Decree No. 66/2006/ND-CP on Developing Rural Trades

DECREE

Regarding the development of rural trades and crafts

_____________________

THE GOVERNMENT

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

PURSUANT TO THE PROPOSAL OF THE MINISTER OF AGRICULTURE AND RURAL DEVELOPMENT.

DECREE

PART I

GENERAL PROVISIONS

Article 1. Scope of Application

This Decree stipulates certain contents and policies for the development of rural trades and crafts.

Article 2. Applicability

1. Domestic and foreign organizations and individuals directly investing in developing production and services of rural trades and crafts at rural areas (hereinafter referred to collectively as rural trade and craft establishments) include:

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

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

c) Individual business households registered in accordance with the law on business registration.

2. Rural craft villages and clusters of rural trade and craft establishments.

Article 3. Activities of rural trades and crafts

The activities of rural trades and crafts at rural areas specified in this Decree include:

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

2. Producing construction materials, wooden products, woven bamboo and rattan goods, ceramics, glassware, textiles, small machinery.

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

4. Producing handicrafts.

5. Cultivating and trading ornamental plants.

6. Construction, transportation within communes and inter-commune areas, and other services supporting rural production and daily life.

7. Organizing vocational training and skill transmission; consulting on production and business in the field of rural trades and crafts.

Article 4. Recognition of trades, craft villages, and management of product quality in rural trades and crafts

1. The Ministry of Agriculture and Rural Development shall specify the contents and criteria for recognizing traditional trades, craft villages, and traditional craft villages.

The People's Committee of the province shall decide on the recognition of traditional trades, craft villages, and traditional craft villages within its jurisdiction.

2. The People's Committee of the province shall organize the implementation of product quality registration and supervision in rural trades and crafts within its jurisdiction in accordance with the laws on product quality management.

Article 5. Planning for the development of rural trades and crafts

1. The State shall develop overall planning and long-term orientation for the development of rural trades and crafts nationwide and in each economic region, ensuring sustainable development, industrialization, and modernization of agriculture and rural areas.

The Ministry of Agriculture and Rural Development shall develop overall planning for the development of rural trades and crafts nationwide. The People's Committee of the province shall develop planning for the development of rural trades and crafts within its jurisdiction. Approval of such plans shall be carried out in accordance with current regulations on planning.

2. The content of planning for the development of rural trades and crafts must be consistent with the overall planning for socio-economic development of the country, each region, and comply with the provisions of the law on planning to exploit and promote the advantages of each region and locality.

Chapter II

INCENTIVE POLICIES

Article 6. Program for the preservation and development of craft villages

1. The village craft conservation and development program includes:

a) Preservation and development of traditional craft villages;

b) Development of craft villages linked with tourism;

c) Development of new village crafts.

2. The State shall have a program and allocate budget funds to support the program for the preservation and development of craft villages as specified 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 7. Production Sites

1. At all levels, People's Committees shall base on land use planning, overall planning, and orientation for the development of rural trades and crafts that have been approved, establish planning for the construction of craft villages and clusters of trade and craft establishments in line with requirements for production development, environmental protection, and linking production with consumption, and submit them to competent authorities for approval.

2. Encouragement is given to organizations, individuals, and rural trade and craft establishments to invest in building infrastructure for craft villages and clusters of rural trade and craft establishments. The State shall support investment in infrastructure for craft villages and outside the boundaries of clusters of rural trade and craft establishments in accordance with Clause 1 of Article 8 of this Decree.

3. Rural trade and craft establishments with investment projects that are effective shall be entitled to:

a) Facilitate conditions for land allocation with payment for land use rights or leasing land in clusters of rural trade and craft establishments and obtain certificates of land use rights in accordance with the law on land;

b) For investment projects requiring strict environmental pollution control measures, ensuring research and production of new products shall be prioritized for land allocation with payment for land use rights or leasing land in concentrated industrial zones;

c) Rural trade and craft establishments relocated from residential areas to planned locations shall be granted preferential land use fees, lease fees, land tax, and financial support for relocation.

Article 8. On Investment and Credit

1. Local budgets shall provide partial funding for the construction of infrastructure and environmental treatment for craft villages and clusters of rural trade and craft establishments. For provinces facing difficulties in revenue collection, the central budget shall provide partial funding in the annual budget.

2. For effective production and business projects, they shall be entitled to:

a) Enjoy investment incentives under the Investment Law;

b) Receive post-investment interest rate support in accordance with current regulations;

c) Borrow capital from the Employment Support Fund in accordance with current regulations;

d) Implement state regulations on investment development credit and export credit;

đ) The Guarantee Fund for Small and Medium Enterprises shall guarantee loans from credit institutions.

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 People's Committee of the province shall base on specific local conditions to support rural trade and craft establishments in building brands, geographical indications, and implementing policies to protect brand ownership.

Article 10. Science and Technology

1. When rural trade and craft establishments implement activities to apply scientific and technological results, innovate technology, produce new products, and carry out scientific and technological services or adopt advanced science and technology from domestic and foreign organizations and individuals, they shall enjoy incentives according to policies and financial mechanisms encouraging enterprises to invest in scientific and technological activities.

2. Rural trade and craft establishments conducting independent research topics or collaborating with scientific research agencies to create new technologies and improve research products with commercial potential in the field of rural trades and crafts shall be supported partially by the state from the science and technology affairs budget.

3. The state budget from the agricultural extension, fisheries extension, and industry promotion funds shall support rural trade and craft establishments in the following areas: information dissemination and publicity; model building and technology transfer; training and capacity building; consultation and service provision.

Article 11. Training Human Resources

1. Rural vocational training projects shall enjoy State investment credit policies for development as prescribed to train human resources for rural trades that need to be developed according to the rural trade development plan.

2. Local budgets shall support part of the class costs for rural trade establishments directly opening classes to transmit trades.

3. Rural trade artisans organizing trade transmission may collect tuition fees from students based on mutual agreement; they shall be compensated according to the training institution's regulations when participating in teaching at training institutions; they shall enjoy tax incentives in their trade transmission activities as prescribed by current regulations.

4. Rural workers participating in vocational training shall be supported with training costs under the short-term vocational training support policy for rural workers; they shall be able to borrow funds from the national employment program.

Chapter III

IMPLEMENTING PROVISIONS

Article 12. Effective Date

1. This Decree shall take effect fifteen days after its publication in the Official Gazette.

2. Rural trade establishments, craft villages, clusters of rural craft village establishments shall enjoy preferential policies as prescribed by this Decree and current laws.

Article 13. Responsibilities for guiding implementation

1. The Minister of Agriculture and Rural Development shall lead and coordinate with relevant ministries, sectors, provincial People's Committees, and centrally-run city People's Committees to guide the implementation of this Decree.

2. Ministers of the Ministries of Planning and Investment, Finance, Culture, Sports and Tourism, Natural Resources and Environment, Labor, Invalids and Social Affairs, Trade, Science and Technology, Industry, Fisheries, and the State Bank of Vietnam shall be responsible for guiding the implementation of this Decree within their respective functions and authorities.

Article 14. Ministers, heads of ministerial-level agencies, heads of agencies under the Government, Chairpersons of provincial and centrally-run city People's Committees shall be responsible for implementing this Decree./.