Chương I Nghị định 118/2014/NĐ-CP: Quy định chung

Chapter I

GENERAL PROVISIONS

Article 1. Scope and regulated entities

1. Scope

This Decree stipulates the restructuring in organization, management mechanism and policies for agriculture and forestry companies.

2. Regulated entities

a) One-member limited liability companies specialized in agriculture and forestry which are wholly state-owned companies (hereinafter referred to as agriculture and forestry companies) that have been transformed as prescribed in Decree 170/2004/NĐ-CP dated September 22, 2004 by Government on the restructuring and the development of State-owned plantations; Decree 200/2004/NĐ-CP dated December 03, 2004 by Government on the restructuring and the development of State-owned forestry plantations; Decree 25/2010/NĐ-CP dated March 19, 2010 by Government on transforming State-owned companies into one-member limited liability companies and the management organization of State-owned one-member limited liability companies .

b) Organizations and individuals involved in the restructuring, the development and the improvement of agriculture and forestry companies.

Article 2. Interpretation of terms

In this Decree, these terms below shall be construed as follows:

1. Empty land allocation is an act that a agriculture company or a forestry company allocating land to households or individuals without investment or implementation of the signed contracts as prescribed in laws on land allocation, and the land recipients have to make investment, organize the production, sell the products themselves, and have to submit products or money to such companies.

2. Sustainable forest management is the process of keeping the forest under control in order to meet the target, ensure the continuity of manufacturing without reducing the future value and productivity, to avoid bad effects on the environment and society.

3. International forest certificate is a confirmation in paper confirmed that the forest management company has met the sustainable forest management standards regulated by international forest certification organization or by authorized organizations.

Ariticle 3. Rules for the restructuring, development and improvement of agriculture and forestry companies

1. The restructuring of agriculture and forestry companies must be in accordance with the policy and the orientation on developing and improving state-owned enterprises cooperated with the restructuring of the agriculture sector and the whole economy as well as associated with assurance of national defense and security.

2. The restructuring of agriculture and forestry companies is for identifying the land users and forest owners so as to closely control and increase the effectiveness of land usage, protect and develop forest resources.

3. Agriculture and forestry companies whose duties are producing and trading shall switch over to operating under market mechanism and be equitized; agriculture and forestry companies doing public duties as main function shall switch over to operating according to the orders and targets given by the State.

4. A basic evolution in management and business administration shall be created associated with processing and market according to the product value chain.

5. Employments for local residents shall be increased to ensure the balance among the benefits of the State, companies and employees.