THE MINISTRY OF FINANCE
SOCIALIST REPUBLIC OF VIET NAM
Hanoi, August 14, 2000
GUIDING FINANCIAL POLICIES FOR THE DEVELOPMENT OF FARM ECONOMY
Pursuant to the Government’s Resolution No. 03/2000/NQ-CP of February 2, 2000 on farm economy;
Pursuant to the Government’s Decree No. 51/1999/ND-CP of July 8, 1999 detailing the implementation of the Law on Domestic Investment Promotion (amended);
In order to meet the requirements of the farm economy development, aiming to step by step modernize the agricultural production along the direction of large-scale commodity production, improve the laborers’ lives and stabilize their jobs, the Ministry of Finance hereby guides the financial policies for the development of farm economy as follows:
1. Land preferences:
Farm owners, when using waste land, bare hills, virgin land and natural-water areas where no investment has been made, in the farm economy development planning determined by the People’s Committees of the provinces and centrally-run cities, shall be entitled to exemption or reduction of land use levies, land rentals and/or agricultural land use tax as prescribed in Article 17, Article 18 and Article 19 of the Government’s Decree No. 51/1999/ND-CP of July 8, 1999 detailing the implementation of the Law on Domestic Investment Promotion (amended).
2. Investment capital preferences:
– Investment in the farm economy development shall be entitled to preferential loans from the State’s development credit programs according to the order and procedures defined for each specific program.
– Investment in farms for export goods production; planting concentrated raw-materials forests, perennial industrial and fruit trees; aquaculture and dairy cows, building water-conducting system in service of the farm production and daily use; fertilizers and micro-biological insecticides production; making machine tools and dynamics for agricultural production; building agricultural, forestry and aquatic products-processing establishments, shall be entitled to loans, post-investment interest rate support and investment credit guaranty by the State’s Development Assistance Fund in compliance with the order and procedures prescribed in the Government’s Decree No. 43/1999/ND-CP of June 29, 1999 on the State’s development investment credit.
3. Policies on capital mobilization for the farm economy development:
– Farm owners shall be entitled to mobilize capital from various sources in forms of borrowing from banks, organizations and individuals under current law provisions in order to create capital source for business development.
– The People’s Committees of the provinces and centrally-run cities shall, within the ambit of their assigned respective functions, tasks and powers, allocate budget to concentrate efforts on farm economy development; apply appropriate forms of capital mobilization such as issuance of project bonds, issuance of special construction lottery tickets to mobilize capital for investment in infrastructure projects (after reaching written agreement with the Finance Ministry) and mobilize public labor of people so as to:
+ Invest in infrastructure construction: roads, water and electricity supply, schools, stations, development of rural markets as well as centers for transaction and trading of farm produce and agricultural supplies and new scientific and technological equipment.
+ Create conditions for farm owners to have access to and participate in programs and projects of cooperation, fairs and exhibitions at home and abroad.
+ Provide support for investment in upgrading, expanding and building new processing establishments in concentrated or specialized farming areas for farm development.
+ Step up the cooperation among farm produce manufacturing, processing and consuming establishments of different economic sectors, especially between State enterprises and cooperatives, farm owners as well as peasant households.
This Circular takes effect 15 days after its signing. In the course of implementation, if any problems arise, organizations and individuals are requested to report them to the Finance Ministry for study, consideration and settlement.
FOR THE MINISTER OF FINANCE
Tran Van Ta