Gov’t retains subsidies for agricultural and rural development

VGP – From January 1, 2010 to December 31, 12, 2010, the State will continue to provide individuals and organizations with interest rate subsidies for their credit loans to purchase machines, equipment, and input materials for agricultural production as well as building materials for rural development. Normal 0 false false false MicrosoftInternetExp

January 04, 2010 10:00 AM GMT+7

Thanks to lower interest rate loans, peasants can expand production – Illustration photo

Issued by the PM, the decision targets to carry out stimulus packages for agriculture and rural areas, which were launched in 2009, though narrowing beneficiaries and lowering subsidies.

Accordingly, only rural residents living in communes, not wards or towns, will be given preferential credits to purchase building materials for constructing their houses.

The State will continue to give interest rate subsidies to made-in-Việt Nam products, including agro-machines, under 5-ton trucks; computers; fertilizers, pesticides and building materials.

However, the subsidies, imposed on agricultural input and building materials, are halved from 4% to 2% per year. The rest commodities enjoy 100% interest rate subsidy.

The stimulus packages on agriculture and rural areas have helped numerous domestic peasants and enterprises to overcome difficulties, restore production and improve living standards.

As of late September 2009, after the policy came into force for five months, over VND 34,000 billion was disbursed.

The Government is figuring out ways to streamline administrative procedures for more small and medium enterprises and peasants to access to preferential credits with a view to developing rural areas.

By Kim Anh