Gov’t gives more incentives for agricultural development

The Government lately issued Decree 61/2010/NĐ-CP, stipulating additional preferences for agricultural and rural development.

The Decree will take effect since July 25, 2010. 

The list of preferential sectors includes cultivation, aquaculture, and development of raw materials for processing zones. 

According to the Decree, the Government will exempt or cut 50-70% of fees for land or water surface leased up to 15 years in maximum for agricultural enterprises.

Those enterprises will be given a cut of 50-100% of vocational training fees, 50-70% of advertisement costs, as well as 50-70% of expenditures for participating in exhibitions. In addition, they will have to pay lower costs, from 50% to 100%, for accessing to information about agricultural production.

As reported by the Việt Nam Economic Management Review (VEMR), there are around 39,000 enterprises operating in the agricultural sector and rural areas and accounting for 30% of domestic businesses. The figure is relatively low due to poor competitiveness, high risks of natural disasters, and long-term capital refund.  

Hence, the Decree is expected to lure more inflows of investment in the sector and rural areas, benefit peasants and utilize potentials there. 

The new policy will encourage enterprises to pour more investment in perfecting socio-economic infrastructure in rural areas, spurring production activities and services for job generation, renovation and modernization in the countryside./.

By Kim Loan