Translation:Enterprises investing in agriculture and rural areas will be entitled to many land-related incentives such as exemption and reduction, support for land levy, land rent, and water surface rent, permitting and supporting the conversion of land use purposes, supporting land accumulation, and many other investment incentives.
Article table of contents
Support for Land Accumulation
Investors **** with particularly incentivized agricultural projects who lease land or water surface from households or individuals for their investment projects will be supported by the State with 20% of the land rent, or water surface rent as stipulated in Clause 1, Article 6 of this Decree for the first 5 years from the completion of basic construction.
Investors with particularly incentivized agricultural projects, incentivized agricultural projects, and encouraged agricultural projects are encouraged to accumulate land to form raw material zones through households or individuals contributing capital by land use rights for projects that do not involve State land recovery.
Support for enterprises to effectively coordinate land use in agricultural and forestry companies transformed according to Decree 118/2014/ND-CP on the renewal and development to enhance the efficiency of agricultural and forestry companies (formerly state agricultural and forestry farms) as follows:
- Enterprises with a charter capital scale of 50 billion VND or more and having a processing plant with the nearest year's revenue of 50 billion VND or more.- Agricultural and forestry companies that do not have a large enough processing plant to consume all of the company's raw materials.- Enterprises specified in points (a) and (b) of this clause are permitted to establish a two-member limited liability company. The capital contribution ratio in the two-member limited liability company is calculated according to the current charter capital of each enterprise or the new agreement ratio of the two enterprises, approved in writing by the provincial People's Committee.
Support up to 80% of Investment Capital for Experimental Production Projects of New Products
Enterprises are particularly supported for research, transfer, and application of scientific technology; support for investment in high-tech agricultural projects. Specifically::
- Enterprises are supported with 100% of the funds to purchase technology licenses or implement research projects to create new products, improve technology, pollution-reducing technology, raw material-saving technology, fuel-saving technology, and energy-saving technology, with a maximum support level of 200 million VND/project/license. Conditions for support include:- Having the previous year's revenue at least 10 times the support level.- Must place orders with scientists working at schools and research institutes to implement the research projects.- Enterprises implementing experimental production projects of new products, applying new technology are supported up to 80% of the project's investment capital but not exceeding 5 billion VND/project. Experimental production projects are exempt from import tax on trial production materials and equipment not produced domestically.- Enterprises with projects for plant tissue culture, medicinal plant propagation with a scale of 2 million plants/year or more are supported with 80% of the investment cost, with support not exceeding 5 billion VND/project. If the scale increases, the support level increases correspondingly.- Enterprises with clean vegetable, flower, and fruit production projects are supported with the cost of building greenhouses and mesh houses; the support level is 100,000 VND/m2 of greenhouses and mesh houses.
For high-tech agricultural projects, support is provided for internal and external transportation, electricity, water, and environmental treatment; the support level is 200 million VND/ha.
Support of 5 Billion VND/Project for Enterprises with Investment Projects on Coffee Processing by Wet Method
According to current regulations, the support level for enterprises with investment projects on coffee processing by the wet method is 3 billion VND/project to build infrastructure for transportation, electricity, water, workshops, waste treatment, and purchase equipment. However, in the new draft, the support level to build infrastructure for transportation, electricity, water, workshops, waste treatment, and purchase equipment is 5 billion VND/project.
To enjoy the above support, investment projects must meet the following conditions:
- Processing capacity must reach at least 5,000 tons of products/year;- Ensure compliance with environmental protection requirements as per legal regulations on environmental protection.- The investor must use at least 30% of local labor and 40% of local coffee raw materials.
