Driving force for agricultural and rural development from Capital Law 2024

According to the Capital Law 2024, the People’s Council of Ha Noi has the authority to stipulate special measures for the use of agricultural land; apply investment incentives related to land and water surface rental fees and corporate income tax rates; and, notably, attract strategic investors into high-tech agriculture and the development of hi-tech zones. The Law also authorises the Ha Noi People’s Council to regulate the use and exploitation of agricultural land along riverbanks and islets in dyke-protected river areas for agriculture combined with tourism and educational experiences, in line with planning regulations.

Dr Cao Duc Phat, former Minister of Agriculture and Rural Development, stated that the special mechanisms and policies outlined in the Capital Law 2024 constitute a solid legal foundation and a new driving force for agriculture and rural areas in the coming period.

Ha Noi’s rural areas have distinctive characteristics and identities that require targeted investment to generate employment and livelihoods through agricultural production, traditional craft villages, tourism, and more. Moreover, rural areas serve as “cooling zones” that help ease the burden on urban centres.

Regarding connectivity in agriculture and rural development, Ha Noi must play a central role as a provider of seeds, skilled labour, and a consumption hub for agricultural products for the region and the nation. In improving quality and the urbanisation rate, the city should avoid forcefully converting rural areas into urban ones before conditions are appropriate. Instead, rural areas should be equipped with infrastructure that meets urban standards and criteria.

The Capital Law 2024 grants Ha Noi unique, controlled pilot mechanisms. These could enable the city to achieve breakthroughs in both agricultural and rural development, as well as in urban development.

Associate Professor Dr Chu Tien Quang, former Head of Rural Development Policy at the Central Institute for Economic Management, suggested that Ha Noi promptly plan concentrated agricultural production zones suited to natural and ecological conditions and aligned with market demand. Such planning not only shapes the future of Ha Noi’s agriculture and rural areas, but also stimulates investment from organisations and individuals in capital, technology, and human resources for the sector in the coming years.

Article 28 of the Capital Law 2024 stipulates measures to support the relocation of production facilities from residential areas, and those operating in industries and trades are not encouraged in rural craft villages. This is a key provision to address longstanding rural shortcomings in land management, environmental issues, waste collection, and access to clean water.

Under the new law, Ha Noi is responsible for developing and issuing mechanisms and policies to support production facilities in researching and applying pollution treatment technologies in craft villages; encouraging the adoption of cleaner production using environmentally friendly technologies; and relocating seriously polluting production facilities out of residential areas in the countryside.

The Capital Law 2024 also provides a foundation for the city to ensure harmony between the urbanisation process and resource investment in agriculture and rural areas, addressing identified shortcomings such as low and unstable agricultural productivity, limited application of high-tech agriculture, and structural shifts within the sector not keeping pace with requirements.

To ensure the effective implementation of the Capital Law 2024, Ha Noi must soon issue specific policies not only to resolve long-standing issues but also to drive emerging trends in agricultural and rural development.