Vietnam’s Decree No. 17/2018/ND-CP: One-off post-investment subsidy policies for fishery development

Specifically, according to Clause 5 Article 1 of Decree No. 17/2018/ND-CP of Vietnam’s Government, which adds Article 4a after Article 4 of Decree No. 67/2014/ND-CP, post-investment subsidy policies are specified as follows:

1. Subjects:

Owners of new fishing vessels performing offshore fishing activities or providing logistic support services, with the main engine power of 800 CV or more, comprising of: New fishing vessels of a province as approved by the Ministry of Agriculture and Rural Development; fishing vessels built for replacing fishing trawlers with a power of 90 CV or more which shall be used for performing other encouraged activities such as surrounding nets, gillnets (excluding tuna gillnet fishery), hooks and lines, stick falling nets and logistic support services.

2. Eligibility requirements for post-investment subsidy:

- Vessel owners have been admitted to the fishery production teams, groups, unions or cooperatives as approved by People's Committees of provinces or central-affiliated cities;

- New fishing vessels must be used for performing offshore fishing activities or providing logistic support services with steel or composite hulls;

- New fishing vessels must be propelled by new-brand engines;

- Fishing vessels must be equipped with onboard communications systems designed with available position reporting functions which transmit information to onshore receiving base stations to track and control their voyage;

- Offshore fishing vessels must have the certificate of conformance to technical safety standards for fishing vessel operations, the certificate of registration for fishing vessel, and the commercial fishing license;

- Logistic support vessels for offshore fishing activity must have the certificate of conformance to technical safety standards for fishing vessel operations and the certificate of registration for fishing vessels.

3. Subsidy rates:

- As for construction of a new vessel for performing offshore fishing activity or logistic support services thereof with steel hull (comprising new equipment) and total main engine power ranging from 800CV to less than 1,000CV, the vessel owner shall be entitled to 35%, but no more than VND 6.7 billion, of subsidy for the total investment value per each;

If a fishing vessel has the total main engine power of at least 1,000CV, vessel owner shall be entitled to 35%, but no more than VND 8 billion, of subsidy for the total investment value per each.

- As for construction of a new vessel for performing offshore fishing activity or logistic support services thereof with composite hull (comprising new equipment) and total main engine power of at least 800CV, the vessel owner shall be entitled to 35%, but no more than VND 6.7 billion, of subsidy for the total investment value per each.

View provisions on processes and procedures for payment of post-investment subsidy at: Decree No. 17/2018/ND-CP of Vietnam’s Government takes effect from March 25, 2018.

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