Nghị định 210/2013/ND-CP

DECREE

ON INCENTIVE POLICIES FOR ENTERPRISES INVESTING IN AGRICULTURE AND RURAL AREAS

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the November 29, 2005 Law on Investment;

Pursuant to the November 26, 2003 Law on Land;

At the proposal of the Minister of Planning and Investment;

The Government promulgates the Decree on incentive policies for enterprises investing in agriculture and rural areas.

Chapter 1.

GENERAL PROVISIONS

Article 1. Scope of regulation

This Decree provides a number of incentives and additional investment supports of the State for enterprises which invest in agriculture and rural areas.

Article 2. Subjects of application

1. This Decree applies to investors receiving incentives and supports that are enterprises established and registered their activities according to legal provisions of Vietnam.

2. State agencies, organizations or individuals related to implementation of policies on incentives and supports according to provisions under this Decree.

Article 3. Interpretation of terms

1. A rural area is an administratively delimited area, not including wards, districts under towns and cities.

2. The agricultural sector eligible for special investment incentives include branches, trades defined in the Appendix attached to this Decree and other branches or trades as decided by the Prime Minister in each period.

3. The agricultural projects eligible for special investment incentives are projects in the agricultural sector eligible for special investment incentives implemented in a geographical area on the list of geographical areas with extremely-difficult economic-social conditions under the legal provisions on investment.

4. The agricultural projects eligible for investment incentives are projects in the agricultural sector eligible for special investment incentives implemented in a geographical area on the list of geographical areas with difficult economic-social conditions under the legal provisions on investment.

5. The agricultural projects eligible for investment promotion are investment projects in the agricultural sector eligible for special investment incentives implemented in rural areas.

Article 4. Principles of application of investment incentives and supports

1. Investors when building areas for materials that have stable contracts of association in the production of materials with inhabitants shall be prioritized to be considered in advance for getting incentives and investment supports.

2. In the same time, if an enterprise has investment projects enjoying many different preferential rates, investment supports, it is entitled to choose to apply the most preferential rate and investment support.

3. Projects used preferential credit, credit guarantee funds of the State are not under the subjects using support funds from the State Budget as prescribed in this Decree.

Chapter 2.

LAND INCENTIVES

Article 5. Exemption or reduction of land use levy

1. Investor with an agricultural project eligible for special investment incentives using land allocated by the State shall be exempted from land use levy for such project.

2. Investor with an agricultural project eligible for investment incentives using land allocated by the State shall be entitled to a reduction of 70 per cent of land use levy payable into the state budget for such project.

3. Investor with an agricultural project eligible for investment promotion using land allocated by the State shall be entitled to a reduction of 50 per cent of land use levy payable into the state budget for such project.

Article 6. Exemption or reduction of land and water surface rents of the State

1. Investor with an agricultural project eligible for investment incentives or investment promotion, leasing land or water surface of the State shall be entitled to the lowest rent rate of respective land type within the land rent bracket prescribed by the provincial-level People's Committee.

2. Investors with agricultural projects eligible for special investment incentives shall be entitled to exemption of land or water surface rent from the date of completion and commissioning of this project.

3. Investors with agricultural projects eligible for investment incentives shall be entitled to exemption of land or water surface rent within first 15 years from the date of completion and commissioning of this project.

4. Investors with agricultural projects eligible for investment promotion shall be entitled to exemption of land or water surface rent within first 11 years from the date of completion and commissioning of this project.

5. Investors with agricultural projects eligible for special investment incentives, agricultural projects eligible for investment incentives or agricultural projects eligible for investment promotion shall be exempt with land rent for land areas which are used to build workers' condominiums, planting trees and lands serving public welfare.

Article 7. Support of land rent, water surface rent of households and individuals

1. Investors with agricultural projects eligible for special investment incentives leasing land or leasing water surface of households or individuals for implementation of such projects shall be supported with 20 per cent of land rent or water surface rent by the State according to Clause 1, Article 6 of this Decree within the first five (05) years from the date of completion of basic construction.

2. Investors with agricultural projects eligible for special investment incentives, investment incentives or investment promotion are encouraged to accumulate land to form material zones through the form of contribution as capital of land use rights by households and individuals to projects without land recovery by State.

Article 8. Exemption, reduction of land use levy when change of land use purpose

1. Investors with agricultural projects eligible for special investment incentives in the planning approved by competent state agencies shall be exempt from land use levy when changing land use purpose to execute such projects as prescribed in this Decree.

2. Investors with agricultural projects eligible for investment incentives in the planning approved by competent state agencies shall be reduced 50% of land use levy when changing land use purpose to execute such projects as prescribed in this Decree.

Chapter 3.

INVESTMENT SUPPORT

Article 9. Support in training human resource, market development and application of science and technology

1. Investors with agricultural projects eligible for special investment incentives, investment incentives and investment promotion shall be supported by the State Budget as follows:

a) To support 70 per cent of domestic vocational training expenses. Each laborer shall be trained only once a year and the duration of training eligible for supports must not exceed 6 months. The training expense level must comply with prevailing provisions.

In case where an investor has a long-term employment of untrained laborers, living in special use forests for training and use, contribute in protection of the special use forests, it shall be supported costs for training directly once at enterprise with VND 3 million / 3 months for each laborer.

b) To support 50 per cent of advertising costs of the enterprise and products on mass media; 50 per cent costs of participation into domestic exhibitions and fairs; 50 per cent of charges for accessing market information and service charges from trade promotion agencies of the State.

c) To support 70% of costs for conducting research topics to create new technologies chaired by the enterprise in order to execute the project, or the enterprise buys the technology copyright to execute the project; supported with 30% of the total new investment cost to conduct a project on pilot production.

2. The financial supports as prescribed in Points a and b, Clause 1 of this Article shall be implemented according to investment project. The total supports for each project will not exceed 10 per cent of the total investment capital of the project and will not exceed VND one (01) billion. If an enterprise does not use supports directly from the state budget, those supports shall be counted in the production cost of the enterprise when settling payments with competent state agencies.

3. Supports for projects approved by competent state agencies as prescribed in Point c, Clause 1 of this Article shall be collected from the national Fund for development of science and technology, national Fund for technological renewal and Fund for development of science and technology of ministries, provinces and cities under the Central Government and from support capital sources from the state budget as prescribed by this Decree, the maximum support level will not exceed three (03) billion VND/ a project.

Article 10. Support for investment of cattle and poultry slaughter establishments

1. Investors with investment projects in the industrial concentrated cattle and poultry slaughter establishments shall be supported by the state budget as follows:

a) To support at least two (02) billion VND / a project for building infrastructure on power, water, factories, waste treatment and equipment procurement. For projects with slaughter capacities which are bigger than that as prescribed in Point a, Clause 2 of this Article, the support level shall be increased accordingly.

b) In case a project having no traffic roads, power system and water supply and drainage to the project’s fence, then beside the support levels as prescribed in Point a, Clause 1 of this Article, this project shall be supported with an additional 70% of costs but not exceeding five (05) billions VND for investment in construction of above-mentioned items.

2. Investment projects enjoyed supports as prescribed in Clause 1 of this Article must satisfy conditions as follows:

a) Slaughter capacity a day and night of each project must achieve a minimum of 400 cattle or 4,000 poultry or 200 cattle and 2,000 poultry.

b) Located in the planning area for industrially-centralized cattle and poultry slaughter approved by competent state agencies or approved for investment by the provincial-level People’s Committee if there has no planning approved yet.

c) To ensure animal health hygiene, safety and prevention of epidemic disease, food safety, environmental protection according to the legal provisions on animal health, food safety and environmental protection.

d) Investors must use at least 30 per cent of local laborers.

Article 11. Support for investment in cattle slaughter establishments

1. Investors having investment projects in cattle breeding establishments with centralized scales shall be supported by the state budget as follows:

a) To support 3 billion dong / a project, especially for high-yield dairy cow breeding will be supported with 5 billion dong / a project in order to build infrastructures on waste treatment, traffic, power, water, factories, grasslands and equipment procurement.

b) In case where a project has no traffic roads, power system and water supply and drainage to the project’s fence, then beside the support levels as prescribed at Point a, Clause 1 of this Article, this project shall be supported with an additional 70% of costs but not exceeding 5 billion dong for investment in construction of above-mentioned items.

c) In addition to infrastructure support defined at Points a and b above, if the project imports original breeds of high-yield livestock, it shall be supported with not exceeding 40% of cost for import of original breeds; support 10 million Dong / a cattle for dairy breeds imported from developing countries for enterprises of directly and dispersedly breeding in households in provinces where have had dairy herds of over 5,000 cows and support 15 million Dong / cow for the remaining provinces (possibly drafting separate projects).

2. Investment projects enjoyed supports as prescribed at Points a and b, Clause 1 of this Article must be guaranteed with conditions as follows:

a) Having a concentrated regular livestock scale of 1,000 or more for pigs, or from 500 or more for cattle, goats, or sheep; or from 200 or more for imported high-yield beef cows; or from 500 or more for high-yield dairy cows.

b) Projects are located in the planning approved by competent state agencies or approved for investment by the provincial-level People’s Committee if there has no planning approved yet.

c) To ensure animal health hygiene, safety and prevention of epidemic diseases, food safety, environmental protection according to the legal provisions on animal health, food safety and environmental protection.

d) Investors must use at least 30 per cent of local laborers.

Article 12. Support for planting medicinal herbs and macadamia trees

1. Investors having projects for growing medicinal herbs, macadamia trees with a scale of 50 ha or more shall be supported by the state budget with 15 million dong / ha for preparing fields and seedling. Support for building establishments for production of macadamia seed with a scale of 500,000 seedlings / year or more, with the maximum support of 70% of investment cost / an establishment and not exceeding 2 billion dong.

2. The investment projects enjoyed supports stated at Clause 1 of this Article must be within the planning approved by competent state agencies or approved for investment by the provincial-level People's Committee if no planning approved yet; medicinal plants are on the list defining development incentives and encourages of the Ministry of Health. Investors must use at least 30 per cent of local laborers.

Article 13. Support for investment in marine aquaculture

1. Investors with investment projects in aquaculture centralized on sea or around islands shall be supported by the state budget as follows:

a) To support 100 million Dong for 100 m³ cages for marine aquaculture in sea waters far from shores on 6 nautical miles or around islands.

b) To support 40 million Dong for 100 m³ cages for marine aquaculture in sea waters near shores.

2. Investment projects enjoyed supports as prescribed in Clause 1 of this Article must be guaranteed with conditions as follows:

a) Projects are located in the planning approved by competent state agencies or approved for investment by the provincial-level People’s Committee if there has no planning approved yet.

b) Projects have a rearing scale of at least five (05) ha or have at least 10 rearing cages with over 100 m³/ a cage or more.

c) To ensure requirements on environmental protection as prescribed by law on environmental protection.

d) Investors must use at least 30 per cent of local laborers.

Article 14. Support for investment in establishments of drying rice, corn, sweet potato, cassava, aquatic by-products and processing coffee

1. Investors having investment projects in establishments of drying rice, corn, sweet potato, cassava, aquatic by-products or processing coffee under wet method shall be supported by the state budgets as follows:

a) To support two (02) billion Dong / project for drying rice, corn, sweet potato, cassava; drying aquatic by-products, for building infrastructures on traffic, power, water, factories and equipment procurement.

b) To support three (03) billion Dong/ project on processing coffee under wet method for building infrastructures on traffic, power, water, factories, waste treatment and equipment procurement.

2. Investment projects enjoyed supports as prescribed at Clause 1 of this Article must be guaranteed with conditions as follows:

a) The capacity of establishments of drying corn, sweet potatoes or cassava must achieve a minimum of 150 tons product / day; drying aquatic by-products must reach a minimum of 50 tons product/ day; processing coffee according to wet method to achieve minimum 5,000 tons product / year.

b) Projects are located in the planning approved by competent state agencies or approved for investment by the provincial-level People’s Committee if there has no planning approved yet.

c) To ensure requirements on environmental protection as prescribed by law on environmental protection.

d) Investors must use at least 30 per cent of laborers and 60 per cent of materials of rice, corn, sweet potato, cassava, aquatic by-products and coffee in localities.

Article 15. Support for investment in processing timber from planted forests which is particular for North-western provinces and provinces with poor districts under Resolution 30a/2008/NQ-CP dated December 27, 2008 of the Government

1. Domestic investors with investment projects in factories processing timber from planted forests, industrial bamboo shall be supported by the state budget as follows:

a) An investment support of 20 billion Dong / MDF timber production plant with a scale of 30,000 m³ MDF / year or more; an investment support of 10 billion Dong / plant for plants of processing particle board, industrial laminated bamboo with a scale of over 20,000 m³ or more for building infrastructure on traffic, power, water, factories and waste treatment.

b) To support cost for product transport with 1,500 Dong/ton/km; the distance is counted from the factory to the center of Ha Noi City, or center of Da Nang City, or center of Ho Chi Minh City following the nearest motorways; transport volume is counted by practice equipment capacity of plants; time to count support is 5 years, total supports shall be divided into three times, the cost supported immediately after finishing the factory shall be ensured not less than 70 per cent of the total support.

2. Investment projects enjoyed supports as prescribed at Clause 1 of this Article must be guaranteed with conditions as follows:

a) Projects are accepted for investment by provincial-level People’s Committees.

b) Factories producing MDF, particle board must combine with producing floor board, slab, joint slab or plywood to avoid waste of resources; production output of these joint products is counted into output for transport support.

c) Equipment is manufactured in developed countries; in case of being manufactured in developing countries, equipment must be 100% brand new. The factory must not relocate its registered location for production within 20 years.

d) Area of planted forest and raw materials in the province must be sufficient for the plant to operate at least 60% capacity in the first 5 years. The project must use at least 30 per cent of local laborers.

dd) Total actual capacity of equipment of the factory to be supported for transport must not exceed 200,000 tons for each province.

e) For a province that already has had a pulp factory with the production scale of 50,000 tons / year or more is not eligible for support.

g) To ensure requirements on environmental protection as prescribed by law on environmental protection.

Article 16. Support for investing in establishments of making, preserving and processing agricultural, forestry and fishery products

1. Investors having investment projects in factories or establishments of preserving, processing agricultural, forestry and fishery products; establishments of producing auxiliary products; fabricating mechanical equipments for preserving, processing agricultural, forestry and fishery products shall be supported by the state budget as follows:

a) A support of not more than 60 per cent of costs and the total support must not exceed 5 billion Dong/ project to build infrastructure on waste treatment, traffic, power, water, factories and equipment procurement in the project fence.

b) A support of not more than 70 per cent of waste treatment costs for factories processing agricultural, forestry and fishery products with big scale, invested, used many laborers, having big impact on local economy and society.

c) A support for product transport cost at level of 1,500 Dong/ton/km; the support distance is counted from the factory or the preserving, processing establishment to the center of province or centrally-run city in such locality following the nearest motorways. The transport quantity is counted according to actual capacity of the factory; once support implemented immediately after completing the investment; time to count support is 5 years.

d) In addition to supports prescribed at Points a and b, Clause 1 of this Article, if the project has no traffic roads, power system and water supply and drainage to the project fence, then it shall be supported with an additional 70% of costs and the total support must not exceed 5 billion Dong/ project to build above-mentioned items (possibly forming separate project).

2. Investment projects enjoyed supports as prescribed at Clause 1 of this Article must be guaranteed with conditions as follows:

a) Product value after processing must increase at least twice in comparison with initial crude material value.

b) To ensure food safety standards according to the legal provisions on food safety and minimum capacity scale as prescribed by competent state agencies.

c) Projects are located in the planning approved by competent state agencies or approved for investment by the provincial-level People’s Committee if there has no planning approved yet.

d) To ensure requirements on environmental protection as prescribed by law on environmental protection.

dd) Projects are not under subjects prescribed in Article 14 and Article 15 of this Decree.

e) Investors having projects on processing, preserving agricultural, forestry or fishery products must use at least 30 per cent of laborers and 60 per cent of materials from main agricultural, forestry or fishery products in localities.

Article 17. Capital sources and investment support mechanisms

1. Capital sources for investment support as prescribed in this Decree shall include the central budget for supports with targets to local budgets; capitals jointed from the project programs and local budgets; annually, centrally-run cities and provinces will spend between 2-5 per cent of local budgets for implementation. The Central Budget shall support local budgets in the following principals:

a) For local receiving the balance from the Central Budget with more than 70% of the budget, shall be supported a maximum of 80 per cent of costs for implementation by Central budget.

b) For localities receiving the balance from the Central Budget with 50 - 70 per cent of the budget, shall be supported a maximum of 70 per cent costs of implementation by Central budget.

c) For localities receiving the balance from the Central Budget with less than 50 per cent of the budget, shall be supported a maximum of 60 per cent of costs for implementation by Central budget.

d) For localities having budget balance for the central budget, then such localities shall self-balance budget for their implementation.

dd) Projects which are carried out in border areas, islands, and high technology projects shall be supported from the central budget.

e) Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate with the Ministry of Finance to balance the annual investment capital source for development, targeted support for local budgets and report to competent authorities for giving decisions to implement this policy.

2. Investment support mechanism

a) The Central Budget shall only support for projects with support level of more than 2 billion dong. Local budgets shall support remaining projects, including projects with more than 2 billion dong but not using the central Budget.

b) The State Budget implements supports after investment; when investment portfolio, tender packages of the project have been completed, 70% of the supporting capital shall be disbursed according to portfolio, tender packages; after completion of investment projects and acceptance, it shall be disbursed 30% of the remaining support.

c) The Prime Minister decides to assign the overall support and list of projects eligible for support to localities; assign the Ministry of Planning and Investment to notify capital support level for each project.

d) For foreign directly-invested enterprises and enterprises in which state owned 100% of charter capital, capital sources and procedures for investment support shall be provided by the Prime Minister.

dd) Support capital from the State budget shall be considered as part of counterpart fund of the enterprise, the State guarantees this part of capital when the enterprise takes investment loans from commercial banks to implement such project.

Chapter 4.

ORGANIZATION OF IMPLEMENTATION

Article 18. Responsibilities of Ministries, central branches

1. Ministry of Planning and Investment:

a) To assume the prime responsibility for, and coordinate with the Ministry of Finance, Ministry of Agriculture and Rural Development, in guiding conditions, order and procedures for implementing incentives and supports under the provisions of this Decree. To provide for transferring support levels according to the percentage specified in Article 11, 12 and 16 of this Decree into the absolute value for performance.

b) To assume the prime responsibility for, and coordinate with the Ministry of Finance in summing up, balancing capital sources from the central budget supporting with targets to local budgets and submit to competent authority for decision.

c) To assume the prime responsibility for and coordinate with the Ministry of Finance in verifying support for projects supported from the central budget.

d) To develop plan to implement this Decree and submit to the Prime Minister for promulgation, urge the ministries, branches and localities to implement this Decree.

dd) To report the Prime Minister to decide on increasing or decreasing support level, support subjects specified in this Decree in compliance with each development period.

2. The Ministry of Finance:

a) To assume the prime responsibility for guiding payment and settlement of supports to enterprises according to this Decree.

b) To monitor, examine the financial support for enterprises investing in agriculture and rural area.

c) To coordinate with the Ministry of Planning and Investment, the Ministry of Agriculture and Rural Development in guiding the implementation of this Decree.

3. The Ministry of Agriculture and Rural Development:

a) Each five years once, it will announce a list of specific high-yield breeds which are eligible for support according to provisions at Point c, Clause 1, Article 11 of this Decree.

b) To coordinate with the Ministry of Planning and Investment, the Ministry of Finance in guiding the implementation of this Decree.

Article 19. Responsibilities of People’s Committees of provinces or centrally-run cities

1. To balance capital sources of the local budget to ensure the implementation of support to enterprises under the provisions in this Decree.

2. Based on specific products and available resources of localities, provincial-level People's Committees submit the People's Councils of the same level to issue specific policies to encourage enterprises to invest in agriculture and rural area in the locality.

3. To approve investment projects eligible for incentives and support from local budgets after having verification of competent authorities.

4. To approve support from the central budget for projects using central budget after the competent authorities verify.

5. To annually evaluate the implementation of Decree in localities and report to the Ministry of Planning and Investment and concurrently send to the Ministry of Finance, Ministry of Agriculture and Rural Development for a summary report to the Government.

Article 20. Implementation effect

1. This Decree comes into effect on February 10, 2014.

2. This Decree replaces Decree No. 61/2010/ND-CP of June 4^th, 2010 on incentive policies for enterprises investing in agriculture and rural areas.

3. Investors having investment projects which satisfy preferential conditions specified this Decree in case of having implemented projects prior to the effective day of this Decree and have not yet been enjoyed incentives under Decree No. 61/2010/ND-CP of June 4, 2010, the incentives and supports under the provisions of this Decree shall be applied for the remaining duration of the project.

4. Investors enjoying incentives and investment supports specified in the Decree No. 61/2010/ND-CP June 4, 2010 shall continue to enjoy the granted incentives and support or may propose enjoying incentives and support as prescribed in this Decree for the remaining duration of the project.

5. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of People's Committees of provinces and centrally-run cities shall be responsible for the implementation of this Decree.

ANNEX

LIST OF DOMAINS WITH SPECIAL INVESTMENT INCENTIVES IN AGRICULTURE AND RURAL AREAS
(Promulgated together with the government’s Decree No. 210/2013/ND-CP dated December 19, 2013)

1. Afforestation, forest protection and planting of medicinal plants.

2. Construction and development of the concentrated material areas for the processing industry, development of big fields.

3. Concentrated poultry, cattle livestock, aquaculture and sea product

4. Production and development of plant varieties and animal breeds, varieties of forestry trees, aquatic product breeds.

5. Applications of biotechnology, high technology in production of agriculture, forestry and fishery products.

6. Fishing in offshore waters.

7. Production and refinery of salt.

8. Production of materials and processing of cattle, poultry and aquatic animal feeds, biological products.

9. Processing and storage of agricultural, forestry, fisheries, pharmaceutical materials.

10. Manufacture of pulp, paper, paperboard, artificial board directly from the raw materials of agricultural and forestry products.

11. Manufacture of medicines, materials for plant protection, veterinary medicine, products for treatment and improvement of the environment in animal husbandry and aquaculture.

12. Production of handicrafts; products of culture, ethnic traditions.

13. Building systems of water supply and drainage.

14. Construction, renovation, upgrading the concentrated and industrialized establishments of slaughter, preservation and processing of cattle and poultry.

15. Pollution treatment and environmental protection; collection and treatment of waste water, waste gas and solid waste.

16. Construction of rural markets; construction of dormitory for workers in rural areas.

17. Manufacture of machinery and equipment, additives, auxiliary substances for agriculture, forestry, fisheries, salt production, and food processing machines.

18. Services of plant protection, animal health in rural areas.

19. Investment, scientific and technical advisory services involving agriculture, forestry, fisheries and salt industry in rural areas. /.