Proposal of nearly 9,000 billion VND to support agriculture to overcome difficulties caused by Covid-19 pandemic

Covid-19 epidemicseriously affecting the production and processing of agricultural products while the Vietnam - EU Free Trade Agreement (EVFTA) has come into effect and created a new playing field, the Ministry of Planning and Investment believes that issuing mechanisms and policies to encourage businesses to invest in agriculture and rural areas is necessary.

Encourage businesses to invest in agriculture and rural areas.

According to statistics from the Ministry of Planning and Investment, compiled from localities, the investment capital demand for the 2021-2025 period is 107,000 billion VND, of which the state budget support capital is expected to be 8,600 billion VND (equivalent to 8%) to implement about 800 projects.

If the state budget is expected to support 1,000 billion VND/year, with the support level of 10 billion VND/project (nearly 3 times higher than the current level), 100 projects will be formed each year. Thus, if the maximum support level from the state budget in this period is expected to be 10%, it will attract about 9,000 billion VND from enterprises investing in agriculture and rural areas.

The Ministry of Planning and Investment hopes that the support from the state budget will bring many economic, social and environmental benefits. In particular, assuming that 100 agricultural enterprises are formed each year and each project has an investment scale of about 100 billion VND, it will create at least 10,000 direct jobs and 30,000 indirect jobs.

Simultaneously expandingmarketStable consumption of agricultural products in the project area in the locality, increasing the efficiency of state budget investment capital for agriculture and rural areas, contributing to faster restructuring of the agricultural sector.

Support for businesses focuses on industries and professions with investment incentives, especially investment incentives in agriculture, including: Cultivation and processing of agricultural, forestry and aquatic products; forest planting and protection; salt making; seafood exploitation and fishing logistics services; production of plant varieties, livestock breeds and biotechnology products./.