The decision is aimed to develop special zones in a bid to meet the demand for raw materials of the rattan and bamboo processing industry and other industries, helping increase the coverage and protective capacity of forests, preventing land erosion in upstream areas and riversides. It also aims to boost the development of rattan and bamboo production, gradually raising economic values and efficiency of production and trading businesses, contributing to the country’s socio-economic development.

 

In addition, the decision aims to preserve and develop traditional industries and rattan and bamboo production villages and to promote values in terms of economics, culture, ecology and environment of traditional handicraft villages. Moreover, it tends to boost market formation of rattan and bamboo products so as to serve domestic consumption and export, creating jobs, raising incomes of rural people and helping improve the rural economic structure.

 

Under the new decision, businesses, organisations and individuals are granted numerous incentives for investing in the rattan and bamboo processing sector.

 

In terms of land use, businesses may consider a list of agricultural fields which are given special investment incentives promulgated along with the governmental Decree 61/2010/ND-CP on encouraging businesses to invest in agriculture and rural areas. Meanwhile, the state will hand over and rent land out to organisations, individuals and households to grow rattans and bamboos.

 

Moreover, businesses, organisations and individuals will receive financial supporting packages such as 100 per cent of cash used to buy seedlings for the first time, or soft loans regulated in the governmental Decree 41/2010/ND-CP on the credit policy to promote agricultural and rural development. Other incentives are those in science and technology, labour and training, exploiting rattan and bamboo materials, taxes and consumption markets. 

 

The development of natural rattan and bamboo growing zones is encouraged in forests managed by the state organisations such as forestry companies and protective forest management boards, forests which are being managed by commune-level people’s committees and have not yet leased out, and forests that have been handed over by the state to households, individuals and public communities for long-term forestry development purposes.

 

Meanwhile, rattan and bamboo production businesses are encouraged at industrial parks and clusters in cities and provinces in order to have an uninterrupted production process from the stage of preliminary treatment of materials to stages of processing and export. The establishment of industrial clusters producing high economic value finished products are prioritised in cities and provinces which have integrated raw material zones and tradition of producing rattan and bamboo products.

 

The Vietnamese government aims to restore, preserve and develop traditional trade villages, promoting social, economic and cultural values towards clean and environmentally-friendly production. It also supports to develop new trade villages in areas which have favourable conditions in materials, labour and market.