Decision No. 187/1999/QD-TTg on renewal of the organization and managerial mechanism at the state forestry farms

No. 39 (22-10-1999) OFFJCIAL GAZETTE DECISION No.187/1999/QD-TTg OF SEPTEMBER 16, 1999 ON RENEWAL OF THE ORGANI ZATION AND MANAGERIAL MECHANISM AT THE STATE FORESTRY FARMS THE PRIME MINISTER Pursuant to the Lm1· on Organization of' the Government o/Seplemher 30, 199]: l'ursuant to !he J,mr on Stale Fnrerprises o/Apri/ 30, 1995. Pursuant lo !he lm1· 011 Proreclion and Development o/Forests u/.lugust 19, 1991: Pursuanl lo the Land Lm1· of.Ju!v 1-1, 1993 and the l,m1' o/!Jece111her ], 199R on ,'lmendmenls and Supplel/lenrs ro a .Vumher of--lrtic!es of'!he Land Lair: Pursuant to !he provisions on !he reorganization and rene11'{1/ o/the 111a11ageria! mechanism at the State agricultural enterprises issued toge/her with Decree .'-/o. J] CP ofJiarch ]. l 993 o/the Ciovernmenr: At the proposal o/the .\finister of lgriculture and Rural Developlllent and the opinions o/the J\linistrv of Planning and l11ves/111e111, the ,\finistrv ojFinance, the ,\Jinistry o/Lah01; 11 ar Invalids and :'>'ocial Af/airs. the Government Co1111ni.1.1irm for Organization and Personnel, the Vietnalll Stale Bank and the General Director of' !,and, ldlllinistraticm, DECIDES: Article 1.- Objccti\'c: To renew the organization and managerial mechanism at the State forestry farms aimed at raising the efficiency of production and business of the forestry farms, performing well their piYotal role in forestry production. the scryicc center of material and technique supply. processing and marketing of products for the organizations, households and individuals engaged in forestry and agricultural production. contributing to the protection and development of forestry and socio-economic deYclopmcnt in the locality. Article 2.- Principles ofrcne\\al of the organization and managerial mechanism at the State forestry farms: 1. To continue maintaining and strengthening the State forestry farms in the large-scale and concentrated forest land areas which need direct State management and i11Yestmcnt and \\'hich can hardly be left to the care of other economic sectors: and the State forestry farms in deep-lying and remote areas in order to serve as the nucleus for socio-economic dc\·elopmcnt and to ensure national defense and sccuritv in the local i ti cs. 2. To ensure that the State forcstn farms can de\ clop their right to autonom:, in production and business: that the forestry \\Orkcrs become the real and actual masters of each forest the\ haYc contracted to tend. and abolish the State subs1d\ mechanism in the business acti\·itics of the forcstn Lnms. 3. To ensure a harmonious handling of the relations bct\vccn the interests of the laborers. the State and the forcstn farm, bct\\Ccn the forestry farm and the localitv. Article 3.- Rearrangement of the existing State forestry farms: I. The following State forcstn farms shall be maintained and strengthened in order to operate according to the business mechanism: a/ State forestry farms managing natural forests \Vhich arc production and protection forests of little strategic i mportancc. b/ State forestry farms planted with industrial material forests The main task of the State forcstn· farms arc to plant. protect and foster forests. exploit and process forest products, supply ra\\' materials to industrial processing establishments and other consumption needs of the national cconomv. Apart from their main tasks. the State forestry farms can conduct integrated business in agriculture. forestry. fishery, industry and sen ice in order to effectively use their potentials in labor. land and forest fund al located to them. In the areas of Yery strategic and strategic protection forests interspersed with production and protection forests of little strategic importance of the forestry farm coyering less than 5.000 hectares and as such not eligible for setting up a managing board of protection forests. these protection forests shall continue to be managed by the State forestry farm according to the statute of protection lorcsts. The protection and planting of protection forests in very strategic and strategic areas is considered a public utility activity performed by the forestry farm according to the task assigned by the State. 2. Transformation of State forcstn- farms into Managing Boards of protection forests To transform the State forestry farms covering 5.000 and more hectares or with more than 70'% of the forest land under management belonging to the plan for protection of strategic and ycry strategic areas 8 OFFICIAL GAZETTE No. 39 (22-10-1999) (set up by decision of the Prime Minister or the Presidents of the People ·s Committees or the prm i nccs or cities) into Managing Board or protection forests operating according to the mechanism of non-business revenue-earning economic units. The area of production forests and forest land interspersed ,rith protection forests shall also be assigned to the Managing Board for planting. protection. c:-;ploitation and use in order to create a source of rc,-cnue for the budget. 3. Conversion of State forestry farms into other forms or business organization: State forest[ \ farms, which arc meeting di!Ticultics in production and business and which arc managing a forest area and land planned for planting production forests of less than 1.000 hectares interspersed with agricultural land and located near a population center. shall be com-crtcd into an appropriate form ofbusi ncss organil".ation in order to provide scr,icc for the need of agricultural. forestry and industrial production. Before the con,crsion. a plan must be dram1 up and submitted to the competent authority for apprm·al in order to dctcnninc the need of land to be used for the activities of the new organization. The remaining forests and land shall be handed o,cr to the local administration for assignment or lease to organizations. households and indi,iduals for use according to pro,isions of hm. Article ./.- Management and use of forests and forest land: I. The Pcoplc·s Committees of the prminccs and centrally-run cities together ·with the managing agencies of the forestry farms (if any) shal I rc,isc the land and forest areas of the forestry farms not yet issued with certificates of land use right and clear!> define the boundaries on the map and on the terrain the part of land assigned to the forestry farm for management. B, the end of the year 2000. the People ·s Commiltccs of the prm·inccs and centrally-nm cities must ha,c completed the allocation of land and the issue of certificates of land use right associated ,,ith the asssignmcnt of forests to the State forestry farms under the guidance of the General Land Administration and the Ministry of Agriculture and Rural Dc,clopmcnt. The forestry farm shall hand m·er the remaining land and forests to the local administration which shall reallocate or lease them to organizations or families of public employees and workers of the forestry farm and family households of peasants in the locality for use according to prm·isions of law. 2. To assign the right to stable and long-term management and use of forests to the State forest[ \ farms on the basis or the planning for three kinds of forest (special purpose. protection and production) and the classification or forests according to their state. determination of their sizes and quality as basis for inspecting the forestry farms in the protection. dc\'elopmcnl and use of forests according to current regulations. Within the first quarter of the year 2000. the Ministf \· of Agriculture and Rural Dc,clopmcnt must issue the regulation on the order and procedures of allocating and assigning forests. the method afforest classification and determination of the quality of the forests prior to the allocation or assignment as basis for guiding the implementation by the different levels and branches. 3. For production and protection forests of little strategic importance ,,hich arc natural forests. the forestry farms must take technical forestry measures to foster and enrich them. arc allowed to c:,;ploit and use them according to the plan of forest restructuring and c:,;ploitation design already appro,cd by the prm incial People ·s Committee. Each year. after the c:-;ploitation plan is appro,·ed. the forestry farm shall together with the contractor (organization. family household. indi,·idual) agree on the plan of c:-;ploitation and supcf\ision of the c:-;ploitation. The forestry farm is authorized to organize its own csploitation force or contract the forest to another unit for c:,;ploitation according to the method or espcnditurc bidding. 1-. For production forests ,rhich are planted forests. the forcstf\' farm is authorized lo decide the time and method of c:-;ploitation and must hm c a plan for reforestation after c:-;ploitation Forest products taken from the planted forests shall be freely circulated on the market. 5. For ,cry strategic and strategic protection forests ,,hich arc natural forests managed by the forestry farm. the latter can c:,;ploit the dead trees. broken trees and diseased trees or trees without top. decrepit trees or trees growing too densely, at a ma:-;imum rate of 20'% according to the design for csploitation already apprm ed by the prm·incial People ·s Committee. For natural bamboo forests. if their cm-er age rate reaches 80'% they can be c:-;ploitcd at a masimum rate of 20'% according to the c:,;ploitation design already appro,cd by the pro,incial People ·s Committee. 6. For strategic and \Cf \ strategic protection forests which are planted ,,ith State budget funds. the forestry farm is allowed to c:-;ploit the supporting trees and No. 39 (22-10-1999) OFFICIAL GAZETTE 9 fully harvest the forest by-products. When the main forest tree has reached the norms for exploitation, the forestry farm is authorized to exploit the forest on a rotary basis at an intensity not exceeding 10%, of the areas which have been planted into forests by the method of select cutting, cutting by bands or by patches over an area of less than I hectare in the strategic areas. and under 0.5 hectare in very strategic areas. The forestry farm must take measures to reforest within 12 months after exploitation. Article 5.- Labor policy: l. The households of public employees and workers at the forestry farms (including those in active service and those who have stopped working for health reason or have retired), who arc la\\fully living in the localit, and have not received residential land. the forestry farm shall propose to the local administration to allocate land and issue certificates of residential land use right to them. 2. The forestry farm shall coordinate with the local People's Committee at the commune (ward or township) in proposing that the People's Committee of the district to,rn or city under the province to allocate land to them and issue certificates of land use right over agriculture and forest land to the members the family households of public employees and v.:orkers at the forestry farm eligible for land allocation under the provisions of Decree No. 6.+/CP of September 27, 1993. Decree No. 85/1999-CP of August 28, 1999 and Decree No. 2/CP of January 15, 199-+. The area of land for allocation shall be equal to the average allocated to the peasant households in the locality. 3. The officials and public employees at the forestry farm, who cannot be assigned new jobs during the process of production rearrangement and reorganization nor can be retrained for switching to another trade or occupation. shall be relieved of their jobs as currently prescribed. Where there are difficulties in budget, job leavers by their own free will can be paid the job severance allowance with the value of production forests belonging to the farm. After exploitation of the forests the receiver of job severance allowance with the value of forest trees shall have to return the land to the forestry farm or shall continue to work on contract with the forestry farm. If he/she asks to stay in the locality of the forestry farm, the local administration has the responsibility to register him/her as permanent resident, allot agriculture or forest land to them where they can enjoy fm arable production conditions at the rate of the average size allotted to the peasant households in the locality. +. While implementing Clauses I. 2 and 3 of this Article. if the locality no longer has any land fund for allotment the forestry farm shall propose to the local administration to use its land for allotment to the families in the abm·c-mcntioncd categories. But this must be done according to planning and care must be taken not to cause parceling of the land of the forestry farm. and such land must be taken out of the planned land fund of the forestry farm. 5. For public servants and workers who arc working at the forestry farm and who arc contracting to ,,ark on the land and forests of the forestry farm but who do not receive wage according to the grades and ranks as stipulated by the State and derive their revenues from the result of production through the contract on land and forests, they shall pay their social insurance premiums and enjoy the social insurance regime as separately stipulated by the Government on the policy or social insurance for laborers \\orking in State agricultural and forestry farms. Article 6.- Fiscal policy: l. The proceeds from the sales of timber and main forest products during the exploitation of the forests shall be dispensed as follows: To pay for the setting up of the forestry farm. if any. (including payments for the contracts with the famih households individuals and organizations working on contracts of planting, protecting and fostering forests as stipulated in the contract), to pay for the expenses in the exploitation, transportation and marketing of products: To fulfil the financial obligation toward the State: To set up the funds of the forestry farms as stipulated by law. 2. The State shall return to the State forestry farm the whole enterprise income tax so that the farm may i nvcst in the reforestation and fulfil other public-utility tasks of the forestry farm under the project already approved by the provincial People's Committee. 3. The State assigns to the State forestry farm the various funds originating from the budget which have been earlier invested in the production forests in order to supplement the self-procured capital of the forestry farm. +. The State forestry farm is entitled to the policy of investment support of the State in order to achieve the following projects: to protect, set up boundaries ]() OFFICIAL GAZETTE No. 39 (22-10-1999) to regenerate and enrich natural forests as in the Project of planting concentrated material forests prm idcd for in Decree No. -J.3/l 999 /ND-CP of June 29. 1999 of the Gm'Crnmcnt on State credits for dc,clopmcnt in,cstmcnt. 5. The State budget shall imcst 100'¼, of the expenditures as in the project apprmcd by the pro,incial Pcoplc·s Committee for State forestry farms for the building of the essential infrastructure in service of production and the fulfillment of public utility tasks. These comprise: Planting. protecting and fostering the ,cry strategic and strategic protection forests under the management of the forcstr, farm. Building the essential infrastructure in sen-ice of production in the area planned for concentrated material forest (system of trunk roads, timber port and ,ards .) Performing tasks aimed at supporting socio economic d;;,clopmcnt and ensuring national defense and security in the highlands. deep-lying and remote areas. Article 7.- Renewing the organization of manage ment ,rithin the forestry farms: 1. State forestry farms must conduct assignment of land and forests on a stable and long-term basis according to Decree No. 1/CP of January -+. 1995 of the Go;-crnrncnt. When assigning forest land and forests to organizations and family households and indiYiduals. the forestry farm must write dmrn contracts clearly stipulating: rights and interests. responsibility and obligations of the contracting party and the contracted party: ensuring assuredness to the contracted party to invest capital and labor in tending. protecting and developing forests and to enjoy an appropriate proportion of the main products from the forests. In addition. the contracted party for forest land and forests of the State forestry farm is also eligible for by-products collected from the forest ( except the forestry products of the rare and precious categories stipulated in Decree No. 18/HDBT of January 17, 1992), and is allowed to invest in planting agricultural and forestry plants interspersed with forest trees in order to increase its income and improve its mrn life 2. State forestry farms arc allowed to organize specialized labor groups and teams to directly carry out the production tasks of the farms in the difficult forest areas where assignment to family households or other organizations and indiYiduals would be ineffecti,c. 3. State forestry farms arc allowed to use forestry land without forests and make use of the ad,antages of the forestry farm (on capital, tcchrnquc. market) to enter into joint ,cnturcs or mutually supporti,c operations with the households of public cmplovccs and workers at the forestry farm. as ,veil as peasant families and organizations and indi,iduals in the country and abroad to plant forests. combine agricultural and forestry production. process and market products from the forests. and to conduct scrYices for the other economic sections in the locality in planting. protecting and de\cloping forests. 1-. State forestrY farms shall coordinate with the forest control agency in appointing rangers specialized in monitoring the forestry' farm. and helping the forestry' farm director to direct the specialized forest protection force of the forestry farm. conduct patrol to protect the forests and handle violations of the forest resource~ including forcing the ,iolator to pay damages and rcco,cring properties for the forest owner as prescribed by law. 5. Each forestry farm needs only a director. a deputy director. a chief accountant and a number of assisting technicians and experts. At the level of production learn. there needs only a team leader and a technician of the team. Article 8.- Organization of implementation: The Ministry" of Agriculture and Rural Develop ment shall assume the main responsibility and coordinate \\ith the Ministr:, of Planning and Investment. the Ministry of Finance. the Ministry of Labor. War Invalids and Social Affairs. the General Land Administration and the related branches in directing the People ·s Committees of the pro;-inces and cctrally-run cities and the Corporations that own State forestry· farms to draw up the plan of arranging and renewing the organization and management at the State forestry farms according to this Decision and complete the realization of the project within the year 2000 Article 9.- This Decision takes clTcct 15 dm s after its signing. The earlier stipulations which arc contrary to this Decision are now annulled. Article JO.- The ministers. the heads of the ministcrial-lc,el agencies and agencies attached to the Government and the presidents of the People ·s Committees of the pro;-inccs and centrally-nm cities shall have to organize the implementation of this Decision. For the Prime Minister Depu(v Prime Minister NGUYEN CONG TAN