Starting from 20 August, the governmental Decree No 98/2018/ND-CP regarding an incentive policy for developing linkages in production and consumption of agricultural products comes into effect.

A hi-tech agricultural production model in Hoa Ninh Commune, Hoa Vang District

Under the new decree, enterprises which are in charge of being leaders of linkages will receive a subsidy as 100% of costs of hiring consultants for establishing a linkage, but not exceeding 300 million VND.

In addition, a linkage project will get a subsidy as 30% of total investment in machinery, equipment, and infrastructure construction for serving the linkage, including workshops and warehouses which serve the production, preparation, storage, processing and consumption of agricultural products. The total subsidy will not exceed 10 billion VND.

Also, participants in a linkage will get more subsidies from State budget for establishing agricultural extension model, as well as for providing vocational and technical training programmes, and training courses on enhancing the management skills, production techniques, and the capacity for contract management and market development.

They will receive subsidies on breeds, materials, packaging and labeling of agricultural products for not more than 3 crops or 3 production cycles through concentrated services of a cooperative.

Moreover, the State budget will give a subsidy of a maximum of 40% of cost of the transfer and application of advanced technologies, technical process and quality management synchronously.

According to a spokesperson for the municipal Department of Agriculture and Rural development, the newly-issued decree will help local businesses to partly reduce the business costs, and increase investment into hi-tech agricultural sector.

As of June, Da Nang had a total of 1,048 enterprises involving agricultural aspect, with a total registered charter capital of 25,500 billion VND.

The city has made a plan for developing 7 closed hi-tech agricultural production areas which specialise in growing vegetables, flowers, mushrooms and medicinal plants, and breeding. One of them will be set up on an area of 140ha in Trung Nghia Village, Hoa Ninh Commune, Hoa Vang District.