when changing land use purposes to implement the project according to this Decree.

Chapter III

INVESTMENT SUPPORT

Article 9. Support for human resource training, market development, and application of science and technology

1. Investors with particularly preferential investment projects in agriculture, preferential investment projects, and promoted investment projects are supported by the state budget as follows:

a) Supporting 70% of the cost of vocational training within the country. Each worker can only be supported once for training, and the duration of the supported training cannot exceed six months. The training cost must comply with current regulations.

In cases where investors recruit long-term workers without vocational training who are living in special-use forests for training and employment, contributing to the protection of special-use forests, enterprises are supported with direct training costs of three million dong per worker for three months at the enterprise.

b) Supporting 50% of the cost of advertising businesses and products on mass media; 50% of the cost of participating in domestic trade fairs; and a 50% reduction in market information access fees and service fees from state trade promotion agencies.

c) Supporting 70% of the cost of implementing research topics creating new technologies led by enterprises to implement the project, or purchasing technology licenses to implement the project; and supporting 30% of the total new investment cost to implement experimental production projects.

2. The support items mentioned in Point a and b of Clause 1 of this Article shall be implemented according to the investment project. The total amount of support for one project shall not exceed 10% of the total investment value of the project and shall not exceed one billion dong. If enterprises do not directly use support from the state budget, these supports will be counted as enterprise production costs when settling accounts with competent state agencies.

3. The support amounts for projects approved by authorized authorities as stipulated in Point c of Clause 1 of this Article shall be sourced from the National Science and Technology Development Fund, the National Technology Innovation Fund, and the Science and Technology Development Funds of ministries, provinces, and centrally-administered cities, and from state budget support funds under this Decree, with a maximum support level not exceeding three billion dong per project.

Article 10. Investment Support for Livestock Slaughtering Facilities

1. Investors with projects to invest in centralized industrial livestock slaughtering facilities shall be supported by the state budget as follows:

a) A minimum support of VND 2 billion/project for infrastructure construction related to electricity, water supply, workshops, waste treatment, and equipment purchase. For projects with slaughtering capacity exceeding the provisions set out in Point a Clause 2 of this Article, the level of support will be increased accordingly.

b) In cases where the project does not have access roads, power systems, or water supply systems reaching the project's perimeter, in addition to the support stipulated in Point a Clause 1 of this Article, the project will also receive additional support of up to 70% of the costs, but not exceeding VND 5 billion, for constructing these components.

2. Projects eligible for support under Clause 1 of this Article must meet the following conditions:

a) The daily slaughtering capacity of each project must reach at least 400 head of cattle or 4,000 poultry or 200 head of cattle and 2,000 poultry.

b) Located within the approved centralized industrial livestock slaughtering planning area or approved for investment by the provincial People's Committee if there is no approved planning.

c) Ensuring veterinary hygiene, disease prevention safety, food safety, and environmental protection in accordance with relevant laws on veterinary medicine, food safety, and environmental protection.

d) The investor must employ at least 30% local labor.

Article 11. Investment Support for Livestock Breeding Facilities

1. Investors with projects to invest in concentrated livestock breeding facilities shall be supported by the state budget as follows:

a) A support of VND 3 billion/project, specifically for high-yield dairy cow breeding, the support amount is VND 5 billion/project for infrastructure construction related to waste treatment, transportation, electricity, water supply, workshops, pastures, and equipment purchase.

b) In cases where the project does not have access roads, power systems, or water supply systems reaching the project's perimeter, in addition to the support stipulated in Point a Clause 1 of this Article, the project will also receive additional support of up to 70% of the costs, but not exceeding VND 5 billion, for constructing these components.

c) Besides the infrastructure support stipulated in Points a and b above, if the project imports high-yield livestock breeds, it will receive support of up to 40% of the import cost; support for importing dairy cows from developed countries for direct breeding enterprises and scattered breeding in households is VND 10 million/head for provinces with more than 5,000 dairy cows and VND 15 million/head for other provinces (a separate project may be established).

2. Projects eligible for support under Points a and b, Clause 1 of this Article must meet the following conditions:

a) Having a continuous concentrated breeding scale of 1,000 heads or more for pork; or 500 heads or more for beef cattle, buffalo, goat, sheep meat; or 200 heads or more for imported high-yield beef cattle; or 500 heads or more for high-yield dairy cattle.

b) The project must be located within the approved planning area of the competent state agency or approved for investment by the provincial People's Committee if there is no approved planning.

c) Ensuring veterinary hygiene, disease prevention safety, food safety, and environmental protection in accordance with relevant laws on veterinary medicine, food safety, and environmental protection.

d) The investor must employ at least 30% local labor.

Article 12. Support for Medicinal Plant Cultivation and Macadamia Tree Planting

1. Investors with projects to plant medicinal plants and macadamia trees with a scale of 50 hectares or more shall be supported by the state budget at VND 15 million/hectare for field construction and seedling cultivation. Support for building macadamia tree seedling production facilities with a scale of 500,000 seedlings/year or more, the maximum support level is 70% of the investment cost/facility and not exceeding VND 2 billion.

2. Projects eligible for support under Clause 1 of this Article must be located within the approved planning area of the competent state agency or approved for investment by the provincial People's Committee if there is no approved planning; medicinal plants must be included in the priority and encouraged development list of the Ministry of Health. The investor must employ at least 30% local labor.

Article 13. Support for Investment in Marine Aquaculture

1. Investors with concentrated marine aquaculture projects on the sea or near coastal islands shall be supported by the state budget as follows:

a) Supporting VND 100 million for every 100 m³ of cages for marine aquaculture in distant offshore areas more than 6 nautical miles from the coast or near coastal islands.

b) Supporting VND 40 million for every 100 m³ of cages for marine aquaculture in nearshore areas.

2. Projects eligible for support under Clause 1 of this Article must meet the following conditions:

a) Being within the approved planning of competent state agencies or being permitted for investment by the provincial People's Committee if there is no approved planning.

b) The project must have a minimum cultivation area of 5 hectares or at least 10 cages each over 100 m³in length.

c) Ensuring environmental protection requirements as stipulated by environmental protection laws.

d) The investor must employ at least 30% local labor.

Article 14. Support for Investment in Rice Drying Facilities, Corn, Potato, Cassava, Seafood By-product Drying, and Wet Coffee Processing

1. Investors with projects to invest in rice drying facilities, corn, potato, cassava, seafood by-product drying, and wet coffee processing shall be supported by the state budget as follows:

a) Supporting VND 2 billion per project for rice, corn, potato, cassava drying and seafood by-product drying to build infrastructure for transportation, electricity, water supply, workshops, and purchase equipment.

b) Supporting VND 3 billion per project for wet coffee processing to build infrastructure for transportation, electricity, water supply, workshops, waste treatment, and purchase equipment.

2. Projects eligible for support under Clause 1 of this Article must meet the following conditions:

a) The capacity of the rice, corn, potato, cassava drying facility must reach at least 150 tons of product per day; seafood by-product drying must reach at least 50 tons of product per day; wet coffee processing must reach at least 5,000 tons of product per year.

b) The project must be located within the approved planning area of the competent state agency or approved for investment by the provincial People's Committee if there is no approved planning.

c) Ensuring environmental protection requirements as stipulated by environmental protection laws.

d) Investors must use at least 30% local labor and 60% local raw materials such as rice, corn, potato, cassava, seafood by-products, and coffee.

Article 15. Support for Investment in Specialized Wood Processing Plants for Forest Plantation in Northwest Provinces and Poor Districts According to Resolution 30a/2008/NQ-CP dated December 27, 2008 of the Government

1. Domestic investors with projects to invest in wood processing plants for forest plantation; industrial bamboo shall be supported by the state budget as follows:

a) Supporting VND 20 billion for medium density fiberboard (MDF) production plants with a scale of over 30,000 m³ MDF/year; supporting VND 10 billion for particleboard and industrial bamboo pressing plants with a scale of over 20,000 m³ for building infrastructure for transportation, electricity, water supply, workshops, and waste treatment.

b) Supporting transportation costs at VND 1,500 per ton per kilometer; the distance is calculated from the plant location to the center of Hanoi City, Da Nang City, or Ho Chi Minh City via the nearest road; the volume transported is calculated based on the actual capacity of the plant's equipment; the support period is five years, with total support divided into three installments, ensuring that at least 70% of the total support amount is provided immediately after the completion of the plant.

2. Projects eligible for support under Clause 1 of this Article must meet the following conditions:

a) The project has been approved for investment by the provincial People's Committee.

b) Particleboard and MDF production plants must combine with floor panel, profile board, finger-jointed board, and glued laminated timber production to avoid resource wastage; the production volume of these combined products is included in the capacity for transportation support.

c) Equipment must be produced in developed countries; in cases where it is produced in developing countries, the equipment must be brand new. The plant may not relocate from its registered production site within 20 years.

d) The existing planted forest area and raw material sources in the province must be sufficient to ensure the factory operates at a minimum of 60% capacity in the first five years. The project must employ at least 30% local labor.

d) The total actual capacity of plants eligible for transportation support in each province shall not exceed 200,000 tons.

e) For provinces already having paper pulp production plants with a scale of 50,000 tons/year or more, they are not eligible for support.

g) Compliance with environmental protection requirements as stipulated by environmental protection laws.

Article 16. Investment Support for Manufacturing, Storage, and Processing Facilities for Agricultural, Forestry, and Aquatic Products

1. Investors with projects to build factories or storage and processing facilities for agricultural, forestry, and aquatic products; production facilities for auxiliary products; manufacturing equipment for the preservation and processing of agricultural, forestry, and aquatic products shall be supported by the state budget as follows:

a) Support not exceeding 60% of costs and the total amount of support not exceeding 5 billion VND/project for constructing infrastructure for waste treatment, transportation, electricity, water supply, factory buildings, and purchasing equipment within the project boundary.

b) Support not exceeding 70% of costs for waste treatment for large-scale processing plants for agricultural, forestry, and aquatic products that have invested significantly, employed many workers, and had a substantial impact on local economy and society.

c) Support transportation costs at a rate of 1,500 VND/ton/km; the distance for support is calculated from the location of the factory or storage and processing facility to the center of the province or centrally governed city according to the nearest road; the volume transported is calculated based on the actual capacity of the factory; the support is provided once immediately after completion of investment; the period for calculating support is five years.

d) In addition to the support stipulated in Points a and b Clause 1 of this Article, if the project does not yet have roads, electricity systems, or water supply and drainage systems reaching the project boundary, additional support of up to 70% of costs and a total support amount not exceeding 5 billion VND/project for building these items (a separate project may be established).

2. Projects eligible for support under Clause 1 of this Article must meet the following conditions:

a) The value of processed products must increase by at least twice the initial raw material value.

b) Ensure food safety standards as prescribed by laws on food safety and minimum capacity requirements as specified by competent authorities.

c) Be within the approved planning of the competent state agency or approved for investment by the provincial People's Committee if there is no approved planning.

d) Ensure environmental protection requirements as prescribed by environmental protection laws.

đ) The project does not fall under the categories prescribed in Articles 14 and 15 of this Decree.

e) Investors with projects for the processing and storage of agricultural, forestry, and aquatic products must employ at least 30% of labor and use at least 60% of primary agricultural, forestry, and aquatic products from the locality.

Article 17. Sources of Funds and Mechanism for Investment Support

1. The sources of funds for investment support as prescribed in this Decree include targeted support from the central budget to the local budget; integrated capital from programs, projects, and the local budget; each year, provinces and centrally governed cities allocate 2-5% of their local budget to implement. The central budget supports the local budget according to the following principles:

a) For localities receiving more than 70% of their budget from the central budget, they will be supported by the central budget up to 80% of the implementation costs.

b) For localities receiving between 50-70% of their budget from the central budget, they will be supported by the central budget up to 70% of the implementation costs.

c) For localities receiving less than 50% of their budget from the central budget, they will be supported by the central budget up to 60% of the implementation costs.

d) For localities with balanced budgets at the central level, the local budget will self-balance the implementation.

đ) For projects implemented in border areas, islands, and high-tech projects, they will be supported from the central budget.

e) The Ministry of Planning and Investment, in coordination with the Ministry of Finance, will balance the development investment capital and provide annual targeted support to the local budget, reporting to the competent authority for decision-making to implement this policy.

2. Mechanism for Investment Support

a) The central budget only supports projects requiring support over 2 billion VND. The local budget supports the remaining projects, including those larger than 2 billion VND but not using the central budget.

b) State budget support is provided after investment; when an investment item or tender package of the project is completed, 70% of the support capital for that item or package can be disbursed; after the project is completed and accepted, the remaining 30% of the support capital can be disbursed.

c) The Prime Minister decides on the total amount of support and the list of projects to be supported for each locality; assigns the Ministry of Planning and Investment to announce the support capital for each project.

d) For foreign-invested enterprises and state-owned enterprises holding 100% of the charter capital, the Prime Minister will specify the sources of capital and procedures for investment support.

đ) The portion of support capital from the state budget is considered as the enterprise's counterpart capital, and the state guarantees this portion when the enterprise borrows from commercial banks to finance the project.

Chapter IV

IMPLEMENTATION

Article 18. Responsibilities of Ministries and Central Sectoral Agencies

1. The Ministry of Planning and Investment:

a) Take the lead and coordinate with the Ministry of Finance and the Ministry of Agriculture and Rural Development to guide conditions, procedures, and formalities for implementing preferential support as stipulated in this Decree. Specify the level of support expressed as percentages under Articles 11, 12, and 16 of this Decree as absolute values for implementation.

b) Take the lead and coordinate with the Ministry of Finance to aggregate and balance central budget funds allocated for targeted support to local budgets, and submit to the competent authority for decision-making.

c) Take the lead and coordinate with the Ministry of Finance to review support for projects funded from the central budget.

d) Develop plans to implement this Decree, submit them to the Prime Minister for issuance, and urge relevant ministries, sectors, and localities to implement the Decree.

đ) Report to the Prime Minister to decide on adjusting the level of support and the beneficiaries as specified in this Decree to suit each development period.

2. Ministry of Finance:

a) Take the lead in guiding the payment and settlement of support provided to enterprises under this Decree.

b) Monitor and inspect the provision of financial support to enterprises investing in agriculture and rural areas.

c) Coordinate with the Ministry of Planning and Investment and the Ministry of Agriculture and Rural Development to guide the implementation of this Decree.

3. The Ministry of Agriculture and Rural Development:

a) Announce every five years a list of high-yield livestock breeds eligible for support as specified in Point c, Clause 1, Article 11 of this Decree.

b) Coordinate with the Ministry of Planning and Investment and the Ministry of Finance to guide the implementation of this Decree.

Article 19. Responsibilities of Provincial People's Committees and Municipal People's Committees under Central Government

1. Balance local budget resources to ensure the provision of support to enterprises as prescribed in this Decree.

2. Based on the specific products and existing resources of their locality, provincial people's committees shall submit to the same-level People's Councils for approval special policies encouraging enterprises to invest in agriculture and rural areas.

3. Approve investment projects receiving preferential and supportive funding from the local budget after functional agencies have reviewed them.

4. Approve support from the central budget for projects utilizing central budget funds after they have been reviewed by the competent authority.

5. Annually assess the implementation of this Decree at the local level, report to the Ministry of Planning and Investment, and simultaneously send reports to the Ministry of Finance and the Ministry of Agriculture and Rural Development for consolidation and reporting to the Government.

Article 20. Effective Date

1. This Decree takes effect from February 10, 2014.

2. This Decree replaces Decree No. 61/2010/NĐ-CP dated June 4, 2010, on policies to encourage enterprise investment in agriculture and rural areas.

3. Investors with projects meeting the preferential conditions set out in this Decree who commenced project implementation before the effective date of this Decree and have not yet enjoyed benefits under Decree No. 61/2010/NĐ-CP dated June 4, 2010, shall be entitled to enjoy the benefits and support stipulated in this Decree for the remaining duration of the project.

4. Investors currently enjoying benefits and support for investment under Decree No. 61/2010/NĐ-CP dated June 4, 2010, shall continue to enjoy the benefits and support already granted or have the right to request benefits and support under this Decree for the remaining duration of the project.

5. The Ministers, Heads of ministerial-level agencies, Heads of government agencies, Chairpersons of provincial People's Committees under central cities shall be responsible for implementing this Decree./.