Government incentives to support Central Highlands
Government incentives to support Central Highlands
The Government will spend at least VND1.5 trillion (US$71.43 million) from the State budget annually to support investments in the Central Highlands, where investors are to receive special incentives, according to a draft decision of Prime Minister Nguyen Tan Dung.
The Ministry of Planning and Investment consulted authorities and experts about the draft, which works out preferential policies for the region's socio-economic development until 2020, at a seminar in Ha Noi last Friday.
The document says building hydropower plants with capacities lower than 30MW to directly serve the needs of people living in remote areas in the Central Highlands region is encouraged.
Other areas of stimulus include producing and processing products from vegetables, fruits, eggs, milk and artificial forest wood; afforestation; eco-tourism development; and developing breeding farms that are linked with processing facilities and consumption markets.
Preferential policies will be applied for organisations, enterprises, communities, cooperatives, households and individuals that meet authorities' requirements and environmental standards when investing or doing business in Dak Lak, Dak Nong, Kon Tum, Gia Lai and Lam Dong provinces.
Power developers will receive subsidies amounting to half of bank loan interest for 6 per cent of the borrowing sums within the first seven years of borrowing contracts. This assistance will run through 2020.
For every hectare of forest, growers and managers will be granted money amounts equalling 30 per cent of the minimum wages every year.
Those allocated with forest for production will enjoy all products on the assigned areas and will be subsidised for all seedling costs amounting up to VND15 million ($714) per hectare.
An official from the Ministry of Industry and Trade said it was necessary to increase support levels for loans as well as the terms of loans to make the programmes attractive enough for households to take part in.
Deputy Minister of Planning and Investment Nguyen The Phuong said the policies were built based on the specific potential of the Central Highlands and it was important to ensure policy feasibility. He predicted significant difficulties for the State budget situation next year.
At Friday's meeting, most provincial representatives said that proper policies should be studied for the development of material plants for processing industries such as paper, coffee, rubber and cashew nuts. They suggested that hi-tech production zones should be expanded.
An official from Dak Nong proposed that the Government should cover all infrastructure investments in industrial zones and clusters to better lure investors to the region.
Representatives from Binh Dinh and Khanh Hoa provinces said that preferential policies should also be given to central coastal localities as they are closely connected with the Central Highlands.
The Viet Nam Trade Promotion Agency (Vietrade) said early this year that fostering co-operation programmes for the Viet Nam – Laos – Cambodia triangle was important for the Central Highlands' economic development in the coming years.
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