THE GOVERNMENT | | THE SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness |
No. 98/2018/ND-CP | | Hanoi, July 5, 2018 |
DECREE
On policies to encourage cooperation and linkage in production and consumption of agricultural products[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 policies to encourage cooperation and linkage in production and consumption of agricultural products.
Chapter I
GENERAL PROVISIONS
Article 1. Scope of regulation
This Decree provides policies to encourage cooperation and linkage in production and consumption of products of cultivation, husbandry, aquaculture, forestries and salt-making (below referred collectively to as agricultural products).
Article 2. Subjects of application
1. Farmers, farm owners and persons authorized by farmers’ households or cooperative groups (below referred to as farmers).
2. Individuals, persons authorized by groups of individuals or households registering as business households (below referred to as individuals).
3. Cooperatives and unions of cooperatives (below referred to as cooperatives).
4. Enterprises.
5. Other organizations and individuals involved in the implementation of this Decree.
Article 3. Interpretation of terms
In this Decree, the terms below are construed as follows:
1. Cooperation and linkage in production and consumption of agricultural products (below referred to as linkage parties) means that the subjects defined in Clauses 1, 2, 3 and 4, Article 2 of this Decree (below referred to as associating parties) enter into an agreement to voluntarily and jointly invest in production and consumption of agricultural products in order to raise production efficiency and quality of agricultural products.
2. Agricultural value chain-based linkage specified in this Decree means a form of chain-based linkage in agricultural production from provision of supplies and input services, production, preliminary processing or processing to consumption of agricultural products (below referred to as value chain-based linkage). Specific forms of linkage are prescribed in Article 4 of this Decree.
3. Concentrated agricultural commodity production area means an area where an agricultural product or a group of agricultural products of the same category is produced at a scale suitable to the form of production and local conditions, ensuring conformity with the regulations on food safety, disease-free status, and environmental protection, and combining production with consumption of agricultural products.
Chapter II
FORMS OF LINKAGE, LINKAGE CONTRACTS AND LINKAGE PROJECTS
Article 4. Forms of linkage
1. Linkage in provision of supplies and input services, production, harvesting, and preliminary processing or processing in combination with consumption of agricultural products.
2. Linkage in provision of supplies and input services in combination with consumption of agricultural products.
3. Linkage in production and harvesting in combination with consumption of agricultural products.
4. Linkage in provision of supplies and input services, production and harvesting in combination with consumption of agricultural products.
5. Linkage in production, harvesting, and preliminary processing or processing in combination with consumption of agricultural products.
6. Linkage in provision of supplies and input services and preliminary processing or processing in combination with consumption of agricultural products.
7. Linkage in preliminary processing or processing in combination with consumption of agricultural products.
Article 5. Linkage contracts
A linkage contract combining agricultural production with agricultural product consumption (below referred to as linkage contract) is a contract signed between linkage parties in the principle of voluntariness in order to carry out linkage activities in one of the forms prescribed in Article 4 of this Decree.
Article 6. Linkage projects
1. A linkage project is a project jointly formulated and implemented by an enterprise or a cooperative and other parties to a linkage contract to carry out linkage activities in one of the forms prescribed in Article 4 of this Decree.
2. Linkage parties shall formulate a linkage project so as to obtain grounds for enjoying the incentives or supports prescribed in Article 8 and at Point a, Clause 1, Article 9 of this Decree. In case linkage parties do not apply for supports under the above policies, they are only required to formulate a plan requesting support for linkage activities.
3. Linkage leader: In case an enterprise or a cooperative directly signs linkage contracts with individuals or farmers, it shall act as the linkage leader. For a linkage contract signed between enterprises and/or cooperatives, the linkage leader shall be selected by the parties.
4. The linkage leader shall make a dossier requesting supports for the linkage. In case of necessity to formulate a linkage project, the linkage leader shall act as owner of the linkage project.
5. Apart from the contents agreed upon between linkage parties, a linkage project must cover at least one of the following items:
a/ Crop-field design and renovation, construction and expansion of concentrated agricultural commodity production areas;
b/ Construction and development of infrastructure facilities for production, harvesting, processing, storage and consumption of agricultural products;
c/ Contribution of funds, assets, land-use rights, technologies or production process.
6. The order and procedures for formulation, appraisal and approval of linkage projects must comply with Article 12 of this Decree.
Chapter III
INCENTIVES AND SUPPORTS
Article 7. Support for hiring consultants for formulation of linkage projects
1. A linkage leader may receive from the state budget a support amount equal to 100% of the expense for hiring consultants for formulation of its linkage, which, however, must not exceed VND 300 million, covering expenses for consultancy and study for formulation of a linkage contract and linkage project, production, and business and market development plans.
2. Funding sources for provision of the support specified in Clause 1 of this Article, support levels and support provision mechanisms must comply with the regulations applicable to plans, programs and projects under the national target program on building a new countryside; funds may also come from funding sources of other programs and projects.
Article 8. Support for infrastructure facilities serving linkage activities
1. A linkage project may receive from the state budget a support amount equal to 30% of the fund required for investment in machinery, equipment and construction of infrastructure facilities serving linkage activities, including workshops, warehouses and storing yards serving the production, preliminary processing, storage, processing and consumption of agricultural products. The total support amount must not exceed VND 10 billion.
2. Funding sources for provision of the support specified in Clause 1 of this Article, support levels and support provision mechanisms must comply with the regulations applicable to plans, programs and projects under the national target program on building a new countryside and the target program on agricultural economic restructuring, natural disaster prevention, control and mitigation, and stabilization of people’s lives; funds may also come from funding sources of other lawful programs and projects.
Article 9. Support for agricultural extension, training, varieties and breeds, supplies, packaging and product labeling
1. In addition to the support for construction of infrastructure facilities serving linkage activities prescribed in Clause 2 of Article 8, linkage parties are entitled to state budget support as follows:
a/ Support for formulating agricultural extension models;
b/ Support for providing vocational training, technical training, training in managerial skills, production techniques, contract performance management, chain management and market development capacity;
c/ Support for procuring services related to plant varieties and animal breeds, supplies, packaging, and product labeling which are provided in a centralized manner by cooperatives for no more than 3 crops or 3 cycles of production or exploitation;
d/ Support equaling at most 40% of costs for transfer and application of new scientific and technical advances and chain-based synchronous application of technical and quality management processes.
2. Funding sources for provision of the supports specified at Points a and b, Clause 1
of this Article, support levels and support provision mechanisms must comply with the regulations applicable agricultural extension programs; projects and programs on provision of agricultural occupational training to rural laborers; policies on training of human resources for cooperatives; funds may also come from funding sources of other lawful programs and projects.
3. Funding sources for provision of the supports specified at Points c and d, Clause 1 of this Article, support levels and support provision mechanisms must comply with the national target program on building of a new countryside; funds may also come from funding sources of other lawful programs and projects.
Article 10. Principles of incentives and supports
1. Parties to linkage contracts or projects in one of the forms prescribed in Article 4 of this Decree are entitled to supports corresponding to the jobs they perform. Competent state agencies shall, based on contents of linkage contracts or projects, decide to provide supports under this Decree.
2. Each linkage party is entitled to incentives and/or supports corresponding to the job it/he/she performs as agreed in the linkage contract or project.
3. In case a job is concurrently eligible for different incentives and supports (including also those to be provided under other programs and projects), the beneficiary may opt for the most advantageous one.
4. Apart from the central budget fund, localities shall proactively arrange support funds from their local budgets and integrate into other programs and projects for implementing policies to encourage cooperation and linkage in production and consumption of agricultural products under this Decree.
5. The State encourages the use of other lawful funding sources to provide supports to boost linkages in production and consumption of agricultural products.
Article 11. Conditions for support enjoyment
To be entitled to supports, linkage parties must satisfy all of the following conditions:
1. Being conformable with the local socio-economic development master plan.
2. Possessing certificates or written commitments of satisfaction of regulations on product quality standards, food safety, disease-free status and environmental protection.
3. Meeting the following regulation on the stability of linkage:
a/ For agricultural products with a production or exploration cycle of 1 year or more, the linkage period must be at least 5 years;
b/ For agricultural products with a production or exploitation cycle of under 1 year, the linkage period must be at least 3 years.
4. Having the linkage project or plan to request provision of support for linkage activities approved by a competent agency.
Article 12. Dossiers and procedures for provision of supports for linkage activities
1. A dossier of request for support for linkage activities must comprise:
a/ A written request made by the linkage leader (made according to Form No. 1 provided in the Appendix to this Decree);
b/ Linkage project documents (made according to Form No. 2 provided in the Appendix to this Decree) or a plan to request provision of support for linkage activities (made according to Form No. 3 provided in the Appendix to this Decree);
c/ An agreement on appointment of the linkage leader (made according to Form No. 4 provided in the Appendix to this Decree), in case the linkage contract is signed between enterprises and/or cooperatives;
d/ Copies of certificates or commitments of product quality, food safety, disease-free status and environmental protection; or commitments to complying with the regulations on product quality, food safety, disease-free status and environmental protection (made according to Form No. 5 provided in the Appendix to this Decree);
dd/ A copy of the linkage contract.
2. Procedures:
a/ In case of the provision of supports for a linkage project is subject to approval by a provincial-level People’s Committee, the linkage leader shall send a dossier to the provincial-level Department of Agriculture and Rural Development. After receiving a complete dossier prescribed in Clause 1 of this Article, the provincial-level Department of Agriculture and Rural Development shall form a dossier appraisal council composed of a leader of the provincial-level Department of Agriculture and Rural Development as its head and representatives of the provincial-level Finance Department, Planning and Investment Department and related provincial-level departments and sectors, and leaders of related district-level People’s Committees, as its members. The council shall appraise the dossier within 15 working days after receiving it and if finding the dossier qualified, the provincial-level Department of Agriculture and Rural Development shall propose the provincial-level People’s Committee to consider approving it. If finding that the dossier is unqualified, the provincial-level Department of Agriculture and Rural Development shall, within 10 working days after completing the appraisal, notify the linkage leader thereof, stating the reason. Within 10 working days after receiving the provincial-level Department of Agriculture and Rural Development’s report, the provincial-level People’s Committee shall issue a decision approving the provision of supports for the linkage project;
b/ In case the provision of supports to a linkage project is subject to approval by a district-level People’s Committee, the district-level Division of Agriculture (or the district-level Division of Economics) shall carry out the procedures specified at Point a, Clause 2 of this Article.
Chapter IV
RIGHTS AND OBLIGATIONS OF LINKAGE PARTIES
Article 13. Rights of linkage parties
1. To join in linkages in agricultural production lines, sectors and fields not banned by law.
2. To enjoy policies to encourage linkage in production and consumption of agricultural products, and others incentive and support policies of the State under regulations.
3. To use assets attached to land and assets formed from loans as collaterals for borrowing loans from credit institutions in accordance with law.
4. To be provided with information on the State’s policies on provision of support for linkage activities and information on prices, markets, quality standards, scientific and technological applications as well as other public services serving linkage activities.
5. To select appropriate ways for settling disputes arising in the performance of linkage contracts or implementation of linkage projects in accordance with law.
6. To have their assets and infrastructure facilities invested for linkage activities (including assets acquired from state funds) protected in accordance with law.
7. To have other rights as provided by law.
Article 14. Obligations of linkage parties
1. To provide adequate and accurate information on linkage contracts and projects to other parties when requested.
2. To comply with terms and conditions of linkage contracts or projects.
3. To comply with the regulations on production and consumption of agricultural products, environmental protection, as well as protection of human health, plants and animals during the performance of linkage contracts.
4. To properly exercise their rights and discharge their obligations in accordance with law.
5. To exchange information, negotiate and reach agreement with one another so as to deal with difficulties and force majeure risks arising in the performance of linkage contracts.
6. To discharge other obligations as defined in linkage contracts and law.
Article 15. Settlement of disputes and handling of violations in the performance of linkage contracts or implementation of linkage projects
1. In case a linkage party fails to properly and fully perform commitments and obligations (except force majeure events such as natural disasters or epidemics) in the implementation of linkage activities entitled to state budget supports, it/he/she shall:
a/ Be ineligible for state incentives and/or supports, handled under current regulations, required to pay compensation to the damaged party(ies); and
b/ Be not allowed to participate in linkage activities entitled to state incentive policies within 5 years from the date on which its/his/her violation is identified.
2. Linkage parties that commit breach of linkage contract shall be subject to the following handling measures:
a/ Forced compliance with terms and conditions of the linkage contract;
b/ Imposition of fines for breach of the linkage contract;
c/ Suspension from performance of the linkage contract;
d/ Termination of the performance of linkage contract;
dd/ Cancellation of the linkage contract;
e/ Forced payment of compensation to related parties;
g/ Other measures as agreed upon by linkage parties which are not contrary to current regulations.
3. Forms of settling disputes on linkage contracts: The State encourages the settlement of disputes on linkage contracts through negotiation and conciliation. In case of failure to an amicable settlement, the dispute shall be brought to commercial arbitration or court for settlement.
Chapter V
ORGANIZATION OF IMPLEMENTATION
Article 16. Responsibilities of ministries and ministerial-level agencies
1. The Ministry of Agriculture and Rural Development
a/ To assume the prime responsibility for performing tasks specified in this Decree;
b/ To develop pilot linkage models in combination with restructuring the agricultural sector and building a new countryside;
c/ To assume the prime responsibility for, and coordinate with the Ministry of Industry and Trade and related ministries and sectors in, implementing the scheme on development of Vietnam’s agricultural product supply centers in the 2018-2020 period;
d/ To coordinate with the Ministry of Natural Resources and Environment in guiding and organizing the performance of rural environmental protection tasks in cooperation, linkage and consumption of agricultural products;
dd/ To monitor, summarize, inspect and report the implementation of this Decree.
2. The Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate with the Ministry of Agriculture and Rural Development in, synthesizing, arranging and integrating state budget investment capital to provide supports for linkage activities according to regulations.
3. The Ministry of Finance shall assume the prime responsibility for, and coordinate with the Ministry of Agriculture and Rural Development in, synthesizing, arranging and integrating state budget non-business capital to provide supports for linkage activities according to regulations.
4. The Ministry of Industry and Trade shall assume the prime responsibility for, and coordinate with the Ministry of Agriculture and Rural Development and related ministries and agencies in, implementing the scheme on rural trade development in the 2010-2015 period, with a vision toward 2020.
Article 17. Responsibilities of provincial-level People’s Committees
1. To determine and approve key product lines and products for which linkage in production and consumption is encouraged and prioritized, and publicize information thereof in their localities.
2. To propose provincial-level People’s Councils to approve support policies for linkage in production and consumption of products in their localities.
3. To approve the provision of supports for linkage activities carried out in their localities according to their competence. To assign district-level People’s Committees to approve the provision of supports for linkage activities carried out in their localities based on the investment capital levels and areas of linkage activities.
4. To direct specialized agencies, district- and commune-level People’s Committees to make plans, guide, organize and inspect the implementation support policies in their localities. To allocate state budget funds for provision of supports for linkage activities under this Decrees.
5. To direct related units and organizations to assist and organize training and provide information on prices and agricultural product market to linkage parties.
6. To annually submit reports to the Ministry of Agriculture and Rural Development for summarization and reporting to the Prime Minister.
Article 18. Responsibilities of socio-political organizations and trade associations and association unions
1. To disseminate, provide counseling, encourage and support their members to join and properly perform linkage contracts; to build, develop and protect the prestige and common value of agricultural products; to develop markets, build and promote brands for agricultural products.
2. To protect rights and interests of their members in the course of entering into and performing linkage contracts; to provide solutions and support services for their members in order to standardize production process and product quality, have plans for co-management of natural resources and production environment, respond to market crisis, climate change, and protect natural resources and the environment.
Article 19. Effect
1. This Decree takes effect on August 20, 2018.
2. To annul the Prime Minister’s Decision No. 62/2013/QD-TTg of October 25, 2013 on policies to encourage the development of cooperation and linkage in production and consumption of agricultural products, and development of large-area fields on the effective date of this Decree.
3. Parties to linkage activities which are commented to be implemented under Decision No. 62/2013/QD-TTg before the effective date of this Decree may continue enjoying the approved incentive policies or the policies prescribed in this Decree until their linkage contracts expire, provided that they satisfy the support conditions prescribed in this Decree. In case linkage parties have submitted an application for enjoyment of incentive policies to a competent agency before the effective date of this Decree, the dossier must be supplemented under this Decree.
4. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, presidents of provincial-level People’s Councils, chairpersons of provincial-level People’s Committees, and related agencies shall implement this Decree.-
On behalf of the Government
Prime Minister
NGUYEN XUAN PHUC
* The Appendix to this Decree is not translated.
Vietnamese
