With the aim of creating conditions for the country's agriculture to develop along with attracting investment from businesses in this field, on April 17, 2018, the Government of Vietnam issued Decree No. 57/2018/ND-CP on incentive policies for enterprises investing in agriculture and rural development sector.
Article table of contents
Enterprises investing in agriculture and rural development sector shall be entitled to the following preferential policies:
1/ Exemption or reduction of land levy
An enterprise that has an 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 and be exempted from payment of fees for changing land use purpose and the land levy of that land area after change of use purpose.
2/ Exemption or reduction of land rental and water surface rental
Regarding an enterprise having an agriculture project eligible for investment incentives or an encouraged agriculture project
This enterprise shall be calculated according to preferential land prices announced by the Provincial-level People's Committee and fixed for at least 05 years.
Regarding an enterprise having an agriculture project eligible for special investment incentives
This enterprise 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.
Regarding an enterprise having an agriculture project eligible for investment incentives
This enterprise 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.
Regarding an enterprise having an encouraged agriculture project
This enterprise 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.
Moreover, an enterprise that has an agriculture project and has land leased by the Government to build houses for workers or to use for non-farm purposes, or changes the use purpose of an existing land area to serve the purposes, shall be exempted from payment of land rental.
In particular, 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.
3. Other incentive policies
In addition to the special incentives related to land finance as above, enterprise with agricultural projects under this Decree also be entitled to 07 other incentive policies such as:
- Subsidies for land consolidation;
- Credit subsidies;
- Subsidies on research, transfer and application of hi tech to agriculture;
- Subsidies on personnel training and market development;
- Subsidies on investment in agricultural product processing and storage facilities, slaughterhouses, manufacturing of agricultural machinery, equipment and parts, and production of auxiliary products;
- Subsidies given to enterprises providing public services and investing in infrastructure facilities in rural areas.
In addition, if an enterprise has an investment project in a dairy or beef cattle farm, it will be supported by the state budget.
Above are all incentive policies for enterprises investing in agriculture and rural development sector specified in Decree No. 57/2018/ND-CP of Vietnam’s Government, effective from April 17, 2018.
