Decree No. 52/2018/ND-CP dated April 12, 2018 of the Government on development of rural trades

DECREE

On development of rural trades^[1]

Pursuant to the June 19, 2015 Law on Organization of the Government;

At the proposal of the Minister of Agriculture and Rural Development;

The Government promulgates the Decree on development of rural trades.

Chapter I

GENERAL PROVISIONS

Article 1.Scope of regulation

This Decree prescribes a number of contents and policies on development of rural trades and craft villages.

Article 2.Subjects of application

1. Domestic and foreign organizations and individuals directly investing in the development of production, business and service activities related to rural trades (below collectively referred to as rural trade establishments), including small- and medium-sized enterprises, cooperatives, cooperative groups, and households operating in accordance with law.

2. Traditional crafts, craft villages, and traditional craft villages recognized under decisions of People’s Committees of provinces or centrally run cities (below collectively referred to as provincial-level People’s Committees).

3. Organizations and individuals involved in the management of rural trades (at central and local levels).

Article 3.Interpretation of terms

In this Decree, the terms below are construed as follows:

1. Traditional craft means an age-old craft which creates unique and specific products handed down and developed until now or in danger of fading away or being lost.

2. Craft village means one or more than one hamlet-level residential cluster or similar residential spot engaged in rural trade activities prescribed in Article 4 of this Decree.

3. Traditional craft village means a craft village having an old-age traditional craft.

Article 4.Rural trade activities

Rural trade activities prescribed in this Decree include:

1. Processing and preserving agricultural, forest and aquatic products.

2. Producing fine-art handicrafts.

3. Processing materials serving rural trade production.

4. Producing timber, rattan and bamboo, ceramic and porcelain, glass, textile and garment, fiber, embroidery, knitwear, and small mechanical engineering products.

5. Producing and trading in ornamental creatures.

6. Making salt.

7. Providing services for production and life of rural inhabitants.

Chapter II

RECOGNITION OF TRADITIONAL CRAFTS, CRAFT VILLAGES AND TRADITIONAL CRAFT VILLAGES

Article 5.Criteria for recognition of traditional crafts, craft villages and traditional craft villages

1. Criteria for recognition of traditional crafts, craft villages and traditional craft villages shall be applied to those prescribed in Clause 2, Article 2 that are engaged in rural trade activities specified in Article 4 of this Decree and to related organizations and individuals.

2. Criteria for recognition of traditional crafts

A craft shall be recognized as a traditional one when it fully satisfies the following 3 criteria:

a/ Having existed in the locality for over 50 years and still developed by the time of request for recognition;

b/ Creating products bearing the nation’s cultural identity;

c/ Being associated with the name(s) of one or more than one artisan or with the name of a certain craft village.

3. Criteria for recognition of a craft village

To be recognized, a craft village must fully satisfy the following 3 criteria:

a/ Having at least 20% of the total households in the village participating in one or more of the rural trade activities prescribed in Article 4 of this Decree;

b/ Having carried out production and business activities stably for at least 2 consecutive years counting to the time of request for recognition;

c/ Satisfying the law-prescribed environmental protection conditions in craft villages.

4. Criteria for recognition of a traditional craft village

A traditional craft village must satisfy the criteria on a craft village prescribed in Clause 3 of this Article and have at least one traditional craft specified in Clause 2 of this Article.

Article 6.Recognition of traditional crafts, craft villages and traditional craft villages

1. Dossier of request for recognition of a traditional craft

a/ A summary of the process of formation and development of the traditional craft;

b/ Copies of certificates and medals awarded at domestic and international contests and exhibitions, or of high prizes (if any) awarded by provincial- or higher-level authorities to artistic works. For organizations and individuals that have no condition to participate in such contests or exhibitions or that have no prizes awarded to their works, a written description of typical characteristics showing the nation’s cultural identity of the traditional craft can be submitted instead;

c/ A copy of the traditional craft artisan recognition certificate (if any) granted by a competent agency.

2. A dossier of request for recognition of a craft village

a/ A list of households participating in rural trade activities;

b/ A summary of production and business results of participants in rural trade activities over the last 2 years;

c/ A document proving the requester’s satisfaction of environmental protection conditions as prescribed.

3. A dossier of request for recognition of a traditional craft village

a/ The documents specified in Clauses 1 and 2 of this Article;

b/ In case a craft village has been recognized, the dossier must comprise the documents specified in Clause 1 of this Article;

c/ In case a craft village has not yet been recognized but has a traditional craft recognized, the dossier must comprise the documents specified in Clause 2 of this Article.

4. Order of consideration for recognition of a traditional craft, craft village or traditional craft village

a/ The People’s Committee of an urban district, a rural district, a town, a provincial city or a municipal city (below collectively referred to as the district-level People’s Committee) shall make a dossier of request for recognition of a traditional craft, craft village or traditional craft village based on the criteria specified in Article 5 of this Decree and submit it to the provincial-level People’s Committee for consideration and recognition;

b/ Within 30 working days after receiving a valid dossier, the provincial-level People’s Committee shall form a council to select the entities that fully satisfy the conditions specified in Article 5 of this Decree, issue decisions and certificates of recognition of traditional craft, craft village or traditional craft village.

5. The time cycle for consideration and recognition of traditional crafts, craft villages and traditional craft villages shall be decided by the provincial-level People’s Committee.

6. A recognized traditional craft, craft village or traditional craft village that no longer satisfies the prescribed criteria will have its recognition certificate revoked. District-level People’s Committees shall make a list of traditional crafts, craft villages and traditional craft villages that no longer satisfy the prescribed criteria and send it to the provincial-level People’s Committee for revocation of their recognition certificates.

7. District-level People’s Committees shall report to the provincial-level People’s Committee on the management of certificates of recognition of traditional crafts, craft villages and traditional craft villages and the implementation of regulations on criteria for recognition of traditional crafts, craft villages and traditional craft villages in their localities once every year before November 30 or upon request for sum-up and reporting to the Ministry of Agriculture and Rural Development.

Chapter III

MANAGEMENT AND DEVELOPMENT OF RURAL TRADES

Article 7.Production areas

1. Rural trade establishments that propose effective investment projects shall be given favorable conditions in the allocation of land with land use levy and grant of land use rights certificates in accordance with the land law.

2. Investment projects that are subject to strict environmental pollution minimization requirements and satisfy the requirements on research and production of new products shall be given priority in the allocation of land with land use levy or lease of land in industrial parks or clusters.

3. Local budgets shall support funds for the relocation of rural trade establishments from residential areas to planned areas. Support levels shall be decided by provincial-level People’s Committees.

Article 8.Investment and credit

Effective production and business projects are entitled to:

1. Investment incentives under the Law on Public Investment.

2. Policies encouraging investment in agriculture and rural areas.

3. Priority in taking loans from credit institutions, the National Employment Fund, the Fund for Development of Small- and Medium-Sized Enterprises, and the National Science and Technology Development Fund in accordance with law.

Article 9.Trade promotion

1. The State shall encourage, create favorable conditions for, and assist rural trade establishments in carrying out trade promotion activities under current regulations of the national trade promotion program.

2. The State shall organize relevant trade promotion activities to support rural trade establishments as follows:

a/ Developing a website to introduce products and sell goods online; designing product models and packages; and building brands and geographical indications for origin of goods and protecting brands;

b/ Organizing contests of Vietnamese handicrafts.

3. Rural trade establishments participating in trade promotion activities specified in Clause 2 of this Article are entitled to state budget funding to cover:

a/ Expenses for hiring consultants, and expenses for the activities specified at Point a, Clause 2 of this Article. The support may be up to 50% of the expenses but must not exceed VND 50 million per establishment;

b/ All expenses for hiring places for display of products; organizing contests; and meal and travel expenses for the activity specified at Point b, Clause 2 of this Article.

4. Funds and mechanism on financial support from the state budget must comply with current regulations of the national trade promotion program; and annual trade promotion programs and plans and industrial and agricultural extension programs and plans of ministries, sectors and localities.

Article 10.Science and technology

1. When applying scientific and technological research outcomes, renewing technologies, producing new products and providing scientific and technological services or receiving scientific and technical advances from domestic and foreign organizations and individuals, rural trade establishments are entitled to the preferences under financial policies and mechanisms encouraging enterprises to invest in scientific and technological activities and agriculture and rural areas.

2. Rural trade establishments that implement research projects independently or cooperate with scientific research institutions in creating new technologies or improving research products that can be commercialized in rural trades shall be provided with science and technology non-business funds under current regulations.

3. Application of science and technology to production in traditional craft villages is encouraged in order to increase productivity and competitiveness while conserving and promoting cultural identities of traditional crafts.

Article 11.Human resources training

1. Persons engaged in traditional crafts, persons working in craft villages or traditional craft villages, and persons working in rural trade establishments shall be provided with vocational training supports under current regulations.

2. Artisans in rural trades shall be provided by the State with funds for holding training courses on trade-teaching skills and paid with remunerations for teaching trades for rural workers. Artisans who directly hand down their jobs to trainees are entitled to collect training fees as agreed with trainees.

3. Local budgets shall provide rural trade establishments with funds to pay part of expenses for directly organizing training courses on trade skills. In case of training assisted by artisans and craftsmen, funds shall be allocated according to actual expenses. Specific expenses and support levels shall be decided by provincial-level People’s Committees.

4. Investment projects on rural vocational training institutions are entitled to policies applicable to vocational training for rural workers under regulations.

5. Funds shall be ensured from the budget sources for education and vocational training activities; the national target program on the building of a new countryside, relevant programs and projects, and other lawful funding sources. Expense items and levels must comply with regulations on policies applicable to vocational training for rural workers.

Article 12.Support for rural trades development

1. Central budget-funded projects on rural trades development

a/ Project formulation-supporting agencies: state management agencies in charge of agriculture and rural development and related state management agencies in localities;

b/ Project expenses to be supported: purchase of materials, machinery, equipment, and production lines; hiring of technicians to direct project implementation; training for project participants, and project review; and project management;

c/ Order of priority: projects to process agricultural, forest and aquatic products using advanced technologies and synchronous equipment in harvest, preservation, processing and sale of products in order to increase product value and meet market demand; projects under programs on conservation and development of craft villages; projects to develop handicrafts and fine-art articles for domestic sale or export; projects to produce and supply materials to serve development of rural trades; projects to manufacture equipment and machinery serving agricultural production and rural areas; projects to make and process clean salt; projects to develop ornamental creatures; projects to develop craft villages associated with eco-tourism development; and projects to produce products from agricultural scraps and by-products;

d/ The support may be up to 50% of expenses but must not exceed VND 500 million per project;

dd/ Support plans and fund estimates

Provincial-level state management agencies in charge of agriculture and rural development and related state management agencies shall conduct surveys and formulate projects and send them to the state management agency in charge of rural trades under the Ministry of Agriculture and Rural Development and other related state management agencies for inclusion in their annual budget estimates.

Based on the funds for the formulation of rural trades development projects, the Ministry of Agriculture and Rural Development shall approve an implementation plan; the state management agency in charge of rural trades under the Ministry of Agriculture and Rural Development shall guide local state management agencies in charge of agriculture and rural development in implementing such plan.

Other related central state management agencies that are allocated funds for formulating rural trades development projects shall approve their plans and guide their implementation under current regulations.

e/ Funds for rural trades development projects will come from the national target program on building a new countryside, industrial and agricultural extension programs, and local budgets.

2. Local budget-funded rural trades development projects must comply with Clause 1 of this Article and other regulations of provincial-level People’s Committees.

3. Central budget-funded activities for rural trades development, such as communication; training; field surveys and study tours overseas to learn experience; consultancy; and service, must comply with the guidance on financial mechanisms applicable to programs on agricultural extension, industrial extension, building of a new countryside and poverty reduction, and other relevant programs and projects.

4. Provincial-level People’s Committees shall prescribe the contents, forms and levels of support in addition to the contents specified in this Article as suitable to their local conditions under current regulations.

Chapter IV

MANAGEMENT AND DEVELOPMENT OF CRAFT VILLAGES AND TRADITIONAL CRAFT VILLAGES

Article 13.Craft village conservation and development program

1. A craft village conservation and development program covers:

a/ Conservation and development of traditional craft villages;

b/ Development of craft villages in association with tourism and the building of a new countryside;

c/ Development of new craft villages.

2. The State shall plan and arrange funds from the national target program on building a new countryside for support for projects, schemes, plans and models under the craft village conservation and development program specified in Clause 1 of this Article.

3. Provincial-level People’s Committees shall base themselves on their local conditions to formulate support mechanisms for craft village conservation and development projects in their localities in addition to the funds specified in Clause 2 of this Article.

Article 14.Support for craft village development

Craft villages and traditional craft villages are entitled to policies encouraging the development of rural trades as prescribed in Articles 7 thru 12 of this Decree and also to support from local budgets as follows:

1. Direct support funds prescribed in decisions recognizing traditional crafts, craft villages or traditional craft villages; specific support contents and levels shall be decided by provincial-level People’s Committees.

2. Funds for construction of infrastructure facilities of craft villages:

a/ Support contents: Construction, renovation, upgrading and improvement of infrastructure facilities of craft villages, such as roads, electricity and clean water; water drainage systems; and construction of centers and places for sale and introduction of products of craft villages;

b/ Order of priority: craft villages in danger of fading away or being lost; craft villages of ethnic minority people; craft villages with good sale markets; craft villages associated with tourism development and new-countryside building; craft villages creating jobs and increasing incomes for locals; and craft villages associated with conservation and development of cultural values through traditional crafts;

c/ Provincial-level People’s Committees shall decide on investment projects to build infrastructure facilities of craft villages in accordance with the Law on Public Investment and guiding documents;

d/ Funding sources for support will come from the national target program on new-countryside building, national target program on sustainable poverty reduction, target programs, and local budgets;

dd/ Provincial-level People’s Committees shall prescribe support levels for investment in the renovation, upgrading and improvement of infrastructure facilities of craft villages as suitable to local practical conditions in accordance with current regulations.

3. In addition to the policies specified in this Decree, craft villages encouraged for development are entitled to the policies prescribed in Clause 2, Article 15 of the Government’s Decree No. 19/2015/ND-CP of February 14, 2015, detailing a number of articles of the Law on Environmental Protection.

Chapter V

ORGANIZATION OF IMPLEMENTATION

Article 15.The Ministry of Agriculture and Rural Development

As the central agency performing the state management of craft villages and rural trades, the Ministry of Agriculture and Rural Development has the following powers and responsibilities:

1. To assume the prime responsibility for, and coordinate with related ministries and sectors and provincial-level People’s Committees in, directing the state management of craft villages and rural trades.

2. To formulate and issue policies encouraging the development of rural trades and conservation and development of craft villages.

3. To direct the formulation and organize the implementation of programs, schemes and projects to support the development of craft villages and rural trades.

4. Annually, to prepare plans and estimate funds for the development of rural trades and submit them to the same-level finance agency for inclusion in budget allocation plans for submission to competent agencies for consideration and decision in accordance with the Law on the State Budget.

5. To inspect, examine and periodically or extraordinarily assess the implementation of policies and laws and the operation efficiency of craft villages and rural trade establishments.

Article 16.The Ministry of Natural Resources and Environment

1. To promulgate, or submit to competent agencies for promulgation, policies creating favorable conditions for rural trade establishments to be allocated land, leased land or granted land use rights certificates in accordance with the land law.

2. To formulate and promulgate, or submit to competent agencies for promulgation, legal documents, policies, strategies and plans on environmental protection and technical regulations on environment for craft villages; to study, apply and disseminate environment treatment technologies suitable to craft villages in order to encourage the development of rural trades using environment-friendly technologies, generating less waste and ensuring food hygiene and safety while restricting the formation and development of rural trades likely to cause environmental pollution.

3. To assume the prime responsibility for, and coordinate with the Ministry of Agriculture and Rural Development and related ministries, sectors and localities in, issuing the list of polluted craft villages which need environmental treatment measures.

Article 17.The Ministry of Industry and Trade

1. To assume the prime responsibility for formulating and promulgating, or propose competent agencies to promulgate, legal documents, policies, programs and plans on industrial extension; to guide and organize the implementation of the issued mechanisms and policies, and conduct periodical or extraordinary examination or evaluation of such implementation.

2. To organize the development of industrial clusters and infrastructure investment support programs for industrial clusters in accordance with law.

3. To formulate annual plans and estimates from central budget funds for industrial extension activities, submit them to competent agencies for approval, and organize the implementation thereof in accordance with regulations.

Article 18.The Ministry of Science and Technology

1. To direct the inclusion of fund estimates for science and technology application for development of rural trades in the Ministry’s annual plans.

2. To guide and manage production technologies, and restrict the application of polluting obsolete technologies in craft villages, rural trade establishments and rural residential areas.

3. To assume the prime responsibility for, and coordinate with related agencies in, studying, introducing and disseminating environment-friendly production technologies for craft villages and rural trade establishments.

Article 19.The Ministry of Planning and Investment

To assume the prime responsibility for, and coordinate with the Ministry of Finance, Ministry of Agriculture and Rural Development and related units in, balancing and arranging state budget funds and other funding sources for implementation of the policies prescribed in this Decree.

Article 20.The Ministry of Finance

To guide, balance and arrange state budget funds and other funding sources for supporting the development of rural trades in its annual plans in accordance with current regulations and this Decree.

Article 21.The Ministry of Labor, War Invalids and Social Affairs

To direct, examine and organize the implementation of support policies on vocational training and job creation, and implement regulations on labor, occupational safety and health, and social insurance for development of rural trades.

Article 22.The Ministry of Culture, Sports and Tourism

To direct the development of tourism in association with craft villages; to organize tourism promotion and tourism infrastructure development support activities for craft villages, and encourage the development of tourist services and products in craft villages.

Article 23.Provincial-level People’s Committees

1. To perform the state management of craft villages and rural trades in their localities; to review local regulations and revise them to comply with this Decree; to formulate and issue mechanisms, policies and regulations on expense levels and allocation of annual local budget funds for supporting the development of craft villages and rural trades.

2. To direct, guide and examine the implementation of policies and master plans on development and environmental protection of craft villages and rural trades as well as orientations on conservation and development of craft villages and rural trades; every 5 years, to review, make statistics of, classify, and plan the development of, rural trades in their localities to meet practical requirements.

3. To direct provincial-level Departments of Agriculture and Rural Development in performing the state management of craft villages and rural trades. Annually, provincial-level Departments of Agriculture and Rural Development shall assume the prime responsibility for, and coordinate with district-level People’s Committees in, guiding the formulation and summarization of plans on development of rural trades and submit them to competent authorities for approval under local plans on agriculture and rural development.

4. To direct departments, sectors and localities in managing the recognition of traditional crafts, craft villages and traditional craft villages; to specify criteria on the nation’s cultural identity for traditional crafts and traditional craft villages as a basis for consideration and recognition; to review and list recognized craft villages; to protect the environment of craft villages; to invest in and upgrade waste treatment facilities for craft villages and rural trade establishments.

5. To disseminate policies encouraging the development of rural trades to help organizations and individuals that wish to implement rural trades development programs, schemes, projects or activities access resources and support policies for the development of rural trades.

6. To direct provincial-level Departments of Agriculture and Rural Development in preparing plans and fund estimates for development of rural trades and send them to same-level finance agencies for inclusion in budget allocation plans for submission to competent agencies for consideration and decision in accordance with the Law on the State Budget.

7. To direct district-level People’s Committees in formulating and summarizing fund estimates for development of rural trades in their local annual budget estimates and submit them to competent agencies for approval in accordance with law. In addition to the funds allocated for implementation of this policy, localities shall also arrange funding sources from other programs and projects and financial assistance from international organizations to support the development of rural trades.

8. To report on the development of rural trades and craft villages periodically or upon request of the Prime Minister or Ministry of Agriculture and Rural Development.

Article 24.Socio-political organizations and socio-professional organizations

To further coordinate with related state agencies and domestic and foreign organizations in effectively conserving and developing traditional crafts, craft villages and traditional craft villages under rural trades development programs and projects.

Article 25.Implementation provisions

1. This Decree takes effect on June 1, 2018, and replaces the Government’s Decree No. 66/2006/ND-CP of July 7, 2006, on development of rural trades.

2. For decisions recognizing traditional crafts, craft villages and traditional craft villages issued by provincial-level People’s Committees before the effective date of this Decree:

a/ If they satisfy the criteria prescribed in Article 5 of this Decree, provincial-level People’s Committees shall direct their implementation;

b/ If they do not satisfy the criteria prescribed in Article 5 of this Decree,  provincial-level People’s Committees shall direct related agencies to take remedies.

3. Dossiers received before the effective date of this Decree by competent state agencies for enjoyment of the policies under Decree No. 66/2006/ND-CP of July 7, 2006, shall be processed in accordance with the regulations effective at the time of their receipt.

4. The support policies prescribed in this Decree do not apply to entities that have received support under other programs which coincide with those under the programs specified in this Decree.

5. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People’s Committees, and related organizations and individuals shall implement this Decree.-

On behalf of the Government
Prime Minister
NGUYEN XUAN PHUC