Draft decree to draw more foreign investors into agriculture
Foreign investors investing in agriculture would be treated on an equal footing with domestic businesses.
This is highlighted in a draft decree on policies to encourage foreign investment in agriculture and rural development recently released by the Ministry of Agriculture and Rural Development (MARD).
There would be no discrimination between foreign and local investors in accessing materials and resources, the draft says, adding that support and incentive policies applicable to foreign investors would be exactly the same as those offered to domestic businesses.
Specifically, foreign-invested enterprises having cultivation, husbandry or aquaculture projects in extreme difficulty-hit areas or projects applying high technologies or large-scaled field models would be entitled to exemption from corporate income tax (CIT) for the first four years of operation and a 50-percent reduction of the payable tax amount in the subsequent nine years.
Meanwhile, FDI projects to manufacture machines and equipment for agricultural, forestry and fishery production and projects to produce and process animal feed would enjoy the preferential CIT rate of 20 percent in 10 years.
The draft decree also says that the State would provide guarantee for performance of large-sized project. It would also adopt policies to facilitate land accumulation, support association between businesses and farmer households, provide clear land to agricultural projects, and encourage the application of large-scale field models and development of concentrated material zones serving agricultural projects.
The draft decree is scheduled to be submitted to the Government in the third quarter of this year.