Policies for investment in development of rice cultivation planning areas in Vietnam

Policies for investment in development of rice cultivation planning areas in Vietnam (Image from the internet)

Policies for investment in development of rice cultivation planning areas in Vietnam

According to Article 16 of Decree 112/2024/ND-CP, the icies for investment in development of infrastructure, and the application of modern science and technology in high-yield, high-quality rice planning areas in Vietnam are stipulated as follows:

(1) State investment in infrastructure development

From the central budget, additional targeted funds for localities are implemented according to principles, criteria, and allocation standards of public investment capital from the state budget in each mid-term period issued by competent authorities. Priority is given to investment in irrigation and transportation projects in high-yield, high-quality rice planning areas; procedures and processes are implemented according to public investment laws in Vietnam.

(2) Investment support for enterprises

- The state budget supports up to 100% of the costs when investing in the construction of irrigation and transportation works in high-yield, high-quality rice planning areas.

- Projects applying certified greenhouse gas emissions reduction rice production processes; projects applying circular economy models; certified organic production projects; rice production linkage projects according to the value chain.

- Projects processing food products; projects producing biological products, processing high-tech materials and products from rice and rice by-products in accordance with high-tech laws in Vietnam.

- Projects under point b, clause 2, Article 16 of Decree 112/2024/ND-CP must have an area of 500 hectares or more; projects under point c, clause 2, Article 16 of Decree 112/2024/ND-CP must have a total investment of VND 30 billion or more, with the state budget supporting up to 40% but not exceeding VND 15 billion/project for purchasing production lines, equipment, technology, and technology rights.

- The source of funds, subjects, support procedures, and sequence of implementation follow the Government's regulations on policies encouraging enterprises to invest in agriculture and rural areas.

- The source of funds and support procedures for foreign-invested economic organizations follow separate regulations of the law.

(3) Investment support for Cooperatives, Cooperative Unions

- Infrastructure development investment projects in high-yield, high-quality rice planning areas utilize the State’s policies following the Government's detailed implementation regulations of certain articles of the Cooperative Law.

- Cooperatives and cooperative unions linked to implement one of the following projects in high-yield, high-quality rice planning areas: projects applying certified greenhouse gas emissions reduction rice production processes; certified organic production projects; rice production linkage projects according to the value chain.

- Projects producing and processing food products; projects producing biological products, processing high-tech materials and products from rice and rice by-products.

- Projects under point b, clause 3, Article 16 of Decree 112/2024/ND-CP must have an area of 100 hectares or more; projects under point c, clause 3, Article 16 of Decree 112/2024/ND-CP receive state support for up to 100% of investment costs for infrastructure construction, purchasing production lines, equipment, technology, and technology rights but not exceeding VND 5 billion/project.

- Support forms, support levels, regulations on public investment capital support, procedures for aggregating support needs, methods of implementing support, and post-investment management mechanisms follow the regulations of the Cooperative Law and guiding documents on the Cooperative Law regarding investment support policies for infrastructure and equipment development.

(4) Projects under clause 2, clause 3, Article 16 of Decree 112/2024/ND-CP receive one-time state support. Projects or project components that have already received state budget support under Decree 112/2024/ND-CP are not eligible for support under other legal provisions, and vice versa.

More details can be found in Decree 112/2024/ND-CP which comes into force in Vietnam from September 11, 2024.

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