The objective of the decree is to promote rural development in specific economic sectors.

The Decree applies to both (1) domestic   and   foreign   organisations   and   individuals directly   investing   in   the development of production, business and services in rural trades, comprising   small   and   medium-sized   enterprises, cooperatives, cooperative groups and family households conducting business in accordance with law, and (2) traditional trades, craft villages and traditional craft villages.

The seven rural sectors consist of agricultural-aquatic-forestry processing and production, handicraft production, raw material production serving for rural sectors, furniture, rattan, ceramics, glass, textiles, yarns, embroidery, knitting, small mechanics, production and trading of pet animals; salt production; and services for production and rural living.

The Decree focuses on the management and development of rural investment, as follows:

i) Development of production premises shall be granted favourable conditions, with faster approval to those that meet strict environmental standards,

ii) Business and production projects which are effective shall be entitled to investment incentives and prioritized loans,

iii) Trade promotion activities will be encouraged, facilitated   and   supported   by the State for rural   trade   establishments   as part of the National Trade Promotion Program,

iv) the application of   the   results   of   scientific   and technological research, production of new products using technology, provision of science and technology services, or receipt of the latest scientific and technological developments from domestic or foreign entities, shall entitle projects and investments to incentives,

v)  Any investment project for a vocational training establishment in a rural area shall be assistance via the policies on vocational training. Assistance from the State budget for expenses such as education, training and vocational training; and from the National Target Program to build new rural areas, may be provided.

vi) Projects for the development of rural trades may be funded by the central budget for up to 50% of approved expenses to a maximum of 50 million Dong per project.

Expenses / costs items can include the purchase of raw materials, machinery, equipment and production lines; hiring of technical staff to direct the project; training for project participants and project reviewers; and project management.

The Decree provides a lengthy list of industrial sectors that shall be prioritised, listed above and in more detail here:

• the processing of agricultural, forestry and fisheries products   associated   with   advanced   technology   and   synchronized   equipment   in   harvesting,
• preserving, processing   and   sales/consumption   in   order   to   raise   product   value   and   meet   market demand,
• preservation   and   development   of   craft   villages, projects for the development of artistic handicraft products
• the production and supply of raw materials to serve the development of rural trades,
• the   manufacture   of   equipment   and   machinery   to   serve   agricultural   and   rural production,
• projects   on   production   and   processing   of   clean   salt;  
• projects   on   the   development   of animals   as   pets,
• the development of craft   villages   associated   with   the   development   of   eco-tourism, and
• the production of products from agricultural waste and by-products.

This Decree is of full force and effect as from 1 June 2018 and replaces Decree 66/2006/ND-CP of the Government dated 7 July 2006 on development of rural trades.