Attractive support levels for businesses investing in agriculture

The Ministry of Planning and Investment has just drafted a Decree on policies to encourage enterprises to invest in agriculture and rural areas.

If implemented, this will be a lever to attract capital from businesses into this area, especially start-ups.

The draft clearly stipulates that enterprises with special investment incentive agricultural projects, investment incentive agricultural projects, and investment-encouraged agricultural projects are entitled to investment incentives and investment support according to the provisions of this Decree. Priority investment support is given to start-up enterprises and enterprises building raw material areas with contracts with farmers.

Enterprises investing in agriculture will enjoy many incentive policies.

“Regarding the policy of exemption and reduction of land use fees, enterprises with agricultural projects with special investment incentives, investment incentives and investment encouragement that are allocated land by the State for housing for employees (including land for planting trees for public interests) according to the provisions of Article 55 of the 2013 Land Law are exempted from land use fees for that land area,” the draft clearly states.

Enterprises with special agricultural investment incentive projects are exempted from paying land use fees when changing the land use purpose for the land area converted to the type of land allocated by the State with land use fees collected. Enterprises with agricultural investment incentive projects are entitled to a 70% reduction in land use fees when changing the land use purpose for the land area converted to the type of land allocated by the State with land use fees collected.

Enterprises with agricultural projects that encourage investment are entitled to a 50% reduction in land use fees when changing the land use purpose for the land area converted to the type of land allocated by the State with land use fees collected.

The draft also proposes that enterprises are supported with funding to purchase technology copyrights, purchase technology or purchase scientific research and technology development results or conduct research projects; to create new products, improve technology, technology to reduce environmental pollution, technology to save raw materials, fuel, save energy, hire experts; the maximum support level is 300 million VND/project/copyright/hire expert.

The support condition is that the enterprise has the previous year's revenue at least 10 times the support level; the enterprise coordinates and places orders with scientists who are working at schools and research institutes to carry out the project.

In addition, enterprises are supported with investment funding to carry out pilot production projects for new products and apply new technologies, with a level not exceeding VND 5 billion/project, as follows: 70% of funding for agricultural projects with special investment incentives; 50% of funding for agricultural projects with investment incentives and agricultural projects with investment incentives.

Enterprises with projects on plant propagation using tissue culture technology are supported as follows: Support level is 80% of investment costs but not more than 5 billion VND/project.

According to Van Nguyen/nongnghiep.vn