Increase investment in high-quality, low-emission rice production

The Government has just issued Decree No. 112/2024/ND-CP dated September 11, 2024 detailing regulations on rice-growing land. It clearly states policies to support rice production; investment, support investment in building infrastructure for high-quality rice growing planning areas, rice production projects to reduce greenhouse gas emissions, etc.

Summer-autumn rice harvest in Can Tho city. (Photo: THANH TAM)

Accordingly, land specializing in rice cultivation is supported with 1.5 million VND/ha/year, and in areas planned for high-yield and high-quality rice cultivation, an additional 1.5 million VND/ha/year is supported. The state budget also supports up to 100% of the cost when enterprises invest in the construction of irrigation and traffic works in areas planned for high-yield and high-quality rice cultivation.

For projects applying certified greenhouse gas emission reduction rice production processes; projects applying circular economic models; certified organic production projects; projects linking rice production according to value chains with an area of 500 hectares or more; projects processing food and food products; projects producing biological products, processing raw materials and high-tech products from rice, rice and rice and rice by-products that meet the legal regulations on high technology with a total investment of 30 billion VND or more, the state budget will also support up to 40% but not more than 15 billion VND/project for purchasing production lines, equipment, technology, and technology copyright.

These regulations can be considered a “breath of fresh air” for the development of the rice industry. Because in addition to increasing the level of support for rice production, investment in construction projects, etc., Decree No. 112 has included many regulations to support investment in high-quality, circular, organic, low-emission rice growing areas. This is the basis, the “springboard” that contributes significantly to restructuring the rice industry towards increasing added value. In fact, in recent years, the rice industry has made a strong shift from quantity to quality through promoting rice production and exporting high-quality rice.

Vietnam's rice export turnover has been increasing steadily every year, with the selling price reaching the highest level in the world at many times. It is forecasted that the rice export turnover for the whole year of 2024 will likely reach a record number of more than 5 billion USD. On the other hand, in the context that the agricultural sector is focusing on implementing the Project on sustainable development of 1 million hectares of high-quality and low-emission rice cultivation associated with green growth in the Mekong Delta by 2030, the new investment support policies under Decree No. 112 will be a timely and effective support for businesses investing in this field.

To enjoy support policies, the decree also stipulates that the rice growing area with reduced emissions and circulation must have a scale of 500 hectares or more; the processing project must have a total investment of 30 billion VND or more... This will encourage the formation of large-scale rice production areas, modern processing facilities, facilitating the application of science and technology, while also creating a large volume of products with uniform quality to serve export, increasing the added value of rice and deeply processed products from Vietnamese rice in the world market.

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