Circular No. 04/2018/TT-BKHDT dated December 6, 2018 of the Ministry of Planning and Investment on guiding the implementation of the Government’s Decree No. 57/2018/ND-CP of April 17, 2018, on mechanisms and policies to encourage enterprises to invest in agriculture and rural areas

THE MINISTRY OF PLANNING AND INVESTMENT

Circular No. 04/2018/TT-BKHDT dated December 6, 2018 of the Ministry of Planning and Investment on guiding the implementation of the Government’s Decree No. 57/2018/ND-CP of April 17, 2018, on mechanisms and policies to encourage enterprises to invest in agriculture and rural areas^[1]

Pursuant to the Government’s Decree No. 86/2017/ND-CP of July 25, 2017, defining the functions, tasks, powers and organizational structure of the Ministry of Planning and Investment;

Pursuant to the Government’s Decree No. 57/2018/ND-CP of April 17, 2018, on mechanisms and policies to encourage enterprises to invest in agriculture and rural areas;

At the proposal of the Director of the Department of Agricultural Economy;

The Minister of Planning and Investment promulgates the Circular guiding the implementation of the Government’s Decree No. 57/2018/ND-CP of April 17, 2018, on mechanisms and policies to encourage enterprises to invest in agriculture and rural areas, as follows:

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation and subjects of application

1. Scope of regulation: This Circular guides the implementation of the Government’s Decree No. 57/2018/ND-CP of April 17, 2018, on mechanisms and policies to encourage enterprises to invest in agriculture and rural areas (below referred to as Decree No. 57/2018/ND-CP).

2. Subjects of application: To comply with Article 2 of Decree No. 57/2018/ND-CP of April 17, 2018.

Article 2.Exemption from and reduction of land use levy, and rental for lease of land and water surface from the State

1. The principles of exemption from and reduction of land use levy, and rental for lease of land and water surface from the State must comply with Article 10 of Decree No. 45/2014/ND-CP of May 15, 2014, and Article 18 of Decree No. 46/2014/ND-CP of May 15, 2014.

2. Dossiers of and order for land use levy exemption and reduction must comply with Articles 15 and 16 of Circular No. 76/2014/TT-BTC of June 16, 2014, and Article 8 of Circular No. 10/2018/TT-BTC of January 30, 2018, of the Ministry of Finance.

3. Dossiers of and order for exemption from and reduction of land or water surface rental must comply with Articles 14 and 15 of the Ministry of Finance’s Circular No. 77/2014/TT-BTC of June 16, 2014.

Article 3.Acceptance test of investment items or whole projects

1. Contents of acceptance test of investment items or whole projects (acceptance test of volume) specified at Point b, Clause 2, Article 17 of Decree No. 57/2018/ND-CP:

a/ Investment projects in material zones’ infrastructure facilities defined in Article 7; trial production projects, projects to propagate plant varieties by tissue culturing technology, projects to produce plant varieties, livestock breeds or aquatic animal breeds or to plant on a trial basis new varieties; hi-tech agriculture areas, zones or projects defined in Article 9, and investment projects specified in Articles 11, 12 and 13, of Decree No. 57/2018/ND-CP:

The Acceptance Test Council shall make a written record of acceptance test based on Article 9 of the Ministry of Construction’s Circular No. 26/2016/TT-BXD of October 26, 2016, on acceptance test of completed construction items and works, and the support level set by provincial-level People’s Committees. Particularly for the content specified at Point dd, Clause 1, Article 9 of Circular No. 26/2016/TT-BXD, an additional acceptance test may be conducted after projects are put into operation.

b/ For scientific research projects specified in Clause 1, Article 9 of Decree No. 57/2018/ND-CP:

The Acceptance Test Council shall make a written record of acceptance test based on the report on outcomes of the scientific research project against the registered scientific research project.

c/ For the procurement of technological copyrights, technologies, or scientific research and technological development outcomes to create new products or renew technologies, and procurement of environmental pollution mitigation technologies and raw material, fuel and energy saving technologies specified in Clause 1, Article 9 of Decree No. 57/2018/ND-CP:

Based on the proposal to procure technological copyrights, technologies, or scientific research and technological development outcomes; contracts and the liquidation of procurement contracts signed between enterprises and organizations or individuals; invoices, papers of transfer of money to organizations or individuals having technological copyrights, technologies, or scientific research and technological development outcomes; or technological copyrights, technologies, or scientific research and technological development outcomes, the Acceptance Test Council shall make a written record of acceptance test.

d/ For human resources training specified in Clause 1, Article 10 of Decree No. 57/2018/ND-CP:

The Acceptance Test Council shall make a written record of acceptance test based on the contents of the trades to be trained, the list of projected trainees (certified by provincial-level Departments of Labor, Invalids and Social Affairs or appropriate vocational training institutions having legal person status) and the list of actual trainees (stating the name, address, people’s identity card or citizen identity card number, and the worker’s signature).

dd/ For advertising, building product brands, or participation in exhibitions and fairs specified in Clause 1, Article 10 of Decree No. 57/2018/ND-CP:

The Acceptance Test Council shall make a written record of acceptance test based on the support approval decision issued by the People’s Committee, contracts and liquidation of the contracts signed between the enterprises and organizations or individuals; invoices, and papers of transfer of money to organizations or individuals providing advertising services, building product brands, or participating in exhibitions and fairs.

2. Acceptance test and support for the “National agricultural product market” website specified in Clause 3, Article 10 of Decree No. 57/2018/ND-CP:

a/ The Acceptance Test Council shall make a written record of acceptance test based on the Ministry of Industry and Trade’s written approval of the development of the “national agricultural product market” website; the number of enterprises posting their product information on the website; and notarized copies of documents evidencing enterprises’ collaterals as prescribed at Point a, Clause 3, Article 10 of Decree No. 57/2018/ND-CP.

b/ Enterprise owners assisted by the State in developing and managing the “national agricultural product market” website shall coordinate with competent state agencies in working out principles for registering to post product information on the website to ensure that information and standards of actually traded (purchased and sold) products are consistent with those registered by their enterprises on the website.

c/ Enterprise owners managing the “national agricultural product market” website may receive support from provincial-level People’s Committees in market development and investment promotion activities at local annual conferences to assist enterprises in investing in agriculture and rural areas.

3. Acceptance Test Council and written records of acceptance test

a/ The provincial-level Department of Agriculture and Rural Development shall invite representatives of the provincial-level Department of Planning and Investment and Department of Finance, related specialized agencies, and the district-level People’s Committee of the locality where the project is implemented to join the Acceptance Test Council in conducting the acceptance test under Clauses 1 and 2 of this Article.

b/ A written record of acceptance test of completed construction items and projects shall be made according to Form No. 05, Appendix II of Decree No. 57/2018/ND-CP.

Chapter II

PROVISION OF POST-INVESTMENT SUPPORT

Article 4.Guidance on the issuance of decisions on investment policy based on the list of projects in agriculture and rural areas encouraged for investment to be approved by provincial-level People’s Committees

1. Principles for summing up the list of projects in agriculture and rural areas encouraged for investment:

a/ To prioritize projects on processing agricultural products using local materials or employing intensive labor (100 workers or more).

b/ To prioritize projects manufacturing agricultural machinery, equipment and components or auxiliary products.

c/ To prioritize environment-friendly, energy-saving and emission reduction projects.

d/ To prioritize production association projects to create value chains in the agricultural sector, and organic agricultural production or hi-tech agriculture projects.

2. Process of making the list of projects in agriculture and rural areas encouraged for investment:

a/ Based on local socio-economic development conditions, investment proposals of related provincial-level departments, sectors, district-level People’s Committees, societies, and trade associations, and proposals of enterprises, the provincial-level Department of Planning and Investment shall draft the list of projects in agriculture and rural areas encouraged for investment.

b/ The provincial-level Department of Planning and Investment shall report to the Provincial-level People’s Committee on the draft list of projects in agriculture and rural areas encouraged for investment and a plan on organization of a provincial-level conference to support enterprises to invest in agriculture and rural areas.

c/ After the end of the conference, the provincial-level Department of Planning and Investment shall sum up and review the draft list of projects in agriculture and rural areas encouraged for investment and send it to provincial-level departments, sectors, district-level People’s Committees and associations (if any) for opinion.

The “Note” column in Form No. 1 provided in Appendix II to Decree No. 57/2018/ND-CP shall be added with the following contents: enterprises projected to make investment, schedule of implementation of the investment project, to-be-applied technologies, investment incentives and conditions for application of such incentives, and validity duration of the investment policy decision.

3. Approval of the investment policy decision of the list of projects in agriculture and rural areas encouraged for investment:

Based on the provincial-level Department of Planning and Investment’s report, after 10 working days, the provincial-level People’s Committee shall approve the investment policy decision of the list of projects in agriculture and rural areas encouraged for medium-term investment (with adjustments and additions to be made each year).

4. For projects (not requiring support from state funds) not on the list of projects in agriculture and rural areas encouraged for investment, dossiers, order and procedures for investment policy decisions must comply with Article 33 of the Investment Law.

5. Based on the list of projects in agriculture and rural areas encouraged for investment, enterprises shall implement projects and make proposals for support under Point a, Clause 1, Article 17 of Decree No. 57/2018/ND-CP. The provincial-level People’s Committee shall, based on the support fund-balancing capacity, make a written commitment to providing support for the enterprises in accordance with  Point b, Clause 1, Article 17 of Decree No. 57/2018/ND-CP.

6. For projects funded by the central budget, the provincial-level People’s Committee shall send dossiers to the Ministry of Planning and Investment and propose the latter to make a written commitment to providing support for the enterprises as prescribed. For projects using funds of ministries or central agencies as prescribed in Clause 1, Article 14 of Decree No. 57/2018/ND-CP, ministries or central agencies shall send appraisal dossiers as prescribed in the Law on Public Investment.

Article 5.Funding sources and incorporation of funding sources for the implementation of policies to encourage enterprises to invest in agriculture and rural areas

1. The annual central budget funds for development investment in the agricultural sector for the implementation of Decree No. 57/2018/ND-CP include funds for the national target program on building a new countryside, and target programs on restructuring the agricultural economy and prevention and mitigation of natural disasters, stabilization of residents’ life, sustainable forestry development, and sustainable marine economic development, and investment capital of other programs and projects for the agricultural sector.

2. The annual local budget funds for the agricultural sector for the implementation of Decree No. 57/2018/ND-CP include investment expenditures on capital construction for programs and projects managed by localities and current expenditures of agencies and units in localities decentralized to perform management in agriculture, forestry, salt industry, fisheries, hydraulic work and agricultural development, including agro-forestry, salt industry, fisheries and hydraulic work; building a new countryside and other rural development activities.

3. Incorporation of funding sources to implement policies:

a/ Based on the amounts allocated from the central budget to national target programs and targeted support programs, the provincial-level Department of Planning and Investment shall coordinate with related departments and sectors in actively incorporating the above funding sources to be allocated to the projects under Decree No. 57/2018/ND-CP and report thereon to provincial-level People’s Committees for consideration and decision.

b/ Provincial-level People’s Committees shall decide to incorporate funding sources from local budgets after annual and medium-term plans are formulated to implement Decree No. 57/2018/ND-CP.

Article 6.Provision of post-investment support to enterprises

1. The provincial-level Department of Planning and Investment shall assume the prime responsibility for, and coordinate with the provincial-level Department of Finance and related departments and sectors in, balancing local budget amounts, and report the annual and medium-term fund amounts for the item “Program on support for enterprises investing in agriculture and rural areas” of the locality to the provincial-level People’s Committee for submission to the provincial-level People’s Council for approval.

2. After obtaining the local budget amount for the item “Program on support for enterprises investing in agriculture and rural areas”, the provincial-level Department of Planning and Investment shall, pursuant to Clause 3, Article 15 of Decree No. 57/2018/ND-CP, estimate the to-be-allocated support amount and report to the provincial-level People’s Committee to provide support for enterprises.

Article 7.Summarization and reporting

1. The provincial-level People’s Committee and ministries and sectors providing support to enterprises investing in agriculture and rural areas shall send a report to the Ministry of Planning and Investment, the Ministry of Finance and the Ministry of Agriculture and Rural Development before March 31 every year. The report must clearly state the provided support amount, the operation situation of the support-receiving enterprise, problems, difficulties, and proposals to central agencies.

2. The Ministry of Planning and Investment shall sum up and report to the Prime Minister before April 30 every year.

Chapter III

IMPLEMENTATION PROVISIONS

Article 8.Implementation responsibility

Ministries, heads of ministerial-level agencies and government-attached agencies, chairpersons of provincial-level People’s Committees, heads of units, and organizations and individuals involved in implementing Decree No. 57/2018/ND-CP shall implement this Circular.

Article 9.Effect

1. This Circular takes effect on January 21, 2019, and replaces the Ministry of Planning and Investment’s Circular No. 05/2014/TT-BKHDT of September 30, 2014.

2. Ongoing projects prescribed in Clauses 4 and 5, Article 20 of Decree No. 57/2018/ND-CP are those having the remaining period of implementation specified in investment certificates or the projects’ investment policies approved by competent authorities before the date of promulgation of Decree No. 57/2018/ND-CP.

3. Projects or projects’ items being carried out under the Ministry of Planning and Investment’s Circular No. 05/2014/TT-BKHDT of September 30, 2014, may continue to be implemented under the above-mentioned Circular; projects or projects’ items that have not yet been carried out must comply with this Circular.

4. Any problems arising in the course of implementation of this Circular should be timely reported to the Ministry of Planning and Investment and related ministries and sectors for appropriate amendment and supplementation.-

Minister of Planning and Investment
Nguyen Chi Dung