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Comprehensive Support for the Development of Craft Villages

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At its 28th session, the Hanoi People’s Council adopted a resolution introducing a set of policies to support the preservation and development of craft villages and rural trades across the city. The resolution will take effect on January 1, 2026, implementing the Capital Law 2025 provisions on safeguarding and advancing craft villages and rural industries...

At its 28th session, the Hanoi People’s Council adopted a resolution introducing a set of policies to support the preservation and development of craft villages and rural trades across the city. The resolution will take effect on January 1, 2026, implementing the Capital Law 2025 provisions on safeguarding and advancing craft villages and rural industries.

The resolution applies to enterprises, cooperatives, cooperative groups, and households engaged in the production, business, and services of rural trades in accordance with the law within Hanoi, as well as organizations and individuals involved in the management of rural industries in the city.

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The resolution stipulates incentive policies for artisans in handicrafts who have been conferred the titles of People’s Artisan and Meritorious Artisan by the President, as well as Hanoi Artisan titles awarded by the city.

A one-time allowance is provided at VND 40 million per People’s Artisan, VND 30 million per Meritorious Artisan, and VND 20 million per Hanoi Artisan. People’s Artisans who provide training are entitled to an allowance of VND 500,000 per person per session, while Meritorious Artisans and Hanoi Artisans receive VND 300,000 per person per session.

The city will cover 100% of travel, accommodation, and subsistence costs for organizations and individuals participating in field missions to connect raw-material supply regions. In addition, 50% of the cost for purchasing new machinery, equipment, or production lines will be supported for rural trade establishments, capped at VND 500 million per facility.

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Regarding the relocation of production facilities located within residential areas or belonging to trades not encouraged for development in rural craft villages, the resolution provides support for dismantling and transportation costs at VND 50,000 per square meter of workshop area, up to a maximum of VND 500 million per facility.

Relocated facilities will also be exempt from land and water-surface rental fees for 10 years, followed by a 50% reduction for the remaining period. They will be eligible for a 5% corporate income tax rate, including a four-year tax exemption and a 50% tax reduction for the subsequent nine years.

Vu Huong