Decree No. 134/2004/ND-CP encouraging the development of rural industry

Article 2.- Scope and suhjects of application management capability, rationalizing production 1. Organizations and individuals directly and reducing production costs. engaged in industrial investment and production 3. To guide and advise rural industrial in rural districts, provincial towns, district produ'ction establishments to _invest in the townships ·and communes (hereinafter referred building of new production chafns, expand to as rural industrial production establishments), production, renew and apply scientific and including: technological advances, raise the production a/ Small- and medium-sized enterprises set capability, manage product quality and : protect . . . up and operating under the Law on State the environment. Enterprises;. 4. To organize occupatiorialtralning, handing- b/ Small- and medium~sized enterprises set down and development.·· up and operating under the Enterprise Law; 5. To support inforrnation provision, cf Cooperatives set up and operating under marketing, seeking of markets· and business the Cooperative Law;. partners, and organize exhibjtions, fairs and d/ Individual business households defined by product displays. the Government's Decree No. 02/2_D00/ND-CP of February 3, 2000 on business registration. 6. To organize activities of exchanging experiences, study visits and surveys; to 2. Organizations and individuals of all support, and create conditions for, rural industrial economic sectors engaged in industrial production establishments to enter into joint promotion services. venturns and economic cooperation, and participate in p roducti on/business associations.

Article 3.- Industrial promotion activities' contents 7. To build models of technical demonstra- tions, transfer technologies and provide 1. To guide and support onterprise-founding scfentffic-tnchnological consultancy services in organ[ zations and individuals to formulate order to support organizations and individuals investment projects on rural industrial to invest in rural industrial production. No. :rn (20 .. 6-2004) OFFICIAL CAl."ETTF Chapter II plans and projects organized by agencies in charge of State management over industrial INDUSTRIAL PROMOTION POLICIES promotion activities.

Article 4.- Support for industrial promotion

Article 6.- List of production/business lines activities entitled to industrial promotion policies The State shall adopt appropriate policies and measures to support organizations and 1. Organizations and individuals investing in individuals directly engaged In industrial rural industrial production in the fol lowing promotion activities according to the contents production/business lines shall be entitled to the prescribed in Article 3 of this Decree as well as industrial promotion policies prescribed In organizations and individuals directly making Chapter II of this Decree: production investment in production/business a/ Agric1iltural, forestry, aquatic product- lines in the dqmains on the list prescribed in processing industries;

Article 6 ;Qf this Decree. b/ Production of products with the use of on- Artic/~.s~-Encouraging the development of spot raw materials and intensive labor; industrial. promotion services c/ Productlon of new products, imports- substitute goods, export goods using mainly 1. Industrial promotion services mean service domestic raw materials; activities in cnnsultancy; . training, technology . transfer; information provision, trade promotion, d/ Production of products and accessories, and other activities· related to rural' industrial assembly and repair ofagricultural mechanical production.·. Investment machines; The State·eiicourages organizations ahd el Small hydro~elet:tric power, electricity individuals to provide industrial promotion generation stations Using new energies or services for teaiization of contents of the recycled energies with installation output of industrial promotion activities, prescribed in under 10,000 kW to supply electricity for rural,

Article 3 of this Decree. deep-lying and remote areas; ti Production and processing of details and 2. Voluntary \ndustr\al promotion organiza- semi-finished products, and provision of services tions mean organizations set up by mass to establishments producing finished products; organizations, soda-economic organizations, agencies or individuals under law provisions 1or g/ Investment of capita\ \n building non-pro1it purposes to carry out industrial infrastructures of industrial, small- and cottage- promotion activities. industry clusters and locations as well as craft villages. 3. lrnjustrial promotion m:rvice organizations shall be professionally trained and entitled to 2. Basing itsolf on tile socio~economic participate in i ndustria! promotion programs, devolopment situation and the requirements of OFFICIAi. GAzt-:-:·I lT: No. 28 (?0-6--2004) industrial promotion work in each period, tlw ?. National industrial µrornotion funding i:, Ministry of Industry s~1all submit to tl10 Prime used tor the 1o!lowing purposes: Minister for decision the amendment ancl/or al To cover national industrial promotion supplementation of production/business !in0s activities according to the contents prescri!Jed entitled to the policies prescribed in Clause 1 of in Article 3 of this Decree; this Article. bl To support industrial promotion activities

Article 7.- Funding for industrial promotion of the provinclalMlevel People's Committees activities under the approve-ct programs, plans and schemes; Funding for industrial promotion activities includes national industrial promotion· funding cl To cover other expenditures in service of and local industrial promotion fundings: industrial promotion actlvf_tles. 1. The national _industrial promotion funding ·Atticle 9.- Local. industrial :promotion fundings means funding used . 1or :industrial promotion .. .. activities and national ta·rget programs on 1. Local industrial promqtioh fundings are industrial pro.moUbn, Which are managed and formed from the foHowingS:sourc~S: •·: organized 10( imp1$m~n1ation by the Ministry of Industry. a/ The annua I allocations: frOnlJ)~dgets .of the provincial-level Peoplei~r Committees;· ·_. .. ·.·_._..·:i:_. ,_ ... · '. ,· ·. . .. · 2. Local industrial promoti~'n fundings shall bl Aids and co.ntribu'tions ·01· domestic and be managed by the Peopf e's Committees of the foreign organizations· .kilc{Jndividuals; provinces and·· centrally-run . .., cities (hereinafter . . referred to as the .. ..provinclal--levet . People's . c/ Support from natt~naFindus~haLPromotion Committees) for use,fqr . . industrial .. .Promotion funding for industrial prpmotioh a¢tivities of the activities carried out by.J,ocalities.· provincial-level ·People;~ :committees under the approved programs; plans an'd ·~chemes;

Article 8.- National industrial promotion cl Other lawful capital sources prescribed by funding law. 1. National industria_f promotion funding is 2. Local industrla! promotion fundings are formed from the following sources: used for the following purposes: a/ The annual State budget allocations under al To cover industrial promotion activities plans; organized for implementation by localities b/ Donations and contributions o1 domestic according to the contents prescribfo!d in Article 3 and foreign organizations and individuals; of this Decree; cl Other lawful capital sources prescribed by bl To cover other expenditures in service of taw. Industrial promotion activities. No. ~~8 (?.0-6--2004) (Wr:!ClAL. GAZETTE

Article 10.- Managoment of- national mortgage accmding to law provisions on land. industrial promotion fundin9 and local industrial promotion fundings 2. Rural industrial production establis~11rn;1nts which wish to tJsR land for relocating old, narrow 1. National industrial promotion funding plans or polluting production establishments, or for and estimates shall be elaborated by the Ministry building new production establis~1ments s~1all be o1 Industry and included into its annual budget prioritized by competent People's Committees estimates for submission to competent State in leasing land with thE~ lowest rentals. agencies according to \aw provisions. 3. Tt1e provlnciat~level People's Committees 2. Local industrial promotion funding plans shall have to elaborate land planning, set aside and estimates shall be elaborated by the land fund and use !and rentals according to law provincial-level People's Committees and provisions for investment inthe construction of in cl u ded into the ann ua I b t.:d get esti-iiia tes of .,;, •• ,< .•,h • • technical infrastructures ofintfustrial ana·smaJl- their resp~ciiy~ localities for submission for and cottage-industry clust~rs and locations as approval ~~cofoing to the current regulations. well as craft villages, .and create favorable . . . , ... . . . conditions for rural· industr:iaJ production 3. Ati,rrJJ1\S,:\the finance bodies of all revels establishments to in~est:1,rl pro:quction. shall base'th~ins'e1v~S Ori the approved budget 1 plans ar:id i!islirn~t-es.a:s well as implementation

Article 12;~ lnvestmenf pref~rences temp.o t~ allbd~tk, thJrn t0 agencies in charge of State rn_anagerri~nt o,V':lr: ,·ndustrial promotion 1. Rural industrial production establishments activities .at:ttie centr#/:at1q local levels, shall be entitled to th!:!. :pre:ferential policies according to the State's O'Ll r'rerit reg u Iatio ns and 4, Natibn~I 'ihctu$trial .~rornotion funding and local indu~tr/;:.d ·:Prorri6tioh fundings allocated· th6 provisions of th is D'eicr$H.. from the budg~t', whithhave not been used up Agencies receiving and.handling.dossiers of in the plan year, ~ha.JI be ·retained for use in the registration for investment preferences shall subsequent year. have to clearly determine investment preference 5. The Ministry of Finance shall coordinate entitlements of rural industrial production with the Ministry of Indus.try in guiding in detail: establishments in the investment preference the order for elaborating, managing and using certificates but must not request any additional national industrial promotion funding and local procedures. industrial promotion fundings. 2. Rural industrial production establishments w\th e1Hc\ent investment projects proposed by

Article 11.- Land the provincial-· or disHTcHevel People's 1 _Rural industrial production establishments Committees shall be appraised and ,;1lven shall be entitled to preferential policies in land investment loans by Hie Development rent as well as land--use right transffH and Assistance Fund according to regul;o;.tions. OFFICIAL GAZETTE

Article 13.- Information, rnarket rnanagemont over industrial promotion activities 1. The ministries, branches and People's 1. Thfi Ministry of Industry shall assist thl➔ Committees of all levels shall create al! Government in performing the function of State conditions for rural industrial production management over industrial promotion activities establishments to ~1ave prompt access to according to the following contents: information on prices, products and technologies a/ io elaborate and promulgate, or propose of domestic and foreign markets. competent agencies to promulgate, strategies, 2. Rural industrial production establishments plannlngs and legal docum0nts on regional, shall enjoy 50%·plus reduction of expenses for branch and territorial rural industrial rent of ground spaces at trade fairs or exhibitions development; for domestic products. · b/ To elaborate nattonal induslrial promotion programs and plans in each period and submit

Article 14: .. Scientific and technologlcal them to the Prime Ministerforapproval; policies .. , .. c/ To organize the i~plementation of, and 1 . Rural industrial production establish men ts, guide localities in deploying, industrial prOniotion which use·newtechnological equipment or new ·activities according .to the approved ·programs raw. materials, or iny_est in· automation equipment and plans; and technologies, ·potfution source-treating and di To manage Jhe national industrial -controling equipment and tachnoiogies, use clean promotion funding;:- energies, reduce greenhouse effect, sav.e energies and· raise us$ efficiency thereof, or e/ To act as the, ma.in . . . body. in .. . .: coOrdinating regenerate industrial water sources, st,al_l be with ministries, branches ar1d localities in entitled to the support policies under such eccino- h.andffng reievant 'contents cm .investment, technical programs as information technology, ·finance~credit, science-technology, market, land, automation technology, bio-technology, materials labor and environment in rural industrial technology and energy saving. production development; 2. The Ministry of Industry shall assume the f/ To organize activities of disseminating prime responsibility for, and coordinate with the experiences in production, management, program-managing ministries in guiding the scientific and technological advances, implementation of this stipulation. investment consultancy, training, information supply, exhibitions, fairs and advertising Chapter Ill products of rural industrial production establishments; STATE MANAGEMENT OVER INDUSTRIAL g/ To cooperate with domestic and foreign PROMOTION ACTIVITIES organizations and individuals in attracting capita!

Article 15.- Agencies in charge of State and other resources in servic(~ of industrial OFHCIAL GAZETTE promotion activities; prioritizing !ocal industrial doveloprnent in accordanco wittl law provit;ions; h/ To rnonltor, evaluate and report annually to tt1e Prime Minister on implementation of b/ To approve, and mganize the implemen- industrial promotion programs, plans and tation of, industrial promotion programs and schemes; plans in their respective localities; ii To organize emulation activlties antJ cl To decide on forms of support from local commend and/or reward organizations and industrial promotion fundings for indus1ria\ individuals that recordsplendid achievements promotion activities according to the provisions in rural industrial production/business activities; of Article 3 of this Decree; j/ To examine industrial promotion activities di To ensure capital sources of local Industrial as well as mafia~ement and use o1 the national promotion fund~n~s in support ot organizatlons industrial.promotion funding and lo<;:at industrial· and individuals engaged in industrial promotion promotion ·fllndings. activities; . . . .. . ·. .-· 2. The ~·pparatus ·. ..... and payroll for performance . . el To elaborate, and submit to the Ministry of 01 theh.1hot1on .citState management over industrial Industry for synthesis,: industrial promotion promoti6ri;activities prescribed in Clause 1 of this programs and plans using r:iationi.ll industrial Article sha.Ji:bedeciqed by the Mini$ter of Industry promotion funding; according:t6 hlsicompetence. . ·.' . : . . .· :_ :_._.- :- fl To direct locelfunctional agencies in settling 3. The ministries, the ministerialMlevel matters re Ia ted to investment, fin a nce~credlt, agencie·s· and th~. GovernmentMattached science.,techno\ogy, market; land, labor and agencies :shaH, within the ambit of their environment' in servide of rural industrial respective tasks and powers, have to coordinate development in their respective localities; wi1h the Ministry ·of Industry in performing the g/ To establish relations with domestic and function of State management over industrial foreign organizations and individuals ln order to promotion activities under the Government's attract capltal sources for local indu stria I regulations. promotion activities; 4. The provinciaHevel People's Committees hi To report monthly and quarterly to the performing the functlori of State management Ministry of Industry on the situation of local over industrial promotion activities in their industrial development and industrial promotion respective localities have the following tasks and activities in their respective localities. powers: 5. The provincial/municipal Services of a/ To promulgate, or propose competent Industry shall assist the provinciaHevel People's agencies to promulgate, local industrial Committees in performlng the function of State development strategies, plannings and plans as management over industrial promotion activities well as legal documents on encouraging and in their respective localities.

Article 16.- Commendation ·r. Organizations and individuals that record acl1ievements in ~upporting and encouraging U1e development of rural industry shall be commended and/or rewarded according to the State's regulations. 2. Annually, the Ministry of Industry and the People's Committees of the provinces and centrally-run cities sha!I organize revie1Ns, drawing experiences,, commending and/or rewardi~g organizations and· individuals that record splendid achievements in rural industrial production development ,investment activfties. Chapter IV JMPLEMENTATJ°ON PROVJSJONS

Article 17.- lmpleinei,ntation effect This Decree . ·.·· takes effect 15 days .. after its publication in the·Offh;:ial Gazette;i··

Article 18.- lmplenientation . . organization .. and responsib iIity 1. The Ministry of Industry shall coordinate with the concerned ministries and branches in guiding the implementation of this Decree. 2. The ministers, the heads of the ministerial- level agencies, the heads of the Government- attached agencies and the presidents of the provincial/municipal People's Committees shall have to implement this Decree. On behalf of the Government Primo Minister PHAN VAN KHAI