Vietnam: Policies for support for cooperatives doing business in the agriculture, forestry, aquaculture or salt industry

1. Policies for support for investment in development of infrastructure

- Investment in development of infrastructure, including: Working offices, drying grounds, storage facilities, product handling and processing workshops, electricity, water supply facilities, markets, water resource facilities, infrastructure intended for aquacultural production areas, agricultural supplies shops, inter-field traffic networks serving the production and business needs of members of cooperatives or associations of cooperatives. These infrastructure facilities shall be developed and constructed based on projects approved by competent authorities;

- After infrastructure projects developed and constructed by using state support as prescribed in point a of this clause are completed, they shall become non-divisible property of cooperatives or associations of cooperatives; they shall be responsible for keeping custody of and maintaining them during their useful life.;

- Give priority to support for investment in development of infrastructure of cooperatives that render public utilities or those that help to consume products and those connected to value chains.

2. Policies on lease of land used for business operations

- Cooperatives and associations of cooperatives shall be entitled to exemption and relief policies on land and water surface rents.

- Members and cooperatives whose members make capital contribution by investing their rights to own land and water surfaces for construction of working offices, drying grounds and storage facilities; construction of service facilities directly meeting the needs of agricultural, forestry, aquacultural and salt production of cooperatives and associations of cooperatives.

3. Credit incentive policies

- Cooperatives or associations of cooperatives that are newly established or develop projects in new investment and investment in expansion of production and business capacity shall be preferred to receive loans from credit institutions in accordance with applicable laws;

- Cooperatives or associations of cooperatives that develop projects for investment in production, business or export eligible for investment incentives shall be entitled to investment advantages prescribed in laws on investment.

4. Policies for support of funds, plant or animal varieties in case of natural disasters or epidemic outbreak

Depending on the degree of loss or damage, danger of an epidemic and their actual demands, cooperatives or associations of cooperatives doing business in the agriculture, forestry, aquaculture or salt industry may be entitled to support and preferential policies in terms of capital, plant and animal varieties in case of facing difficulties arising due to natural disasters or epidemics in accordance with existing laws on support of varieties, plants, livestock animals and fishery products for the purpose of recovering production activities at affected areas.

5. Policies for support for processing of products

- Cooperatives or associations of cooperatives having demands for processing of products shall be entitled to support for research into development of investment projects in processing of products;

- Cooperatives or associations of cooperatives shall be entitled to credit incentives for implementation of investment projects for processing of products.

View more details at Decree No. 107/2017/NĐ-CP of Vietnam’s Government, effective from September 15, 2017.

- Ngoc Duyen -

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