6 INCENTIVES POLICIES ON EXPERIMENT OF CIRCULAR ECONOMY DEVELOPMENT

6 POLICIES ON EXPERIMENT OF CIRCULAR ECONOMY DEVELOPMENT

In the process towards building a green, sustainable economy, Vietnam is drafting an experiment mechanism to develop a circular economy, hoping to accelerate the transition process from the traditional linear economy in order to solving significant challenges in resource supply, environmental pollution and climate change. Then what are the expected policies to implement this testing mechanism? Let’s find out with Lincon in the article below.

1.         What is the experiment mechanism for circular economy development?

Circular economy is a model of organizing modern economic activities with a closed and continuous nature of many production units linked together on the principle of “everything is an input for other products”, taking full advantage of each other. Effective use of connection services (finance, logistics, information and communication technology).

The draft identifies 4 testing areas including:

–           Agriculture, forestry and fisheries;

–           Industry;

–           Recycled energy;

–           Building materials.

2.         Vietnam’s policies in implementing the circular economy development experimental mechanism

The circular economy development exepriment mechanism is expected to be implemented through conversion, establishment, expansion, and new development of complex projects, industrial clusters, industrial parks, economic zones, export processing zones, agricultural, forestry, aquaculture and seafood production and processing zones focus on applying an integrated circular economy model.

Expected policies through incentives, development support, model transformation support and state management for projects applying circular economy models, include:

a.         Policies on industrial parks and economic zones

–           Allow implementation in industrial parks and economic zones and enjoy corresponding incentives for circular economy projects participating in the experiment mechanism with industrial – energy and service components with a total proportion of at least 50% % of total authorized revenue.

–           Support for exit, entry, and residence for foreigners, Vietnamese residing abroad investing, working in projects, and family members.

b.         Green classification

Circular economy projects participating in the experiment mechanism are classified as green based on the chain of activities, operating principles and total amount of greenhouse gas emission reduction. Including:

–           Fully circular economy project;

–           Partial (partial) circular economy project.

c.         Policies on technology consulting and technology transfer for circular economy projects

–           The project is supported by technology introduction consulting and 50% of the cost of technology consultants.

–           Projects receiving technology transfer are exempted from import tax by the state, transfer of technological equipment serving the project participates in the testing mechanism, and prioritizes customs clearance of goods.

–           Enterprises that rent or purchase digital transformation solutions to implement projects will receive a maximum support of 50% of the cost.

>> EXPERIMENTAL MECHANISM OF CIRCULAR ECONOMY DEVELOPMENT, SUBJECTS AND FIELDS TO PARTICIPATE https://linconlaw.vn/experimental-mechanism-of-circular-economy-development-subjects-and-fields-to-participate/

>> DO NON-RESIDENT INDIVIDUAL HAVE TO PAY PERSONAL INCOME TAX? https://linconlaw.vn/do-non-resident-individual-have-to-pay-personal-income-tax/

>> NEW REGULATIONS ON PERSONAL DATA PROTECTION, WHAT DO ENTERPRISES NEED TO DO? https://linconlaw.vn/new-regulations-on-personal-data-protection-what-do-enterprises-need-to-do/

6 INCENTIVES POLICIES ON EXPERIMENT OF CIRCULAR ECONOMY DEVELOPMENT

d.         Policies on green credit, green bonds

–           Green credit policy: Projects that participate and are issued Certificate of registration to participate in the testing mechanism can access, mobilize, borrow preferential capital, and borrow capital without government guarantee for green credit.

–           Green bond policy: Projects that participate and are issued  Certificate of registration to participate in the testing mechanism are allowed to cooperate with functional, qualified units, allowed to issue green bonds; linked with partners to build a green bond trading floor, voluntary carbon credits applying block chain technology, NFT, anti-counterfeit technology with RFID chips.

e.         Policies to support human resource development for circular economy projects

–           Organizations participating in the experiment mechanism are supported with 70% of the total cost for the business administration course.

–           Employees are supported with 50% of the costs (but not more than 03 months of base salary) for vocational training and career change costs in the project implementation area.

–           Support in connecting training and labor supply units.

f.          Policies on land for circular economy projects

Implementing organizations are allowed to:

–           Use land for mixed purposes, multi-purpose integration including roof, water surface, fence inside the project planning boundary.

–           Locally adjust construction planning and land use planning within the licensed boundaries and precepts.

–           Priority to use available premises and assist in cleaning premises.

–           To be allocated land or lease land without collecting land use fees for the land expected to implement the project that has had detailed planning approved and issued a Certificate to serve as collateral to guarantee the issuance of bank guarantees in the areas with particularly difficult economic conditions.

–           Priority to support the use of public investment capital in ground clearance to create a clean land fund in areas with particularly difficult economic conditions.

References:

𝐋𝐈𝐍𝐂𝐎𝐍 𝐋𝐀𝐖 𝐅𝐈𝐑𝐌 – 𝐒𝐮𝐬𝐭𝐚𝐢𝐧𝐚𝐛𝐥𝐞 𝐜𝐨𝐨𝐩𝐞𝐫𝐚𝐭𝐢𝐨𝐧

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