Vietnam: Policies on investment incentives and subsidies for enterprises investing in the agriculture and rural development sector

Policies on investment incentives and subsidies for enterprises investing in the agriculture and rural development sector are specified in Decree No. 57/2018/ND-CP of Vietnam’s Government as follows:

- According to this Decree, an enterprise that has an agriculture project (which is eligible for either special investment incentives or investment incentives, or is an encouraged agriculture project) shall have a land area allocated by the Government or be permitted to change the use purpose of an existing land area for building house for workers as prescribed in the Law on land and exempted from payment of fees for changing land use purpose and the land levy of that land area after change of use purpose.

- If an enterprise that has an agriculture project eligible for investment incentives or an encouraged agriculture project leases land and/or water surface from the Government, land rental and/or water surface rental shall be calculated according to preferential land prices announced by the Provincial-level People's Committee and fixed for at least 05 years.

- An enterprise that has an agriculture project eligible for special investment incentives shall be exempted from payment of land rental and/or water surface rental from the date on which it has land and/or water surface leased by the Government.

- An enterprise that has an agriculture project eligible for investment incentives shall be exempted from payment of land rental and/or water surface rental for the first fifteen years from the date on which it has land and/or water surface leased by the Government and shall have 50% of land rental and/or water surface rental reduced in subsequent 07 years.

-  An enterprise that has an encouraged agriculture project shall be exempted from payment of land rental and/or water surface rental for the first eleven years from the date on which it has land and/or water surface leased by the Government and shall have 50% of land rental and/or water surface rental reduced in subsequent 05 years.

- An enterprise that has an agriculture project (which is eligible for either special investment incentives or investment incentives, or is an encouraged agriculture project) and has land leased by the Government to build house for workers or to use for non-farm purposes (construction of warehouse, workshop, drying ground, road or planting of trees), or changes the use purpose of an existing land area to serve the purposes specified in this Clause, shall be exempted from payment of land rental.

- A new small and medium-sized agricultural enterprise shall be exempted from payment of land rental and/or water surface rental for the first five years from the date on which the project officially starts its operation and shall have 50% of land rental and/or water surface rental reduced in subsequent 10 years.

View more details at Decree No. 57/2018/ND-CP of Vietnam’s Government, effective from April 17, 2018.

- Thao Uyen -

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE