Prime Minister ratifies various incentives for agriculture investment
Updated at Thursday, 26 Apr 2018, 14:16
The Hanoitimes - The government offers a series of incentive mechanisms and policies to stimulate investments in agriculture and rural area development.
Under Decree 57/2018/ND-CP issued recently, enterprises, which are established and operate in line with the Law on Enterprises and have agricultural projects encouraged by the State, will be entitled to a wide range of State support in terms of land, credit access, high-tech application, workforce training and market development.
Specifically, projects eligible for investment incentives will be exempted from land and water surface rents in the first 15 years since the State allocates land/water surface to the owners of the projects. The rents shall be reduced by 50 percent in the following seven years.
Each investment project in milk and beef production will get an aid of VND5 billion
Projects eligible for investment encouragement will be exempted from land and water surface rents in the first 11 years and shall be offered 50 percent reduction of the rents in the following 5 years.
To ease the credit access, agriculture and rural investment projects will also receive preferential interest rates.
The state also supports 80 percent of the cost (but not more than VND300 million per case) of implementing scientific research projects as well as purchase of technology rights, technology or results of scientific research and technological development to create new products, improve technologies, reduce environmental pollution, and save materials and energy.
In order to enjoy the above policy, enterprises must have either turnover in the previous year of at least 10 times of the above aid level or their proposed copyrights and technologies to conform to their registered production development orientation.
According to the decree, scientific research will receive the above aid level in case they are applied in practice. If not, the aid level will be a half.
The decree also stipulates enterprises that have investment projects on milk and beef production will get an aid of VND5 billion per project to build infrastructure for waste treatment, transport, electricity, water, facility and equipment.
Besides the infrastructure construction aid, the enterprises will also get an aid of VND10 million per cow if they import high-yielding breeds for rearing directly or cooperating with households for farming, the decree states.
In recent years, the government puts high expectations on green and clean agriculture, considering it a driving force to boost the country’s growth, however, investment to the sector remains modest. The sector currently ranks 12 and 10 in terms of the number of projects and the investment capital among all sectors.
Experts attributed the low investment inflows to the agricultural sector to the reasons that investment in agriculture has high risks because it is directly affected by weather, natural disasters and epidemics. Therefore, many domestic and foreign businesses are hesitant to invest in this sector if they do not have enough strength in technology and capital sources.
According to Nguyen Trong Nghia, director of Sunstar Lacto Vietnam, the profit margin in agricultural and rural sectors is very low while doing business in this sector faces many risks because of having to depend too much on weather conditions.
Besides, some other experts said that the bottleneck of agricultural sector will be removed if policies in tax, land and capital have changes.
According to Deputy Minister of Agriculture and Rural Development Ha Cong Tuan, the sector will try to inch up its GDP growth and export turnover plans to 3.05 percent and US$40.5 billion this year.
The government this year entrusted the ministry to gain a GDP growth rate of 3 percent and export value of $40 billion.