Decree No. 52/2018/ND-CP on Developing Rural Industries

DECREE

ON THE DEVELOPMENT OF RURAL INDUSTRIES AND TRADES

Pursuant to the Law on Government Organization dated June 19, 2015;

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

The Government issues the Decree on the development of rural industries and trades.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Decree stipulates certain contents and policies for the development of rural industries and trades and traditional craft villages.

Article 2. Applicability

1. Domestic and foreign organizations and individuals directly investing in the development of production, business, and services of rural industries and trades (hereinafter referred to collectively as rural industry establishments) include small and medium-sized enterprises, cooperatives, cooperative groups, and households operating in accordance with the provisions of the law.

2. Traditional crafts, craft villages, and traditional craft villages shall be recognized by the People's Committees of provinces and centrally governed cities (hereinafter referred to collectively as provincial-level People's Committees).

3. Organizations and individuals related to the management of rural industries and trades (both central and local).

Article 3. Explanation of Terms

In this Decree, the following terms are understood as follows:

1. Traditional craft is a craft that has been formed for a long time, producing unique products with distinct characteristics, passed down and developed until today or at risk of being lost or forgotten.

2. Craft village is one or more clusters of hamlets, villages, or similar residential areas participating in the activities of rural industries and trades as specified in Article 4 of this Decree.

3. Traditional craft village is a craft village with a traditional craft that has been formed for a long time.

Article 4. Activities of Rural Industries and Trades

The activities of rural industries and trades specified in this Decree include:

1. Processing and preserving agricultural, forestry, and aquatic products.

2. Producing handicraft goods.

3. Treating and processing raw materials for the production of rural industries and trades.

4. Producing wooden, rattan, bamboo, ceramic, glass, textile, yarn, embroidery, weaving, and small-scale mechanical products.

5. Producing and trading ornamental plants.

6. Producing salt.

7. Services supporting production and daily life in rural areas.

Chapter II

RECOGNITION OF TRADITIONAL CRAFTS, CRAFT VILLAGES, AND TRADITIONAL CRAFT VILLAGES

Article 5. Criteria for Recognizing Traditional Crafts, Craft Villages, and Traditional Craft Villages

1. The criteria for recognizing traditional crafts, craft villages, and traditional craft villages apply to the objects specified in Clause 2 of Article 2 that operate in the field of rural industries and trades as specified in Article 4 of this Decree and related organizations and individuals.

2. Criteria for Recognizing Traditional Crafts A craft shall be recognized as a traditional craft if it meets all three of the following criteria:

a) The craft has existed in the locality for over 50 years and continues to develop up to the time of application for recognition.

b) The craft produces products with cultural characteristics of the ethnic group.

c) The craft is associated with the name of one or more artisans or the name of a craft village.

3. Criteria for Recognizing Craft Villages A craft village shall be recognized if it meets all three of the following criteria:

a) At least 20% of the total number of households in the area participate in one of the activities or the activities of rural industries and trades as specified in Article 4 of this Decree.

b) Stable production and business operations for at least two consecutive years up to the time of application for recognition.

c) Comply with environmental protection conditions for craft villages as prescribed by current laws.

4. Criteria for Recognizing Traditional Craft Villages

A traditional craft village must meet the criteria for a craft village as specified in Clause 3 of this Article and have at least one traditional craft as specified in Clause 2 of this Article.

Article 6. Recognition of traditional crafts, craft villages, and traditional craft villages

1. Documents for requesting recognition of traditional crafts

a) A summary of the formation and development process of the traditional craft.

b) Copies of certificates, medals obtained from domestic and international contests and exhibitions, or works recognized as having high artistic value awarded by provincial-level authorities or higher (if any). For organizations and individuals who cannot participate in contests and exhibitions or do not have award-winning works, they must provide a description of the distinctive cultural characteristics of the traditional craft.

c) Copies of certificates recognizing Traditional Craft Artisans issued by competent authorities (if any).

2. Documents for requesting recognition of craft villages

a) List of households participating in rural industry activities.

b) A summary of production and business results of organizations and individuals participating in rural industry activities in the last two years.

c) Documentation ensuring environmental protection conditions as prescribed.

3. Documents for requesting recognition of traditional craft villages

a) The documents for requesting recognition of traditional craft villages include the documents specified in Clause 1 and Clause 2 of this Article.

b) In cases where craft villages have already been recognized, the documents shall be implemented according to the provisions of Clause 1 of this Article.

c) In cases where craft villages have not yet been recognized but have traditional crafts that have been recognized, the documents shall be implemented according to the provisions of Clause 2 of this Article.

4. Procedures for recognizing traditional crafts, craft villages, and traditional craft villages

a) The People's Committee of districts, counties, towns directly under provinces, cities directly under central cities (hereinafter referred to collectively as the People's Committee at the district level) shall prepare documents for requesting recognition of traditional crafts, craft villages, and traditional craft villages according to the criteria stipulated in Article 5 of this Decree and submit them to the People's Committee at the provincial level for recognition.

b) Within thirty working days from the date of receipt of valid documents, the People's Committee at the provincial level shall establish a Review Board, select those meeting the criteria stipulated in Article 5 of this Decree, issue a decision, and grant a certificate of recognition for traditional crafts, craft villages, and traditional craft villages.

5. The time for recognizing traditional crafts, craft villages, and traditional craft villages shall be decided by the People's Committee at the provincial level.

6. After being recognized, if traditional crafts, craft villages, and traditional craft villages fail to meet the prescribed criteria, their recognition certificates will be revoked. The People's Committee at the district level shall be responsible for compiling a list and submitting it to the People's Committee at the provincial level for consideration and revocation of the recognition certificates for traditional crafts, craft villages, and traditional craft villages.

7. The People's Committee at the district level shall report to the People's Committee at the provincial level on the management of recognition certificates for traditional crafts, craft villages, and traditional craft villages and the implementation of recognition criteria regulations for traditional crafts, craft villages, and traditional craft villages within its jurisdiction annually before November 30 each year or at any time upon request to compile and submit reports to the Ministry of Agriculture and Rural Development.

Chapter III

MANAGEMENT AND DEVELOPMENT OF RURAL INDUSTRIES

Article 7. Production Sites

1. Rural industry establishments proposing effective investment projects shall be provided with favorable conditions for land allocation with land use fees and shall be granted land use rights certificates in accordance with laws on land.

2. For investment projects requiring strict environmental pollution control and ensuring requirements for research and production of new products, priority shall be given to land allocation with land use fees or land leasing in industrial zones and clusters.

3. Local budgets shall support funds for relocating rural industry establishments out of residential areas to planned locations, with specific support levels determined by the People's Committee at the provincial level.

Article 8. On Investment and Credit

For effective production and business projects, the following shall be applied:

1. Enjoy investment incentives under the Law on Public Investment.

2. Apply policies to encourage enterprises to invest in agriculture and rural areas.

3. Be prioritized for loans from credit organizations, the National Employment Fund, the Small and Medium Enterprise Development Fund, and the National Science and Technology Development Fund, in accordance with the provisions of the law.

Article 9. Promoting Trade

1. The State encourages, creates favorable conditions, and supports rural industry bases to engage in trade promotion activities in accordance with the current regulations of the National Trade Promotion Program.

2. The State organizes trade promotion activities to support rural industry bases:

a) Building an electronic information website to introduce products and sell online; designing product samples and packaging; building brands and geographical indications for origin of goods, protecting trademarks;

b) Vietnam Handicraft Product Competition.

3. Rural industry bases participating in trade promotion activities as stipulated in Clause 2 of this Article shall be supported by the state budget:

a) Supporting costs for hiring consultants, directly supporting rural industry bases with the contents specified in Point a of Clause 2 of this Article. The maximum level of support is 50% of the cost, but not exceeding 50 million VND per base.

b) 100% of costs for renting exhibition space, organizing competitions, food and lodging, travel expenses for the contents specified in Point b of Clause 2 of this Article.

4. Financial sources and mechanisms for financial support from the state budget according to the current regulations of the National Trade Promotion Program; trade promotion programs and plans, industrial promotion programs and plans, agricultural technology promotion programs and plans annually of ministries, sectors, and localities.

Article 10. Science and Technology

1. When rural industry bases implement activities to apply scientific and technological results, technological innovation, new product production, and science and technology services, or receive scientific and technological progress from domestic and foreign organizations and individuals, they shall enjoy incentives under the policy and financial mechanism encouraging enterprises to invest in science and technology and agriculture and rural areas.

2. Rural industry bases that independently carry out research topics or cooperate with scientific research agencies to create new technologies, improve research products with commercialization potential in the field of rural industries shall be supported financially from the state budget's science and technology development fund according to current regulations.

3. Encourage the application of science and technology in traditional craft village production to increase productivity, enhance competitiveness while preserving and promoting the cultural identity of traditional crafts.

Article 11. Training Human Resources

1. People engaged in traditional crafts; people working at craft villages, traditional craft villages, and rural industry bases shall be supported for vocational training according to current regulations.

2. Artisans in the field of rural industries shall be supported by the state budget for organizing vocational pedagogical training and teaching skills; they shall be compensated according to regulations when participating in vocational training for rural laborers. When artisans directly pass on their skills, they may charge tuition fees from learners based on mutual agreement.

3. Local budgets shall support part of the class costs for rural industry bases directly opening classes to pass on skills. For vocational training through master-apprentice relationships and artisan skill transmission, costs shall be settled based on actual quantities. Specific content and levels of support shall be decided by the provincial People's Committee.

4. Projects investing in rural vocational training bases shall benefit from policies on vocational training for rural laborers as prescribed.

5. Funding for implementation shall be guaranteed by the budget from education and training expenditure, vocational training expenditure; the National Target Program for New Rural Areas Construction, related programs and projects, and other lawful sources. Content and levels of expenditure shall follow the regulations on vocational training policies for rural laborers.

Article 12. Support for the development of rural industries

1. Rural industry development projects from the central government budget

a) The subjects eligible to build projects: State management agencies for agriculture and rural development, relevant state management agencies at local levels.

b) Contents of project support funding: Purchase of raw materials, machinery, equipment, production lines; hiring technical staff to direct the project; training for project participants, project evaluation; project management.

c) Priority principles: Projects processing agricultural, forestry, and aquatic products with advanced technology and synchronized equipment in harvesting, preservation, processing, and consumption to increase product value and meet market demands; projects under the program for preserving and developing traditional crafts; projects developing handicrafts meeting domestic needs or for export; projects producing and supplying raw materials for rural industry development; projects manufacturing equipment and machinery for agricultural production; projects producing clean salt; projects developing ornamental plants; traditional craft village projects linked with eco-tourism development; projects producing products from agricultural waste and by-products.

d) Maximum level of support not exceeding 50%, but not more than 500 million VND per project.

đ) Plan and budget estimate for project support funding

State management agencies for agriculture and rural development, relevant state management agencies at provincial and municipal levels shall conduct surveys, prepare projects, and submit them to the state management agency for rural industries under the Ministry of Agriculture and Rural Development and other relevant state management agencies to incorporate into the annual budget estimates.

Based on the project development support funding, the Ministry of Agriculture and Rural Development shall approve the implementation plan; the state management agency for rural industries under the Ministry of Agriculture and Rural Development shall guide local state management agencies for agriculture and rural development in organizing the implementation.

Other central-level state management agencies allocated project development support funding shall approve plans and guide implementation according to current regulations.

e) Sources of project support funding for rural industry development from the National Target Program for New Rural Areas Construction, the Agricultural Extension Program, the Industrial Promotion Program, and local budgets.

2. Rural industry development projects from local budgets shall be implemented in accordance with Clause 1 of this Article and other provisions stipulated by the People's Committee of the province.

3. For the content of support for the development of rural industries from the central government budget: Information dissemination and publicity; capacity building, training, and education; surveys and learning experiences from related countries; consulting and service implementation according to financial mechanism guidelines of agricultural extension programs, industrial promotion programs, new rural area construction, poverty reduction programs, and related projects.

4. The People's Committee of the province shall specify other support contents, forms, and standards outside those specified in this Article, in accordance with local conditions and current laws.

Chapter IV

MANAGEMENT AND DEVELOPMENT OF CRAFT VILLAGES,

TRADITIONAL CRAFT VILLAGES

Article 13. Village Craft Conservation and Development Program

1. The village craft conservation and development program includes:

a) Conservation and development of traditional village crafts.

b) Development of village crafts linked to tourism and new rural construction.

c) Development of new village crafts.

2. The State has a program and allocates funds from the National Target Program for New Rural Construction to support projects, proposals, plans, and models under the village craft conservation and development program as stipulated in Clause 1 of this Article.

3. Provincial People's Committees base on specific local conditions and establish mechanisms to support village craft conservation and development projects within their jurisdiction beyond the support funding specified in Clause 2 of this Article.

Article 14. Support for Village Craft Development

Village crafts and traditional village crafts enjoy the encouragement policies for rural industries as prescribed in Articles 7, 8, 9, 10, 11, and 12 of this Decree, in addition to benefiting from local government budget policies as follows:

1. Direct financial support as prescribed in the decision recognizing traditional trades, village crafts, and traditional village crafts; the form and specific rate of support are decided by the Provincial People's Committee.

2. Financial support for infrastructure investment in villages:

a) Content of support for investment, renovation, upgrading, and completion of village infrastructure: Roads, electricity, clean water; drainage systems; construction of centers, sales points, and product promotion areas for village crafts.

b) Priority principles: Villages at risk of decline or extinction; ethnic minority villages; villages with good market demand; villages linked to tourism development and new rural construction; villages providing employment and increasing income for local residents; villages preserving cultural values through traditional crafts.

c) Provincial People's Committees decide on infrastructure investment projects in villages according to the Public Investment Law and current guiding regulations.

d) Sources of investment support include: Funds from the National Target Program for New Rural Construction, the National Target Program for Sustainable Poverty Reduction, other target programs, and local budgets.

đ) Provincial People's Committees determine the level of support for infrastructure renovation, upgrading, and completion in villages in accordance with local actual conditions and current legal provisions.

3. In addition to the policies stipulated in this Decree, encouraged developing villages benefit from policies as prescribed in Clause 2 of Article 15 of Government Decree No. 19/2015/NĐ-CP dated February 14, 2015, detailing implementation of certain provisions of the Environmental Protection Law.

Chapter V

IMPLEMENTATION

Article 15. Ministry of Agriculture and Rural Development

The Ministry of Agriculture and Rural Development is the central state management agency for village crafts and rural industries, having authority and responsibility:

1. To lead and coordinate with relevant ministries, sectors, and provincial people's committees in organizing and directing state management over village crafts and rural industries.

2. To develop and promulgate policies encouraging the development of rural industries; conservation and development of village crafts.

3. To direct the establishment and implementation of programs, proposals, and projects supporting the development of village crafts and rural industries.

4. To prepare annual plans and budget estimates for the development of rural industries and submit them to the finance authorities at the same level for consolidation into budget allocation plans to be submitted to competent authorities for consideration and approval in accordance with the State Budget Law.

5. To inspect, audit, and periodically or ad hoc evaluate the implementation of policies and laws, and the effectiveness of operations of village crafts and rural industry establishments.

Article 16. Ministry of Natural Resources and Environment

1. Direct, issue, or submit to competent authorities for issuance policies creating favorable conditions for rural craft villages to be allocated land, lease land, and obtain certificates of land use rights in accordance with laws on land.

2. Develop and issue, or submit to competent authorities for issuance legal normative documents, policies, strategies, plans for environmental protection, and technical standards for the environment applicable to craft villages; study, apply, and disseminate appropriate environmental treatment technologies for craft villages to encourage the development of rural crafts using environmentally friendly technologies, minimize waste generation, ensure food safety conditions, and limit the formation and development of types with high potential for environmental pollution.

3. Take the lead and coordinate with the Ministry of Agriculture and Rural Development, relevant ministries, sectors, and localities to issue a list of craft villages requiring environmental pollution treatment.

Article 17. Ministry of Industry and Trade

1. Take the lead in developing and issuing, or proposing to competent authorities for issuance legal normative documents, policies, programs, and plans to promote crafts; guide, organize implementation, inspect, and evaluate periodically or urgently the implementation of mechanisms and policies after issuance.

2. Implement activities to develop industrial clusters and programs to support investment in infrastructure for industrial clusters in accordance with the law;

3. Annually develop plans and budgets for promoting crafts from central government funds, submit to competent authorities for approval, and implement according to regulations.

Article 18. Ministry of Science and Technology

1. Direct the allocation of funding to support the application of science and technology in the development of rural crafts in annual plans.

2. Guide and manage production technology, restrict the introduction of outdated and backward technology into craft villages, rural craft establishments, and rural residential areas causing environmental pollution.

3. Take the lead and coordinate with relevant agencies to research, introduce, and disseminate environmentally friendly production technologies for craft villages and rural craft establishments.

Article 19. Ministry of Planning and Investment

Take the lead and coordinate with the Ministry of Finance, the Ministry of Agriculture and Rural Development, and related units to balance and allocate capital from the state budget and other sources to implement policies as stipulated in this Decree.

Article 20. Ministry of Finance

Guide, balance, and allocate capital from the state budget and other sources to support the development of rural crafts in annual plans in accordance with current regulations and this Decree.

Article 21. Ministry of Labor, Invalids, and Social Affairs

Guide and direct, inspect, and organize the implementation of policies supporting vocational training, employment resolution, and labor regulations, occupational safety and health, social insurance to develop rural crafts.

Article 22. Ministry of Culture, Sports, and Tourism

Direct the development of tourism linked to craft villages; organize tourism promotion activities, support the development of tourism infrastructure in craft villages, and encourage the development of tourism services and products in craft villages.

Article 23. Provincial People's Committees

1. Implement state management functions regarding craft villages and rural trades at the local level; review local regulatory documents to ensure they are consistent with this Decree; develop, promulgate mechanisms, policies, and set funding levels from the local budget annually to support investment in developing craft villages and rural trades.

2. Direct, guide, and inspect the implementation of policies, development plans, environmental protection for craft villages and rural trades; periodically every five years, review, compile statistics, classify, and draft plans (or management plans) for the development of rural trades at the local level to meet practical requirements.

3. Direct the Department of Agriculture and Rural Development to implement state management over craft villages and rural trades. Annually, the Department of Agriculture and Rural Development shall take the lead and coordinate with the People's Committee of districts to guide the construction and consolidation of plans for the development of rural trades, submit them for approval by competent authorities within the local agricultural and rural development plan.

4. Direct departments, agencies, and localities to manage the recognition of traditional trades, craft villages, and traditional craft villages; provide specific guidelines on ethnic cultural criteria for traditional trades and traditional craft villages for consideration and recognition; review and compile lists of recognized craft villages; implement environmental protection work for craft villages; invest in upgrading facilities for waste treatment in craft villages and rural trade establishments.

5. Popularize and promote policies encouraging the development of rural trades so that organizations and individuals with relevant needs can access resources and supportive policies for the development of rural trades through programs, projects, or activities related to the development of rural trades.

6. Direct the Department of Agriculture and Rural Development to prepare plans and budgets for the development of rural trades, send them to the financial agency at the same level for consolidation into the budget allocation proposal, and submit them to the competent authority for examination and decision in accordance with the State Budget Law.

7. Direct the People's Committee of districts to prepare and consolidate budgets for the development of rural trades into the annual local budget, submit them to the competent authority for approval according to the law. In addition to directly allocated funds for implementing this policy, localities are responsible for allocating and balancing additional funds from other program and project budgets and international organization support to assist in the development of rural trades.

8. Report regularly or ad hoc as required by

Article 24. Political-Social Organizations, Social Organizations, and Trade Associations

Strengthen coordination with relevant state agencies, domestic and foreign organizations to effectively carry out the preservation and development of traditional trades, craft villages, and traditional craft villages through programs and projects on the development of rural trades.

Article 25. Implementation Provisions

1. This Decree takes effect from June 1, 2018, and replaces Decree No. 66/2006/NĐ-CP dated July 7, 2006, on the development of rural trades.

2. Decisions recognizing traditional trades, craft villages, and traditional craft villages made by provincial People's Committees before the effective date of this Decree:

a) If consistent with the criteria stipulated in Article 5 of this Decree, the provincial People's Committee shall direct their implementation.

b) If inconsistent with the criteria stipulated in Article 5 of this Decree, the provincial People's Committee shall direct competent agencies to organize corrective actions.

3. For applications already accepted by competent state authorities for policy resolution under Decree No. 66/2006/NĐ-CP dated July 7, 2006, before the effective date of this Decree, they will be resolved according to the law at the time of acceptance.

4. This Decree does not support entities that have already received support from other programs overlapping with those specified in this Decree.

5. Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairmen of provincial and centrally-administered city People's Committees, and related organizations and individuals are responsible for enforcing this Decree./.