Article 1.- To continue implementing the Prime Minister's Decision No. 225/1999/QD-TTg of December 10, 1999, on the Program on plant varieties, livestock breeds and forest tree varieties, with some adjustments and supplements toward 2010, and the following principal contents:

I. Objectives:

1. To raise the percentage of plant varieties, livestock breeds and forest tree varieties created by technical advances which are used in production to over 70%, in service of export and substitution for imported farm produce, contributing to raising competitiveness, agricultural production efficiency and increasing incomes of farmers.

2. To raise the capability to select and create varieties and breeds, apply variety and breed production technologies in order to create many new varieties and breeds of good properties, high yield and quality; to select and create hybrid varieties and breeds at home to substitute imported ones; to revitalize local specialty varieties and breeds together with developing their brands and geographical indications.

3. To encourage organizations and individuals of all economic sectors to invest in research into, selection, creation and production of varieties and breeds in order to perfect the variety and breed production and supply system suitable to the market economy; to form a modernized industry for producing varieties and breeds.

II. Contents and projects of the program

1. The program on plant varieties, livestock breeds and forest tree varieties for the 2006-2010 period shall focus on the following activities:

a/ Investing in developing scientific and technological potentials in varieties and breeds, including: preservation and exploitation of gene sources; research into, selection and creation of varieties and breeds with the accelerated application of biotechnology; formulation of the process of propagating, processing and preserving varieties and breeds; raising of the quality of selected and created varieties and breeds;

b/ Perfecting and upgrading central and local variety-or breed-producing establishments toward modernity in service of achieving the objective of farm produce export, import substitution and raising of farm produce's competitiveness;

c/ Investing in production and processing of a number of main plant varieties and major livestock breeds by industrial methods;

d/ Investing in construction of synchronous infrastructure (communications, irrigation works, preservation and processing establishments) in some key variety and breed production areas;

e/ Producing original varieties and breeds, super-prototypal varieties and breeds and prototypal varieties and breeds, initial plants of strains, great grandparental breeds, grandparental breeds, and building nucleus stocks, variety nurseries and sapling forests;

f/ Importing gene sources and new varieties and breeds necessary for quick absorption of the world's scientific and technological achievements;

g/ Investing in enhancing the capacity to manage the quality of varieties and breeds, perfecting the legal framework on varieties and breeds to meet international integration requirements.

2. The program's projects

a/ Variety or breed projects invested by the Agriculture and Rural Development Ministry or concerned ministries and branches on research and production of agricultural plant varieties, main forest tree varieties or major livestock breeds on a national or regional scale;

b/ Variety or breed projects invested by localities on research and production of agricultural plant varieties, livestock breeds and forest tree varieties with local comparative advantages.

III. Solutions and policies

1. On investment

a/ The state budget (including non-business capital) shall be invested in:

- Scientific research into varieties and breeds, with priority given to researches into variety or breed selection, creation and processing;

- Preservation of gene sources: Investment in planning and building of material foundations; in collection, initial culture and preservation of plant and animal gene sources; conservation of initial varieties of plant strains, forest tree variety nurseries and sapling forests;

- Import of gene sources and new varieties and breeds of high yield and quality which are not available or insufficient in the country;

- Import by state non-business units of new and advanced technologies for variety or breed production or purchase of copyright and hiring of foreign experts;

- Perfection of technologies and building of a number of demonstration models for variety or breed production technologies;

- Material foundations of non-business units;

- Enhancement of management of variety and breed quality.

b/ The state budget (including non-business capital) shall be allocated in support of:

- Building of infrastructure in concentrated variety or breed production areas where high technologies for variety or breed development are applied, with support capital not exceeding half of total capital;

- Production of original varieties or breeds in case of necessity;

- Payment of part or the whole of interests on bank loans for investment in machinery and equipment for the mechanization and industrialization of variety and breed production and processing.

2. On credit

a/ Organizations and individuals that invest in production of original varieties and breeds: super-prototypal varieties and breeds, prototypal varieties and breeds, parental varieties and breeds (for hybrid varieties and breeds), initial plants of strains, great grandparental breeds, grandparental breeds, nucleus stock, breeding stock, forest tree variety nurseries, sapling forests, new varieties created by high technologies, shall be entitled to borrow the State's development investment credit capital according to current regulations;

b/ The national and local assistance funds for scientific and technological development shall finance experimental projects on variety or breed production and processing, with priority given to the application by various economic sectors of scientific and technological advances in varieties and breeds;

c/ State-owned commercial banks shall create favorable conditions for organizations and individuals to borrow capital for investment in variety and breed production and processing.

3. On land

a/ Organizations and individuals that need to use land in researches, experiments or tests of agricultural plant varieties, livestock breeds or forest tree varieties shall be assigned land without collection of land use levy according to the provisions of the land law;

b/ Organizations and individuals that are assigned land with collection of land use levy or leased land for production of agricultural plant varieties, livestock breeds or forest tree varieties shall enjoy the most preferential land use levy and land rent rates.

4. On taxes

Organizations and individuals that invest in the production of agricultural plant varieties, livestock breeds or forest tree varieties shall enjoy the highest tax incentives.

IV. Support investment mechanisms:

1. The state budget, comprising central and local budgets, shall make targeted investments in the variety and breed program in the 2006-2010 period, incorporated in annual budget estimates (including capital construction and non-business funds).

a/ The central budget shall make investments in variety and breed projects of the Agriculture and Rural Development Ministry or concerned ministries and branches;

b/ Local budgets shall make investments in locally-managed projects.

2. Organizations and individuals that invest in development of cultivated plant varieties, livestock breeds or forest tree varieties must formulate projects and have them approved by competent authorities according to current regulations on investment and construction management and management of economic non-business capital invested by the State or invested with the State's supports according to the provisions of this Decision.

Article 2.- Organization of implementation

1. The Agriculture and Rural Development Ministry shall have to direct the implementation of the variety and breed program nationwide; approve variety and breed projects and scientific research subjects on varieties and breeds under its management or the units under relevant ministries and branches (under the bidding or order placement mechanism); and plan key breeding areas.

2. Provincial/municipal People's Committees shall have to direct the implementation of variety and breed programs within their respective localities; and approve variety and breed projects of their localities.

3. The Finance Ministry and the Planning and Investment Ministry shall base themselves on projects approved by competent authorities to allocate funds for variety and breed projects under the Agriculture and Rural Development Ministry and other ministries and branches; make targeted budget allocations for localities implementing the variety and breed program in the 2006-2010 period according to the provisions of the Budget Law.

Article 3.- This Decision takes effect 15 days after its publication in "CONG BAO."

Article 4.- Ministers, heads of ministerial-level agencies, heads of Government-attached agencies and presidents of provincial/municipal People's Committees shall have to implement this Decision.