ANNOUNCEMENT 19 Dec 2013In December 2013, the government of Vietnam announced a targeted tax change.
NUMBER OF INTERVENTIONS
On 19 December 2013, the Government of Vietnam through Decree 210/2013/ND-CP announced several incentives and support mechansims for investment in agriculture and rural development.
Key articles are summarised here. The government divides agricultural investments into categories and the scale of support changes for each category.
i) Partial to full reduction on land use fees
ii) Exemptions on land and water rent
iii) Support in human resource training, market development and R&D. For example, 70% funding for vocational training, 50% support for advertising costs, 70% support for R&D etc.(with restrictions)
iv) Financial assistance for infrastructure costs to set up slaughter houses of certain size and standards
v) Financial assistance for animal husbandry and dairy farming investments
vi) Investment support for aquaculture projects; for example, VND 100 million/100 cu.meter cages on far from shore waters, and VND 40 million/100 cu.meter for nearshore waters
vii) Investment support for projects for drying corn, tapoica, potato, dried aquatic products, processing coffee.
viii) Investment support for timber processing projects
ix) Investment support for food storage and processing facilities; for example, this includes 60% support for certain infrastructure costs, 70% support for waste treatment plants, support for transportation costs etc.
Foreign investors seeking to take advantage of this initiative are in several sectors subject to local employment requirements and, in some cases, also local content requirements for raw materials.
The decree comes into effect from 10 February 2014.