Joint Circular No. 02/2008/TTLT-BKH-BNN-BTC guiding the implementation of the Prime Minister’s Decision No. 147/2007/QD-TTg of 10 September 2007 on a number of policies on production forest development

Issue nos 01-02lJuty 2008 (GOng 880 nos 37(-3781July 5,2008) OFFICIAL GAZETTE 21 Part I. LEGAL DOCUMENTS TIlE MINISTRIES INTER - MINISTERIAL THEMINISTRYOFPLANNING AND INVESTMENT- THEMINISTRY OF AGRICULTVREAND RURALDEVEWPMENT THEMIN1STRY OF FINANCE JOINT CIRCULAR No.02l200SfITLT-BKH BNN-BTC OF JUNE 23, 2008, GUIDING THE IMPLEMENTA.TION OFTHE PRIME MINISTER'S DECISION No. 14712OO7IQD TTg OF SEPTEMBER 10, 2007, ON A NUMBER OF POLICIES ON PRODUCTION FOREST DEVELOPMENT Pursuant tothePrime Minister sDecision No. 147/2007IQD-TTg ojSeptember 10, ZOO?, em u number of policies on production forest development during 2007-2015 (below referred to as Decision No J47/)f}n7IQn-1Tg), TheMinistry ofPlanning andInvestment, the Ministry ofAgriculture and Rural Development and the Ministry of Finance suides the implementation ofthisDecision asfollows: I. GENERAL PROVISIONS The terms and phrases referred to in this Circular are construed as follows: 1. Bare land, hills and mountains for forestationreferred toin thisCircularmeans land areas already plunned for production forests on whichthereis no forestoverthepast threeor more years (status Ia, Ib or Ic), 2. State-run organizations include protection forest management boards, special-use forest management boards, state-run forestry farms, forestry companies and enterprises in which the State owns 50% or more of charter capital and which are allocated or leased forest land by the State. 3. Non-state organizations include cooperatives, privateenterprises,limitedliability companies, joint-stock companies in which the Stale owns less man :'50% of charter capital, partnershipsand population communities. 4. Silvicultural activities include forestation and forest tending (Including also wilJillg uf seedlingforests and gardens, and assayforests); building of nurseries; silviculturalconsultations (formulation of projects, silviculrnral technical designs; allocationof land or forests, contracting of land for forestation); building of firebreaks; drawingof forestationmaps. 5. Long-term contracting of land for forestation: For state-run organizations that contract land areas allocated or leased to them to ho useh 0 Ids, in dividual s or po"ulation communities, the contracting duration is the remaining time of the allocation or lease tenn stated in land allocation decisions of competent agencies or land lease contracts between these organizations and competent agencies but must not exceed SO years. 6. Consolidatedforestareameansa forestarea of adjacent or neighboring forest lots, in which the land area without forest accounts for 10%or less of the total consolidated forestarea. © VIETNAM LAW & LEGAL FORUM 22 OFFICIAL GAZETTE Issue nos 01-C2IJuly 2008 (Cong Ban n(J,~ 377-378/July 5. 2008) II. SPECIFIC GUIDANCE 1. Formulation, evaluanon and approval ot production forest planting supportprojects 1.1. Identification of investors and project scope: Investors at production forest planting support projects shall be identifiedunder Clause 1,Articlel5 of the Prime Minister's DecisionNo. 14712007IQD-ITg. al Projects to support the planting of production forests by households and individuals (below collectively referred to as households): Based on the existing capability of state-run organizations, forest ranger stations and border-guard stations (below collectively referred 10 as state-run organizations) as well as existingproduction forest land areas, district level steering boards shall assign each organization to formulate a production forest planting support project in some communes. bI Non-state organizations may themselves formulate production forest planting support projects.Such a project may targeta communeor communes covered by a project to support the planting of'productlon forests by households but must notcover the same site. cl For Don-state organizations that have no projects bw have forestation needs: provincial level People's Committees shall permit them to formulate production forest planting support pmjN:1s A fter being approved, these projects serve as a basis for land allocationor lease. 1.2. Activities of formulating a production forest planting support projt:'l't indllnf';' aI Determination of to be-forested land areas and identification of foresters up to the year of forestation, including: Forestation of bare land, hill and mountain areas planned as production forest land; ~ Reforestationof landareasafterexploitation of forestsalreadyplantedwithcapitalsources327 and 661, which are now planned as production forest land; Identification of land areas eligible for support(communeshitbyexceptionaldifficulties, border communes and other communes); Preliminary identification of forest owners eligible for support (ethnic minority or Kinh people); Identificationof main forest tree population to be recommended to forest owners. bl Elaboration of land allocation, lease or contracting for forestation (according to Section 2 of this Circular), cI Planning of asystemofnurseries(according to Section 14of this Circular). dIPlanningofa systemof firebreaksforforest fire preventionand combat (according10 Section 15 of this Circular). eI General map (of a 1:10,000 scale) clearly showing me boundary of the project area, fl Total investment capital, including investment support capital to be allocated from the state budget and specifying the estimated investment capital amounts for each project component g/ Expected financial results. hi Investor's capability to mobilize capital, In some cases the planning of the nursery system, elaboration of plans on lund allocation, lease or contracting for forestation or planning of the firebreaksystem may becarried out under a separate project provided the reason for that e VIETN M LAW &LEGAL FORUM Issue 110$01-o2JJuJy 2008 fCOna 880nos 377·3781Ju/y 5. 2008) OFF!CJAL GAZETTE 23 separate project is accepted by the district-level steering board and its expenses are within the assigned spending level specified in Clause 1.4 of this Section. 1.3.Evaluation and approval: aJ For projects to support the planting of production forests by households formulated by state-run organizations: After a project is formulated, the district level project management unit shall report it to the district-level steering board and solicit verification opinions of the provincial-level Agriculture and Rural Development Service. If the provincial-level Agriculture and Rural De Vel0PI ueut Service 15i ves nu wriuen upirJiun:> within 15 working days after receiving the complete and valid dossier, it will be regarded as havi n g approve-d the project Wi thin subsequent 10 working days, the district-level project management unit shall submit the project to the district-level People's Committee for evaluation and approval. The project approval decision must be sent to members of the district-level steering board, provincial-level project management unit and concerned organizations and individuals; For state-run organizations lhathavealready formulated projects to suppoi t the plaiuiug of production forests by individuals or households but their projects are incompliant with the provisions ofDecision No 147/?OO7/QD-TIgon investors and support levels, project owners are allowed to execute these projects and disburse project capital under decisions approved by competent authorities until the end of 2008; concurrently, they shall review and adjust their projects under this Circular and report them to dtstrict-Ievel People's Comrruttees for approval before provincial-level People's Committees assign capital plans for implementation from 2009. bI For projects ofnon-state organizations: Provincial-level People's Committees shall assign functional agencies (provincial-level Agriculture and Rural Development Services for projects on forestation and investment in silvicultural works; provincial-level Planning and Investment Services for general investment projects) to organize the evaluation of these projects and submit them to presiderns u[ provincial-level People's Committees for approval; Non state organizations that have formulated investment projects and obtained any of the following decisions or documentsofcompetent authorities: project approval decision: land allocation decision; or land lease contract, are only required to work out plans on use of investment support capital sources under Decision No. 147/ 2007/QD-ITg, and submit them to provincial level People's Committees for approval and assignment 1.4. The expense for formulation and evaluation of projects to support the planting of production forests by individuaJs or households is VND 30,OIX)fhectare, covering also firebreak planning, nursery system planning and land allocation plan elaboration. 2. Order of elaboration of land and forest allocation plans, grant of land use rights certificates, contracting of forestation land to organizations and households covered by production forest planting support projects. 2.1. Elaboration of land allocation plans, grant ot land use rights certificates and contracting of e VIETNAM LA: & LEGAL FORUM OFFJCJAL GAZETTE Issue nos 01.02lJuly 2008 (Gong Bao nos 377-3781July 5, 2008) forest land: al Principles for forest land allocation, lease and contracting: All forest land areas under a project must be allocated and leased and for which land use rights certificates must be granted or forestation land contracting maps must be supplied (only in areas mcking conditions for the grant of land use rights certificates) for forestation, building ofnurseries, seedlingforests, gardensor centers; For tOrestland areas planned for production forests (or converted from prevention forests into production forests) and contracted to households by state-run forestry farms, agro forestry companies, other state units or non-state enterprises transformed from state enterprises in thecourse of implementation of the program 00 reorganization and renewal of state enterprises, if these households have not received any seedling, material or technical supports for three consecutive years or the contracting parties have used only the state budget source to provide supports (the 5 million hectares afforestation project or formerProgram 327), that means me conrracttng parries have contracted- forest land areas to households without providing any supports and collected land rents, presrdents of provincial-Ieve.l People's Committees shall consider and decide on the recovery of these land areas for allocation or lease, and grant land use rights certificates under regulations. For forest land areas already planned as a raw material zone for a specific wood processing plant already approved by the time of forestation under Decision No. 147120071 QD-TTg, these land areas should not be recovered but must 1.Jt; contracted 011 it long-term and stable basis to foresters. Products shall be shared in proportion to the capital contribution ratios of the involved parties and their selling prices based on market prices must be agreed upon by the involvedparties under contracts. If the land-contracting party does not contribute investment capital, the contracted party shall only pay a management charge as prescribed in SIX tiou 2, Article (j of Decision No. 147/20071 QD-Tfg. bl Provincial-level Agriculture and Rural Development Services shall assume the prime responsibility for, and coordinate with provincial level Natural Resources and Environment Servicesin, reviewingallforest land areas which must be recovered, then proposing them to provincial-levelPeople's Committees for decision, and assigning a competent agency to grant land use rights certificates under the guidance at Point aofthis Clause. cI Based on the approved planning of three types of forest and the principles for land allocation and recovery, district-level project management units shall elaborate plans on land allocation, lease or contractirig for forestation, notify them to local people and communities for opinions and adjust the plans (when necessary). Then, theyshall hire functional units to measure land areas, complete dossiers and submit them to competent authorities for grant of land use rights certificates. 2.2. Activities of elaborating a land allocation plan: Determining land areas under a project, specifying those with land use rights certificates, those requiring land use rights certificates or contracting for forestation, and those to be recovered and granted land use rights certificates. Particularly for to be-contracted land areas (for Issue nos01..()21July 2008 (COng Bsonos 377·3781July 5, 2008) OFFICIAL GAZETTE 25 whichland use rights certificates arenotgranted), thecontractingparty shall,upon landcontracting, draw land contracting maps of a 1/5,OUU scale, get them certified by district-level People's Committees, and supply them to contracted parties. 2.3. Expenses for land allocation, forest allocation and forestation land contracting (pending the grant of land we rights certificates) aIThe expense for allocationor lease of land orcontractingof forestlandtohouseholds isVND 200,OOOIhaon average. Specific expense levels shall be approved by competent authorities. bl The expense for allocationor lease of land to non-state organizations is VND lOO.OOOlha (covering the whole process from the stage of working outoption plans to the gra.nt of land use rights certificates). Investors may themselves make cost estimates and approve land allocation or lease expenses and implement the assigned plans. 2A. The time limit for finishing the grant of land use rights certificates is within 12 months after forestationcontracts are signed. :;. Urder ot and procedures for providing forestation investment supports (advance supports) 3.1. For households aJ The condition for a village to receive an advance support is that it must have at least 50 hectares of eonsoliduted land for forestation. Advance supports will not beprovidedfor small and scattered land areas. bf Order of and procedures for providing supports Based on the forestation support plan assignedfor threeyearsandtheproject'slandarea, the district-level project management unit shall send written noticestoallcommunesandorganize a mectmgwitheach VLI1age or hamlet to announce theforestation planand locationandmanagement and protection measures for discussion and modification (when necessnry), so U5 to obtain the consentof at least70%ofparticipants,and supply forestationapplicationforms to households. Households that wish to plant forests shall make applications according to a set form (not printed herein), get them certified by the village chief, and send them to the commune People's Committee. The commune People's Committee shall sum up, within 10 days after the deadline for application receipt, theneeds for forestation III Its locality, make a list ot households wishing to plant forests, specifying the land area for, and location of, forestation of each household in a priority order, and publicly post up it atthe office of the commune People's Committee and send it to the district-level People's Committee; B~"f'rl on applications. minutes of local people's meetings, planned land areas and approved forestation plans, the district-level project management unit shall coordtitar.e with commune People's Committees and villages in reaching agreementon submitting to t1le district level People's Committee for approval the list of households engaged in forestation, forestation land areasand locations; After the district-level People's Committee dpplOVCS tin; l ist of fon::'ling hou:,cltolds, investors shall publicly notify this list at the offices of the commune People's Committees, s i gn fores t::lti on contracts wi Ih an d "npp1y written technical instructions to households on the approved list. cIAdvance supportsshall be provided twice. © VIETNAM LA! & LEGAL FORUM 26 OFFICIAL GAZETTE Issue nos 01-o2lJuly 2008 (Cong Bao nos 377-3781July 5,2008) Supports for paying forestation seedling and fertilizer costs (if any) shall be provided in the first year. The remainder (if any) shall be paid in the third year after the forest take-over test. dITake-over test, paymentand settlement Annually, when a forest is eligible for take over test, the investorshallnotify a take-overtest schedule to IDe forest ownerand the communeor village Iorest development board. Based on the take-overtest schedule,the investorshallassume the prime responsibility for, and invite the communeor villageforestdevelopmentboardto participate in, conducting a take-over test of the forest for rhe forest owner; A dossier for take-over test of a forest of a householdcomprisesthe forestation contractand certificates of variety origin(forvarieties requiring certificatesof origin); A dossier for payment and settlement comprises a contractexcerptmade bytheinvestor and a writtenrecord of forest take-overtest. 3.2.For non-stateorganizations al Condition on advance supports is the availability of a plan on planting of at least 100 hectaresof'consoiidatedforests. When a project on forestation support is approved, the investorshallrequestin writingthe proVincial-level People's comrninee ro assign it three-year forestation support plan. Within 15 working days, the provincial-level People's Committee shall base it~Jfon the assigned plan to decideon assigninga three-year supportplan to the investoraccording to its competence. bIAdvancesupportsshall be provided twice: When being assigned the plan, the investormay advance 50% of support funds for preparing seedlings and grounds for forestation. The remainder of supports shan be paid m the third year when forests are tested for take-overby the provincial-level projectmanagementunit. c/ Take-overtest, payment and settlement: When a forest is eligible for take-over test, the investorshall send a writtenrequest for take over testenclosedwith awrittenrecordot mternal take-over test made by the investor to the provincial-level projectmanagementunit.Within 15 working days, the provincial-level project management unit shall assume the prime responsibility for, and invite a number of provincial-level services andbranches anddistrict level People's Committees to participate in, conducting a take-over test of the forest for the forest owner; A dossier for take-over lest comprises the project approval decision, the document approving the forestation plan, the decision on approval of the technical design and cost estimate for forest planting and tending.. the decision on establishmentof theprojectmanagement unit, and certificates of variety origin(forvarieties requiring certificatesof origin); ~ A dossier for payment and settlement comprisesthedocumentapproving theforestation plan and a writtenrecord of forest take-over test. 4.Orderof and proceduresforprovidingpost investmentforestation supports 4.1. For households aJEligible households: Households that have land use rights certificates (for plantingproductionforests); ~ Households that have long-term land use contracts(includingproductionforestlandor land under protection forest newly switched to production forest land) with state-run organizations (including newlyequitizedstate-run enterprises) before the effective date of Decision © YJE AM .LAW & LEGAL fORUM Issue nos 01-{)2IJuIv 2008 (C6ng Bao nos377-378/July 5, 2008) OFFICIAL GAZETTE 27 No. 147/2007/QD~TIg; ~ Households that haveland under A production forestplantingplanningandhavebeencultivating on that land on a stable basis for at least three years without any dispute but have no land use rights certificates or no long-term land use contracts. These households must have a self drawn land lot plan with the self-measured area of the lot, iudicatlng the locauon and boundaries of the land lot with the certifications of adjacent landowners,provingthatthere isnodispute. Such a plan .also needs to he certified hy the vi11~gp.or commune administration. For these land areas, the grant of land use rights certificates or the drawing offorestation landcontracting mapsmust be completedwithin 12monthsforforestowners. hiProcedures arethe same asprovided atPoint b, Clause 3.1, Section 3 of thisCircular. Within 20 working days after receiving applications, thedistrict-level projectrnanagement unitshall,on thebasisofforestation support plans of approved projects, assign their personnel to conduct the field verification and determine support levels according to regulations before signingforestation support contracts, which must be enclosed with written instructions of forest plantingand tendingtechniques for households. ,,{Take-over tC~I, payiuent and seuleiucnt. When plantedforests are 16-18 monthsold, the district-level project management unit shall notify a take-over test schedule to all forest owners, the commune forest development board and village forest developmentboard, and organize take-over testsaccording tothenotifiedschedule; A dossier for take-over test comprises the forestation support contract and certificates of variety origin (for varieties requiring certificates of origin); A dossier for payment and settlement comprises a contract excerptmade by the inve.~or and a written recordof forest take-over test. Post-investment supports shall be paid in a lump sum rightafter the forest take-overtest. 4.2. Fornon-stateorganizations a/When a projectapprovaldecisionis issued by a competent authority, the projectownershall register a three-year forestation plan with the provincial-level People's Committee.Within 15 working days, the provincial-level People's Committee shallbase itself on the assignedplan to approvein writingthe investor's plan. bI The project owner shall base itself on the assigned plan to elaboratea technicaldesign and a forest planting and tending cost estimate, and approve themby itselfunder current regulations for organizing the Iorestariou, clTake-over testand payment: When a forest is eligible for take-over test, the forest owner shall send a written report (enclosedwith a written record of internal take overtest ofeachlotor allotment) to theprovincial levelprojectmanagement unit requesti ne:l fnrP.!':t take-over test. Within 15 working days, the provincial-level project management unit shall invite concernedbranches andrepresentatives of thedistrict-levelPeople'sCommittee to participate in the forest take-overtest for the invester, A dossier for take-over test comprises the project approval decision, the document approving the forestation plan, the decision on approvalof thetechnical designandcostestimate forforestplanting and tending, :mcl cp.rtifi~tl'Sof varietyorigin (for varietiesrequiring certificates of origin); A dossier for payment and settlement comprises thedocumentapprovingtheforestation e VIETNAM LAW & LEGAL FORUM 28 OFFICIAL GAZETTE Issue "OJ 01oC2IJufy 2008 (GongBan nos 377.3781JlJly 5, 2(08) plan and a writtenrecord of forest take-overtest. Post-investment supports shall be paid in a lumpsum righta.fter the forest take-over test. 5. Forest take-over test time and quality standards of tested forests 5.1. Take-overtest time far advance supports: The first and second take-over tests shall be conducted when forestsare8-10 months old and 31-34months old, respectively. 5.2. We-over test time for post-investment supports:The take-over test shall be conducted when forests are 16-18months old. 5.3. Q6Itllity standardsoftested forests: Planted treesare wellgrowingand developing; living trees are fairly equally distributed and account far85%or more of the total number of trees plantedunder contracts;each treeless space issmallertaan 100m2; andweeding andeannmg up are conductedbeforethe take-overtest.Forest areas whidl are notup to these standardsmustbe additionally planted with new trees and subject to anaddtftonal take-over test in thenext year. 6. Forestationcompletion maps: In the third yl"Jlt' oft~ three-YI"..3r forestation plan.the district levelprojectmanagementunitshallmake a digital l/1O,0Cl0 map of forestation completion results for the wholeforestareaplantedduring the three yearplanningperiod.This map is made together with a fl'h'tnning period-end supervision and assessnJt;trt reportfor theprovincial-levelproject management unit to ~UPCl vise, synthesize and report on the forestation to the Central ManagementBoard The unitexpensefor making digital maps is VND 10,()()O!ln 7. Order of and procedures for providing supports for plantingscattered trees 7.1. Supponmg principles aIDistrict-levelprojectmanagementunitsshall coordinate with commune People's Committees and villagesand organizations having land areas to be planted with scattered trees in working out plansonplantingof scatteredtreesinprojectsites. They shall organize the registration of tree planters,dearly indicating the plantinglocations and duration and tree varieties to be planted. blEach organization, individual or household may receive supports only once for the whole periodfrom now to 2015. cI FOT scattered trees planted by households on boundary ridges of their crop fields for the protection of agricultural crops; scattered trees planted by organizations having land areas used for specific purposes (schools, hospitals,...) and enjoying yields from these trees, supportswill be providedfor planting no more than 200trees per nectare andat specified levelsdecided by district levelPeople's Committees. dI Scattered trees on public land areas (along roadS or canal banks): Commune-level People's CommitteesmayassigntheYouthUnion,theWar Veterans Association, cooperatives, thePeasants Association andlocal communities to plant the"p. trees and enjoy their yields. eIThe district-level project management unit shall notify the approved plan to organizations, individuals and households so that they can register in advance and prepare seedlings. The time limit for making registration in advance depends on the time for nursing seedlings. fJ After obtaining the plan on and summing upneedsfor planting scatteredtreesin its locality, the district-level project management umt shall coordinate with communes and villages in arranging these needs in a priority order and submitting a plan on planting ofscattered trees to © VIE NAM LAW & LEGAL FORUM Issue nos 01.Q2IJulX 2008 (COng BaD nos 377-37fYJuly 5, 2008) OFFICIAL GAZETTE 29 thedistrict-level People's Committee forapproval. The plan on planting of scattered trees must be publicly notified at the administration office of thecommuneor village(villageor hamletcultural house)andnotifiedtoallconcernedorganizations, individuals and households. g)Supplier(s) of saplingsfor scatteredplanting must be chosen through a public bidding (under a three-year plan) and the bidding package must notbedividedsoasto skipinvestmentprocedures. 7.2. Support mode and level: Forest owners may choose either of the following two support modes: aIPost-investment support Organizationsand households that plant scattered trees under Clause 7.1 of this Section, when their planted trees are 16-18 months old and are eligible for take-over test specified in Clause 5.3 of Section 5, are entitled to a supportequal to 100%ofthe seedling cost at the level of VND 1.5 miIlion/1,500 trees. b/ Advance support: Organizations and householdsmay purchase seedlings for scattered planting at a reduced price equal to 20% of the actualprice(determined througha supplybidding) in theirprovince.Theremaining80% of theactual seedlingpricewillbe coveredbythestatebudget's itemfor scatteredtreeplanting.Theproceeds from the sale of seedlings shall be collected by the district-level People's Committee and used for preparation of seedlings for subsequent years. 7.3. Land areas converted from planted scattered trees: 1,000or 1,500 scattered trees are equivalent to one hectare of consolidated forest for trees of a growing cycle of over 10 years or under 10years, respectively. 8. Managementof tree sources for forestation 8.1. Organizauons, indi viduals and households may produce and supply tree sources for forestation (seedlings, seeds orseedlingmaterials). For main forest tree varieties on the announced list, there must be certificates of origin of variety lotsundertheRegulationonmanagementofforest Lice varieues promulgmw by the Agriculrure and Rural Development Ministry together with Decision No. 89/2005/QD-BNN). ~.2. Foresting orgamzanons and lJtdividuaJs may purchase seedling materials and seedlings from seedling source owners or seedling establishments in accordance with Clause 8.1 of this Section. District-level projectmanagementunits shall base themselves on seedling requirements of forestation contracts and seedling requests of households to work out plans on planting of scatteredtrees to suit actual local conditions. 8.3. Management of seedling priees: Every January, provincial-level People's Committees shall approve and publicly notify prices of forestation seedlingsfor alltree varietiesavailable in their localities. 8.4. Public notification of variety sources: Annually,provincial-levelAgricultureand Rural Development Services shall publici)' notify in writingestablishments producingseedlings up to quality standards and variety sources in their respective localities. The Agriculture "lid Rural Development Ministry shall publicize on its website variety mauageureut establisluneuts producing seedlings up to quality standards and variety sources throughout the country. 9. Determinationand realizationorroresranon support levels Supports for each item, which come from the total allocated fund SOUTce, are specified below: © VIETNAM L.AW &LEGAL FORUM 30 OFFICIAL GAZETTE Issue nos01·02lJuly 2008 (Gong BaD nos 377·3781July 5, 2008) Planting of production forests in communes hit by exceptional difficulties (Decision No. 161/2006/QD-ITg) Large Small ti mh..r ti rnher Small timber Resettlement areas Large timber Small timber Border areas Large timber treestrees Eligible beneficiaries Ethnic minority people Other beneficmfte& VND 3 mil VND 3 mil VND 2 mil VND 2 mil VND 4 mil VND 1 mil VND 3 mil VND 3 mil VND 5 mil VND 5 mil VND 4mB VND 1 mil VND2 mil <VND 1.5 mil 60%0£ approved cost estimates Expenses for forestry extension VND 200,OOOIha VND 100,00 O/ha Expense ror survey fur technicsd design and techoical instructiDl'I VND 50,OOO/ha Expense for formulation and evaluatren of production forest planting JUpport projects. VND 30,OOO/ha Expense for land allocation or contracting VND 200,OOOlha for households and individuals VND l00,OOOlha for organizations and communities Expense for iliawiug digital maps of forestation completion VND 30,OOOJha Benefits To enjoy 100% of products Obligations To remit 80 kg of paddylhalforestation cycle L- ....L . -'-----. e VIETNAM LAW & LEGAL FORUM Issue nos 01-0ZfJuly 2008 (GOng Bao nos 377·37&1July 5,2(08) OFFICIAL GAZETTE 31 Provinces shall basethemselves ontheir actual conditions to consider theuseof localbudgets to provideadditional supports forprojects withhigh seedling expenses and executed in difficult localities. The support expense of VND 100,000 ~ 200,OOOlha!year for the forestry extension work shall be used mainly for payment of salaries, training costs and working mission expenses for persons forestry extension cadres. 10. Enjoyment of benefits by non-state organizations, individuals and households previously contracted to plant special-use or protection forests with funding fromProgram 327 and the 5 million hectares afforestation program after these forests are planned as production forests. 10.1. Forforest areas contractedtohouseholds or non-state organizations for planting, tending and protection, their current contracts may be converted into stable and long-term contracts or land userightscertificates will be grantedunder regulations. Thesehouseholds andorganizations may enjoy benefits underArticle 6 of Decision No. I47nOO7/QD-TIg. Forestowners shall re-plant forests within12 months after exploiting these forests under regulations without enjoying state budget supports for the nextforestation cycle. 10.2. Forforestareascontracted tohouseholds for protection only (currently contracted for protection): Upon exploitation of these forests, households may enjoy an additional forest protection remunerationofVND200.cU)/haIyear of protection on average which is paid from the proceeds from the saleof timberexploited from these forest areas. The specific levels of this remuneration shall be proposed by state-run organizations and decided by district-level People'sCommittees. The whole proceeds, aftersubtracting lawful expenses for organizing the bidding for timber exploi talionandproviding supportsto contracted parties, must be remittedinto a custody account for provision of forestation supports under Decision No. 147/2007/QD-TTg. If theproceeds are smaller than (or not enough to provide) additional supports to contracted parties, the collectedproceeds amountmustbe usedfltStly to cover lawful expenses formanagement, designing andcompilation of bidding dossiers b;'state-run organizations. The remainder, if any~ must be divided to households in proportion to their respective torest areas and number of years of contracted forestmanagement andprotection. Theexploitationandsaleoftimbers from these forests IJIUSL be conducted through biddings under current regulations: state-run organizations currently assigned to manage forests shalldecide hy themselves no tile' time off'xpJoitatilJt, compile andsubmitdossiers forbidding of to be exploited forest areas tocompetentauthorities fOT-approval, andorganize public biddings. 10.3. For protection forest areas. in which project ownershavepreviously made additional investments with their own capital for planting, tending and protection purposes and these investments have been approved by competent authorities, proceeds fromthe saleof theseforest areas shall be used to cover lawful cxpenscs for thebidding, timberexploitation andprovision of additional supports tohouseholds. Theremainder shall be dividedaccording to the ratio between investment capital from the state budget and investment capital of the project owner. The amount belonging to the state budget will be retained forfurther investment inforestation under © VIETNAM lAW & lEGAL FORUM 32 OFFICIAL GAZETTE Issue nos 01-02lJuly 2008 (GOng BaD nos 377-378/July 5,2008) thispolicy. The projectownersmayreceiveprofi.ts in proportion to their additionally invested amounts. 10.4.For protection forestareasstillmanaged by project owners themselves without the parttctpauon of households, project ow II~I:S shall decideby themselves on the timeofexploitation. Projectowners shan compileand submitbidding dossier" tA rompptpnt authorities for approval before organizing bidding. Proceeds from biddingsWIl be remitted intocustody accounts ofprojectownersandreportedtoprovincial-level People '5 Committees for permission for investment under Decision No. l47/2007/QD TIg. 10.5.Protectionor special-useforest areas In whichsilvicultuIalcapital construction iscurrently carried out (oneyearof planting+ three years of tending), when being planned as production forests under Directive No. 38/2oo5/CT-TIg of December5, 2005, shall behandled as follows: aJ For forest areas already alloC';'ltE'd or contractedon a stablebasisto non-stateeconomic entities, theseeconomicentitiesshall invest their owncapital in tending andprotecting theseforests and enjoy benefitstherefrom. hi For forest areas of state-runorganizations, thenormsalready approvedfor thewholeduration of silvicultural capital construction shall be complied\\Ii tho 1L Forest exploitation, and collection and remittance of sums of money payable by forest owners II.t. Before conductingexploitation,a forest owner shallnotifyinwritingspecificexploitation plans fordifferent lotsor allotments tothedistrict levelforestrangerstation,andconcurrently to the couununc-Icve.l People's Committee for monitoring. Within five working days after receiving the written notice, if the forest ranger statton makes no written opposition, the forest ownermayexploitforests, transportandsellforest products. Within 45 days after sending timber exploitation plan to the forest ranger station, the forestowner shallremit a sum of money into the forest development fund of the commune or village under regulations. Past the above time limit, if the forestowner fails to pay that Sum of money, he/she/it shallbesanctioned asfordelayed tax payment. After being exploited, forests must be re planted within 12 months. 11.2. Paddyprice used to calculate the sumof money payable by each forest owner into the commune budget is the price of ordinary loag grain paddy annually set by the provincial-level People's Committee (the paddy price for collectionof agricultural tax). 11.3. Commune forest development boards and vi lbgp. fnrp"r development hoard" shallopen their own bank accounts and collect sums of money from forest owners. They shall use these sums ofmoney under Clause 21.8,Section21 of this Circular. 12. Supports for investment in planting and managementof seedlingforests or gardens 12.L Formulation of projects on planning of seedlingforestsand gardens: atPlanningon seedlingforests and gardens is a long-term and stable planning uniformly managed by the Agriculture and Rural Development Ministryundergeneralregulations. Provmcral-Ievel Agriculture and Rural Development Services shall assume the prime responsibility forplanning the systemof seedling forests and gardens up to 2050: (OJ" ifii i!,j,'.I'~WI;i'aWla.] .III~ Issue nos 01-Q2IJuly2008 (GOng Bao nos 377-378/Ju/y 5,2008) OFFICIAL GAZETTE 33 To plan a system of seedling forests and gardens on the basic principles of ensuring sufficient supply of variety sources forthe branch, using largely existing variety sources and additionallyplanning new varietysources in line with (he branch's strategic planning on forestry seedlings already approvedby theAgriculture and Rural DevelopmentMinistry; To identify investors, locutions and areas of seedling forests andgardenscapableof supplying seedlingsas well as areas of which ownersneed to be changed. State-run organizations shall manage 30% of the total area of seedlingforests and gardens which areof national importance; To applysolutions to changing investorsfor seedling forests and gardens which need new investors; A newly planted seedling forest or garden must be at least one hectare in size.A converted seedlingforest must be at least five hectares. bI Plannings of seedling forests and gardens shall be submitted by the provincial-level Agriculture and Rural Development Services to theAgricultureand Rural Developrnenr Ministry for evaluation and to provincial Ievel People's Committeesfor approval. Decisionson approval of plannings must be sent to owners of seedling forestsand gardens and publiclynotified. 12.2. Investmentin, take-overtestof, payment and settlementfor seedling forests and gardens aJ Conditions on receiving supports for investmentin a seedling forest or garden: There must be a land use rights certificate; stable and long-termland and forest assignment contracts; or a ground plan of the seedling forest or garden drawn by the investor with no-dispute certifications of adjacent land users and the communepeople's Committee; andtheInvestor's written commitments to use land for building a stableandlong-term seedling forestor garden and to convert the use purpose of the seedling forest only when sopermitted bya competentauthority. Planning priority will be given to investors and householdswith forestry knowledge (possessing diplomas of forestry universities or secondary schools). bl Provincial-level Agriculture and Rural Development Services shall guide investors in making technical designs and detailed cost estimates for planting of new seedling forestsand gardens, transforming and protecting seedling forests and gardens. Investors may make by themselves or hire consultants to maketechnical designs andcost estimates under the guidance of provincial-level Agriculture and Rural Development Services. Provincial-level Agriculture and Rural Development Setvices shall sign contractson investmentsupports(according to a set form, not printed herein) with myestoJ's according to the contents of their cost estimates and technical designs within three months aft:er provincial-level People's Committees issue decisions on approval of seedling forest and garden planning. cI After signingcontracts,investors shall start investment under contracts. d! In the fourthquarterevery year,dn Investor shalfreporton resultsof thecontractperferrnance to the provincial-level Agriculture and Rural Development Service. Within 20 working days afterreceivingtheinvestor'sreport, theprovincial levelAgricultureandRuralDevelopment Service shall set up a take-over test council, which has a compositionsimilar toa council for accreditation offoresttree variety sources (under theRegulation on management of forest tree varieties) with the additional pantctpanonortne distrtct-teve! project © VIETNAM W& LEGAL FORUM OFFICIAL GAZETTE Issue nos 01·02lJuly 2008 (Gona Bao nos 377-3781Ju/y 5. 2ooB) management unit and the commune-level forest development board of the locality where exists theseedlingforestorgardenforconducting a take over test for the investor. eIA dossier for take-over test comprises the contract between the seedling forest or garden owner and the provincial-level Agriculture and RuralDevelopmentService, a dossierevidencing the origin of dominant trees, the seeding and nursing.diary, actual planting activities as comparedwith theguidedtechnicaldesign.Such a dossier serves as a basis for the grant of a certificate of qualityvarietysource to the variety source owner. fJ A dossier for payment comprises a written record of take-over test and the provincial-level People's Committee'sdecisionon approvalof the seedling forestor gardenplanning project. gr Invesrment capital ill a seedling forest or gardensJWl be disbursed infourinstallments. The firstins~lrnent isequal to30%of thetotalsupport level and made right after the contract is signed. The second installment is equal to the first installment and made upon a take-over test 12 months after investmentis made in the seedling forestor gmden. The thirdandfourthinstallments shall be made upon the third-yearandfourth-year take-over tests, each is equal to 20% of the total support level. hi Previncial-level forest management units rnayenjoy3%of thetotalsupportcapitalprovided by the State for seedling forest or garden owners to implement the plannings, and shall provide technical guidance, manage contracts and carry outproceduresto grantlanduse rightscertificates to seedling forest or garden owners. They shall alsograntcertificates of origin ofqualityvarieties. This amount must be clearly stated in contracts between involvedparties.Provincial-level torest management units shall spend this amount according tocurrentregulations onadministrative non-businessexpenses. 13.Orderof formulatingprojectson supports for investmentin centers producing high-quality forest tree varieties 13J. Investmentpolicies and procedures: a/ If thereis no tissue-culturing establishment for propagatingforest treevarieties in its locality, theprovincial-levelprojectmanagementunitshall publiclyannounce on themassmediaits intention to select enterprisers) to mvest III this acuvity, givingpriority tothose withlargeforestation areas in the locality or those with joint ventures or cooperation with the State's scientific institutes or universities whichhave technologiesforforest tree tissue culture. After the selection, the provincial-level project management unit shall proposetheprovincial-level People's Committee to grant investmentpermission. bl After obtaining investment policies, investorsshall formulate and submit projects to provincial-level Agriculture and Rural DevelopmentServices for evaluation.Within20 working days aner receiving valid dossiers, Agriculture andRuralDevelopment Services sha11 send written evaluations to investors.Evaluation shall be connllC'tf'n in compliance with ArtiC'lf' R of Decision No. 147/2007/QD-TIg. d Investors shallapprove designsandtotal cost estimates. Investors' decisions must be sent to concernedprovincial agencies, theAgriculture and RuralDevelopmentMinistryandthePlanningand InvestmentMinistry. dI After approval decisions are made by investors, provincial-levelAgricultureandRural DevelopmentServicesshall signcontracts(made according W a set form, not printed herein) with e VIETNA,.. LAW & LEGAL FORUM Issue nos Q1-92JJuly 2008 (GOng Bao nos 377-378/Ju/y 5, 2008) OFFICIAL GAZETTE 35 investorswithin 20 workingdays after receiving investors' decisions. 13.2.Allocation of capitaland lake-overlest. paymentand settlement a/Aftersigningcontractsandinvesting inmore than 50% of the rotal work volume (which is certifiedby provincial-levelAgriculture andRural Development Services), investors may receive support capital corresponding to the completed work volume. bl After completing investment, the investor shall send a report thereon to the provincial level Agriculture and Rural Development Service. Within 20 days, the provincial-levelAgriculture and Rural Development Service shall set up a counciltoconducta take-overtest forthe investor. This council is composed of a representative of the provincial-level Agriculture and Rural Development Service as Its head, and representatives of provincial-level Planning and Investment Service, Construction Service and Science and Technology Service. d Written records of take-over tests, written evaluations, investmentdecisionsandinvestment po1ici..." serve as h~ ses for making the first installmentof supports to investors. dI Upon the second installment of supports, investors shall report on theactually soldquantities of forest products to provincial-levelAgriculture andRuralDevelopmentServicesforverification. If the sold quantity reaches one million trees per year, a written record of take-over test shall be made for the investor to receive the whole remainingsupport. ef Provincial-leveltake-over lestcouncilsand project management units may enjoy 2% of the State's totalsupport capital for investorsof high quality seedling centers for conducting the evaluation and take-over tests, managing contracts, andcarrying outprocedures for granting land use rights certificates.This amount must be clearly stated in contracts between invol ved parties. Provincial-level pmjoctmanagementunits shall ~PCIlrJ this amount according to current regulations on administrative non-business expenses. 14. Supports for investment III seedlmg nurseries 14.1. Order of and procedures for planning a system of nurseries by a district-level project management unitunder a state-runorganization: aJ The district-levelproject management unit shall make statistics on <Ill existing nurseries ill its locality (on locations,areas, sizes,production capacity,owners, etc.), hi It shall elaborate a planning on the system of nurseries in its locality under Article 9 of Decision No. 147/2007!QD-ITg, incorporating existing nurseries in the planning. cl It shall identify owners of nurseries: Domestic organizations, households or individuals. dI Newly planned nurseries must have land use rights certificates or ground plans of nursery areas drawn by investors with no-dispute certifications of adjacent land users and the commune People's Committee. Owners of nurseries shall also make written commitments to use land fur building nurseries for more than len years. el Contents of theplanning include: locations of nurseries, newly built or upgraded nurseries, existing land areas and owners ofnurseries. fl After completing the planning, investors shall solicit verification opinions ofthe provincial e VIETNAM I W& LEGAL fORUM 36 OFFICiAL GAZETTE Issue nos 01.02lJuly 2008 (Gong Baonos 377·378/July 5,20(8) level Agriculture and Rural Development Service, then submit the planning to the district-level People's Committee for evaluation and approval. The decision on approval of the planning must be sent to members of the district steering board, the provincial-level project management unit and owners of nurseries. g/ After the planning is approved, the district level project ffi;:ln;'lgempnt unit shall provide technical guidance to owners of nurseries. hi After designs of nurseries are made, the district-level project management unit shall sign contracts with owners of nurseries (made according to a set form, not printed herein). if The State's support levels comply with Clause 5, Article 9 of Decision No. 147120071 QD-TIg. The level of supports from the central budget for nurseries in border communes must not exceed VND 700 million/nursery. Local budgets shall provide additional supports. 14.2. Allocation of capital, take-over test, 1'<1yroeut and seulerueut for nurseries: aJ After signing contracts and investing in more than 50% of the total work volume (which is certified by district-level project management units), iJtVestors may receive support capital corresponding to the completed work volume. hi After completing investment in a nursery, an investor shall send a report thereon to the district-level project managementunit. Within 20 days, district-level project management unit shall invite representatives of the district steering board and the commune forest development board for conducting a take-over test for the investor. c! A dossier for payment and settlement for a nursery comprises the contract on support for investment in the nursery and a written record of take-oyer test of completion of the nurse!)'. dI District -level project management units may enjoy 3% of the State's total support capital for owners ofnurseriesfor conducting the elaboration of plannings, providing technical guidance, managing contracts, and carrying out procedures far granting land use ri8ht~certificate~to owners of nurseries. This amount must be clearly stated in contracts between involved parties. District level project management units shall spend this amount according to current regulations on administrative non-business expenses. 14.3. For nurseries of non-state enterprises conducting forestation on 1,000hectares or more, investment in these nurseries must be decided right in the course of formulating forestation projects with these enterprises being investors of nurseries (contracts on building nurseries are not required). Enterprises (acting as district-level project management units) shall make technical designs and cost estimates by themselves, then submit them to provincial-level Agriculture and Rural Development Services for evaluation. Subsequently, investors shall approve and start building new nurseries with the support level of VND 200 million/nursery or upgrade existing nurseries. The provincial-level project management unit shall assume the prime responsibility for conducting take-over tests for district-level project management units 15. Order of and procedures for providing supports for investment in firebreaks 15.1. Standard ot firebreaks aJ Under branch standard (04 TCYN 89-2(07), a firebreak has an average width of between 8 and 12 meters, depending on L1:Je height uf [Ult:SL trees, land terrain and the financial capability for building it. Firebreaks must be planned to be built along passages of forpst plots and allotments. ©VIET M LAW &LEGAL FORUM IS$ue nos 01·02lJuly 2008 (COng Sao nos 377-378/July 5, 2008) OFFICIAL GAZETTE 37 convenient for transportation of products and connection with existing public roads. In a torestanon cycle, first-time investment shall be made inground bulldozing and leveling,building ofstreamspillways (with anaveragesurfacewidth of 5 meters) for use also as transportation roads, and clearingof all treesandbushes on firebreaks. In subsequentyears, investmentshall be made in clearing, maintenance and regular repair of firebreaks. bl Apart from frrebreakseligible for support, district-level project management units shall planauxiliary runways in forestsof 100 hectares or more each to divide forest lots and allotments and connect with firebreaks; or plan green runways in forests highly vulnerable 10 tlre. The width of an auxiliary runway is 5-10 meters and the distance between two runways is 50-100 metI"T~. 15.2. Principles and order of planning firebreaksby a district-level projectmanagement unit under a stale-run organization: Taking advantage of the existing system of trailsand public roads; Ensuring convenient rransporranon ;.lnrl foresr firepreventionand combat; Equally layingout the systemof roads under Clause I, Article 10 of Decision No. 147120071 QD-TIg; Obtaining theconsentofat least70%offorest owners; The district-level project management unit shallact asan investorfor planning and investing in firebreaks. In the planningcourse, it shall hold about threemeetings with forest owners to reach agreementan plans. If a firebreakruns througha forest owner's land, jt shall explain andpersuade that forest owner to voluntarily donate: such land areato thecommunityforcommonbenefit. Itmay notusetheState's supports to paycompensations; In theplanningcourse,attention mustbe paid to previously planted production forest areas for which supports for building firebreaks have not yet been provided. These torest areas may be additionallyplanned for supports underDecision No. 147/2007/QD-TIg. 15.3. Pluu:.UWCS fur invesunem, rake-over tesr and payment: When a planning is approved. the district level project rnanugcrncnt unit shall coordinate with forest owners in placing landmarks on the field in order to form a system of roads; Rn""'d on the assigned plan, the district-level project management unitmay design by itself or hire experts to design cost estimates before submitting them to the district-level People's Committee for approvaL After the designed cost estimates are approved, the district-level project management unit may construct by itself or hire others10 construct tirebreaks; Take-overrest, paymentandsettlement: After making investment, the district-level project management unit shall report it to the distl.i~l-lcvcJ People's Committee, Within20 days, the district level People's Committee shall invite representatives of the provincial-level project management unit and commune forest development boards to participatein conducting take-overtests for investors. 15.4.Maintenance and repair Annually, the district-level project managementunitshallworkoutand subtnita plan onfirebreakmaintenanceandrepairto thedistrict level People's Committee for approval before implementing it. The annual fund for firebreak maintenance and Iepair is VND 1 HulliUll/lu II UII e VIETNAM W&LEGAL FORUM 38 . OFFICIAL GAZETTE Issue nos01'()21July 2008 (Gong BaD nos 377-3781July 5, 2008) average. 155. Allocation of funds: After the designed cost estimates are approved, the district-level project management unit mayreceive 50% of the approved fund for investment in a work. 16.Forestry roads For forestry roads eligible for construction investment supports for production forest development projects of specific processing establishments andrawmaterial zonesasspecified inClause2,Artic1e 10ofDecisian No. 14712007/ QD-TIg, tlle central budget shall provide supports ata levelnot exceedingVND 300millionlkm(for buildingalsobridges,tunnelroadsandspillways). The rernaming capital shal1 be provided by local budgets andproject owners. For these roads, the current regulation on work investment and construction management shall apply. 17. Supports for transportation of timber processed in the northwestern region 17.1. Entities investing in plants to process wood planks and MDF or particle boards in the northwestern provinces may receive supports under Article 11 of Decision No. 147/2oo7/QD Trg. 17.2.Contents of investment projects subject to approval by provincial-level People's CUI I uuiuees: Sizesof plantssuitableto raw materialzones; Locations of plants. 17.3. Guidance on conversionof volume unit (m 3) of wood products into weight unit (ton): For MDF boards, 1 m ' of products is equtvateru lU 7.50 k.g; ForHDFboards, 1rn'of'products isequivalent to 1,000 kg; For panicle boards, 1 m? uf products is equivalent to 700 kg; For plank boardsof all kinds, 1m3of products is equivalent to 1,000 kg. 17.4. Take-over test councils: A council for take-over test of a plant shall be set up by the provincial-level People's Committee president andcomposedofa vicepresidentof theprovincial level People's Committee as its chairman and representatives of the provincial level Agriculture and Rural Developmenl Service, Planning and InvestmentService,FinanceService,Scienceand Technology Service, and Industry and Trade Service. 17.5. Advance of capital: In the process of investment in a plant, when 50% or more of the total work volume has been completed, which is certi tied by the provincial-level project management unit, the investor may allocate suppurt capital corresponding (0 the completed work volume. 17.6. Clearingofsupports against payable tax amounts is made as follows: aJ Maximumclearingpercentage:30% of total supports. bl Clearing duration: 5 years. cI Clearingshallbe made annually. Enterprises shall determine by themselves specific clearing percentages and incorporate thf' clearing in their annualtaxfinalization reportsand areaccountable for the accuracy of their tax finalization reports. If the to be-cleared value in a fiscal year has not yet been declared for clearing in the tax finalization report of that year, it may be cleared in the followingfiscal year. Annually, upon determining the clearing percentage,enterprises shall send the tax offices' written certifications of cleared amounts to the provincial-level project management unit for © VIETN MlAW & lEGAL FORUM Issue nos01.Q2JJuly2008 (COng BaD nos 377-378/July 5, 2008) OFFICIAL GAZETTE 39 summing up and monitoring. Ill. SOLUTIONS AND UKGANIZATION OFIMPLEMENTATION 18. Management units at different level!': to manage supports for the planting of production forests 18.1. Provincial-level project management units are existing management units of the 5 million hectare afforestation project. For a province which has no forestry sub-department, its forest ranger sub-department shall act as the provincial-level (5 million hectares of forest) project management unit. For a province which has no forestry sub-departmentand forest ranger sub-department, a non-business unit with the forestry function shall act as the provincial-level project management unit. 18.2. District-levelsteering boards: A district having 1,000 hectares or more of Jandfor planting production forests shall set up a forestation steering board to closely work with other boards in charge of forestry in its locality (i.e., the commanding board for urgent issues of forest protection and forest frre prevention and combat). A district.level steering board shall be setup under a decision of the district-level People's Committee president and composed of a vice president of thedistrict-level People's Committee as its head, a representative of the district forest ranger station as its standing member, and representatives of the Fatherland Front, the Peasants' Associatton, the War veterans' Association,theYouthUnion, theAgricultureand Rural Development Section and the Natural Resources and Rnvironmp,ot Section as its members. The district-level steering board shall promulgate its own operation regulation. Its operating fund is equal to 0.8% of the total silvicuJtural expenditureof its locality and shall be used under current regulations. 13.3. District-levelproject management units areinvestors ofproduction forestplantingsupport projectsas specifiedat Items a, b and d. Clause 1, Article 15 of Decision No. 1-1712oo7/QD 'lTg. a/Adisoict-levelprojectmanagement unithas a head, 1-2 deputy heads, an accountant and a number of techn ir-ian-cum-invesrment supervisors. bl District-level project management units have their own bank accounts and may use their own sealsin transactions. ctIfforestersregisterand request Wslrict-Ievel projectmanagementunitsto supply seedlingsand the lattershall organizepublicbiddingsfur supply of seedlings under three-year plans. 18.4. Commune forest development boards: A commune forest development board shall be set up under Clause 3,Article 16of DecisionNo. 147/2007/QD-TIg and composed of a vice president of the commune People's Conunluee as its head, and representatives of the commune forest ranger station, the commune forestry and agriculture section. cadastralsection.YouthUnion and PeasantsAssociation organizations.military command or WarVeteransAssociationorganiza tion, and village or hamlet forest development boards(eachvillageor hamlet forestdevelopment board has one representative) as itsmembers. The operationregulation of a commune forest development board shall be designed to ensure democracy and publicity according to a set form (not printed herein) and approved by the commune People's Committee president, All e VIETNAM L W& LEGAL FORUM 40 OFFICIAL GAZETTE Issue nos 01·02lJuly 2008 (Gong Bao nos 377-378/July 5, 2(08) annualrevenueand expenditureplansof theboard must be approved by at least 80% of participants ill annual meetings of cooperative members, 18.5. Village or hamlet forest development boards: A village or hamlet forest development board shall be set up under Clause 4, Article 16 of Decision No. 14712007/QD-TTg and composedon the villageor hamletchiefor deputy chiefas itshead,and thevillageor hamletpatriarch and representativesof the YouthUnion,Peasants Association, Women's Union, War Veterans Association and 1-3 farmers representing their communuy asItsmembers. The operationregulationof a villageor hamlet forest development board shall be designed to ensure ..k;lJ;l.UI.,;l<I.<.;Y and publicity according to a setform (notprintedherein) and approvedby the commune People's Committee president. All annualrevenue andexpenditureplansof theboard must be approved by at least 80% of participants in biannual villageor hamlet meetings. 19. Manage-ment of contrncrs and the management informationsystem 19.1. All contracts must be managed through tnp. ;,nfOfmation technology system. The AgricultureandRuralDevelopmentshalldevelop a software for managing all contractsperformed under Decision No. 14712007/QD-TTg, and supplytha't management softwaretoallconcerned localities. and projects for uniform use. 19.2. All district-level project management units must have computers connected with those of provincial-level projectmanagementunits.All signedcontractsmustbe storedin themanagement database within 3 days after their signing. On the 20th day of every month, district-level project management units shall transfer data and send implementation reports toprovincial-levelproject management units. Provincial-level project management units shall update data and sum up data und reports before transferring them to the Central Project Management Board on 25th day of every month. 19.3. Encoding of forestation contracts for management: The code ofa forestationcontractconsists of the following; the serial number of the contract, which is a cardinal number, starting from 01, followedby the year of contractsigning,province code, district code, commune code and the sign for forestation (HDTR); A province code consistsof threeupper-size letters beingtheinitials of thenameof theprovince andmustbe unique(province codesare thoseused in making statistics on forest resource development); A district code consists of two upper-size lettersbeing the initialsof thename of the district and must be unique withina province; Acommune code consistsof two upper-size letters being the initials of the name of the commune and must be unique within a district; Dlstrict codes and conuuuue codes shall be uniformly given and notified by the provincial level project management unit to district-level project management unit" for use and to the Central Management Board for synthesis. For example: The forestation contract of Nguyen VanNs household with a serial number 09 for forestation in 2009inPhongVancommune (PV),LucNgandistrict(LN),BacGiangprovince (BGI) shou~d have the followingcode: 0912fYJ91 BGIILNIPVIHDTR. 19.4. Management of nursery contracts: The management code of a nursery contract consists © VIETNA LAW &LEGAL FORUM Issue nos 01'()2JJuly 2008 (COng Sao nos377·378/Ju(y 5,2008) OFFICIAL GAZETTE 41 of the same parts as that ofa forestationcontract, except for the last signfor a nursery (HDVU). 19.5. Management of seedling forest or garden contracts: The management code of a seedling forest or garden contract consists of the samepartsas thatof a forestationcontract,except for the last sign for a seedling forest or garden (HDRVG). 19.6. Management of high-quality seedling centercontracts: The managementcodeof ahigh quality seedling center contract consists of the sameparts asthatof a forestationcontract,except for the last sign for a high-qualityseedlingcenter (HDGCLC). 20.~anagementfunds 20.1.Management funds are equal to 10%of the statebudget's total support investmentcapital forsilvicultural activities, of whichministriesand central branches, provincial administrations, district-level steering boards,district-level project managementunits,communeforestdevelopment boards,and villageor hamlet forestdevelopment boardsenjoy0.5%,0.7%,0.8%,6%, 1% and 1%, iespcctively. Management funds enjoyable by communeforest development boardsand village or hamlet forest development boards shall be aggreg:1ted to those of district-level project managementunits.Annually, basedonforestation areas of communes, villagesand hamlets in their localities, district-levelprojectmanagementunits shall transfer management funds to these communes, viUages and hamlets. 20.2. Expense items: Priority is given to payment of expenses for training and capacity building for cadres at all levels, such as training, exchangeof experienceand capacitybuildingfor populationcommunities;expensesforevaluation and approval of projects, information and communication work, community-based consultation, preliminary reviewand final review conferences, emulation and commendation, purchaseof stationery fordirection, management andadministration work, payment ofsalaries and salary-basedallowancesfor projectmanagement units, working mission allowances, annual settlement ofused capital and cost finallzatiou uf completed projects. District-level project management units should be furnished with necessary equipment and means (computers. bicycles andmotorbikes)assoon as possible and expenses for these equipment and tools may exceed the management fund limit of 6% in the first year but must not exceed this limit for three yearsofplanassignment. 20.3. Particularly for the management fund portion of0.5% from thestate budget for central agencies: Apart fromexpensesfor theabovetasks, thisportionmayalsobespenton the study, review ami adlustment of a number of forestry-related mechanisms andpolicies; researchand assessment of economic, social and environmental impacts of forestation; independent audit; experimental manufacture and creation of a number of equipment, technologies and models in service of forestry developmentunderguidelinesadopted by the Central Management Board and at levels approved by the investment-decidingagency. 20.4.Detailedestimatesofmanagement funds of state-runorganizations, centraland provincial level project management units shall be made according to assigned three-year plans and submittedto the investment-decidingagency for approval. 21. Refund of supports, tax exemption and reduction, collection and remittance of amounts © VIETNAM AW &lEGAL FORUM 42 OFFICIAL GAZETTE Issue nos 01.Q2IJuly 2008 (Cong Bao nos 377-3781July 5. 2(08) payableby forestowners 21.1.Forestownersthathaveenjoyedsupports for planting forest tree speciesof an exploitation cycle of 10 years but wish to conduct early exploitation5 yearsafter theplantingshallrefund 15% ofsupports they have received for each year of early exploitation. This refunded amount shall be remitted into the recovery account of the district-level project management unit for re investmentin forestation. 21.2. Planted forest areas contracted by state run organizations to households on a stable and long-term basis are eligible for tax and land use levyexemptionor reductionas in the case of land allocation or lease to households in the same locality. 21.3. Forestsfailingto satisfythe requirements specifiedin Clause5.3,Section 5 of this Circular snail be handled as follows: In caseafforest lossdueto suchforce majeure circumstasces asnatural disasters. fires or pests under lhc AgI iculrurc and Rural Development Ministry's regulations, foresters arenot required to refundreceived supports; In case of forest loss for other reasons, foresters &hall refund received supports under Gause 2, Article 6 of Decision No. 147/20071 QD~TI~Agencies signing forestationcontracts shall liquidate these contracts and recover and refund capital to the state budget, and may use recovered capital to invest in other areas in the same project. 21.4. Fornurseries: Incase ownersofnurseries fail to use allocatedland areas for the purpose of seedttngproduction fur the full 10 years, they shall refund 15%of theState's supports for production of forest seedlings for each year of non production 21.5. For seedling forests and gardens: Seedling forests and gardens are stably planned. Ifowners of seedling forests and gardens no longer need to deal in seedling forests and gardens or seedling forests and gardens are not up to set qualitystandards, provincial-levelAgricultureand Rural Development Services shall assume the prime responsibility for, and coordinate with concernedbranches in,considering andproposing provincial-level People's Committees to issue decisions on recovery and transfer of these seedling forests and gardens attached to land to other investors without having to refund received supports. Incase of a change in the planning on use of seedling forest or garden land from the seedling to the public-utilitypurpose, the Agricultureand Rural Development Ministry shall permit that planning change and received supports must be refunded. 21.6. For high-quality seedling centers: If investors of seedling centersfail to strictlycomply withcontract terms, theyshallrefund all received supportsplus intereststhereon at the commercial loan interest rateapplicable at the time of refund. 21.7. Support-recoveringagencies and use of recovered supports: Agencies that have signed. contracts shallsupervise theperformance ofthese contracts and recover supports underregulations in case of contract breaches. Recovered supports shall be remitted into the recovery accounts (accounts for refunds) of these agcncies. Subsequently, these agencies shall report to the investment-deciding agency (the district-levelor provincial-levelPeople's Committee)for support investmentinforestation underDecisionNo. 147/ 2007/QD-TIg. 21.8.Methods of collectionand management ©VIETN ttl LAW & LEGAL FORUM Issue nos01-02lJuly 2008 (GOng Bao nos 377-378/July 5,2008) OFFICIAL GAZETTE 43 ofswnsofmoneyremitted byforest owners under Clause 2, Article 6 of Decision No. 147120071 QD-ITg. For communes andvillages or hamlets: They shall elaborate operationregulations oftheirforest development boards and regulations on managementofcommune-level andvillage-level forest development funds, then openaccounts for forestowners to remit moneyunderregulations. Account numbers must be notified to forest owners in their localities. In the near future, communesand villagesor hamlets that have no operation regulation andforestdevelopment fund managementregulationmayonlyopenaccounts for local forest owners to remit money but may not use it. For state-run organizations: They shall manage and use operating funds like administrative non-business funds for forest protection and development. 22. Elaboration, synthesis and assignment of plans and supervision and assessment 22.1. Elaboration of three-year plans: at Pursuant to Decision No. l4712007/QD TTg and this Circular, provincial-level People's Committeesshalldirect the elaboration of three yearmedium-termplans on support for planting of production forests, divided into specific annual plans on the basis of approved projects and consultations of population communities. In the near future. they shall elahorate and send 2008 2010 plans to the Planning and Investment Ministry and the Agriculture and Rural DevelopmentMinistry. hi A planelaboratedbya province includes: A report on assessment of implementation results of the previous three-year plan (made at © VIETNAM LA the end of the planningperiod and according to the assigned plan and work items invested with other capital sources and participation uf all economicsectors); The subsequent three-year plan, stating the objcctivcs, expected results and investment capital sources, tasksandinvestmentcapital fromthe state budget; A list ofprojects, tasks and capital sources as specified in the policies; A medium-term forestation plan must be ~1 aborated in 1ine wi th the local socio-economic development plan by the current method of eJaboration of five-year plans. 22.2. Assignment of plans atThePlanning andInvestmentMinistryshall assume the prime responsibility for, and coordinate with the Agriculture and Rural DevelopmentMinistry and theFinanceMinistry in, synthesizing and balancing plans, then reporting themto thePrimeMinisterfor decision on assignment of three-year plans for implementation. blWithin30working days afterbeing assigned plans, ministries, branches and localities shall assignthree-year planstospecificprojects, clearly statingannualcapitaland tasks for each project. Results of plan assigruueut ruuet lIC reported to theAgriculture andRuralDevelopmentMinistry and the Planning and Investment Ministry for supervision andmonitoring. cISubsequent three-year plansmustprioritize the payment for forest areas and investment activities already performed withpost-investment supports underpreviousthree-yearplans. dI For importantprojects enjoying the state budget's investment supports valuedat VND 10 & LEGAL FORUM 44 OFFICIAL GAZETTE Issue nos 01-021July 2008 (COng Bao nos 377-J781JlJly.5, 2008) bill ioneach and executed by non-state economic sectors under Decision No 147J?OO7/QO-TIg, the Prime Minister shaH assign plans listing projects and investment capital sources. 22.3. Adjustment of plans aI In the third quarter of the second year of three-yearplans, provinces shall send their reports on assessment ofimplementation of their assigned plans (made in the middle ofthe planning period) on work volumes, executed capital amounts and applied mechanisms and policies to the Agriculture and Rural DevelopmentMinistry and the Planning and Investment Ministry for summing up and reporting to the Prime Ministry for adjustment of plans. Un principle, the central government shall transfer capital amounts assignedUflder capital plans to provinces but not used up to other provinces with capital needs. hi Annually, based on the implementation of plans bydistrict-level project management units, provincial-level People's Committees shall transfer capital plans of projects unlikely to be implemented to well implemented projects with capital needs. Capital for silvicultural tasks must not be used for infrastructure construction tasks, unless it isso permittedbycompetent authorities. d Adjuitment of plans of district-level project management units must comply with Point c, Clause 2, Article 17 of Decision No. 147/20071 QD-TIg. 22.4. Supervision and assessment Pursuant to this Circular and Decision No. 147/2007/QD~ TIg, each local level shall work out plans on supervision and assessment of the achievement of objectives and expected results of the policies. 22.5. Responsibilities ofconcerned ministries and branches: aJ The Agriculture and Rural Development Ministry shall assume the prime responsibility for guiding branch technical standards not specified in this Circular and sustainable exploitation of planted forests. b/ The Planning and Investment Ministry shan assume the prime responsibility for providing guidance on supervision and assessment in order to ensure the transparent and effective implementation of the policies. cIThe Finance Ministry shall assume the prime responsibility forguiding procedures for payment and settlement of state budgetexpenditures. 23. Implementation provisions This Circular takes effect 15 days after its publication in "CONG BAG." All previous circulars containing provisions contrary to those of this Circular are annulled. Any problems arising in the course of implementation should be promptly reported in writing to the Planning and Investment Ministry, the Agriculture and Rural Development Ministry and theFinance Ministry for study and settlement. Forthe Finance Minister VICe Minister NGUY.I£N CUNG NGHlliP Forthe Agriculture and Rural DOl·t.!lopment Min~ter VICe Minister HUADUCNHI Forthe Planningand Investment Minister VICe Minister CAO Vurr SINH e VIET AM LAW & LEGAL FORUM