Nghị định 65/2017/ND-CP

DECREE

PROVIDING FOR SPECIFIC POLICIES ON VARIETIES, FUNDING AND TECHNOLOGY FOR PRODUCTION AND USE OF HERBAL INGREDIENTS

Pursuant to the Law on Government Organization dated June 19, 2015;

Pursuant to the Law on Pharmacy dated April 16, 2016;

At the request of the Minister of Agriculture and Rural Development;

The Government promulgates a Decree on specific policies on varieties, funding and technology for production and use of herbal ingredients.

Chapter I

GENERAL PROVISIONS

Article 1. Scope and regulated entities

1. This Decree provides for a number of special policies on varieties, funding and technology for production and use of herbal ingredients derived from plants and animals.

2. This Decree applies to organizations and individuals involved in production and use of herbal ingredients in the territory of the Social Republic of Vietnam.

Article 2. Definition

For the purpose of this Decree, the terms below shall be construed as follows:

1. ‘herbal variety” refers to a plant variety or animal breed from which a herbal ingredient is produced. 

2. “original herbal variety” refers to the initial variety of perennial plants and garden of initial plants of perennials or dominant plants (maternal plants) and variety of annual plants reinvigorated or domesticated from nature or production or prototypal breed, grandparental breed, parental breed or nucleus stock.

3. “ commercial herbal variety” refers to the variety used for creation of herbal ingredients for purposes other than propagation.

4. ‘local herbal variety” refers to a variety created during natural evolution which are available in local authorities.

Article 3. Principles for policy adoption

1. Direct provision of assistance for organizations and individuals running herbal ingredient projects shall be given in a public and transparent manner to the right beneficiaries.   Eligible funding recipients must use the funding provided for the right purpose.

2. An organization or individual that is eligible to more than one level or type of assistance may select the most beneficial level or type of assistance.

3. Assistance shall be provided as per regulations of the policy according to the state budget balancing capacity.

Chapter II

SPECIFIC POLICIES

Article 4. Priority given to recognition of herbal varieties

1. Local herbal varieties may be considered to be included in the list of animal breeds or permissible herbal varieties for production and trading in Vietnam without going through assay and recognition of new plant varieties or animal breeds specified in Ordinance on plant varieties 2004 and Ordinance on animal breeds 2004 and guiding documents thereof.

2. New herbal varieties developed by organizations or individuals shall be proposed for exceptional recognition under regulations in Ordinance on plant varieties 2004 and its guiding documents (for plant varieties) or regulations in Ordinance on animal breeds 2004 and its guiding documents (for animal breeds).

Article 5. Assistance in herbal variety production

1.  A lump sum assistance shall be 50% of total cost for infrastructure investment including reform of farm, irrigation system and internal traffic for such farm, net house, greenhouse, breeding facilities, maintenance house and environmental issue handling which is given to intensive propagation facilities which own at least 2 ha of land for herb cultivation and 0.5 ha of land for animal breeding for the purpose of herbal ingredient production but not exceeding 2 billion VND/facility.  Assistance given to herbal variety producers which apply hi-technology according to criteria issued by the Minister of Agriculture and Rural Development must not exceed 3 VND billion/producer. 

2. A lump sum assistance shall be 60% of the cost for production of original herbal varieties or 30% of the cost for production of commercial varieties according to economic-technical restrictions issued by the Minister of Agriculture and Rural Development.  In case hi-technology for production is applied, the assistance given shall be 80% and 50% of production costs for original varieties and commercial varieties, respectively.

3. An assistance of 100% of the cost for technical training offered to the variety producer according to standard expenditure specified in Decree No.02/2010/ND-CP dated January 08, 2010 of the Government on agricultural encouragement and guiding documents shall be given.

Article 6. Assistance in application of technology for production and use of herbal ingredients to follow the practice of good herbal ingredient production and use

1. Develop a model for applying technology for production and use of herbal ingredients, give an assistance of 100% of the cost of varieties, fertilizers and pesticides for herb cultivation and the cost of breeds, feed and veterinary drugs for animal breeding according to economic-technical regulations issued by the Minister of Agriculture and Rural Development.

2.  Give a lump sum assistance of 100% of the cost for issuance of certificate of eligibility for production and use of herbal ingredients

3. Give an assistance of 100% of the cost for technical training offered to the herb cultivator and user according to standard expenditure specified in Decree No.02/2010/ND-CP dated January 08, 2010 of the Government on agricultural encouragement and guiding documents.  

Article 7. Assistance in concentrated herbal ingredient production

Provide a lump sum assistance of 15 VND million/ha for infrastructure construction and variety purchase of the concentrated herbal ingredient production project with the scale of at least 5 ha of cultivating land or 2 ha of land for intensive breeding project.

Article 8. Land incentives

Organizations and individuals running projects on investment in research, propagation and production of herbal ingredients may be entitled to the following incentive policies on land:

1. If the land or water surface used for farming and construction of factory and storage warehouse is leased from the State, the aforementioned entities may be exempted from land rent and water surface rent as per provisions of the Law on Land.

The unit price of leased land

Annual unit price equals (=) rate (%) multiplied by land price.  Where:  

The rate (%) to calculate the unit price is 0.5%.

Land price equals (=) Land price calculated according to equivalent using purpose specified in the land price list multiplied by the coefficient for land price adjustment.

In case the leased land area is in more than one locality with different land prices and land price adjustment coefficients, the land price for calculation of land rent shall be determined based upon the average land price of the whole leased land area.

2. Assistance in land gathering

a) In case the land or water surface is leased from family households or individuals, the State shall give a maximum assistance of 40% of the land rent or water surface rent in the first 5 years from the day on which the project is run; assistance amount shall be determined according to the unit price of leased land specified in Clause 1 Article 8 herein.

b) In case receiving the land use right transferred from family households or individuals, the entities may be exempted from charge for issuance of land use right certificate as per law soft provisions.

Article 9. Conditions for receiving assistance

Projects that are entitled to specific policies specified in Article 5, 6, 7 and 8 of this 6, Decree must satisfy the following requirements:

1. Herbal varieties must be named in the list of herbal varieties permitted for production and trading in Vietnam or recognized to be new varieties by the Ministry of Agriculture and Rural Development.

2. Projects for production of herbal ingredients run by private organizations and individual investors specified in Article 7 herein must be approved by provincial People’s Committees.  Other cases must be approved by competent authorities.

3. The area for herb cultivation must be included in the development plan or planning approved by the competent regulatory agency or must be permitted by provincial People’s Committees in case no plan or planning is approved.

4. The investor shall make a commitment on reciprocal capital provision in order to perform tasks specified in the approved project (in addition to state assistance).   In case assistance for the project is contributed by asking for bank loans, a loan contract or loan-proving document is required.

Chapter III

FUNDING SOURCES AND ASSISTANCE PROVISION MECHANISM

Article 10. Funding sources

1. Funding for provision of assistance shall be provided from state budget including local and central government budget.

2. State investment credit loans

3. Available sources, reciprocal capital contributed by organizations and individuals and other sources legally accepted 

Article 11. Assistance provision mechanism

1. With regard to state budget

a) Central government budget shall provide funding for assistance prescribed in Article 5, 6, 7 and 8 herein for central projects and projects run in areas with poor conditions for socio-economic development and dedicated funding shall be given to local government authorities that fails to balance their local budget;

b) Local government budget shall provide funding for assistance prescribed in Article 5, 6, 7 and 8 herein for local projects, except for those run in local areas receiving assistance specified in Point a Clause 1 this Article.

2. Projects for production and use of herbal ingredients named in the list of State investment credit loan projects may be funded by investment credit loans under current regulations.

Article 12. Application and procedure for proposing new herbal varieties

1. Application and procedure for proposing new herbal varieties specified in Clause 1 Article 4 herein shall be stipulated as follows:

a) The application includes:

A written proposal;

A technical declaration which describes origin and characteristics of the variety, use and cultivation history, cultivation size and place and production process (according to Form No.01 provided in the Appendix issued thereto)

b) Procedure

Provincial People's Committees shall send a proposal for adding new herbal varieties into the list of herbal varieties permitted for production and trading in Vietnam to the Ministry of Agriculture and Rural Development.

The Ministry of Agriculture and Rural Development shall assign its affiliated entity to receive the application.  The receiving agency shall establish a scientific council for appraisal and send the aforesaid proposal to the Minister for approval within 30 days from the day on which the satisfactory application is received.  The procedure for council establishment and council operation regulations must be made in conformity with current regulations on recognition of plant varieties and animal breeds.

In case the application is found ineligible, the Ministry of Agriculture and Rural Development shall send a notice to the applicant for completing such application.

2. Eligible funding recipients prescribed in Article 5 and 6 herein shall ask for assistance in investment according to the project schedule.  The procedure for proposing, appraising and approving the project shall be made in conformity with provisions of the Law on Public Investment and the Law on State Budget and guiding documents.

3. Eligible funding recipients prescribed in Article 7 herein shall ask for post-investment assistance.  Application and procedure:

a) The application includes:

A proposal of assistance provision (according to Form No.02 provided in the Appendix issued thereto)

A project report

b) Procedure

Before running the project, the applicant shall send 3 applications to the Department of Investment and Planning in the place where the production registration is made.

The Department of Investment and Planning shall send a verification report (according to Form No.3 provided in the Appendix issued thereto) to provincial People's Committees for considering whether to make a commitment on assistance provision for the applicant (according to Form No.4 provided in the Appendix issued thereto) within 10 working days. 

In case the funding for provision of assistance is allocated from central government budget, provincial People’s Committees shall send the application with written proposal of project running (according to Form No.5 provided in the Appendix issued thereto) to the Ministry of Planning and Investment.

The Ministry of Planning and Investment shall ask for opinions from the Ministry of Finance and consider the budget balance capacity in order to make a commitment on assistance provision (according to Form No.6 provided in the Appendix issued thereto) and send it to the provincial People’s Committees and the applicant within 20 working days.

After completing the first stage of infrastructure investment and herb cultivation according to the plan in the first planning year, the organization/individual running the project shall send a written request for project acceptance to the provincial People's Committee.

The provincial People’s Committee shall carry out the acceptance within 10 working days.  The record of acceptance for completion of the project (Form No.7 provided in the Appendix issued thereto) shall be considered a basis for disbursement of funding provided.

After receiving the acceptance record, such organization/individual shall send a written proposal for disbursement of funding provided (Form No.8 provided in the Appendix issued thereto) with the acceptance record and decision on assistance provision issued by the competent authority to provincial State Treasury.

Chapter IV

IMPLEMENTATION

Article 13. Responsibilities of central-level ministries

1. The Ministry of Agriculture and Rural Development shall:

a) receive and appraise the additional application and recognize new varieties and add such new varieties to the list of plant varieties or animal breeds permitted for production and trading in Vietnam;

b) grant approval for scientific tasks and investment assistance projects funded by central government budget under management of the Ministry of Agriculture and Rural Development;

c) include the funding provided in its annual budget estimate to the competent authority for approval;

d) issue economic-technical restrictions on propagation, develop a model for applying technology for production and use of herbal ingredients to follow the practice of good herbal ingredient production and use.

2. The Ministry of Health shall: 

a) take charge of formation and promulgation of national regulations on quality of plant varieties and animal breeds used for production of herbal ingredients;

b) grant approval for scientific tasks and investment assistance projects funded by central government budget under management of the Ministry of Health;

c) include the funding provided in its annual budget estimate which is sent to the competent authority for approval;

3. The Ministry of Science and Technology shall:

a) Give priority to proposal for additional science and technology tasks concerning herbal varieties, production and use of herbal ingredients;

b) promote development of scientific and technological resources of scientific and technological organizations for the purpose of herbal ingredient production;

c) grant approval for scientific tasks and investment assistance projects funded by central government budget under management of the Ministry of Science and Technology;

c) include the funding provided in its annual budget estimate which is sent to the competent authority for approval;

4. The Ministry of Education and Training shall:

a) grant approval for scientific tasks and investment assistance projects funded by central government budget under management of the Ministry of Education and Training;

b) include the funding provided in its annual budget estimate which is sent to the competent authority for approval;

5. The Ministry of Planning and Investment shall:

a) allocate funding for provision of assistance in investment according to state funding received as assigned;  

b) commit to give assistance to organizations and individuals involved in concentrated production of herbal ingredients as prescribed in Point b Clause 3 Article 12 herein

6. The Ministry of Finance shall:

allocate non-business funding according to the state funding received as authorized and assigned

7. The Ministry of Natural Resources and Environment shall:

a) cooperate with the Ministry of Agriculture and Rural Development and Ministry of Health in managing import of herbal ingredient gene as regulated;

b) grant approval for scientific tasks and investment assistance projects funded by central government budget under management of the Ministry of Natural Resources and Environment;

c) include the funding provided in its annual budget estimate which is sent to the competent authority for approval;

Article 14. Responsibilities of provincial People’s Committees 

1. Send applications for including local herbal varieties to the list of plant varieties or animal breeds permitted for production and trading in Vietnam to the Ministry of Agriculture and Rural Development for appraisal purpose

2. Prepare and approve plan or planning for the areas of concentrated production and cultivation of herbal varieties

3. Balance funding from local government budget to ensure financial assistance in investment as prescribed herein

4. Grant approval for scientific tasks and investment assistance projects funded by local government budget.

5. Send a proposal for charge for issuance of land use right as regulated in Point b Clause 2 Article 8 herein to provincial People's Councils for approval.

Article 15. Effect

1. This Decree comes into force from July 05, 2017.

2. This Decree will replace regulations on provision of assistance for production of herbal ingredients specified in Article 12 of Decree No.210/2013/ND-CP dated December 19, 2013 of the Government on incentive policies for enterprises investing in agricultural and rural development.

3. The enterprise that runs approved project on herbal ingredient production and is eligible to receive assistance shall receive a subsidy under regulations herein if not provided with financial support as specified in Decree No.210/2013/ND-CP.   If having received assistance as specified in Decree No.210/2013/ND-CP, such enterprise shall continue to be provided with financial assistance under regulations in the aforementioned Decree. 

4. Ministers and Directors of ministerial agencies and Governmental agencies, Chairpersons of provincial People's Councils and People’s Committees and relevant agencies shall take responsibility to implement this Decree./.

APPENDIX

LIST OF FORMS
(Issued together with Decree No.65/2017/ND-CP dated May 19, 2017 of the Government)

Form No.01

SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
---------------

(Location and date)

TECHNICAL DECLARATION OF HERBAL VARIETIES

Proposed to be added into the list of plant varieties or animal breeds permitted for production and trading in Vietnam

1. Name of variety: ..................................................... Species:............................. ;

2. Origin and production method:…………………………………………………. ;

3. Detailed description of variety’s characteristics (characteristics of variety’s form for plant and animal with photos or drawing);

4. Economic-technical norms: Growing time and useful value …

5. History of cultivation and use (Specify the time for initial appearing or initial planting, place for planting or use, land area for cultivation and output);

6. Technical procedure for cultivation and use;

7. Other relevant information (if any):

Form No.02

APPLICATION FOR POST-INVESTMENT FUNDING FOR HERBAL INGREDIENT PRODUCTION PROJECT

(According to Decree No…../2017/ND-CP dated ….. of the Government)

To:…………………………….

Name of enterprise:…………………………………………………………………………. ;

Type of enterprise:……………………………………………………………………….. ;

Business address:…………………………………………………………………… ;

Tel:…....................................................................  Fax no………………………………. ;

Enterprise registration certificate/business registration certificate/business operation license/ID card No…. issued by ….. on date…..

I. REGISTRATON OF POST-INVESTMENT FUNDING RECEIPT

1. Name of the project:………………………………………………………………… ;

2. Field:…………………………………………………………………….. ;

3. Project location:……………………………………………………. ;

4. Objectives and scale:…………………………………………………………….. ;

5. Total investment:....................................................................................... ;

6. Land area reserved for herb cultivation:……………………………………………… ;

7. Average number of workers in the year:..................................................................... ;

8.  Schedule:……………………………………………………….. ;

9. Expected outputs in …. month(s), back-up materials for processing … (months) to total materials in ... month(s)/year(s)

II. REQUEST FOR FUNDING (According to Decree No…./2017/ND-CP of the Government):

Activities that need funding:

III. COMMITMENT: 

1.  Accuracy of the aforementioned information;

2. Compliance with provisions of Vietnamese laws./.

Form No.03

To: People’s Committee of ....

Pursuant to the application no…. dated… of the (name of the applicant) for provision of funding for... (name of the project) and attached project dossier, below is the report on results of verification of incentives and funding given to the investor in... (name of the project) as prescribed in Decree No…/2017/ND-CP:

I. VERIFICATION DOSSIER

1. Application no.:

2. Project report:

3. Record of field inspection (if any):

4. Opinions from relevant agencies:

5. Other relevant documents (if any)

II. PROJECT INFORMATION

1. Name:

2. Field:

3. Objectives and scale (outputs, number of labor expected, investment items and land area):

4. Authority deciding investment guidelines of the project (if any as per provisions of the Investment Law):

5. Person deciding project investment (name of investor):

6. Project location:

7. Estimated total investment:

8. Requested state funding:

9. Implementation time:

10. Other relevant information (if any):

III. OPINIONS FROM COOPERATING ENTITIES

Make a consolidated report on opinions from cooperating agencies

IV. OPINIONS ABOUT THE VERIFICATION FROM GOVERNING AGENCY

1. Funding provision:

- Conditions for receiving funding:

-  Amount:

-  Duration:

2. Other opinions:

V. CONCLUSION

This report on verification of incentives and funding given to the ….(name of the investor) running the..... will be submitted to People's Committee of .... for consideration./.

Form No.04

COMMITMENT ON FUNDING PROVISION

(Applied for local government budget)

Pursuant to Decree No...../2017/ND-CP dated …. of the Government on specific policies on varieties, funding and technology for production and use of herbal ingredients;

Pursuant to application no... dated... by the ... (name of the applicant) for provision of funding for... (name of the project);

Pursuant to the report No.../BCTT-SKHDT dated…. by the Department of Planning and Investment on the result of verification of incentives and funding given to the .. (name of the investor) in …(name of the project)

Below is commitment on funding provision for the … (name of the investor) to run the...  (name of the project):

1.  Amount:

2.  Duration:

The investor is required to perform tasks included in the registered project./.

Form No.05

To: Ministry of Planning and Investment

 varieties to Decree No...../2017/ND-CP dated …. of the Government on specific policies on varieties, funding and technology for production and use of herbal ingredients;

At the request of the Department of …. regarding verification of sources of funding for provision of assistance given to the project

People’s Committee of ….. grants the…(name of investor) permission to run the.. (name of project) and request the Ministry of Planning and Investment to provide funding for such project with the following contents:

1. Name of the project:

2. Name of the organization/individual running such project:

3. Project location:

4. Estimated total investment (specify sources of investment and particular amount):

5. Implementation time:

6. Other information (if any):

7. Enclosure:

- Application for funding provision

- Project report

- Report on verification of funding provision

- Other relevant documents (if any) 

Form No.06

To:…………………………….

In response to document no....dated... by People's Committee of.... regarding application of funding provision for …. run by the …., below are opinions from the Ministry of Planning and Investment after consideration of opinions from relevant ministries and capacity for balancing funding provided from central government budget:

I. PROJECT INFORMATION:

1. Name of the project:

2. Name of the organization/individual running such project:

3. Project location:

4. Total investment:

II. FUNDING PROVISION:

1.  Amount:

2. Duration:

3. Source:

4. Other opinions:

Form No.07

ACCEPTANCE RECORD

(Name of the organization/individual)

1. Name of the project:…………………………………………………………………

2. Project location:…………………………………………………….

3. Participants: …………………………………………………………….

a) Acceptance council (specify name, job title, workplace of its representative(s) and number of the document on representative assignment)

b) Organization/Individual running the project:

- Legal representative and person in charge of project investment:

4. Acceptance time:

Beginning date and time

Ending date and time  

Acceptance place: ……………………………………………………………….

5. Assessment of the project/project tasks:

a) Documents as basis for acceptance:

- Written commitment on funding provision

- Investment project report

- Internal acceptance record

b) Acceptance for completion of the project (compared to standard funding provided):

c) On-site acceptance for completion of tasks: Scale ...... quality ..... amount provided:......

d) Other opinions from participants (if any)

6. Conclusion by the host: 

- Concur with the acceptance for completion of the project which meets requirements and is funded by state budget

- Request for remedy and other opinions (if any)

Participants shall take legal responsibility for the acceptance decision; This record shall be made into … copies with equal legal validity; Two copies will be kept by the organization/individual running the project, one will be sent to the State Treasury and one for each participant. /.

Form No.08

To: State budget ….

Pursuant to Decree No..../2017/ND-CP dated …. of the Government

Name of organization/individual: ...................................................................................

Headquarters: ……………………………………………………………………………

Tel: ………………………………………. Fax no.:...............................................................

Account no………………………… opened at …………………………………………

- Disbursement reasons: According to …… (attached)

- Funding provision

+ Activities that need funding:

+ ......................................................................................................................................

Advance amount: ................................... (in words): .......................................................

- Enclosure: