Specific policies for cultivation and exploitation of medicinal herbs

The State supports 50% of the total investment in infrastructure construction (field improvement, irrigation, intra-field traffic, net houses, greenhouses, barns, warehouses, environmental treatment) for breeding facilities...

In Decree No. 65/2017/ND-CP, the State provides land incentives; support for seed production, support for application of technology for cultivating and exploiting medicinal herbs... for organizations and individuals involved in cultivating and exploiting medicinal herbs in the territory of the Socialist Republic of Vietnam.

Medicinal herb area in Nghe An. Photo courtesy of Nghe An newspaper

» A large medicinal herb field appears in the ecological region of Western Nghe An

Regarding seed production, the State supports 50% of the total investment in infrastructure construction (field improvement, irrigation, intra-field traffic, net houses, greenhouses, barns, warehouses, environmental treatment) for concentrated breeding facilities with a scale of 2 hectares or more for medicinal plants, 0.5 hectares or more for medicinal livestock, with a maximum of 2 billion VND/facility. For high-tech medicinal seed production facilities according to criteria issued by the Minister of Agriculture and Rural Development, the maximum support level is not more than 3 billion VND/facility.

One-time support of 60% of the cost of producing original seeds, 30% of the cost of producing commercial seeds according to the technical and economic standards issued by the Minister of Agriculture and Rural Development. In case of applying high technology in production, the corresponding support levels are 80% and 50%; support of 100% of the cost of technical training for those directly producing seeds according to the content and cost standards prescribed in Decree No. 2/2010/ND-CP dated January 8, 2010.

Support the application of technology in cultivating and exploiting medicinal herbs

At the same time, the State supports the application of technology for cultivating and exploiting medicinal herbs in compliance with Good Practices for Cultivation and Exploitation of Medicinal Herbs. Specifically, organizations and individuals who build models applying technology for cultivating and exploiting medicinal herbs in compliance with Good Practices for Cultivation and Exploitation of Medicinal Herbs will be supported 100% of the costs of seeds, fertilizers, and pesticides for the cultivation model; 100% of the costs of seeds, feed, and veterinary medicine for the livestock model, according to the technical and economic norms issued by the Minister of Agriculture and Rural Development; and will be supported 100% of the costs of granting a certificate for cultivating and exploiting medicinal herbs in compliance with Good Practices for Cultivation and Exploitation of Medicinal Herbs.

The State also supports 100% of technical training costs for those directly involved in farming and exploitation according to the content and expenditure norms prescribed in Decree No. 2/2010/ND-CP dated January 8, 2010.

The Decree also stipulates one-time support of 15 million VND/ha to build infrastructure and purchase medicinal plant varieties for concentrated medicinal plant growing projects with a scale of 5 ha or more or for concentrated livestock farming projects with a scale of 2 ha or more.

Preferential land policies

In addition, the Decree also stipulates that organizations and individuals with investment projects in research, breeding, and cultivation of medicinal herbs are entitled to the following preferential land policies:

Pu Hoat Nature Reserve is located in 9 communes of Que Phong district. There are still many rare plants, especially medicinal plants. Photo: Documentary

In case the State leases land or water surface for cultivation, construction of factories or warehouses for medicinal materials, land rent or water surface rent shall be exempted or reduced according to the provisions of the land law.

In case of subleasing land or water surface from households or individuals, the State shall support up to 40% of land and water surface rent for the first 5 years from the date the project comes into operation; the support level is calculated according to the land rental unit price specified in Clause 1, Article 8 of this Decree.

In case of receiving transfer of agricultural land use rights of households and individuals, the fee for granting land use right certificates shall be exempted or reduced according to the provisions of law.

Supported conditions

The Decree clearly stipulates that projects enjoying the above special policies must meet the following conditions:

1- Medicinal varieties must be on the list of medicinal varieties permitted for production and trading in Vietnam or recognized as new varieties by the Ministry of Agriculture and Rural Development.

2- Projects invested in medicinal plant cultivation by non-public organizations and individuals must be approved for investment by the provincial People's Committee. In other cases, the project must be approved by the competent authority.

3- Medicinal plant growing areas must be included in the planning and development plan approved by competent state agencies or approved by the provincial People's Committee if there is no approved planning or plan.

4- The investor must have a commitment to invest counterpart capital to implement the approved project items (in addition to the state budget support). In case of borrowing capital from a bank to contribute capital to implement the project, there must be a loan contract or supporting documents.

According to DT/nongnghiep.vn