Policies for investment in development of infrastructure for high-quality rice cultivation planning areas in Vietnam

Policies for investment in development of infrastructure for high-quality rice cultivation planning areas (Image from Internet)

Policies for investment in development of infrastructure for high-quality rice cultivation planning areas in Vietnam

According to the provisions of Article 16 of Decree 112/2024/ND-CP, the policies on investment, infrastructure investment support, and application of modern science and technology for high-yield, high-quality rice cultivation planning areas in Vietnam are as follows:

- State investment in infrastructure development

From the centrally allocated budget for localities, it is implemented according to principles, criteria, and norms of public investment capital allocation from the state budget in each medium-term period issued by the competent authority, prioritizing investments in irrigation and transportation projects in high-yield, high-quality rice cultivation planning areas; procedures and processes follow public investment laws.

- Investment support for enterprises

+ The state budget supports up to 100% of the costs when building irrigation and transportation projects in high-yield, high-quality rice cultivation planning areas.

+ Projects that apply certified greenhouse gas emission reduction rice production processes; projects applying the circular economy model; certified organic production projects; projects linking rice production according to value chains.

+ Projects processing food products; projects producing biological products, processing high-tech raw materials, and products from rice and rice by-products in accordance with high technology laws.

+ Projects under point b must have an area of 500 hectares or more, projects under point c must have a total investment capital of 30 billion VND or more, the state budget supports a maximum of 40% but not more than 15 billion VND/project for purchasing technological chains, equipment, technology, and technology copyrights.

+ Fund sources, subjects, support procedures, sequential support steps follow the regulations of the Government of Vietnam on policies encouraging enterprises to invest in agriculture and rural areas.

+ Fund sources and support procedures for foreign-invested economic organizations follow separate legal regulations.

- Investment support for Cooperatives, cooperative unions

+ Investment projects developing infrastructure in high-yield, high-quality rice cultivation planning areas utilize state policies as guided by the Government of Vietnam detailing some articles of the Cooperatives Law 2023.

+ Cooperatives, cooperative unions link to implement one of the following projects in high-yield, high-quality rice cultivation planning areas: Projects applying certified greenhouse gas emission reduction rice production processes; certified organic production projects; projects linking rice production according to value chains.

+ Projects producing and processing food products; projects producing biological products, processing high-tech raw materials from rice and rice by-products.

+ Projects under point b must have an area of 100 hectares or more, projects under point c will receive state support for up to 100% of the investment capital in project infrastructure construction costs, purchasing technological chains, equipment, technology, and technology copyrights but no more than 5 billion VND/project.

+ Support forms, support levels, regulations on support from public investment capital, procedures for aggregating support needs, implementation methods for support, and management mechanisms after investment follow the regulations of the Cooperatives Law 2023 and guiding documents for the implementation of the Cooperatives Law 2023 on policies supporting investment in infrastructure development and equipment.

- Projects under the provisions of clause 2, clause 3 of Article 16 of Decree 112/2024/ND-CP are state-supported once. If a project or item of the project has received support from the state budget under Decree 112/2024/ND-CP, it will not be supported from the state budget according to other legal provisions in Vietnam and vice versa.

More details can be found in Decree 112/2024/ND-CP, which comes into force in Vietnam from September 11, 2024.

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