Supporting local rice production in Vietnam

Supporting local rice production in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Supporting local rice production in Vietnam

Specifically, according to Article 7 of Decree 35/2015/ND-CP, supporting local rice production is as follows:

- Based on area of paddy land, the State shall prioritize supports for rice cultivation in the localities (including expenses for investment and regular expenses) via state budget's allocation limit decided by competent authorities according to the Law on State Budget.

- Apart from the supports from state budget according to applicable regulations, relevant localities still enjoy other supports as follows:

+ VND 1,000,000/ha/year as supports for wet rice land;

+ VND 500,000/ha/year as supports for other wet rice land except upland rice land that is extended spontaneously without compliance with paddy land using planning;

- Area of paddy land is supported and determined according to statistical figures on land by central-affiliated cities and provinces announced by the Ministry of Natural Resources and Environment in the year immediately prior to the year of budget allocation.

- Supports for reclaimation and renovation of paddy land:

+ VND 10,000,000/ha as supports for paddy land (except upland rice land) that is reclaimed from unused land or restored from abandoned state. In case of multiple regulations, apply the principle each piece of land is supported once and level of support is decided by People’s committees of provinces;

+ VND 5,000,000/ha as supports for wet rice land that is reclaimed from one-crop wet rice land and other lands according to paddy land using planning;

- Sources and supporting mechanism:

+ 100 per cent as level of support for the localities that receive source of expenses as supplements from central budget and provincial budget of Quang Ngai;

+ 50 per cent as level of support for the localities that regulate division revenues (less than 50 per cent) to the central budget;

+ The remaining localities shall use local budget for implementation.

- People’s committees of provinces shall manage and allocate supporting budget sources for protection and development of paddy land.

2. Regulations on the use of supportive budget in Vietnam

According to Article 8 of Decree 35/2015/ND-CP (amended in Decree 62/2019/ND-CP), People’s committees of all levels shall use expenses paid by persons who have land allocated, rented out by the state for non-agricultural purpose from wet rice land and the supportive budget as prescribed in Clause 2, Article 7 hereof to carry out protection and development of paddy land. Depending on specific conditions, the locality will decide to do the following:

- Support for rice growers

Use not less than 50% of the funds used to support rice growers to apply new varieties, technical advances, and new technologies in rice production; support linkage between production and consumption of products.

- The remaining funds will be used for the following activities:

+ Analyze the chemical and physical quality of the areas specializing in wet rice cultivation with high yield and quality every 10 years for effective use and appropriate improvement measures;

+ Improve and improve the quality of land specialized in wet rice cultivation or the remaining land for wet rice cultivation: increase the thickness of the cultivation layer; uplift low-lying rice fields; increase the flatness of the field; pickle, salt wash,  and other measures to improve soil;

+ Invest in the construction, maintenance, and repair of agricultural and rural infrastructure works in the commune, with priority given to investment in traffic and irrigation systems on rice-growing land;

+ Reclaiming and restoring unused land into specialized wet-rice land or remaining wet-rice land.

Ho Quoc Tuan

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