DECISION

ON THE POLICY OF INVESTMENT AND ENTITLEMENT FOR FAMILY HOUSEHOLDS, INDIVIDUALS AND COMMUNES TAKING PART IN THE PROJECT ON THE FORESTRY SECTOR AND THE MANAGEMENT OF HEAD-WATER PROTECTIVE FORESTS IN THANH HOA, QUANG TRI, PHU YEN AND GIA LAI PROVINCES UNDER CREDIT AGREEMENT No. 1515-VIE (SF)

THE PRIME MINISTER

Pursuant to the Law on Organization of the Government of September 30, 1992;
Pursuant to the Law on Protection and Development of Forests of August 19, 1991;
Pursuant to Credit Agreement No. 1515-VIE (SF) of June 11, 1997 between the Socialist Republic of Vietnam and the Asian Development Bank (ADB) for the Forestry Sector Project;
Pursuant to Decision No. 22/TTg of January 11,1997 of the Prime Minister approving the Pre-Feasibility Project on the Forestry Sector and the management of headwater protective forests in Thanh Hoa, Quang Tri, Phu Yen and Gia Lai provinces;
At the proposal of the Minister of Agriculture and Rural Development (Official Dispatch No. 3683/BNN-CS of October 31, 2000);

DECIDES:

Article 1.- To specifically stipulate the policy of investment and entitlement for the family households, individuals and communes taking part in the Project on the Forestry Sector and the management of headwater protective forests with ADB fund and the reciprocal fund from the State budget in Thanh Hoa, Quang Tri, Phu Yen and Gia Lai provinces, as follows:

1. To plant new forests and zone off forests for regeneration combined with supplementary planting of forest trees in the very vital and vital protection areas: the State shall invest 100% of the expenditures; the investment rate shall be decided by the provincial People’s Committee on the basis of the technical process of the Ministry of Agriculture and Rural Development and the economic and technical norms of the locality.

2. To plant forest trees (concentrated forests, scattered trees and agro-forestry plants in the areas of less vital protection forests and production forests); to revamp State-invested pastures for grazing cattle and provide assistance in investment according to the guiding Finance Ministry’s Circular No. 26/1999/TT-BTC of March 10,1999.

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4. The State shall invest in the research and application activities and agricultural and forestry promotion activities according to the designs and cost estimates approved by the provincial People’s Committees.

5. To transform the mixed gardens, reclaim and improve land: the State shall provide assistance in no more than 5% of the total investment in the small feasibility projects already approved by the competent authorities.

Article 2.- The family households, individuals and communes taking part in the project shall enjoy the following benefits:

1. For the very vital and vital protective forests:

- The family households and individuals that contract to protect the forests (collectively referred to as forest owners) are entitled to exploit firewood and subsidiary forest products under the foliage, except the forest products in Groups 1 and 1A (prescribed in Decree No.18/HDBT of January 17, 1992 of the Council of Ministers, now the Government).

- The forest owner, who contracts to zone off forests to promote regeneration combined with planting supplementary forests shall enjoy the whole product of pruning and the subsidiary forest products under the foliage, except the forest products in Groups 1 and 1A (prescribed in Decree No. 18/HDBT of January 17, 1992 of the Council of Ministers, now the Government).

- The forest owner who contracts to plant forests shall enjoy all the products of pruning and the subsidiary agricultural and forest products under the foliage. If it is a mixed protective forest where more than 600 trees are planted per hectare, he/she shall enjoy 100% of the products of the support trees planted in such protective forests; if the protection trees are fruit trees, resinous trees or flower trees, the contracting forest owner shall enjoy the whole products of flowers, fruits, oil and resine from the exploitation.

2. For less vital protection forests and production forests:

- The forest owner has ownership over the forest planted by himself/herself. When the forest reaches the age for exploitation, the forest owner is entitled to exploit it according to the Regulation on management of various types of forest and shall enjoy all the products exploited therefrom.

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- Products exploited from planted forests, bamboo and subsidiary forest products from natural forests shall be freely circulated on the market, except the types of forest products in Groups 1 and 1A (prescribed in Decree No. 18/HDBT of January 17, 1992 of the Council of Ministers, now the Government).

Article 3.- Obligations of forest owners taking part in the Project:

- To carry out fully the commitments in the contract signed with the Project owner.

- When exploiting planted forests in the less vital protection areas and production forests, the forest owner must pay taxes as prescribed by law and contribute to the commune budget a sum which, converted into rice, is equivalent to 50-100 kg of rice per hectare if it is perennial trees harvested once, or 2%-3% of the value of products exploited annually if it is perennial trees harvested over many years. The concrete amount shall be decided by the People’s Committee of the province. This fund shall be used only for the purpose of managing, protecting and developing the forests of the commune.

- The forest owner has the responsibility to replant the forest or take measures to promote regeneration in order to re-create the forest within no more than two years after exploitation.

Article 4.- This Decision takes effect 15 days after its signing.

The Minister of Planning and Investment, the Minister of Agriculture and Rural Development, the Minister of Finance, the Governor of the State Bank of Vietnam, the Presidents of the People’s Committees of Thanh Hoa, Quang Tri, Phu Yen and Gia Lai provinces, and the Heads of the related agencies shall have to implement this Decision.

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