Page 67 - Regional_rice_report_with_full_bookmarks

PROJECT “NETWORK FOR AGRICULTURE AND RURAL DEVELOPMENT
THINK-TAKS FOR COUNTRIES IN MEKONG-SUB REGION” (NARDT)

River Delta region cannot have more than 22 ha of rice land (excluding rented land).
Regarding the land allocation term, households and individuals directly engaged in
agricultural production are granted the agricultural land use for 50 years (previously
20 years) and can extend when necessary.

Invest in the production infrastructure development: In order to encourage the
promotion of agricultural production, the Government issued policies on increasing
investment in infrastructure development. In particular, the Government focused
on building and upgrading the irrigation system. At the same time, the Government
also prioritized investment capital from the state budget as well as attracted social
resources to invest to build and upgrade water reservoirs, multi-purpose irrigation
works (not only serving for paddy rice but also for other crops, aquaculture, water
for domestic use, etc.). By 2019, the total irrigation capacity of the irrigation system
reached 4.278 million ha of arable land, ensuring irrigation of 7,245 million ha of paddy
rice (accounted for 95% of the paddy rice area).
Invest in the warehouse system to store and preserve rice: To improve the
quality and competitiveness of rice products, ensure the reserve capacity for
export, the Government planned a system to reserve 4 million tons of paddy rice in
the Mekong River Delta region17; Also, encourage all economic sectors to invest in
building a modern rice storage system. Hence, the total volume of paddy and rice
storage reached 7.3 million tons; The warehouse system was distributed mainly in the
provinces and cities of the Red River Delta region18. The investment in building a rice
storage system with advanced and modern technology contributed to stabilizing rice
prices and reducing the post-harvest loss rate of rice from 13% in the past to about
10% at present (Tran Xuan Dinh, 2020).

Support for rice producers: Besides infrastructure investment policies, the State
also implemented input support policies for producers. In order to support localities
to protect and develop rice land, the Government directly supported 1,000,000 VND/
ha/year for specialized rice land; 500,000 VND/ha/year for other rice cultivation land;
500,000-1,000,000 VND/ha/year for reclamation and improvement of rice land.

The Government provided free irrigation fees (since 2008)19, exempted
and reduced agricultural land use tax20, supported agricultural insurance21, and
supported credit for agricultural development22. Besides, producers were also

17 Decision No. 3242/QD-BNN-CB dated December 2, 2010
18 More than 50 locations in 13 provinces and cities; in which, the warehouse system in Can Tho, Long An, Tien Giang,
An Giang, Dong Thap, Kien Giang accounted for 70% of the capacity; the remaining 30% was the warehouse system
in Ben Tre, Vinh Long, Tra Vinh, Hau Giang, Soc Trang, Bac Lieu, Ca Mau and Ho Chi Minh City. In the Mekong Delta
regions, there were approximately 560 industrial-scale rice milling establishments. In which, establishments with a
capacity of less than 10,000 tons of paddy/year accounted for 38.5%; establishments with a capacity of more than
10,000 tons of paddy/year accounted for 61.5% (establishments with a large capacity of more than 100,000 tons
of paddy/year accounted for 3%), total milling capacity of 13 million tons of products/year. The total capacity of
the rice storage system in the Mekong Delta region was 6.7 million tons. However, most of the warehouses are used
to store rice, meanwhile, the warehouses are used to store paddy rice accounted for a low proportion (nearly 1.5
million tons).
19 Decree No. 67/2012/ND-CP, amending and supplementing several articles of Decree No. 143/2003/ND-CP
20 Decree No. 55/2010/QH12
21 Decree No. 58/2018/ND-CP dated April 18, 2018, and Decision No. 22/2019/QD-TTg dated June 26, 2019
22 Decree No. 41/2010/ND-CP → Decree No. 55/2015/ND-CP →Decree No. 116/2018/ND-CP→Decree
No. 17/VBHN-NHNN on credit policies to support agricultural and rural development
Nghị định 41/2010/NĐ-CP →NĐ 55/2015/NĐ-CP→NĐ 116/2018/NĐ-CP→ 17/VBHN-NHNN on credit policies for
agricultural and rural development

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