Decision No. 147/2007/QD-TTg on a number of policies for development of production forests in the 2007-2015 period

Issue no 10lSeptember 2007 OFFICIAL GAZETTE (C6ng Bao nos683·684lSepfember 22, 2007) Organization oftheGovernment; 5 THE PRIME MINISTER DECISIONNo.14712007/QD-TTgOFSEPTEM HER 10,2007, ONA NUMBER OFPOLICIES FOR DEVELOPMENT OF PRODUCTION FORESTS INTHE 2007-2015 PERIOD THE PRIME MINISTER Pursuant to the December 25, 2001 I flW on PUrs110nf to the December23,2004 Law onForest Protection andDevelopment; Pursuant to Resolution No, 7312006/QHll of November 29, 2006, of the Xl" National Assembly, the1(Jh session, onadjustmentofthetargets andtasks of the project on planting of5 million hectares of forests; Pursuant tothePrimeMinister's DecisionNo, 181 2007/QD-ITg of February 5, 2007, approving vietnam's forestry development strategy to 2020; At the proposal ofthe Minister ufPlanning and Investment, DECIDES: Chapter I GENERAL PROVISIONS Article 1.- Guiding viewpoints on development of production forests LTheState encourages organizations, households and individuals of all economic sectors to invest 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 contributi ng to environmental andecological protection, 3, Organizations, households, individuals and communities may invest in and cnjoy 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, andoffset theprofitdeficit causedby thesilviculture's particularities, 4. Development of production forests must be © VIETNAM LAW & LEGAL FORUM 6 OFFICIAL GAZETIE Issue no 10lSepiember 2007 (Cong Bao nos 683-684ISeptember 22, 2007) attached with processing andconsumption of forest productsso as to keep silviculture stableandensure its sustainable development. 5. Priority shall be given to support various economic sectors to invest in planting production forests in special difficulty-hit communes so as to create amomentumforforestry development in these communes. Specialpriority shallbe giventosupport investment in planting of production forests in the Northwestern region, the Central Highlands and mountainous districts of thecentralprovinces. Article 2.- Objectives of development of production forests 1.Toplal'lt2millions hectares ofproduction forests or 250,000ba a year on average (including areas to be reforestedafterexploitation). 2. To create jobs and increase incomes of monntainOlIS inhabitants so as to stabilize theirlife. 3. To facilitate the formulation as well as long termandstabledevelopment ofsilvicultural markets, including seed supplyandtechnical servicemarkets, forestproductprocessing markets and consumption markets. Article 3.- Scope of regulation and subjects of application I. Domestic organizations, households, indi viduals and communities operating under Vietaamese lawthatplantproduction forests. exploit or processforestproducts. 2.ProjectsgovernedbytheGovernment's Decree No. 151/20061ND-CP of December20,2006, and ODA-funded planted forests are not subject to this Decision. Article 4.- Interpretation of terms I. Post-investment support means a form of support under which organizations, households, individuals and communities with land plannedfor production forests organize afforestation by themselves and get paid by the State in accordance withthisDecisionaftertheirplantedforests aretaken over aftertest. 2. Investment support means a form of partial support withinvestment capital fromthestatebudget for organizations, households, individuals and communities to plantforests. ClwpterII STATE POLICY ONINVESTMENT SUPPORT Article 5.-Investmentsupportforafforestation and forestry extension 1. Organizations, households, individuals and communities in extreme difficulty-hit communes (underthePrimeMinister'sDecisionNo. 164/20061 QD-TI'g of July 11, 2006, approving the list of extreme difficulty-hit communes) that plant forests on bare land or hills planned for production forests are eligible for state budget capital support at the following specific levels: aIVND:3 million/ha, forplantingbig timbertrees (to be exploitedafter 10 years)or indigenous trees; andVND2million/ha, forplanting smalltimbertrees (to beexploitedbefore 10 years); bl VND 1 million/ha in addition to the support levelsspecified at Point a, Clause I of thisArticle, for plantingforests in bordercommunes. c/ VND I million/ha in addition to the support levels specified at Points a and b, Clause 1 of this Article, for planting forests in communes where people have to resettle under hydropower projects withinvestmentapprovedby the NationalAssembly. 2. Ethnic minority households, individuals and communities incommunesotherthan thosemeeting withextreme difficulties (underthePrimeMinister's Decision No. 164/2006/QD-TTg of July II, 2006, approving thelistofextremedifficulty-hitcommunes) that plant forests on bare land or hills planned for production forests are eligiblefor a supportlevel of VND 2 million/ha each. 3. forest-planting organizations, households, individuals and communities other than those © VIETNAM LAW & LEGAL FORUM Issue no10/September 20!l!7 OFFICIAL GAZETTE (Gong Bao nos 683-684/5eptember 22, 2007) 7 specified inClauses 1and2ofthis Article areeligible forseedling orforest extension support ata maximum level of VND 1.5 million/ha; or VND 1.) million/ 1,500 dispersed trees (equivalent to one hectare of planted forests), if theyplantdispersed trees. Specific support levels shall be based on seedlings' prices announced annually by provincial-level People's Committees. 4. Organizations, households, 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 forest planting maygetsupport fornotmore than 2 hectares. 5.Forest extension support, VND200,000lha for 4 years (1 yearfor planting and3 years fortending), forforests planted inextreme difficulty-hit communes (under thePrime Minister's Decision No. 164/20061 QD-ITg of July 11,2006); andVND loo,Ooolha in 4 years, for forests planted in othercommunes. 6. A lump-sum support of VND 50,OOOlha shall be provided for survey, design and conclusion of afforestation contracts. Support levels specified inClauses 5 and6 of this Article shall becalculated beside thetotal investment support for planting production forests specified in Clauses 1,2 and3 of thisArticle. 7.Forms ofsupport: post-investment support and investment support. The Ministry of Planning and Investment shall assume theprime responsibility for, andcoordinate withtheMinistry ofAgriculture and Rural Development in,guiding indetail theorder of, and procedures for, providing post-investment support andinvestment support. 8. Conditions for receiving support: aI Forest owners being organizations, households, individuals or communities musthave landplanned for production forests, which is allocated by a competent authority and granted a land use right certificate. Forstateenterprises, thelandmustbethat for planting production forests, which has been contracted tohouseholds, individuals orcommunities for stable andlong-term (50years) use. bl Sources of seeds or seedlings for afforestation mustoriginate from breeding establishments which have been accredited by a competent authority according to the Ministry of Agriculture and Rural Development's Regulation on management of forestry plantvarieties. Article 6.-Rights andobligations oforganizations, households, individuals and communities (referred to as forest owners forshort) in afforestation 1. Rights: To enjoy all products from planted forests, to freely circulate exploited products and be entitled to tax and land use levy incentives in accordance withcurrent law. 2. Obligations: When exploiting products from planted forests, a forest owner shall remit into the state budget a sum of money equivalent to 80 kg of rice/he/cycle ofplanted forests inorder to icl upforest development funds ofcommunes, hamlets orvillages, eachof which will receive 50%of the sum. With regard toproduction forest areas contracted byspecial-use forest orprotectionforest management units orstate enterprises (referred toasthecontracting party for short) to households, individuals or communities, forest owners shall payonlythe above sumto thecontracting party. Within 12months afterexploiting planted forests, forest owners mustorganize reforestation according to regulations. Ifforest owners havereceived theState's monetary supportforafforestationbuttheirforests failtosatisfy the state-prescribed criteria after4 years, they must use their own capital for reforestation or refund to the state budget themonetary support amounts plus the commercial interests at the time of recovery of support money. In case of forest loss due to force majeure circumstances suchanatural calamities, fires orpests as determined under regulations of the Ministry of Agriculture andRural Development, forest planters need not refund the received monetary support amounts. © VIETNAM LAW & LEGAL FORUM 8 OFFICIAL GAZETTE Issue no10/September 2007 (Gong Bao n05 683-684ISeptember 22, 2007) 3. With regard to areas of special-use forests or protection forests planted withcapital ofProgram 327 and statebudget capital sources undertheproject on planting of 5 million hectares of forests, which are now plannedfor production forests, forest owners' rights and obligations comply with Clauses I and 2 of thisArticle. Article 7.- Investment support for planting and management of breeding forests andnurseries 1.The State shallprovide investment support for thebuilding management andprotection ofbreeding forests and nurseries, of which the State (including Slateenterprises andorganizations setupby theState) 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 shallbe allocated, soldor contracted to other economic sectors for management and business in accordance withlaw. 2. Breeding forests and nurseries managed by economic sectors must be governed by plannings approved by competent authorities, are eligible for investment support forconstruction ofinitialmaterial foundations under projects approved by competent authorities. The maximum levels of state budget support for bio-forestry tasks, infrastructure construction andequipment andfacility procurement are as follows: at VND 35 million/ha, for newly developed nurseries; bl VND 25 million/ha, for newly developed breeding forests; cl VND 10 million/ha, for regenerated breeding forests; dlln addition to the abovesupports, a support of VND 100,000/ha/year shall be given to offset management expenses for breeding forests and nurseries for 5 years at most. Article8.-Investment support forbuildingofhigh quality seedling centers 1. Conditions for a seedling center to enjoy support: atBeinga tissueculture establishment whichcan produce 1 million seedlings/year. bl Having at least3 hectares of landfor building the center (including land for building houses, workshops and nurseries). 2. Conditions to enjoyinvestment support: atProvinces without tissue culture establishments mayeach receive investment support for building a seedling centerbasedon theconditions set in CI31"e I of thisArticle. bl It is a non-state enterprise or a stateenterprise with an equitized breeding estabhshment of which the Stateholdsnot morethan50%ofchartercapital. cI Itisanenterprise whichcontributes at least30% of the total investment to the projecton the building of a seedling center. dI It has an investment projecton building of a seedling center, already appraised by theprovincial level Service ofAgriculture andRuralDevelopment, withinvestment decided by projectowner. el The result of investment in building of the seedling center is accepted by the provincial-level projectmanagement unit. 3. Itemseligible for investment support: Building of offices, workshops, roads or electricity transmission lines; procurement of equipment and facilities, and paymentfor technologies. 4. Themaximumlevelof thestatebudgetsupport is VND 1.5billionfor a seedling center. 5. Order of providing support: The total sum of support shallbe grantedtwiceaftertake-over test,of which 70%shallbeinitially granted aftertheinvestor completes investment in items specified in Clause3 ofthisArticle andtheremainder shallbegranted after the investorhas producedand consumed seedlings up to the center's designed capacity and the set seedling quality. Article 9.- Investment support for nurseries 1. Conditions for nurseries toenjoy support: © VIETNAM LAW & LEGAL FORUM Issue no10/September 2007 OFFICIAL GAZETTE (C6ng Bao nos 683·684lSieptember 22, 2007) 9 a/ Being an establishment which nurture forest trees by the method a f using cuttings, shoots, seeds or seedlings fromtissue buds. bl Having alandareaofatleast0.5haforanursery. 2. Planning ofnurseries: Acommune or groupof communes that has 1,000 ha of land planned for production forests may have a nursery. Existing nurseries should be usedandthenewonesshould be: builtonlyunderprojects onplanting of raw-material forests or wheretheyare really necessary. 3. Conditions to receive support a/ Thenursery must be: included in theprovincial planning on production of forestry seedlings or a projecton planting of raw-material forests. hI The nnf'ery owner must commit to use the allocated land for production of seedlings for afforestation for at least 10years. cl '1 'he nursery is undertheuserightof a non-state economic sector. If that sectorhas a portionof 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. d/Thenursery isbuiltunder aninvestment project already appraised by the district-level project management unit, with investment decided by the investor. Investment inprojects onbuilding nurseries inbordercommunes mustbedecided bydistrict-level People's Committees. el Theresultof investment inbuilding thenursery is accepted by thedistrict-level projectmanagement unit. 4. Items eligible for investment support. constmction of initial infrastructure, including power and watering systems, fences, material gardens, groundleveling, building of solidgrounds. 5. Support levels: VND 200 million on average for building a new nursery; newlybuiltnurseries in border communes are eligible for support corresponding to approved capital levelsofprojects; fornurseries improved andupgraded tothestandards prescribed inClauseI ofthisArticle, thesupport level foreachmustnot exceedVND50 million. 6. Order of providing support: Each support amount shall be granted twice after a nursery is accepted. Initially, 70% of the support amountshall begranted afterthe investor completes investment in the itemsprescribed in Clause4 of thisArticle. The remainder shallbe granted oneyearafterthebuilding of the nursery. Artick 10.- Support for investment ill forestry roads 1. Boundaries for forest fireprevention andfight (firebreaks) al Support conditions: Firebreaks used concurrently as roads for transportation Clf seedlings and supplies withina projectarea are bum with 15 20mforeveryhectareunderplanning. Informulation uf a project iu support uf invesunent ill production forests, a planning on the system of firebreaks is required, whichmust involve participation of forest owners (including those contracted with forestland forafforestation in 50 years) in theprojectMea. Such additional plannings maybeformulated inaccordance withthisDecision forprojects onplanting production forests which have not yet received support for building firebreaks. bl The investment support level is VND 20 million/km, of which VND 15 milliontkm is for investment in construction of items of II firebreak while the remainder is used for its matntenance throughout the wholeafforestation cycle. cl Order of investment, after-test acceptance, payment and settlement: After the provincial-level People'sCommittee allocates budgetof 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 ofAgriculture andRural Development and submit them to the district People's Committee for approval. Aftertheapproval, thedistrict-level project management unitshallitselforganize thebuildingof firebreaks. Upon the completion, the district-level © VIETNAM LAW & LEGAL FORUM 10 OFFICIAL GAZETTE Issue no10/September 2007 (C6ng Bao nos 683-684/September 22,2007) People's Committee shall organize after-test acceptance 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 forestsof 1,000 ha or more in service of specific processing plants in regions without motorways for transportation of products in rainy seasons may enjoy investment support for forestry roads at a level of not exceeding VND 300 million/km.Investors of afforestationprojectsare also investors cfforestry road projects. The management of investment in, and building of forestry roads comply with current regulations. Investment in the building of forestry roads may be made only upon the commencement of exploitation of planted forests. Article lJ.- Support for transportationof processed products in the northwestern region I. Plants processing timbers from planted forests in the northwestern provinces (under Resolution No. 37/NQ-TW of April 1, 2004) are eligible for the state support for product transportation in the first five years after they start production. The support level complies with the Prime Minister's Decision No. 2IQl2006/QD-TTg of September 12, 2006, which is VND 1,OOO/ton/km (one thousand Vietnam dong). 2. ForlJ1B of support; post-investment support. Freight shall be calculated based on the distance from a plant to Hanoi, the major consumption center, by the shortest motorway, and based on the plant's actual capacity. 3. Order of support, take-over test, payment and settlement: a/ A project of investment in plant construction must be approved by the president of the provincial-level People's Committee. After investment is made and the plant starts operation, the investor shall report to the president of the provincial-level People's Committee on investment results, who shall, within 20 working days, set up a council to test and take over the plant's actual capacity in order to have a basis for payment of support capital to the investor. bl Initially, 70% of the freight support shall be granted, the remainder shall be subtracted from the plant's annual tax amount payable to the state budget. The State shall make a separate entry of budget support provided directly to the plant in the next budget year after the plant starts operation. Each district may enjoy freight support for only one plant. Prom now to 2010, freight support shall be provided on a pilot basis for transportation of processed products from 1or 2 plants in each province, provided that such plants fully meet the conditions specified in Clause 4 of this Article. 4. Conditions to enjoy support; The State shall provide support only for plants manufacturing artificial boards and particle boards or artificial boards and MDF boards in order to make full use of raw materials. For 20 years such a plant must not be relocated from the registered production area. Ato-be-builtplant must have the minimum actual capacity of 10,000 lll'/year with 100% ofbralid-new equipment. The concerned enterprise must have planted production forests available for harvest, ensuring the supply of raw materials for the plant to achieve ~O% of its designed capacity or the locality where the plant is located has a raw material area which can supply raw materials for the plant to achieve 100% of its designed capacity (the planted forest capacity serving as a basis for calculation of support for a plant is 100m3/ha). It is anon-stateenterprise.Ifitis a stateenterprise, only equitized wood processing establishments with not more than 50% of state capital may be given the support. 5. To encourage and give priority to households © VIETNAM LAW & LEGAL FORUM Issue no 10/September2007 OFFICIAL GAZETTE (C6ng Bao nos 683·684lSeptember 22,2007) 11 and individuals that have contributed planted forests as capital and forests to setting up joint-stock companies or cooperatives and received statesupport according to conditions stipulated in Clause 4 of this Article. Article12.- Sources ofinvestment supportcapital 1.The central budget. 2. Local budgets: Based on this Decision, provincial-level People's 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. Total investment for implementation of this Decision is around VND 40 trillion, of which around VND 31 trillion will be mobilized from various economic sectors, VND 9 trillion from the state budget (VND 8 trillion from the central budget and VND 1 trillion from local budgets). Article13.- Investment support mechanism 1. From now to 2010: The central budget shall provide targeted support to local budgets. 2. After 2010: The central budget shall only focus on providing targeted support to provincial budgets which it stillsubsidizes.Other provinces shallarrange local budgets for implementation according to this Decision. 3. Assignment of plans: The Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate with the Ministry of Agriculture and Rural Development and the Ministry of Finance in, integrating and assigning three-year stable afforestation plans to provinces. Presidents of provincial-level People's Committees shall assign three-year stable afforestation plans to project owners. Chapter III SOLUTIONS AND ORGANIZATION OF IMPLEMENTATION Artiele 14.- Land 1. Plannings on bare land for production forests: Provinces with great unused forestland areas shall, after revising plannings on the three kinds of forest under the Prime Minister's Directive No. 38/20051 CT-TTg of December 5, 2005, take the initiative in planning bare land for production forests and announcing those plannings to call on economic sectors to invest in planting of those forests 2. Allocation of land and grant of land use right certificates: atThe president of a provincial-level People's Committee shalldirect the acceleration ofthe process of allocating land and granting land use right certificates to organizations, house-holds and individuals under the Land Law. With repd to land areas contracted by organizations to households and individuals for afforestation that receive no support in terms of seeds or seedlings, supplies or techniques for three consecutive years and the contracting party only collect management charges or land rents, the provincial-level People's Committee president shall consider and decide on recovery of the eontracted land, then allocate or lease that land and grant a land use right certificate to the contracted parl'y. bl With regard to land planned for production forests which is currently managed by state organizations and not yet allocated to households, individuals or communities, such state organizations shall, before applying this Decision, contract the forestland un a long-term basis (50 years) to households, individuals or communities for planting production forests. 3. Forest owners may use at most 30% of the allocated land area without forests for investment in eco-tourism.convalescenceor combined agro-fishery production, of which the land area for construction of infrastructure (roads, solid works, factories) © VIETNAM LAW & LEGAL FORUM 12 OFFICIAL GAZETTE Issue no10/September2007 (Gong Bao nos 683-684/September 22,2007) accounts for 20%at most. 4. Funds aI Funds for formulation of land use plannings, allocation of land and forests, lease of land, contracting of land for planting production forests, formulation of projects in support of planting of production forests areallocated fromthestatebudget according toArticle 12 of thisDecision. b/Organizations, individuals andhouseholds may advance their funds according to regulations for performance of thetasksspecified at Pointa, Clause 4 of this Article. TheStateshall refundthe advanced amounts iu thenextbudget year. Article 15.- Investment support projects and investment-deciding agencies I. Investors and formulators of projects on investment supportforplanting ofproduction forests atProjects on investment support [or planting of production forests of households, individuals and communities on land areas planned for production forests in buffer zones of special-use forests or protectionforests are formulated and invested by management units of the special-use forests or protection forests; b/ Pr~cts on investment support for planting of production forests of households, individuals and communities on landareas planned for raw material zones of state enterprises shall be formulated and invested by thoseenterprises; d Projects on investment support for planting of production forests of non-state enterprises or cooperatives shall beformu tated andinvestedbythose enterprises orcooperatives onthebasisoftheactually allocated or leasedlandareas. dI For otherafforestation land areas in a district, oneortwoprojects oninvestment supportforplanting of production forests shall be formulated for afforestation by households, individuals and communities and investment by district ranger stations or border-guard stations. 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 overlappingprojects onplanting ofproduction forests. It is necessary to determine the afforestation areaon eachforestry landlot,compartment or sub-zone and whether the land is bare or planted with forests, in compliance withthe plannings on the threekindsof forest under the Prime Minister's Directive No. 38/ 2oo5/cr-TIg of December5, 2005. f/ Theduration of implementation of a projecton investment supportforplanting ofproduction forests shall correspond the cycleof plantedforests. 2. Investment-deciding agencies: aI Provincial-level People's Committees shall decide on investment in projects on investment support for plantingof production forests specified at Pointc, Clause I ofthis Article; b/District-level People'sCommittees shalldecide on investment in projects on investment supportfor planting ofproduction forests specified atPointsa,b andd, Clause I of thisArticle; 3. Projects on investment supportfor plantingof production forests with tree species prescribed in the Agriculture and Rural Development Ministry's Decision No. 16/2oo5/QD-BNN ofMarch15,2005, approving the list of major forest tree species for production forests are exempt from assessment of environmental impacts. Article 16.- Setting up of managementunits of investment support projects for planting of production forestsat all levels(referred to asproject management units for short); commune forest development units; rural or mountain village/hamlet forest development units(referred toasvillageforest development units) I. Provincial-level projectmanagement units shall be setupunderdecisions ofprovincial-level People's Committees. based on the existing provincial-level management unitsof localprojects on plantingof 5 million hectares of forests. © VIETNAM LAW & LEGAL FORUM Issueno 10/September 2007 OFFICIAL GAZETTE (C6ng Bao nos683-684/September22,2007) 13 2. District-level project management units: Investors in projects on investment support for planting of production forests defined at Points a. b and d, Clause I, Article 15of this Decision mayset up district-level project management units under decisions ofdistrict-level People's Committees onthe basisofexisting management units ofdistrictprojects on plantingof 5 million hectares of forests. Withregardto projects on investment support for planting ofproduction forests ofnon-state enterprises or cooperatives defined at Point c, Clause 1,Article 15of thisDecision, thoseenterprises orcooperatives shalldecideto set up project management units and notifysuch to provincial-level agencies deeiding on investment in thoseprojects andrelevant agencies. 3. Commune forest development units: A commune with 500 ha of forestland may set up a commune forestdevelopment unitunder decision of the commune-level People's Committee president, which is composed of a commune-level People's Committee vice president as its headandcommune rangers, agro-forestry officers andrepresentatives of commune massorganizations asitsmembers, totaling 5 at most. Each village forest development unitmay nominate onemember toparticipate in thecommune forestdevelopment unit. For communes where commune forestry units already exist,thoseunits shall actascommune forest development units. 4. Village forest development units: Avillage with forestland areaof 100ha or moreeachmayset up a village forestdevelopment unitunderdecision of the commune-level People's Committee president. Such a unit has 7-9 members, including the village chief, the village patriarch and representatives of mass organizations. Theunithasthetaskofassisting forest owners to manage and protect forests and supervise attorestation by households, individuals and communities. Article 17.- Powers and responslbllities of afforestation support project- management units at all levels 1.A provincial-level projectmanagement unit: alToactasamanagement andsupervision agency, nottheinvestor ofaproject. Tousctheallocated fund forpublic information anddissemination ofpolicies, professional training and retraining of district and commune officials. bl To organize the management and supervision of implementation of thisDecision in theprovince; cl To directly conduct take-over test of planted forests, breeding forests, nurseries and seedling centers of non-state enterprises and cooperatives; to organize the take-over test within 20 working days afterreceiving an investor'swritten request. 2.Adistrict-level projectmanagement unit: aITo act as an investor directly managing the implementation of a project; bl To formulate a project on investment support for planting of production forests and submitit to a competent authority for approval; c1To adjustcapital forassignedbio-forestry works, which must not exceed the total capital amount of the project; adjustment may be made only from infrastructure works to bio-forestry worksto ensure theproject'simplementation tempo; dI To assume the prime responsibility for, and coordinate withthecommune forest development unit and village forest development unit in popularizing anddisseminating policies specified in thi'! Decision to each household, individual and community in the regioncoveredby the project. el To formulate and approve annual technical afforestation schemes basedon seedlings'prices and criteria promulgated by theprovincial-level People's Committee aswellastechnical afforestationprocesses promulgated bytheMinistry ofAgriculture andRural Development. fl To enter into afforestation contracts (made according to the form set in this Decision) with households, individuals andcommunities (except for afforestation project-managemeru units of nun-stale enterprises). Sucha contract mustbe certified by the commune People's Committee andthe village chief. © VIETNAM LAW & LEGAL FORUM 14 OFFICIAL GAZETTE Issuono 10/SoDIombor 2007 (Gong Bao nos 683-684/September 22, 2007) g!To arrange forestry extension officers to guide and supervise households, individuals and communities in plantingforests. Thoseofficers shall take responsibility for areas and quality of planted forests of households, individuals and communities in the locality under their charge, from the time of commencement of afforestation till the end of the forest-tending period (l yearfor afforestation and 3 years for forest tending). Where forest rangers ate available, theyshallbearrangedto performthetasks of forestextension officers. hi To organize take-over test of planted forests, breeding forests and nurseries of households, individuals and communities under the project, including the area of planted forests already given investment support and post-investment support so as to have II basis for payment ami settlement with the statetreasury. Lump-sumpaymentshallbe made inthesecond yearafterafforestation, forplantedforest areaseligible for post-investment support. Annually, by the time of take-over testof planted forests, the district-level project management unit shall elaborate a take-overtest plan and notify it in writing to each commune forest development unit and village forestdevelopment unit for coordination in take-over testof the forests. if Bases for a district-level project management unitto pay afforestation support money to a forest owner include the afforestation contract, the seed! seedling purchase invoice. enclosed with a copy of thecertificllte of seed!seed ling sourcesas prescribed in theAgriculture andRuralDevelopment Ministry's Regulation on management of forestplant varieties and minutes on take-over test of planted forests (certified by the forestowner, the forestry extension officer andthedistrict-level projectmanagementunit). 3. The charge for management of a project on investment supportforplanting ofproduction forests is equal to 10% of the total bio-forestry investment support level in a locality, of which 0.5% is for the centrallevel,0.7% for the provincial level; 0.8% for the district-level steering board and 8% for the investor in a district-level project(whoshallallocate I%to the communeforestdevelopment unit and 1% to the village forest development unit). The management fund shall h" used in accordanoe with currentregulations. Article 18.- Responsibilities of ministries, branches and localities l. The Ministry of Agriculture and Rural Development: aI To assume the prime responsibility for, and coordinate with concerned agencies in, setting and promulgating processes and norms of expenses for formulation of projects on investment support for planting of production forests, forestland use plannings, allocation of forestland or forests, leaseor contracting of forestland in implementation of this Decision. bl To guide localities in formulating and promulgating 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 protectionand development funds; d 10 promulgate criteria for national important breeding forests and nurseries directly managed by the State; to formulate a planning on the system of breeding forests andnurseries; toguidetheallocation, saleandcontracting ofbreedingforests andnurseries directly managed by the State to other economic sectorsfor management in accordance with law.To specify criteria for tissue-culture establishments of seedling centers and nurseries: d! To provide trademark registration support for seedling centersandnurseries. Touploadon the seed managementwebsite of the Ministry of Agriculture and Rural Development all information on seed! seedling sourcesandbreedingestablishments which havebeenaccredited bycompetent agencies. Tobuild up a system of management information for monitoring andsynthesizing implementation results; el To set firebreak standards and formulate procedures foridentification andliquidation offorests © VIETNAM LAW & LEGAL FORUM Issueno 10lSeotember 2007 OFFICIAL GAZETTE (C6ng Bao nos 683-684lSeptember 22,2007) 15 affected with natural calamities, fires or otherforce majeure circumstances; flTo coordinate withtheMinistry ofPlanning and Investment and the Ministry of Finance in synthesizing annual, three-year and five-year plans on the state investment support in accordance with this Decision; g/ To mobilize donors to provide financial or technical support. TouseaDA sources in supportof planting ofproduction forests, construction offorestry infrastructure and training ofofficials at all levels for effective implementation of thisDecision. hi To disseminate and popularize the policies prescribed in this Decision and those related to concernedsubjects. Todirect, inspect and supervise the implementation of thisDecision. 2.The Ministry of Planning andInvestment: a/ To assume the prime responsibility for, and coordinate with the Ministry of Finance and the Ministry of Agriculture and Rural Development in, balancing capital sources for annual. three-year and five-year plans, tobe submitted to thePrimeMinister fordecision. Toguidethe process of elaborating and assigning plans to localities; bl Toexercise thestate management ofinvestment; to coordinate with the Ministry of Agriculture and Rural Development, the Ministry of Finance and provincial-level People's Committees in inspecting andsupervising the implementation of thisDecision. cl To assume the prime responsibility for, and coordinate with the Ministry of Finance and the Ministry of Agriculture and Rural Development in, makingand submitting to the PrimeMinisterthree year and five-year reports on comprehensive supervision and assessment of socio-economic impacts of implementation of thisDecision in order to request adjustments or supplements in line with actual requirements. 3. The Ministry of Finance: a! To assume the prime responsiblllty for, and guidethe statetreasuries in,paying andsettling state budget funds for implementation of this Decision; bl To coordinate with the Ministry of Planning and Investment and the Ministry of Agriculture and RuralDevelopment insynthesizing, elaborating plans on, and making annual, three-year and five-year budget cost estimates for implementation of this Decision. 4. Provincial-level People's Committees: a/Toformulate landuse plannings andannounce them to calion all economic sectors to invest in planting of production forests. blTo formulate andapprove plannlngs onnursery systems up to 2020 (afterconsulting the Ministry of Agriculture and Rural Development), To direct provincial/municipal Services of Agriculture and Rural Development in quickly granting certificates ofstandard seedsources according to theAgriculture and Rural Development Ministry's Regulation on management of forest plant varieties. To announce on the mass media accredited breedine establishments; cf Based on proposals of provincial/municipal Finance and Pricing Services and Agriculture and RuralDevelopmentServices, to announcepricesand technical criteria of forest seedlings to beplanted in localities in Januaryevery year, whichshallserveas a basis for investors to pay and settlecapital. Not to approve pricesof seedlings on a case-by-case basis; d/ To apportion state budget capital to support investment inprojects. Todirectprojectmanagement units at all levels in ensuring capital soarces for planted forests in theformofpost-investment support; to approve investment projects according to regulations; efToenhance thedissemination andpopularization ofpolicies inthis Decision andthoserelated tovarious administration levels, branchesandenterprises of all economic sectors, households, individuals and communities in provinces for knowledge and implementation; ff To approve projects on investment supportfor planting of production forests according to Clause'L, Article 15 of this Decisionand approve investment projects according to regulations; © VIETNAM LAW & LEGAL FORUM 16 OFFICIAL GAZETTE Issue no 1a/September 2007 (Gong BaD nos 683-684/September 22,2007) g/ To direct, organize, inspect and supervise the implementation of this Decision. 5. District-level People's Committees: aI To set up district-level steering boards for implementation of projects, each comprising a vice president of thedistrict-level People'sCommittee as its head and representatives of district departments and sections as well as mass organizations as its members, totaling around 7; to promulgate working regulations of the steering boards. In districts where existsteering committees forimplementation oflocal projects on planting of 5 million hectares of forests, such committees shall act as district-level steering boards for implementation of the projects. To decide on setting up of district-level project management units for households, individuals and communtsies participating in the planting of production forests. blTo ailocate or leaselandandgrantlanduseright certificates to households and individuals participating in projects; cl To al"prove projects eligible for investment support according to their competence provided for in Clause 2 Article 15of thisDecision, andapprove investmentprojects according to regulations; dI To dlr".l't forest ranger stations and commune levelPeople's Committees in making annual, three year and five-year local afforestation plans in conformity withthestatepolicies ondevelopment of forests, elTo dillseminate andpopularize thisDecision to communes having forests. 6. Commune-level People'sCommittees: alTodecide onsetting upofcommune andvillage forest development units. Tocoordinate withdistrict level projectmanagement units incompleting dossiers andprocedures for allocation, contracting and lease of forestland to organizations, households and individuals for stable and long-term use; bl To supervise afforestation in localities; to post up at theiroffices listsof households andindividuals participating inafforestation withtheir corresponding plantation areas, treespecies andmoneyamounts they receivein the yearof implementation of a project; cl Todisseminate andpopularize thisDecision in communes. 7. Responsibilities uf village chiefs: al To coordinate with district-level project management units andcommune forest development units in disseminating this Decision to village households, individuals and communities; b/To supervise afforestation byvillage households and individuals; to publicize in villages lists of households and individuals participating in afforestation with their corresponding plantation areas, tree species and moneyamounts they receive in the yearof implementation of a project. Article 19.- This Decision takes effect 15 days after its publication in "CONGBAO." All previous regulations contrary to thisDecision are annulled. Article 20.- Ministers, heads of ministerial-level agencies, heads of government-attached agencies, presidents of provincial/municipal People's Committees, and heads of concerned agencies shall implement thisDecision. Prime Minister NGUYEN TANDUNG © VIETNAM LAW & LEGAL FORUM