Issued by the Prime Minister, the decision targets to carry out stimulus packages for agriculture and rural areas, which were launched in 2009, though narrowing beneficiaries and lowering subsidies.
Accordingly, only rural residents living in communes, not wards or towns, will be given preferential credits to purchase building materials for constructing their houses.
The State will continue to give interest rate subsidies to made-in-Vietnam products, including agro-machines, under five-ton trucks; computers; fertilizers, pesticides and building materials.
However, the subsidies, imposed on agricultural input and building materials, are halved from 4 percent to 2 percent per year. The rest commodities enjoy 100 percent interest rate subsidy.
The stimulus packages on agriculture and rural areas have helped numerous domestic peasants and enterprises to overcome difficulties, restore production and improve living standards.
As of late September 2009, after the policy came into force for five months, over VND34 trillion was disbursed.
The Government is figuring out ways to streamline administrative procedures for more small and medium enterprises and peasants to access to preferential credits with a view to developing rural areas.
Source: Government website