Written By PLF Law Firm

Land rent exemption and reduction; cost support for advertising, vocational training, and base construction investment, etc. are several incentives and facilitation that enterprises are entitled to enjoy when investing in agriculture and rural areas.

Enterprises shall receive certain incentives and support when implementing investment projects in the fields of application of biotechnology and high technology in production; production of materials and processing of cattle and poultry feeds; production of handicrafts; and protection services of plants and animal health in rural areas; etc. PLF aggregates and classifies the incentives and facilitation as follows:

  • Investment projects implemented in geographical areas with extremely difficult economic-social conditions:
    • Land use levy shall be exempt if the land is allocated by the State;
    • Land and water surface rents shall be exempt from the date of project commencement;
    • Land use levy shall be exempt when enterprises modify land use purpose for project execution.
  • Investment projects implemented in geographical areas with difficult economic-social conditions:
    • Enterprises shall be entitled to a 70% reduction on land use levy if the land is allocated by the State;
    • Land and water surface rents shall be exempt within the first 15 years from the date of project commencement;
    • Land use levy shall be reduced by 50% when enterprises modify land use purpose for project implementation.
  • Investment projects implemented in rural areas, which include neither wards nor districts under towns and cities:
    • Enterprises shall be entitled to a 50% reduction on land use levy if the land is allocated by the State;
    • Land and water surface rents shall be exempt within the first 11 years from the date of project commencement.

In addition, the aforementioned projects shall enjoy the following incentives and support:

  • Land rent shall be exempt for the areas used to construct workers’ condominiums, to plant trees, and to serve public welfare;
  • In case where enterprises are subject to both land rent exemption and reduction, after land rent exemption is applied, they shall continue to receive land rent reduction for the next rent period;
  • A 70% grant on the expense of domestic vocational training for the employees working for the enterprises;
  • A 50% grant on the cost of advertising on mass media; 50% grant on the cost of participation in domestic exhibitions and fairs; 50% grant on the charges for accessing market information and service charges from trade promotion agencies;
  • A 70% grant on the costs of researching to create new technologies or purchasing copyrighted technology for project execution; a 30% grant on the total new investment cost for pilot production;
  • Additionally, enterprises shall receive support on base construction investment if satisfying the conditions on scale, planning, and use of local labor, etc.

It is essential to stay noted that within the same period of time, enterprises having investment projects subject to many different preferential rates and support are permitted to select the most beneficial incentives and support to apply. Furthermore, enterprises will not be able to receive exemption and reduction on land and water surface rents without having to carry out certain procedures provided for by law. Last but not least, a dossier requesting for support on land and water surface rent includes: a written request, a decision on incentives issued and approved by the provincial People’s Committee, a leasing contract, an acceptance minutes, and a Business Registration Certificate.   

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