Many incentive policies for the development of agricultural production cooperation and link

The Government issued Decree no. 98/2018/NĐ-CP on incentive policies for the development of cooperation and link in agricultural production and consumption. Accordingly, the investment capital for infrastructure works in service of linkage, joint-venture parties building agricultural extension models, vocational trainings, technical training, and capacity building for advanced management skills, production techniques, contract management, supply management and market development are eligible for support by the state budget.

According to the Decree, cooperation and linking between agricultural production and consumption are voluntary agreement on joint investment, production and consumption of agricultural products of farmers, individuals, cooperatives and enterprises (referred to as affiliate partners) in order to improve production efficiency and quality of agricultural products. The Decree states that linking between production and consumption is supported with 100% of the consultancy cost for building linkage by the state budget, with a maximum of 300 million VND, including consultancy and research for developing linking contracts, projects, and plans of production, business and market development.

The linking project is supported with 30% of investment capital in machinery and equipment; building infrastructure works in service of linkage, including: workshops, yards, warehouses for production, processing, preservation and consumption of agricultural products. The total support level shall not exceed 10 billion VND.

The above funding source and funding level shall comply with plans, programs and projects under the National Target Program on New Rural Development, Agricultural Restructuring Plan and Disaster Preparedness and Mitigation Program, people’s life stabilization and other sources of capital from other lawful programs and projects.

Funding source, funding level and support mechanism for seed, materials, packaging, labels, transfer, application of new science and technology, application of technical processes and quality management in the chain shall comply with the provisions of the National Target Program on New Rural Development and capital from other lawful programs and projects.

Eligibility

According to the Decree, the affiliate parties shall be providing the following conditions:

    In line with the local socio-economic development plan.
    A certificate or commitment to ensure compliance with the law on product quality, food safety, disease safety and environment protection.
    Linkage stability: For agricultural products with the cycle of breeding – planting – exploiting for 1 year or more, the minimum linkage period is 5 years; for agricultural products with the cycle of breeding – planting – exploiting of less than 1 year, the minimum linkage period is 3 years.

Linking projects or proposed projects for linking support must be approved by competent agencies.