Vietnam agri news update – August 2024

New circular amending regulations concerning the quarantine of terrestrial animals and their products

This Circular amends and supplements existing Circulars concerning the quarantine of terrestrial animals and their products, and it enters into force on May 16, 2024.

Key amendments encompass testing for Salmonella spp. and E. coli O157:H7 in animal products, additional tests for Highly Pathogenic Avian Influenza (HPAI) and Newcastle disease virus in bird and poultry products, a new process for testing and sampling during quarantine inspection of animal product shipments, elimination of quarantine and quality inspection provisions for animal feed and aqua feed of animal origin before customs clearance, and updated provisions on ruminant DNA testing and inspection of animal-derived meal for feed production to mitigate Bovine Spongiform Encephalopathy (BSE) risk.

From Tax Exemption to 5% Taxation

The transition from VAT-exempt to VAT-applicable goods for fertilizer products, if approved by the National Assembly, raises significant concerns for the government, businesses, and farmers.

In the event "Value-Added Tax on Fertilizers: From Tax Exemption to 5% Taxation" held on July 16 in Hanoi city. All delegates at the seminar agreed on the transition from VAT-exempt to VAT-applicable goods for fertilizer products. While a 0% VAT rate is considered highly ideal, a 5% VAT rate is deemed the most feasible option when considering the comprehensive interests of the government, the business community, and farmers.

The government recently issued Decree No. 72/2024/ND-CP dated June 30, 2024, which stipulates the policy for reducing value-added tax in accordance with Resolution No. 142/2024/QH15 issued by the National Assembly on June 29, 2024.

The Decree specified a reduction in VAT rate for goods and services currently subject to a 10% tax rate, with exceptions for the following categories:

Telecommunications, financial services, banking, securities, insurance, real estate business, metals and fabricated metal products, mineral products (excluding coal mining), coke, refined petroleum products, and chemical products, as detailed in Appendix I of the Decree.

Reference: 5% value-added tax on fertilizers deemed the most feasible option (nongnghiep.vn)

Vietnam to establish a comprehensive fishing port system by 2050

Deputy Prime Minister Tran Luu Quang recently approved a national plan for the fishing port and vessel shelter system from 2021 to 2030, with a vision towards 2050.

Government Decision No. 582/QD-TTg dated July 3, 2024, which approved the Plan for the Fishing Port and Vessel Shelter System from 2021 to 2030, with a vision towards 2050, states: Fishing ports and vessel shelters are critical components of the fisheries and socio-economic infrastructures. They have been identified as one of three strategic breakthrough fields of investment needed to effectively support fisheries exploitation activities, promote socio-economic growth, and protect social welfare, thereby improving the living standards of the local communities.

Reference: Vietnam to establish a comprehensive fishing port system by 2050 (nongnghiep.vn)

Vietnam urgently needs legal framework to enhance genetic resource conservation and development.

The Ministry of Science and Technology emphasised that Việt Nam urgently needs to establish a legal framework to sustain and enhance the conservation and development of genetic resources. This message was delivered at a workshop on evaluating the results of the genetic resource conservation and sustainable usage for the 2015-2024 period and outlining directions for the 2025-2030 period, on Monday in Hà Nội. In his opening remarks, Minister of Science and Technology Huỳnh Thành Đạt stated that through conservation and sustainable use tasks, a total of 80,911 genetic resources have been collected and preserved. This includes over 47,770 agricultural plant species, 5,760 forestry plant species, 7,030 medicinal plant species, 890 animal species, 390 aquatic species and 19,050 microbial species.

Reference: Việt Nam urgently needs legal framework to enhance genetic resource conservation and development (vietnamnews.vn)