Quyết định 38/2016/QĐ-TTg bảo vệ phát triển rừng đầu tư hỗ trợ kết cấu hạ tầng công ty nông lâm nghiệp

DECISION

PROMULGATING CERTAIN POLICIES ON FOREST PROTECTION AND DEVELOPMENT OF AND INVESTMENT IN INFRASTRUCTURE, ASSIGNMENT OF PUBLIC DUTIES TO AGRO-FORESTRY COMPANIES

Pursuant to the Law on Government organization dated June 19, 2015;

Pursuant to the Law on Protection and Development of Forests dated December 23, 2004;

Pursuant to Government's Decree No. 23/2006/ND-CP dated March 3, 2006 on implementation of the Law on Forest Protection and Development;

Pursuant to the Government's Decree No. 118/2014/ND-CP dated December 17, 2014 on restructuring, development and improvement of agro-forestry companies;

At the request of the Minister of Planning and Investment;

The Prime Minister promulgates a Decision promulgating certain policies on forest protection and development and investment in infrastructure, assignment of public duties to agro-forestry companies.

Chapter I

GENERAL PROVISIONS

Article 1. Guiding viewpoints on development of forests

1. The State encourages organizations, households and individuals of all economic sectors investing in planting forests and processing forest products in accordance with the law on forest protection and development.

2. Production forests are multi-purpose forests; planting of production forests aims at increasing incomes of foresters and contributing to environmental and ecological protection.

3. Organizations, households, individuals and village communities (hereinafter referred to as communities) may invest in and enjoy benefits directly from afforestation, exploitation and processing of timbers and forest products; the State shall provide partial support in terms of initial expenses to encourage forest development, concurrently pay for part of the environmental value brought about by planted forests, and compensate for the low profit caused by the silviculture particularities.

4. Development of production forests must be attached with processing and consumption of forest products so as to keep silviculture stable and ensure its sustainable development.

5. Priority shall be given to support various economic sectors to invest in planting production forests in severely disadvantaged communes so as to create a momentum for forestry development in these communes. Special priority shall be given to support investment in planting of production forests in Northwestern region, the Central Highlands and mountainous districts of the central provinces.

Article 2. Scope and regulated entities

1. Scope: This decision sets forth certain mechanisms and policies on forest protection and development of sustainable forestry.

2. Regulated entities: Domestic organizations, households and individuals and village communities operating under Vietnamese law that protect and develop forests, exploit and process forest products and entities prescribed in Clause 2 Article 1 of Government's Decree No. 118/2014/ND-CP dated December 17, 2014 on restructuring, development and improvement of agro-forestry companies (hereinafter referred to as Decree No. 118/2014/ND-CP).

Article 3. Objectives of development of forests

1. Objectives by 2020: plant 900,000 ha of production forests, which means plant 180,000 ha a year on average. Plant 75,000 ha of protection forests, special-use forests, which means planting 15,000 ha of forests a year on average. Restore and reproduce 360,000 ha of forests.

2. Create jobs and increase incomes of mountainous inhabitants so as to stabilize their life.

3. Facilitate the formulation as well as long-term and stable development of silvicultural markets, including seed supply and technical service markets, forest product processing markets and consumption markets.

Article 4. Interpretation of terms

1. Investment support: means a form of partial support with investment capital from the state budget for organizations, households and individuals and communities as prescribed.

2. Post-investment support: means a form of support under which investors (organizations, households and individuals and communities) organize afforestation and processing of timbers by themselves under this Decision and get paid by the State in accordance with this Decision after their investment result are taken over after test (partially or wholly).

3. High-technology forestry zone: means a zone in which forestry R&D projects are initiated; new products are manufactured; and production technology application of high-tech products serving forestry production, including: Forestry seedling by plant tissue culture; production of ancillary products (glues, coatings, mechanical accessories); manufacturing of equipment for timber processing and forestry product industry.

Chapter II

INVESTMENT SUPPORT FOR FOREST PROTECTION AND DEVELOPMENT

Article 5. Support for planting of production forests, planting of scattered trees and forestry extension

1. Organizations, households and individuals and communities that plant forests on bare land or hills planned for production forests are eligible for state budget capital support at the following specific levels:

a) VND 8 million/ha, for planting big timber trees (to be exploited after 10 years), multipurpose trees, indigenous trees; VND 5 million/ha, for planting small timber trees (to be exploited after 10 years).

b) VND 2 million/ha in addition to the support levels specified in Point a Clause 1 of this Article, for planting production forests in border communes, Son La, Lai Chau, Dien Bien provinces and provinces of the central highlands.

2. Organizations, households and individuals and communities planting assay forests (with new varieties, on new land) under a planning approved by a competent authority are eligible for capital support equivalent to 60% of the approved afforestation costs. Each model of assay foresting planting may get support for not more than 2 ha.

3. Forest extension support: VND 500,000/ha for 4 years (1 year for planting and 3 years for tending).

4. Lump-sum support for survey, design and conclusion of an afforestation contract: VND 300,000/ha.

5. Lump-sum support for costs incurred in issuance of sustainable forestry certificate to enterprises, communities, (groups of) households: 70% of costs, up to VND 300,000/ha for at least 100 ha (of natural forests or planted forests).

6. Forms of support: Post-investment support and investment support.

7. Conditions for receiving support:

a) Forest owners being organizations, households, individuals and communities must have land planned for production forests, which is allocated or leased by a competent authority and granted a land use right certificate or has used the land stably for at least 3 years without any dispute. For state-owned enterprises and other organizations, the land for planting production forests must have been contracted to households, individuals or communities for stable and long-term use (at least a cycle).

b) Sources of seedlings for afforestation (seeds, fruit or seedlings) must originate from breeding establishments which have been accredited by a competent authority as to sources of seedlings as prescribed.

Article 6. Support for planting of protective forests, special-use forests, forest restoration and reproduction, forest protection contract

1. Investment in planting of protection forests and special-use forests: Planned capital from central state budget is VND 30 million/ha; specific levels shall be determined according to the eco-technical norms and the projects approved by the competent authority, the People’s Committee of province and authorities making central investment decisions with extra fund for budget deficit based on the approved estimate. Regarding organizations (non-state ones), households and individuals planting protection forests: The deficit (compared to the support of VND 30 million/ha) according to technical estimate shall be financed by themselves.

2. Support for planting bamboos and canals to protect river and stream banks and landslide-prone works. Support level: VND 100,000/clump (at least 3 trees/clump; 1 year for planting and 3 years for tending).

3. Forest protection contract: Average: VND 300,000/ha/year. Specific levels shall be decided by the People’s Committee of province. In which support for costs incurred in paperwork of forest protection contract is VND 50,000/ha/5 years.

a) Regarding households and individuals of poor districts under Resolution No. 30a/2008/NQ-CP dated December 27, 2008 of the Government: comply with the Decision No. 2621/QD-TTg dated December 31, 2013 of the Prime Minister on amendments to certain production development support levels prescribed in Resolution No. 30a/2008/NQ-CP dated December 27, 2008 of the Government on support program for rapid and sustainable poverty reduction in poor districts.

b) Regarding households of ethnic minorities, households of poor King people and communities which are assigned forests in severely-disadvantaged communes (zone II, III) of ethnic and mountainous areas, comply with the Government’s Decree No. 75/2015/ND-CP dated September 9, 2015 on mechanism and policies on forest protection and development, associated with policies on rapid and sustainable poverty reduction and support of ethnic minorities for the period of 2015-2020.

c) Regarding contract for protection of coastal protection forests and special-use forests: comply with the Decision No. 120/QD-TTg dated January 22, 2015 of the Prime Minister on approval for scheme for coastal forest protection and development in response to climate change for the period of 2015-2020.

4. Natural forest restoration and reproduction: The State encourages development of protection forests, special-use forests using method of natural forest restoration and reproduction with specific levels below:

a) Without planting more trees: Support level: VND 3 million/ha/6 years, the specific level shall be decided by the People’s Committee of province.

b) Planting more trees: Support level: VND 1.6 million/ha/year for the first 3 years and VND 600 thousand/ha/year for 3 subsequent years.

Article 7. Support for development of high-tech forestry

1. The State supports investment in 3 high-tech forestry parks in Northern, Central and Southern regions.

2. Investment: The State invests synchronous infrastructure system, R&D facilities and equipment.

3. Enterprises investing in high-tech forestry parks shall be given incentives and supports as prescribed in Government's Decree No. 210/2013/ND-CP dated December 19, 2013.

Article 8. Rights and obligations of organizations, households and individuals and communities (hereinafter referred to as forest owners) in planting of production forests

1. Rights: To enjoy all products from planted forests, to freely circulate exploited products and be entitled to tax and land use level incentives in accordance with current law.

2. Forest owners may use up to 30% of the allocated or leased land area without forests to invest in leisure eco-tourism, combined agriculture and fishery, in which the land area reserved for infrastructure (traffic roads, permanent buildings, factories) accounts for up to 20%.

3. Obligations: When exploiting products from planted forests, a forest owner shall remit into the forest protection and development fund of commune and village a sum of money equivalent to 80kg of rice/ha/cycle of planted forest, each of which will receive 50% of the sum.

With regard to production forest area contracted by special-use forest or protection forest management unit or state enterprises (hereinafter referred to as assignor), the forest owner (hereinafter referred to as the assignee) shall pay only the above sum to the assignor. In addition, the forest owner is not required to pay any sum to the assignor.

Within 12 months after exploiting planted forests, forest owners must organize reforestation as prescribed.

If forest owners have received the States monetary support for afforestation but their forests fail to satisfy the state-prescribed criteria after 5 years, they must use their own capital for reforestation or refund to the state budget the monetary support amounts plus the commercial interests at the time of recovery of support money.

In case of forest loss due to force majeure circumstances such a natural calamities, fires or pests, forest planters need not refund the received monetary support amounts.

4. With regard to areas of special-use forest or protection forests planted with capital of Program 327 and stale budget capital sources under the project on planting of 5 million ha of forests, which are now planned for production forests, forest owners rights and obligations comply with Clauses 1, 2 and 3 of this Article.

Article 9. Rights and obligations of organizations, households and individuals and communities (hereinafter referred to as forest owners) in planting and protection of protection forests, natural forest restoration and reproduction

1. Rights: To enjoy support of state budget as prescribed in this Decision and all products from forests once obtaining the permission to exploit forests as prescribed by the State.

2. To use up to 30% of land area without forests to develop agricultural production, leisure and eco-tourism and construction of infrastructure for forestry.

3. Obligations: To plant and protect protection forests and natural forests as prescribed in current law on forest protection.

Article 10. Investment support for planting and management of breeding forests and nurseries

1. The State shall provide investment support for the building, management and protection of breeding forests and nurseries, of which the State (including state enterprises and organizations set up by the State) shall directly manage only those of national importance with an area not exceeding 30% of the area planned for breeding forests or nurseries; the remaining area shall be allocated, sold or contracted to other economic sectors for management and business in accordance with law.

2. Breeding forests and nurseries managed by economic sectors must be governed by plannings approved by competent authorities, are eligible for investment support for construction of initial material foundations under projects approved by competent authorities. The maximum levels of state budget support for bio-forestry tasks, infrastructure construction and equipment and facility procurement are as follows:

a) Up to VND 55 million/ha, for newly developed nurseries.

b) Up to VND 40 million/ha, for newly developed breeding forests.

c) Up to VND 15 million/ha, for regenerated breeding forests.

d) In addition to the above supports, a support of VND 300,000/ha/year shall be given to offset management expenses for breeding forests and nurseries for 5 years at most.

Article 11. Investment support for building of high-quality seedling centers

1. Conditions for a seedling center to enjoy support:

a) Being a tissue culture establishment which can produce 1 million seedlings/year.

b) Having at least 3 ha of land for building the center (including land for building houses, workshops and nurseries).

2. Conditions to enjoy investment support:

a) Provinces without tissue culture establishments may each receive investment support for building a seedling center based on the conditions set in Clause 1 of this Article.

b) It is a non-state enterprise or a state enterprise with an equitized breeding establishment of which the State holds not more than 50% of charter capital.

c) It is an enterprise which contributes at least 30% of the total investment to the project on the building of a seedling center.

3. Items eligible for investment support: Building of offices, workshops, roads or electricity transmission lines; procurement of equipment and facilities, and payment for technologies.

4. The maximum level of the state budget support is VND 5 billion for a seedling center.

5. Order of providing support: The total sum of support shall be granted twice after taking-over inspection, of which 70% shall be initially granted after the investor completes investment in items specified in Clause 3 of this Article, and the remainder shall be granted after the investor has produced and consumed seedlings up to the centers designed capacity and the set seedling quality.

Article 12. Investment support for nurseries 

1. Conditions for nurseries to enjoy support:

a) Being an establishment which nurture forest trees by the method of using cuttings, shoots, seeds or seedlings from tissue buds.

b) Having a land area of at least 0.5 ha for a nursery.

2. Planning of nurseries: A commune or group of communes that has 1,000 ha of land planned for production forests may have a nursery. Existing nurseries should be used and the new ones should be built only under projects on planting of raw-material forests or where they are really necessary.

3. Conditions to receive support

a) The nursery must be included in the provincial planning on production of forestry seedlings or a project on planting of raw-material forests.

b) The nursery owner must commit to use the allocated land for production of seedlings for afforestation for at least 10 years.

c) The nursery is under the use right of a non-state economic sector. If that sector has a portion of state capital (from state enterprises, protection forest or special-use forest management units), that portion may account for not more than 50% of the total investment.

4. Items eligible for investment support: construction of initial infrastructure, including: power and watering systems, fences, material gardens, ground leveling, building of solid grounds.

5. Support levels: VND 300 million on average for building a new nursery; newly built nurseries in border communes are eligible for support corresponding to approved capital levels of projects; for nurseries improved and upgraded to the standards prescribed in Clause 1 of this Article, the support level for each must not exceed VND 75 million.

6. Order of providing support: The total sum of support shall be granted twice after taking-over inspection. Initially, 70% of the support amount shall be granted after the investor completes investment in the items prescribed in Clause 4 of this Article. The remainder shall be granted one year after the building of the nursery.

Article 13. Support for investment in forestry roads

1. Boundaries for forest fire prevention and fight (firebreaks)

a) Support conditions: Firebreaks used concurrently as roads for transportation of seedlings and supplies within a project area are built with 15-20m for every ha under planning. In formulation of a project in support of investment in production forests, a planning on the system of firebreaks is required, which must involve participation of forest owners (including those contracted with forestland for afforestation) in the project area. Such additional plannings may be formulated in accordance with this Decision for projects on planting production forests which have not yet received support for building firebreaks.

b) The investment support level is VND 30 million/km, of which VND 25 million/km is for investment in construction of items of a firebreak while the remainder is used for its maintenance throughout the whole afforestation cycle.

c) Order of investment, taking-over inspection, payment and settlement: After the provincial-level Peoples Committee allocates budget of a plan year, a district-level project management unit may itself make technical designs and cost estimates for firebreaks according to criteria promulgated by the Ministry of Agriculture and Rural Development and submit them to the district Peoples Committee for approval. After the approval, the district-level project management unit shall itself organize the building of firebreaks. Upon the completion, the district-level Peoples Committee shall organize taking-over inspection of the firebreaks in order to have a basis for payment and settlement with the state treasury. The district-level project management unit shall manage and maintain all firebreaks throughout the afforestation cycle.

2. Forestry roads: Projects on planting consolidated raw-material forests of 500 ha or more, support level of 20m of road/ha shall be provided for forestry roads not exceeding VND 450 million/km for underground cables through streams which are hardened by concrete. The management of investment in and building of forestry roads comply with current regulations.

Article 14. Support for processing of timber from planted forests for poor provinces

1. Domestic investors having projects of plants processing timber from planted forests; industrial bamboos in Northern west provinces, provinces of Central Highlands, provinces having poor districts under the Resolution No. 30a/2008/NQ-CP dated December 27, 2008 of the Government may receive state budget supports as follows:

a) Investment support: Support of VND 20 billion/MDF manufacturing plant, with scope of more than 30,000 m3 of MDF/year; support of VND 10 billion/plant for plants processing chipboards, industrial laminated bamboo, with scope of more than 20,000 m3; support of VND 10 billion/plant for plywood plants, with scope of more than 100,000 m3 to construct infrastructure such as traffic, electricity, water, buildings and waste treatment.

b) Post-investment support: Post-investment support shall be provided according to the product transportation distance with VND 1,500/ton/km; the distance is determined from the plant to the downtown of Hanoi, Da Nang, or Ho Chi Minh City according to the nearest highway; the support shall be determined according to the actual equipment capacity of the plant; multiplied by the support period of 5 years, supportive budget upon plant construction completion is at least 70% of total supportive budget.

2. Investment projects receiving support prescribed in Clause 1 of this Article shall meet the following conditions:

a) Projects under investment policies as prescribed in the Law on Public Investment (in replace of investment policies under the Law on Investment).

b) MDF or particle board manufacturing plants must also manufacture at least one of these products: floor plank, plank bar, plank joint to avoid waste of natural resources; the yield of this combined product shall be concluded in the capacity.

c) Equipment manufactured in developed countries (per capita income of more than USD 10,000/year); if equipment is manufactured in developing countries, they must be wholly new. The registered production place of the plant may not be relocated in 20 years.

d) The area of planted forests and raw materials in the province must be enough for the plant to operate at least 60% of capacity in the first 5 years. The project must employ at least 30% of local workers.

dd) Total actual equipment capacity of plants receiving support may not exceed 200,000 tonnes/province. Equipment capacity shall be equal to: product yield after taking-over inspection of a production shift x 3 shifts/day x 300 days/year.

e) Provinces which have paper pulp manufacturing plants with scope of at least 50,000 tonnes/year or MDF plants with scope of more than 100,000 m3 shall not be eligible for such support.

g) Meet requirements pertaining to environmental protection as prescribed in law on environment protection.

Chapter III

POLICIES ON INVESTMENT SUPPORT AND ASSIGNMENT OF PUBLIC DUTIES

Article 15. Investment support and assignment to agro-forestry companies (prescribed in Clause 2 Article 1 of Decree No. 118/2014/ND-CP)

1. Support for planting of protection forests and special-use forests: Planned capital from central state budget is VND 30 million/ha; specific levels shall be determined according to the eco-technical norms and the projects approved by the competent authority. Regarding the fund exceeding the allocated fund, forest owners shall combine and mobilize, use other legal sources of funds.

2. Assign public duties:

a) Regarding areas of protection forests, production forests being natural forests which have not reached exploitation period under direct management of agro-forestry companies, 50% of support provided for households and individuals and communities for costs incurred in forest protection contract, forest restoration and reproduction shall be provided.

b) Support for construction of forest protection and management stations, forest fire prevention facilities and tenement houses for workers.

Chapter IV

INVESTMENT MECHANISM

Article 16. Sources of fund for investment support

1. Central budget.

2. Local budgets: Based on this Decision, provincial-level Peoples Committees shall use revenues from the sale of standing trees, forest resource tax, fines on violations of the Law on Forest Protection and Development, environmental protection charges, revenues retained for hydropower plants and other revenue sources prescribed by law to ensure sources of capital for use in localities.

3. Sources of fund combined from other programs and projects with the same objectives.

4. Total investment demand for the period of 2016 - 2020 to implement this Decision is approximately VND 61,000 billion, of which VND 45,000 billion will be mobilized from various economic sectors (to cover VND 8,000 billion of forest environment service, VND 10,000 billion of credit; and VND 27,000 billion of capital of organizations, individuals and households).

State capital: Investment capital for state budget development of VND 9,000 billion (VND 8,000 billion of central state budget and VND 1,000 billion of local state budget); economic capital of VND 5,115 billion, VND 3,000 billion of ODA.

Article 17. Investment support mechanism

1. The central budget shall support projects with the support levels from state budget of at least Group C and time for performance of project based on silviculture cycle approved by the competent authority.

2. Post-investment support: The State shall preferably make afforestation payment to the area (allocated or contracted) to the organizations, individuals, households that finance own their capital for afforestation (period of 2016-2020) under this policy after the afforestation taking-over inspection as prescribed.

3. Supports from the stage budget for contract for forest protection, forest restoration and reproduction, afforestation, timber processing are investment supports and post-investment supports shall not be considered as taxable income of organizations, individuals, households and communities.

4. The central budget shall only focus on providing targeted support to provincial budgets which it still subsidizes and certain projects of importance having strong influence of provinces decided by the Prime Minister; provinces not mentioned above shall set aside local budgets to provide supports as prescribed in this Decision.

5. If there are policies applied to the same support, the organization, individual or community may only receive support from one policy which is most advantageous to the beneficiary.

Chapter V

SOLUTIONS AND IMPLEMENTATION

Article 18. Land

1. With regard to land planned for production forests under management of regulatory bodies, if these bodies do not have necessary conditions for allocating land to organizations, households and individuals and communities, before applying this Decision, the regulatory bodies shall contract with organizations, households and individuals and communities forestry land for long term (at least one silviculture cycle) to plant production forests.

2. Funding

a) Funding for formulation of land use planning, allocation of land and forests, lease of land, contracting of land for planting production forests, formulation of project in support of planting production forests shall be allocated from the state budget as prescribed in this Decision.

b) Organizations, individuals, households may advance their funding as prescribed to perform duties prescribed in Point a Clause 3 of this Article, the State shall refund the advanced amounts in the subsequent budget year.

Article 19. Investment support projects

1. Investors and formulators of projects on investment support for planting of production forests

a) Projects on investment support for planting of production forests of households, individuals and communities on land areas planned for production forests in buffer zones of special-use forests or protection forests are formulated and invested by the management boards of the special-use forests or protection forests.

b) Projects on investment support for planting of production forests of households, individuals and communities on land areas planned for raw material zones of state enterprises shall be formulated and invested by those enterprises.

c) Projects on investment support for planting of production forests of non-state enterprises, cooperatives shall be formulated on the basis of the actually allocated or leased land areas and land of households, individuals and communities agreeing to provide raw materials for enterprises and cooperatives invested by those enterprises.

d) For other afforestation land areas in a district or province, one or two projects on investment support for planting of production forests shall be formulated for afforestation by households, individuals and communities and investment by forest ranger agencies, border guard stations, or protection forest management boards.

dd) Veteran associations may formulate projects on planting of dispersed trees, planting of bamboos and canals to protect river and stream banks; manage and enjoy benefits as prescribed in this Decision.

e) Projects on investment support for planting of production forests for households, individuals and communities are formulated simply as production plans, basically ensuring the principle of not overlapping projects on planting of production forests. It is necessary to determine the afforestation area each forestry land lot, compartment, or sub-zone and whether the land is bare or planted with forests, in compliance with the plannings on the three kinds of forest.

g) Projects on planting of protection forests, special-use forests, forest restoration and reproduction are formulated by forest owners in accordance with applicable regulations and laws

h) The duration of implementation of a project on silviculture investment support shall correspond the silviculture cycle.

i) Management fee for projects on investment support for afforestation, planting of dispersed industrial trees, forest restoration and reproduction, forest protection shall equal 10% of total investment support for silviculture in the administrative division: 2% for province, district, or commune, and 8% for investor (in which the investor allocates 1% to the forest development board). Use management funding as per current law provisions.

2. Projects on post-investment support which investors are permitted to approve the estimate and performance by themselves may only disburse 70% of support levels of investment components after taking-over inspection and may disburse 100% of support levels after taking-over inspection of whole of completed works. With regard to projects on investment support, the investors may implement them or engage consultants to implement them by themselves.

Article 20. Responsibilities of ministries, agencies, and local governments

1. The Ministry of Agriculture and Rural Development:

a) Take charge and cooperate with concerned agencies in formulation of forestland use planning, allocation of forestland and forests, lease or contracting of forestland in implementation of this Decision.

b) Guide local governments to formulate and promulgate: regulations on operation of project management units at all levels, steering boards for implementation of district-level projects, commune or village forest development units; regulations on management and use of commune or village forest protection and development funds;

c) Promulgate criteria for national important breeding forests and nurseries directly managed by the State; formulate a planning on the system of breeding forests and nurseries; guide the allocation, sale and contracting of breeding forests and nurseries directly managed by the State to other economic sectors for management in accordance with law. Specify criteria for tissue-culture establishments of seedling centers and nurseries.

d) Provide trademark registration support for seedling centers and nurseries. Upload on the seed management website of the Ministry of Agriculture and Rural Development all information on seed/seedling sources and breeding establishments which have been accredited by competent agencies. Build up a system of management information for monitoring and synthesizing implementation results.

dd) Set firebreak standards and formulate procedures for identification and demolition of forests affected with natural calamities, fires or other force majeure circumstances.

e) Cooperate with: the Ministry of Planning and Investment and the Ministry of Finance in consolidating annual and mid-term plans on the state investment support as prescribed.

g) Mobilize donors to provide financial or technical support. Use ODA sources in support of planting of production forests, construction of forestry infrastructure, and training of officials at all levels for effective implementation of this Decision.

h) Disseminate and popularize the policies prescribed in this Decision and those related to concerned subjects. Direct, inspect and supervise the implementation of this Decision.

i) Promulgate lists of technological forestry products and use the funding allocated by the Ministry of Agriculture and Rural Development to support enterprises to invest in the three high-tech forestry parks.

2. The Ministry of Planning and Investment

a) Take charge and cooperate with the Ministry of Finance, the Ministry of Agriculture and Rural Development in balancing annual and mid-term sources of fund, to be submitted to the Prime Minister for decision.

b) Take charge and cooperate with the Ministry of Agriculture and Rural Development in guiding the process of supporting and elaborating support levels under this Decision.

c) Take responsibility for state management of forestry development investment under these policies; cooperate with the Ministry of Agriculture and Rural Development, the Ministry of Finance and the People’s Committee of province in inspecting and supervising implementation of this Decision.

d) Cooperate with the Ministry of Agriculture and Rural Development in making three-year and five-year reports on comprehensive supervision and assessment of socio-economic impacts of implementation of this Decision in order to request adjustments or supplements in line with actual requirements and submitting to the Prime Minister for decision.

3. The Ministry of Finance

a) Take charge of guiding the state treasuries in paying and settling state budget funds for implementation of this Decision.

b) Coordinate with the Ministry of Planning and Investment and the Ministry of Agriculture and Rural Development in synthesizing, elaborating plans on, and making annual and mid-term state budget estimates for implementation of this Decision.

4. Other relevant ministries and agencies shall perform their assigned functions and tasks.

5. Provincial-level People’s Committees:

a) Formulate land use plannings and announce them to call on all economic sectors to invest in planting of production forests.

b) Formulate and approve plannings on breeding forest and nursery systems up to 2020, with a vision until 2030 (consulting the Ministry of Agriculture and Rural Development prior to approval). Direct provincial/municipal Services of Agriculture and Rural Development in quickly granting certificates of standard seed sources according to the Regulation of Ministry of Agriculture and Rural Development on management of forest plant varieties. Announce on the mass media accredited breeding establishments.

c) Announce prices and technical criteria of forest seedlings to be planted in provinces, which shall serve as a basis for investors to pay and settle capital. Not to approve prices of seedlings on a case-by-case basis.

d) Apportion state budget capital to support investment in projects. Direct project management units at all levels in ensuring capital sources for planted forests in the form of post-investment support; approve investment projects according to regulations.

dd) Enhance the dissemination and popularization of policies in this Decision and those related to various administration levels, branches and enterprises of all economic sectors, households, individuals and communities in provinces for knowledge and implementation.

e) Assign Department of Agriculture and Rural Development to take charge and cooperate with relevant agencies in inspection for taking over investment results components and projects receiving support. Taking-over certificate is the basis for disbursement of support amounts from the State.

g) Direct, organize, inspect and supervise the implementation of this Decision.

Article 21. Entry in force

1. This Decision comes into force as of November 1, 2016 and supersedes the Decision No. 147/2007/QD-TTg dated September 7, 2007 on certain policies on development of production forests for the period of 2007-2015 and the Decision No. 66/2011/QD-TTg dated December 9, 2011 of the Prime Minister on amendments to certain articles of the Decision No. 147/2007/QD-TTg.

2. Projects (approved before effective date of this Decision) which have complied with the Decision No. 147/2007/QD-TTg dated September 7, 2007 and the Decision No. 66/2011/QD-TTg dated December 9, 2011 of the Prime Minister shall keep comply with these Decisions and then apply regulations on support prescribed in this Decision from January 1, 2016. The project investor may take initiative in adjusting unit cost, area, categories of products as prescribed in this Decision but not increasing total investment of the project.

Article 22. Implementation

Ministers, Heads of ministerial-level agencies, Heads of Governmental agencies, Presidents of People’s Committees of provinces and central-affiliated cities and Heads of relevant agencies shall implement this Decision./.

APPENDIX

(Issued together with the Decision No.38/2016/QD-UBND dated September 14, 2016 of the Prime Minister)

THE SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
---------------

AFFORESTATION CONTRACT

No…./201…/HDTR

Pursuant to the Civil Code of the Socialist Republic of Vietnam 2004;

Pursuant to the Law on Protection and Development of Forests No. 29/2004/QH11 of the National Assembly and guiding documents;

Pursuant to the Decision No. ……./QD-TTg of the Prime Minister dated………….on certain policies on development of production forests;

Pursuant to the Decision on approval for investment project of support for planting of production forests of….No…dated….

Today, on…...[date] at…... [place], we are:

1. Party A (Project management board….)

Head office: .................................................... Telephone: ................................................

Represented by

(1) Mr./Mrs.: ………………….. Position……………………………………………..,

(2) Mr./Mrs.…………………………..; supervision and forestry extension officer

ID No. …………. issued by…………………….police, on………………………………………;

Permanent residential address.........................................................................................

Phone number .................................................................................................................

2. Party B (households, individuals, communities)

Represented by Mr./Mrs. ..................................................................; ID No. …………. issued by…………………….police, on………………………………………;

Permanent residential address.........................................................................................

Phone number.................................................................................................................

Both parties mutually agree to enter into an Afforestation Contract with terms and conditions as follows:

Article 1. Contents

1. Applying for issuance of land use right certificate (in a case where Party B has not had a land use right certificate):

a) Party A shall measure and apply for issuance of land use right certificate to Party B (associated with the afforestation land area permitted for issuance of land use right certificates by the competent authority) within 1 year. During the application process, this Contract shall prevail as a basis for receiving afforestation support from the State.

b) If the afforestation land area of Party B is located in a larger area which was allocated to the state-owned forestry company or the protection forest and special-use forest management board, Party A shall measure and draw a map to contract it to Party B for afforestation in 50 years under this Contract.

c) The cost incurred in issuance of land use right certificate shall be covered by the state budget.

2. Afforestation support, forestry extension

a) Party A provides support for Party B (to afforest….ha at (specify land lot, compartment, sub-zone, village, and commune)….

b) The afforestation land area of Party B is eligible for…… support (state specific eligible case prescribed in Article 5 of this Decision).Support level provided by the State: ……….. VND/ha. Total support amount is……………………………Vietnamese dong (in words).

c) Support duration: 4 years, including one year of planting and three years of tending, since the signing of this Contract.

d) Standards for seedlings and price of seedlings:

- Type of tree :......................................................................................................... ;

- Standards for seedlings: Height ……………. cm, root collar diameter …………. cm, ……………. months old, high quality, no pest, meeting standards for planting;

- Price is …………………… VND/seedling (under the Decision No. …./QD-UB dated……….of the People’s Committee of province).

d) Afforestation techniques: Afforestation density: ……………… seedlings/ha, with attached detailed specifications (standards for holes, row, seasons, etc.).

e) Forestry extension: Party A shall advise on plant species, guides the techniques of planting, tending and protecting plants for Party B twice. The first time will take place at least 1 month prior to afforestation and the second time will take place in the second year, in addition, Party B has a right to contact via phone, fax or in writing for advice.

g) Supply of seedlings: (Party B may find the supply of seedlings by themselves or require Party A to supply seedlings)

- Party B shall find the supply of seedlings according to the given standards, quality and price mentioned Section d Clause 2 of this Article (specify if Party B may find the source of supply by themselves);

- Party A shall supply seedlings to Party B according to the given standards and quality mentioned in Section d Clause 2 of this Article.

Article 2. Rights and obligations

1. Rights and obligations of Party A

a) Party A has rights to:

- Monitor and supervise the contract performance process of Party B;

- Require Party A to perform the works and keep to the time schedule as prescribed in the Contract, if Party B commits a breach of the Contract which Party A has given the third written warning, Party A has the right to request seizure of or (seize) all total investment which was made at the breach time and finalize the Contract as per the law provided that Party A gives a notice at least 30 days in advance.

b) Party A has obligations to:

- Measure and apply for issuance of land use right certificate to Party B as per the law (if Party B has not had a land use right certificate) or forestry land contracting dossier as prescribed in Clause 1 Article 1 of this Contract;

- Provide forestry extension services, supply seedlings as required by Party B as prescribed in Clause 2 Article 1 and supervise the afforestation, disseminate and raise Party B’s knowledge of planting of forests and silviculture development;

- Respond in writing to Party B’s written requests for advice on policies and forest extension;

- Protect planted forests together with Party B.

2. Rights and obligations of Party B

a) Party B has rights to:

- Receive all products of planted forests;

- Products of planted forests are freely circulated;

- Enjoy other incentive policies on remission of taxes, land levies as prescribed in regulations in force;

- Receive advice on policies and forest extension from Party A.

b) Party B has obligations to:

- Ensure the planting and tending of forests, avoid land waste;

- Exploit products of forests as per the law;

- Upon exploitation of products, submit the commune budget or assignor the amount equivalent to 80 kg of rice/ha in order to build the forest development and protection fund of the commune and village, in which the commune fund shall use 50% and village fund shall use 50%. Pay taxes to the State (if any) in accordance with regulations of law on taxation;

- If individuals, households, communities have received the State’s monetary support for afforestation but their forests fail to satisfy the state-prescribed criteria after 4 years, they must use their own capital for reforestation or refund to the state budget the monetary support amounts plus the commercial interests at the time of recovery of support money.

Article 3. Contract duration

This Contract has a duration of one silviculture cycle, in…….years, from the year in which the Parties officially sign this Contract.

Article 4. Force majeure events

Parties are waived from liability in case of any damage or breach of this Contract due to force majeure events. Force majeure events shall be determined as prescribed in Article 6 of the Decision No. 147/2007/QD-TTg dated September 10, 2007 of the Prime Minister on approval for certain policies on development of production forests for the period of 2007-2015.

Article 5. Contract value and method of payment

1. Contract value: Total amount payable to Party B by Party A is …………………. VND (in words).

2. Method of payment

Party A shall make payments to Party B in ………….. installments (subject to entities receiving support)

- First year: ……………….. VND, in which VND…… of seedlings and VND ………….. of labor

- Second year: …………….. VND in………………………………….. [month/year]

- Third year: …………….. VND in………………………………….. [month/year]

- Fourth year: …………….. VND in………………………………….. [month/year]

Article 6. Settlement of disputes

Any dispute arising out of or in connection with this Contract shall be settled firstly through amicable arrangement. Failing which, the Parties hereto agree to refer such dispute to the Court for judgment provided that a Party gives a notice at least 15 days in advance. The Judgment by such court shall be final and binding upon both parties.

Article 7. Final provision

1. Both Parties mutually agree all of above-mentioned particulars of the Contract.

2. This Contract shall be made in 7 copies of Vietnamese, each copy has (…) pages. Party A shall keep 3 copies, Party B shall keep 1 copy, the supervision and forestry extension officer shall keep 1 copy, 1 copy shall be kept at the People’s Committee of commune and 1 copy shall be kept at the village for supervision./.

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