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THE GOVERNMENT OF VIETNAM
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SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
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No. 58/2024/ND-CP

Hanoi, May 24, 2024

 

DECREE

ON INVESTMENT POLICIES IN FORESTRY

Pursuant to the Law on Government Organization dated June 19, 2015; the Law on amendment to the Law on Government Organization and the Law on Local Government Organization dated November 22, 2019;

Pursuant to the Law on Forestry dated November 15, 2017;

Pursuant to the Law on State Budget dated June 25, 2015;

Pursuant to the Law on Public Investment dated June 13, 2019;

Pursuant to the Law on Investment dated June 17, 2020;

Pursuant to the Construction Law dated June 18, 2014; the Law on amendment to the Construction Law dated June 17, 2020;

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The Government promulgates Decree on investment policies in forestry.

Chapter I

GENERAL PROVISIONS

Article 1. Scope

This Decree prescribes policies pertaining to investment in forest protection and development, forest product processing.

Article 2. Regulated entities

State agencies, organizations, households, individuals, and residential communities related to forest protection and development and forest product processing.

Article 3. Definitions

In this Decree, terms below are construed as follows:

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2. “Investment funding” means the use of state budget and legal funding sources to partially finance investment capital necessary for forest protection and development, forest product processing as per the law.

3. “Post-investment funding” means the use of state budget and other legal funding sources to support organizations, households, individuals, residential communities that have performed forest protection and development and forest product processing activities which have been commissioned and acceptance tested by competent authority.

4. “Hi-tech forestry industrial area” means a hi-tech industrial area for forestry industry in accordance with hi-tech laws; a site for research and application in development, production of hi-tech products, new technology products in forestry, including: forest cultivars, mechanization in forestation, forest care and operation, forest product processing, and production of auxiliary products in wood and forest product processing industries.

5. “Silviculture works” means an agriculture and rural development works created as a result of silviculture investment activities such as natural regeneration zoning and promotion, natural regeneration zoning and promotion with additional forestation, natural forest nursing, natural forest enrichment, natural reforestation, aforestation, cultivated forest care, cultivated forest nursing; construction of necessary technical infrastructures for forest protection and development.

6. “Zone II commune” means a commune with difficult socio-economic conditions; “zone III commune” means a commune with difficult socio-economic conditions in areas of ethnic minorities and mountainous regions according to criteria of the Prime Minister.

7. “Coastal land” means communes, wards, districts, towns that meet the ocean.

8. “residential community” has the meaning attributed to it under Clause 24 Article 2 of the Law on Forestry.

Article 4. Rules of forestry investment

1. The Government ensures resources for special-use and protection forest management, protection, and development; grants funding for protection and development of natural production forests during closed down period appropriate to balance capability of funding from state budget in medium-term and annual plan.

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Chapter II

POLICIES PERTAINING TO FOREST PROTECTION AND DEVELOPMENT, FOREST PRODUCT PROCESSING

Section 1. POLICIES FOR SPECIAL-USE FOREST

Article 5. Granting of funding for special-use forest protection

1. Entities:

a) Management board of special-use forest;

b) Management board of protection forest;

c) Residential communities;

d) Other entities under Clauses 2, 3, and 4 Article 8 of the Law on Agriculture.

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a) Entities under Point a and Point b Clause 1 of this Article are eligible for an average forest protection funding of 150.000 VND/ha/year from the Government over total special-use forest that they are assigned to, in addition to recurrent professional expenditure for operation of forest management board.

b) Entities under Point c and Point d Clause 1 of this Article are eligible for an average forest protection funding of 500.000 VND/ha/year from the Government over total forest area that they are assigned.

c) Forest protection expenditure in zone II, zone III communes equals 1,2 times the average amount; forest protection expenditure in coastal land equals 1,5 times the average amount under Point a and Point b of this Clause.

d) Expenditure on producing initial dossiers on forest protection for entities under Point c Clause 1 of this Article is 50.000 VND/ha; expenditure on managing, inspecting, commissioning and acceptance testing is 7% of total annual expenditure on forest protection.

3. Expenditure entry:

a) Entities under Point a Clause 1 of this Article shall:

Delegate forest protection to local households, individuals, and residential communities in accordance with Article 19 hereof;

Pay salaries to forest protection forces that do not receive salaries from state budget; hire forest protection employees;

Procure, repair forest protection equipment and support tools, PPE for forest protection for forest protection forces;

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Pay for development of forest fire prevention and firefighting solutions; organize forest fire drill; organize additional fire lookouts and firefighting shifts in dry months and organize conferences for forest protection;

Pay for travel, instructions, inspection, supervision, and local meeting costs in accordance with Article 8 hereof;

Perform other forest protection activities in accordance with forestry laws.

b) Entities under Point b Clause 1 of this Article shall delegate forest protection to local households, individuals, and residential communities in accordance with Article 19 hereof and:

Pay salaries to forest protection forces that do not receive salaries from state budget; hire forest protection employees;

Procure, repair forest protection equipment and support tools, PPE for forest protection for forest protection forces;

Assist forces in scouring, patrolling, supervising for forest protection purpose; provide professional training for forest protection forces; sign agreements, commitment pertaining to forest protection, forest fire prevention and firefighting; raise community’s awareness regarding forest protection; communicate and educate the law within the local community;

Pay for development of forest fire prevention and firefighting solutions; organize forest fire drill; organize additional fire lookouts and firefighting shifts in dry months and organize conferences for forest protection;

Perform other forest protection activities in accordance with forestry laws.

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d) Entities under Point d Clause 1 of this Article: in case of state enterprises, delegate forest protection to local households, individuals, residential communities in accordance with Article 19 hereof and perform other forest protection activities decided by forest caretakers in accordance with forestry laws. In case of other organizations, perform forest management and protection in accordance with sustainable forest management solution and decision of forest caretakers in accordance with forestry laws.

dd) Depending on annually allocated state budget, entities under Clause 1 of this Article shall prioritize expenditure on forest protection in areas with high risk of forest resource violation; forests with high biodiversity requiring protection.

4. Procedures:

a) Entities under Point a and Point b Clause 1 of this Article shall proceed as follows:

Depending on expenditure estimates on forest management and protection allocated on an annual basis, the Minister of Agriculture and Rural Development shall decide to grant funding to each forest management board affiliated to the Ministry; Chairpersons of People’s Committees of districts shall decide to grant funding to each district-level forest management board;

Depending on estimates allocated by competent authority, forest management board shall produce dossiers and approve design, expenditure estimates on entries under Clause 3 of this Article in accordance with Article 28, Article 30, and Article 32 hereof.

b) Entities under Point c Clause 1 of this Article shall proceed as follows:

Methods for granting funding: depending on area of forest allocated and forest protection results between forest caretakers that are local communities and People’s Committees of communes. Implementation period: annually or under three-yearly or five-yearly plan;

On an annual basis, People’s Committees of communes must cooperate with local forest rangers in commissioning, evaluating forest protection results of local communities;

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Annual commissioning results serve as the basis for payment and settlement of the funding.

c) Entities under Point d Clause 1 of this Article: for enterprises adhering to Decree No. 32/2019/ND-CP dated April 10 of 2019 of the Government. For other organizations having expenditure estimates approved by the Government.

Article 6. Granting of funding for natural regeneration zoning and promotion, natural regeneration zoning and promotion with additional forestation under special-use forest planning

1. Entities: forest caretakers that are organizations, local communities implementing natural regeneration zoning and promotion, natural regeneration zoning and promotion with additional forestation.

2. Funding entries and amount:

a) Natural regeneration zoning and promotion: average of 1.000.000 VND/ha/year for 6 years. Funding for coastal lands equals 1,5 times the average amount;

b) Natural regeneration zoning and promotion with additional forestation: average of 2.000.000 VND/ha/year for the first 3 years and 1.000.000 VND/ha/year for the next 3 years;

c) Funding for producing initial dossiers for natural regeneration zoning and promotion is 50.000 VND/ha; funding for producing design and estimates dossiers for natural regeneration zoning and promotion with additional forestation is determined by approved estimates; funding for management, inspection, and commissioning natural regeneration zoning and promotion, natural regeneration zoning and promotion with additional forestation is 7% of total annual funding for commissioning natural regeneration zoning and promotion, natural regeneration zoning and promotion with additional forestation.

3. Approve design and estimates on commissioning natural regeneration zoning and promotion, natural regeneration zoning and promotion with additional forestation of special-use forest in accordance with Article 32 hereof.

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1. Entities: forest caretakers that are organizations, local communities performing forestation, nursing natural forest, enriching special-use forest.

2. Investment: depending on economic - technical norms, design and estimates of silviculture works approved by competent authority.

3. Procedures for producing, appraising, and approving design, investment estimates for forestation, nursing of natural forest, and enrichment of special-use forest conform to Articles 29, 30, and 31 hereof.

Article 8. Funding for livelihood development and life improvement of inhabitants in buffer zones of special-use forest

1. Entities and amount: local communities in buffer zones of special-use forest are eligible for an average funding of 50.000.000 VND/community/year.

2. Funding entry:

Depending on funding sources, local communities shall determine entries eligible for funding in the following order of priority:

a) Agricultural extension, forestry extension, cultivar, domestic animal breed; small-scale agriculture and forestry product processing equipment;

b) Construction materials for public structures of local communities such as clean water, electric lighting, communication, rural roads, cultural houses, and other structures.

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a) Local communities successful in protecting the forest and preventing serious violations in forest protection;

b) Plans and estimates are approved; commitment is made with management of special-use forest to protect the forest;

c) Said entry has not been funded under investment projects, other state budget funding approved by competent authority.

4. Funding procedures:

a) Produce plan, estimates, and approve funding expenditure:

On an annual basis, heads of hamlets shall hold meetings with the local community regarding proposed details, plans, estimates of funding expenditure and produce meeting record using Form No. 1, produce plans, estimates of funding expenditure using Form No. 2 under Appendix 2 attached hereto and send to People’s Committees of communes and management board of special-use forest;

Management board of special-use forest shall take charge and cooperate with People’s Committees of communes in holding meetings with local community which request for funding and approving the plans, estimates of funding expenditure of the local community.

b) Use the funding:

Local community shall organize implementation of approved plans, estimates of funding expenditure. In respect of details that cannot be implemented by local community, local community shall request People’s Committees of communes or management board of special-use forest to assist in implementation;

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c) Commission and supervise implementation:

Local community shall, at their discretion, supervise implementation of the plans, funding expenditure in accordance with grassroots democracy laws;

Where entries of funding are fulfilled or the year ends, management board of special-use forest shall cooperate with People‘s Committees of communes in commissioning. Commissioning results are written in commissioning records. Individuals participating in the commissioning include representatives of management board of special-use forest, People’s Committees of communes, and local community. Commissioning details include:

For agricultural extension and forestry extension activities: commission according to plans and estimates of funding;

For cultivar, domestic animal breed, small-scale agriculture, forestry product processing equipment: commission according to plans and estimates of funding and invoices or receipts (where invoices are not available) and recipient list containing signature of households, individuals, artels (if any);

For construction materials for public rural structures: commissioning quantity and load of materials according to plans and estimates. In respect of co-funded structures, signatures of project management board are also required.

Section 2. POLICIES FOR PROTECTION FOREST

Article 9. Granting of funding for protection of protection forest

1. Entities:

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b) Management board of special-use forest;

c) State-owned enterprises;

d) Households, individuals, and local communities;

dd) People's Committees of communes managing forest that has not been delegated or leased;

e) Other entities according to Clause 3, Clause 4 Article 8 of the Law on Forestry.

2. Funding amount:

a) Entities under Point a Clause 1 of this Article are eligible for an average forest protection funding of 500.000 VND/ha/year from the Government over total special-use forest that they are assigned to, in addition to recurrent professional expenditure for operation of forest management board.

B Entities under Point b Clause 1 of this Article are eligible for forest protection funding from the Government in accordance with Point a Clause 2 Article 5 hereof.

c) Entities under Points c, d, and e Clause 1 of this Article are eligible for forest protection funding from the Government in accordance with Point b Clause 2 Article 5 hereof.

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dd) Forest protection expenditure in zone II, zone III communes equals 1,2 times the average amount; forest protection expenditure in coastal land equals 1,5 times the average amount under Points a, b, c, and d of this Clause.

e) Expenditure on producing initial dossiers on forest protection for entities under Point d Clause 1 of this Article is 50.000 VND/ha; expenditure on managing, inspecting, commissioning and acceptance testing is 7% of total annual expenditure on forest protection.

3. Expenditure entry:

a) Entities under Point a Clause 1 of this Article conform to Point b Clause 3 Article 5 hereof.

b) Entities under Point b Clause 1 of this Article conform to Point a Clause 3 Article 5 hereof.

c) Entities under Point c Clause 1 of this Article delegate forest protection to local households, individuals, residential communities in accordance with Article 19 hereof and perform other forest protection activities decided by forest owners in accordance with forestry laws.

d) Entities under Point d Clause 1 of this Article conform to Point c Clause 3 Article 5 hereof.

dd) Entities under Point dd Clause 1 of this Article shall:

Maintain regular operation of forest protection teams and volunteers; publicize and educate forest protection laws;

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Expenditure on development of forest fire fighting and prevention solutions and forest fire drill;

Expenditure on management, inspection, supervision of forest protection; expenditure on producing and receiving request for forest delegation, rent and agriculture land allocation and rent for organizations, households, individuals, and local community within their competence.

e) Entities under Point e Clause 1 of this Article shall implement forest management and protection in accordance with sustainable forest management solutions and decision caretakers in accordance with forestry laws.

g) Based on annually allocated state budget, entities under Clause 1 of this Article shall prioritize expenditure on protection of forest prone to high risk of forest resource violation and vital forest requiring protection.

4. Procedures:

a) Entities under Point a and Point b Clause 1 of this Article conform to Point a Clause 4 Article 5 hereof.

b) Entities under Points c and e Clause 1 of this Article shall conform to Point c Clause 4 Article 5 hereof.

c) Entities under Point d Clause 1 of this Article shall conform to Point b Clause 4 Article 5 hereof.

d) Entities under Point dd Clause 1 of this Article shall:

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Article 10. Granting of funding for natural regeneration zoning and promotion, natural regeneration zoning and promotion with additional forestation under special-use forest planning

1. Entities: forest caretakers that are organizations, local communities implementing natural regeneration zoning and promotion, natural regeneration zoning and promotion with additional forestation.

2. Entries and amount of funding conform to Clause 2 Article 6 hereof.

3. Approve design and estimates on commissioning natural regeneration zoning and promotion, natural regeneration zoning and promotion with additional forestation of special-use forest in accordance with Article 32 hereof.

Article 11. Investment in forestation, natural forest nursing, and enrichment of protection forest

1. Entities: forest caretakers that are organizations, households, individuals, local community performing aforestation, nursing natural forest, enriching protection forest.

2. Investment in forestation, nursing of natural forest, and enrichment of protection forest conforms to Clause 2 Article 7 hereof.

3. Procedures for producing, appraising, and approving design, investment estimates for forestation, nursing of natural forest, and enrichment of protection forest conform to Articles 29, 30, and 31 hereof.

Section 3. POLICIES FOR PRODUCTION FOREST

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1. Entities:

a) Management board of special-use forest;

b) Management board of protection forest;

c) State-owned enterprises assigned with natural production forest by the Government before January 1 of 2019;

d) Households, individuals, local communities;

dd) People’s Committees of communes managing forest area that has not been delegated or leased;

e) Other entities according to Clause 2, Clause 3 Article 8 of the Law on Forestry.

2. Funding amount:

a) Entities under Points a, b, and dd Clause 1 of this Article are eligible for an average forest protection funding of 150.000 VND/ha/year over total natural production forest delegated to them.

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c) Forest protection expenditure in zone II, zone III communes equals 1,2 times the average amount; forest protection expenditure in coastal land equals 1,5 times the average amount under Point a and Point b of this Clause.

d) Expenditure on producing initial dossiers on forest protection for entities under Point d Clause 1 of this Article is 50.000 VND/ha; expenditure on managing, inspecting, commissioning and acceptance testing is 7% of total annual expenditure on forest protection.

3. Expenditure entry:

a) Entities under Point a Clause 1 of this Article conform to Point a Clause 3 Article 5 hereof.

b) Entities under Point b Clause 1 of this Article conform to Point b Clause 3 Article 5 hereof.

c) Entities under Points c and e Clause 1 of this Article conform to Point d Clause 3 Article 5 hereof.

d) Entities under Point d Clause 1 of this Article conform to Point c Clause 3 Article 5 hereof.

dd) Entities under Point dd Clause 1 of this Article conform to Point dd Clause 3 Article 9 hereof.

e) Depending on annually allocated state budget, entities under Clause 1 of this Article shall prioritize protection of forest prone to high risk of forest resource violation.

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a) Entities under Point a and Point b Clause 1 of this Article conform to Point a Clause 4 Article 5 hereof.

b) Entities under Points c and e Clause 1 of this Article shall conform to Point c Clause 4 Article 5 hereof.

c) Entities under Point d Clause 1 of this Article shall conform to Point b Clause 4 Article 5 hereof.

d) Entities under Point dd Clause 1 of this Article shall conform to Point d Clause 4 Article 9 hereof.

Article 13. Funding for natural regeneration zoning and promotion with additional forestation of natural production forest

1. Entities: forest caretakers that are organizations, households of the Kinh ethnic group that are poor households, households in ethnic minorities, individuals, communities living in border communes, island communes, regions of ethnic minorities and mountainous regions according to regulations of the Prime Minister implementing natural regeneration zoning and promotion with additional forestation of natural production forest .

2. Average funding amount of 8.000.000 VND/ha. Expenditure on producing design dossiers, estimates of natural regeneration zoning and promotion with additional forestation is determined by approved estimates; expenditure on management, inspection, commissioning of natural regeneration zoning and promotion with additional forestation is 7% over total annual expenditure on natural regeneration zoning and promotion with additional forestation.

3. Approve design, estimates on natural regeneration zoning and promotion with additional forestation in accordance with Article 32 hereof.

Article 14. Funding for forestation of production forest and development of non-timber forest products

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2. Funding amount:

a) An average lump-sum funding of 15.000.000 VND/ha/cycle for purchase of plants, materials, fertilizers in respect of timber trees and non-timber product trees depending on business cycle of the plants.

b) Funding for forestry extension activities: 500.000 VND/ha/4 years (1 year of planting and 3 years of care).

c) Lump-sum funding for survey and design expenditure; management, inspection, and commissioning expenditure conforms to approved estimates.

3. Eligibility for funding:

a) The entities have production forest land allocated, leased by competent authority or have certificate of land use right or have been steadily using land in accordance with land laws and without disputes; area that has been invested by the government or using loan capital of the Government is not eligible for funding; funding does not repeat in the same program or project;

b) Cultivars for forestation of forest caretakers must be accompanied by adequate documents according to regulations of the Government on management of agriculture cultivars.

4. Funding method: investment funding or post-investment funding under projects approved by competent authority.

People’s Committees of provinces assign forestry authority or People’s Committees of districts to produce and act as developers of funding projects for forestation of production forest and development of non-timber forest products in the area and request People’s Committees of provinces to approve.

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1. Entities: Forest caretakers that are enterprises, households, and individuals planting large-timber forest on allocated, leased forestry land.

2. In respect of forest caretakers that are households and individuals

They are eligible for commercial loan interest rate subsidies from local government budget:

a) Amount: equal the difference between interest of commercial loan and interest of credit loan of the Government over total actual outstanding debt at the time of reviewing funding;

b) Duration of interest subsidies: from the disbursement date under credit agreement signed with commercial banks and up to 12 years;

c) Loan eligible for interest subsidies: up to 70% of total loan taken at commercial banks;

d) Eligibility for funding:

The entities have land for production forest allocated, leased by competent authority or according to certificate of land use right or have been using land steadily according to land laws and without disputes;

The entities have not received interest subsidies from state budget or other policies.

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Forest caretakers shall submit application to People’s Committees of districts in person or via post service or online. Application consists of: written request for interest subsidies using Form No. 3 under Appendix attached hereto; forestation and care design for the first year using Form No. 4 under Appendix attached hereto; copies of credit agreements signed between forest caretakers and commercial banks;

In case of adequate application, People’s Committees of districts must respond the applicants in writing within 2 working days after receiving the application;

Within 20 days after receiving adequate application, People’s Committees of districts shall take charge, cooperate with relevant agencies in verifying the applications, producing request for interest subsidies and issuing records confirming eligibility for credit interest subsidies using Form No. 5 under Appendix attached hereto and requesting People’s Committees of provinces to decide. In case of rejection, People’s Committees of provinces must respond in writing and state reasons for rejection;

e) People's Councils of provinces shall decide on interest subsidies appropriate to local socio-economic conditions;

g) Production of estimates and settlement of interest subsidies shall conform to the Law on State Budget and other relevant law provisions.

3. In respect of forest caretakers that are enterprises

The entities are eligible for investment funding policies; procedures for investment funding conform to regulations of the Government pertaining to policies incentivizing enterprises to invest in agriculture, rural areas, and regulations on credit policies serving agriculture, rural area development.

Article 16. Funding for development of sustainable forest management solutions and issuance of sustainable forest management certificate

1. Entities: forest caretakers having production forest, other than forest caretakers that are foreign-invested enterprises.

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a) Funding amount: a lump-sump funding for development of sustainable forest management solutions and issuance of sustainable forest management certificate of up to 400.000 VND/ha.

b) Funding method: post-investment funding.

3. Eligibility for funding:

a) Having sustainable forest management projects and sustainable forest management certificate approved by People’s Committees of provinces;

b) Having cultivated production forest to which sustainable forest management certificate is issued.

4. Funding procedures:

a) Departments of Agriculture and Rural Development shall develop sustainable forest management projects and issue sustainable forest management certificate in the provinces which indicate scale, location, area, list of forest caretakers, and funding sources approved by People’s Committees of provinces;

b) On an annual basis, People's Committees of provinces shall assign approved estimates on funding for development of sustainable forest management solutions and issuance of sustainable forest management certificate under Point a of this Clause to Departments of Agriculture and Rural Development in order to grant funding for forest caretakers that are organizations and assign estimates on funding for development of sustainable forest management solutions and issuance of sustainable forest management certificate to People's Committees of districts in order to grant funding for forest caretakers that are households, individuals, local communities via People’s Committees of communes;

c) In respect of forest caretakers that are organizations: once sustainable forest management certificate is issued to an area of forest, send request for funding for development of sustainable forest management solutions and issuance of sustainable forest management certificate using Form No. 6 under this Decree to Departments of Agriculture and Rural Development;

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d) In respect of forest caretakers that are households, individuals, local communities forming household groups and assigning representatives: once sustainable forest management certificate is issued to the forest, representatives of household groups shall send request for funding for development of sustainable forest development solutions and issuance of sustainable forest management certificate using Form No. 7 under Appendix attached hereto to People’s Committees of communes;

People’s Committees of communes shall rely on estimates allocated by People’s Committees of districts on an annual basis to inspect the request and grant funding for representatives of household groups and settle funding expenditure in accordance with the Law on State Budget. In case of rejection, People’s Committees of communes must respond in writing and state reason.

Article 17. Funding for construction of forestry routes and fire trails in production forest

1. Construction of forestry routes

a) Entities and eligibility for funding: production forest area with minimum concentrated production scale of 500 ha;

b) Maximum funding for construction of forestry routes is 450.000.000 VND/km;

c) Procedures for funding construction of forestry routes conform to Clause 5 Article 27 hereof.

2. Construction of fire trails

a) Entities and eligibility for funding: fire trails in production forest with minimum concentrated production scale of 500 ha;

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c) Procedures for funding construction of fire trails conform to Clause 5 Article 27 hereof.

Article 18. Funding for development cooperation and connection of production forest with processing and consumption of forest products

1. Entities: forest caretakers cooperating, connecting with enterprises processing, commercializing forest products.

2. Eligibility for funding:

Parties to the connection must meet requirements below:

a) The parties enter into contracts, projects connecting production forest with processing and consumption of forest products in accordance with Articles 4, 5, and 6 of Decree No. 98/2018/ND-CP dated July 5 of 2018 of the Government;

b) Projects connecting production forest with processing, consumption of forest products conform to local socio-economic development planning;

c) Minimum duration of connection is 7 years.

3. Funding entries, funding amount, and funding procedures conform to Articles 7, 8, 9, and 12 of Decree No. 98/2018/ND-CP.

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Article 19. Forest protection delegation

1. Entities under Point a, Point b Clause 1 Article 5, Points a, b, and c Clause 1 Article 9, Points a, b, and c Clause 1 Article 12 shall prioritize forest protection delegation: forest adjoining residential areas consisting of households of ethnic minorities, poor households of Kinh ethnic group in zone II, zone III communes, households, individuals, and local communities; forest adjoining areas under high risk of forest resource violation.

2. Eligibility and fee for forest protection delegation conform to Article 4, Clause 2 Article 6 of Decree No. 168/2016/ND-CP dated December 27 of 2016 of the Government.

3. Forest protection delegation fees:

a) Delegation fees for protection of natural special-use forest, natural protection forest, natural production forest from the state budget is on average 500.000 VND/ha/year. Delegation fees for forest in zone II, zone III communes equal 1,2 times the average amount; delegation fees for forest in coastal lands equal 1,5 times the average amount.

b) Fees for producing initial dossiers on forest protection delegation is 50.000 VND/ha; expenditure on forest protection management, inspection, and commissioning is 7% of total annual expenditure on forest protection.

4. Funding for forest protection delegation is sourced from funding granted to forest caretakers by the Government under Clause 2 Article 5; Clause 2 Article 9 and Clause 2 Article 12 hereof and other legitimate funding sources.

5. Methods for delegating forest protection conform to annual contracts for forest protection delegation. On an annual basis, the delegating party is responsible for commissioning contract implementation results of the delegated party according to regulations of the Ministry of Agriculture and Rural Development.

Article 20. Forest firefighting expenditure

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a) Forest caretakers according to Article 8 of the Law on Forestry;

b) People’s Committees of communes managing forest area that has not been delegated or leased;

c) Forest authority of all levels, agencies, organizations, individuals, and forces participating in forest firefighting.

2. Entries and funding amount:

a) Meal allowances for firefighting forces and individuals participating in firefighting (regardless of whether these individuals receive salaries from state budget or not) according to mobilization, rally order of competent authority equal up to 0,4 times the regional minimum salaries/meal;

b) Individuals mobilized, rallied to participate in forest firefighting and serving forest firefighting under mobilization, rally order are eligible for benefits and policies under Article 34 of Decree No. 136/2020/ND-CP dated November 24 of 2020 of the Government. Duration of forest firefighting starts from the moment in which participating individuals receive mobilization, rally order until the fire is extinguished and a notice is issued by competent individual.

Where participating individuals fight forest fire far away from their location of residence and daily commute is not feasible, they shall be assigned with accommodation, meals, traffic, travel costs, or round-trip travel fees according to regulations on work trip of the Ministry of Finance; receive meal allowances according to regulations of People’s Committees of provinces.

c) Procurement of drinking water, fuel, repair, compensation to mobilized, hired vehicles and equipment serving forest firefighting. Where vehicles, equipment of the mobilized, rallied individuals (except for those of forest caretakers) are mobilized for firefighting, such individuals are eligible for reimbursement of fuel cost, repair costs, or compensation for damage (where applicable) in accordance with applicable laws.

3. Funding sources:

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b) Depending on forest firefighting activities and regulations and policies, People’s Committees of provinces, districts, and communes shall decide to use funding from local government budget and other legitimate financial sources to cover expenditure demands for forest firefighting that arise outside of annually approved expenditure estimates;

c) Depending on forest firefighting activities and regulations and policies, ministries and central departments shall decide to allocate expenditure from budget of the Ministry and other financial sources to fulfill expenditure demands for forest firefighting in respect of forest under management of ministries, central departments and to affiliated entities mobilized to participate in forest firefighting that arise outside of annually approved expenditure estimates.

4. Competent authority mobilizing, rallying forest firefighting forces are responsible for paying forest firefighting forces that they mobilize from state budget. Forest caretakers are responsible for paying for forces that they mobilize from their funding sources.

Article 21. Rice aid for forest protection and development

1. Entities and eligibility: poor household, households of ethnic minorities in zone II and zone III communes implementing forest protection, natural regeneration zoning and promotion with additional forestation, forestation of protection forest, production forest, and development of non-timber forest products, forestation as a change to shifting cultivation method, forestation as a substitute for paddy land according to decision of the Prime Minister.

2. Amount: 15 kg of rice/mouth/month for the period where food self-sufficient is not guaranteed. Chairpersons of People’s Committees of provinces shall decide on entities eligible for aid, amount, aid method depending on area, number of mouths appropriate to actual local conditions and duration of aid which is up to 7 years in a manner that adheres to the principles below:

a) Rice aid granted to households implementing forestation as a substitute for paddy land in the year depends on actual forestation area and duration of the lack of food self-sufficiency which is up to 6 months and does not exceed 450 kg/year;

b) Rice aid granted to households implementing forest protection and development in the year depends on area of forest protected and developed and for the duration of the lack of food self-sufficiency which is up to 4 months and does not exceed 300 kg/year;

c) Where a household implements forestation as a substitute for paddy land and forest protection and development, they shall be eligible for the higher aid;

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3. Eligibility for rice aid:

Entities under Clause 1 of this Article eligible for rice aid for forest protection and development must meet any of the eligibility below:

a) They have certificate of land use right or decision on land allocation or lease of competent authority or have been steadily using land in accordance with land laws and without disputes; implement forest protection in accordance with Articles 5, 9, and 12; implement natural regeneration zoning and promotion with additional forestation; implement forestation of protection forest in accordance with Article 11, production forest and non-timber forest product development in accordance with Article 14 hereof and undergo acceptance testing conducted by competent authority on an annual basis;

b) They have contracts for forest protection delegation in accordance with Clause 5 Article 19; implement forest protection under delegation in accordance with Article 19 hereof and undergo acceptance testing conducted by competent authority on an annual basis.

4. Type of rice for aid conforms to the applicable national technical regulations on national rice reserve.

5. Provide rice aid via funding sources of programs and projects:

a) People’s Committees of provinces shall assign project developers or affiliated entities to develop rice aid projects for forest protection, natural regeneration zoning and promotion with additional forestation, forestation of protection forest, production forest and non-timber forest product development, forestation as a substitute for paddy land; grant rice aid to households in project areas on a periodic basis in each hamlet where the applicable households are located. Depending on practical local conditions, Chairpersons of People’s Committees of provinces shall decide on number of aid instances up to once every 3 months;

b) Depending on approved rice aid projects, project developers or organizations, entities assigned to provide rice aid shall produce list of participating households, quantity of rice aid provided to each household using Form No. 9 and Form No. 10 under Appendix attached hereto;

c) Rice aid is provided when a household begins to implement forest protection, natural regeneration zoning and promotion with additional forestation, forestation of protection forest, production forest and non-timber forest product development, forestation as a substitute for paddy land and is recorded using Form No. 11 and Form No. 12 under Appendix attached hereto.

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a) People’s Committees of provinces shall consolidate list, quantity of rice provided, duration of aid and report to Ministry of Agriculture and Rural Development, Committee for Ethnic Affairs, and Ministry of Finance; on the basis of request of local government and remarks of the Ministry of Finance, Committee for Ethnic Affairs and Ministry of Agriculture and Rural Development shall take charge and request the Prime Minister to consider and approve rice aid;

b) Depending on decision of Prime Minister, the Ministry of Finance shall assign the General Department of State Reserves to source rice from state reserve to local government as per the law. Project developers or organizations, entities assigned to provide rice aid shall provide rice aid to households in accordance with Clause 5 of this Article.

Article 22. Funding for construction of forestry cultivar production facilities

1. Entities: organizations, households, individuals investing in production of forestry cultivars.

2. Funding entry:

a) Development of cultivar forest, cultivar gardens, and prime forestry garden;

b) Development of high quality forestry cultivar production centers;

c) Development of arboretums.

3. Funding amount:

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b) Maximum funding of 55.000.000 VND/ha for development of new cultivar forest of a minimum area of 2,0 ha, new cultivar garden of a minimum area of 1,0 ha; maximum funding of 25.000.000 VND/ha for development of converted cultivar forest of a minimum area of 1,0 ha, prime forestry garden of a minimum area of 500 m2;

c) Maximum funding of 5.000.000.000 VND per project or construction of high quality forestry cultivar production facility of minimum production capacity of 1 million trees/year;

d) Maximum funding of 300.000.000 per project or new construction of forestry arboretums that utilize in-vitro with minimum construction area of 0,5 ha.

4. Funding eligibility: having separate investment projects or investment projects included in forest protection and development projects approved by competent authority.

5. Procedures for producing, appraising, deciding on design, estimates of forestry cultivar production funding projects conform to Clause 5 Article 27 hereof.

Article 23. Funding for increasing tree coverage

1. Entities: organizations, households, individuals, and local communities increasing tree coverage.

2. Funding amount: on average of 15.000.000 VND/ha of additional tree coverage (converting 1.000 trees/ha) to fund the purchase of cultivars, fertilizers and partially fund personnel costs; management, inspection, and supervision of tree coverage increase.

3. Funding method and standards of cultivars shall conform to tree coverage increase plan approved by competent authority.

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5. Funding procedures:

Departments of Agriculture and Rural Development shall review, consolidate demands for increasing tree coverage of entities under Clause 1 of this Article fulfilling eligibility for funding under Clause 4 of this Article in provinces, develop plans for increasing tree coverage and expenditure estimates, request People's Committees of provinces to approve; implement, commission, consolidate implementation results, and report to People’s Committees of provinces and Ministry of Agriculture and Rural Development as per the law.

Article 24. Funding for investment of hi-tech forestry industrial areas

Small and medium enterprises investing in construction, conducting business and services in hi-tech forestry industrial areas are eligible for funding for technology, communication, counseling, human resource development, start-up, participation in industry and value chain connection with procedures for applying for funding conforming to Decree No. 80/2021/ND-CP dated August 26 of 2021 of the Government.

Article 25. Other field-specific activities

1. The Government develops investment policies for other field-specific activities, including:

a) Monitor, supervise development of forest resources and biodiversity; investigate and inventory the forest; insect, monitor, supervise, and evaluate implementation results of forestry strategies, programs, schemes;

b) Manage forestry information and database;

c) Collect forest fauna and flora specimen;

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dd) Develop and implement sustainable management solutions of natural special-use forest, protection forest, production forest;

e) Assign forest, identify boundary and place forest boundary markers;

g) Maintain and develop cultivar forest, national gardens;

h) Conduct basic forestry survey;

i) Protect and rescue endangered, rare, precious forest flora and fauna;

k) Develop, maintain, preserve, upgrade, renovate infrastructure to serve protection and development of special-use forest, protection forest in accordance with Clause 6 Article 87 of Decree No. 156/2018/ND-CP dated November 16 of 2018 of the Government elaborating the Law on Forestry.

l) Procure, repair vehicles, equipment, instruments for: forest protection; forest fire prevention and firefighting; monitoring, forest fire warning; prevention and elimination of forest pests;

m) Survey, collect, and evaluate genetic resources of forestry cultivars; develop genetic banks, forestry cultivar genetic resource data; research to select, create, and experiment on forestry cultivars;

n) Produce national forestry planning.

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3. Procedures applicable to activities using development investment funding sources and professional funding sources conform to Clause 5 Article 27 hereof.

Chapter III

REGULATION AND FUNDING SOURCES

Article 26. Funding sources for implementation

1. Central government budget:

a) Is allocated in annual government budget expenditure estimates of ministries, ministerial agencies, Governmental agencies, other central agencies to conduct activities in accordance with this Decree;

b) Balances and purposefully adds to budget of local governments that are unable to balance their budget and other areas as per the law in order to conduct activities in accordance with this Decree;

c) Development investment funding from central government budget is allocated in detail depending on fields and balanced by ministries, central authorities, and local governments over medium-term and annual public investment plans.

2. Local government budget:

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b) In respect of administrative divisions that have not managed to balance their budget and other specific administrative divisions as per the law, expenditure on implementation of this Decree is allocated from local government budget in combination with funding from central budget and other funding sources in order to effectively implement activities under this Decree.

3. Other funding sources: forest environment services, ODA, other legitimate funding sources for protection and development of forest in accordance with this Decree.

Article 27. Investment and investment funding policies

1. Funding sources from the state budget shall fund, invest in activities in accordance with state budget and public investment laws:

a) Activities that prioritize development investment funding sources include: forestation, nursing of natural forest, enrichment of special-use forest in accordance with Article 7; forestation, nursing of natural forest, enrichment of protection forest in accordance with Article 11; forestation of production forest and development of non-timber forest products in accordance with Article 14; construction of forestry routes, fire trails in production forest areas in accordance with Article 17; investment in forestry cultivar production facilities in accordance with Article 22; investment in hi-tech forestry industrial areas in accordance with Article 24; other field-specific activities under Article 25 hereof;

b) Activities that prioritize recurrent expenditure funding sources include: protection of special-use forest in accordance with Article 5; development of livelihood and improvement to lives of inhabitants in buffer zones of special-use forest in accordance with Article 8; protection of protection forest in accordance with Article 9; protection of natural production forest during closed down period in accordance with Article 12; natural regeneration zoning and promotion, natural regeneration zoning and promotion with additional forestation in accordance with Articles 6, 10, and 13; investment credit funding for forestation of large-timber forest in accordance with Article 15; development of sustainable forest management solutions and issuance of sustainable forest management certificate in accordance with Article 16; forest firefighting in accordance with Article 20; provision of rice aid for forest protection and development in accordance with Article 21; funding for increasing tree coverage in accordance with Article 23; other field-specific activities in accordance with Article 25 hereof.

2. Funding sources for forest environment service fees shall pay in accordance with Decree No. 156/2018/ND-CP dated November 16 of 2018 of the Government; funding sources for forest protection and forest protection delegation can be sourced outside of funding expenditure from the state budget in accordance with investment and investment funding amounts under this Decree.

3. People’s Councils of provinces shall rely on investment, investment funding, forest protection delegation amount under Articles 5, 6, 7, 9, 10, 11, 12, 13, 14 ,16, 19, 21, 22, and 23 to decide on specific investment and investment funding appropriate to their socio-economic conditions.

4. Ministries, central departments shall rely on investment and investment funding under Articles 5, 6, 7, 9, 10, 11, 12, 13, 14, 19, and 22 to decide on specific investment, investment funding for affiliated forest caretakers.

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6. State budget capital plan allocated to silviculture works shall conform to technical silviculture solution cycles. Deadline for payment and implementation of capital plan of the previous year in respect of forestation projects is June 30 of the following year.

7. Expenditure on forest protection, forest protection delegation according to forest protection and forest protection delegation design dossiers, forest protection delegation contract shall be granted and used in accordance with this Decree within the budget year.

Chapter IV

PRODUCTION, APPRAISAL, APPROVAL OF DESIGN, ESTIMATES OF INVESTMENT IN SILVICULTURE AND FOREST PROTECTION WORKS

Article 28. Rules for producing design, estimate dossiers

1. In respect of silviculture works that are under approved investment projects, developers shall produce design and estimates of silviculture works and request competent authority to approve. Where a project only requires economic technical report, the production of design and estimates of silviculture works shall be done at the same as the production of economic technical report.

2. In respect of silviculture works that are essential technical infrastructures for forest protection and development, the production of design and estimates shall conform to construction laws.

3. In respect of silviculture works that are not mentioned under Clause 2 of this Article, the production of design and estimates shall conform to Articles 29, 30, 31, and 32 hereof.

4. In respect of natural regeneration zoning and promotion, natural regeneration zoning and promotion with additional forestation and forest protection utilizing state budget: entities using state budget expenditure shall produce design and estimates one time for multiple years or on an annual basis according to allocated budget plan.

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Article 29. Estimates

1. Estimates of silviculture works, other than those under Clause 2 of this Article

a) Construction cost of silviculture works:

Direct costs include material, personnel, machinery and equipment costs;

Indirect costs include general costs, temporary accommodation costs, construction coordination costs, and costs for tasks where workload cannot be defined from the design. Indirect costs are determined in percentage in accordance with construction laws;

Taxable income: in percentage of total direct and indirect costs in accordance with construction laws;

VAT shall conform to applicable laws.

b) Equipment costs include: procurement of equipment, machinery, technology instruments (including those that need to be manufactured, processed), installation, experimentation, calibration of equipment, transportation, insurance of equipment, training and transfer of technology serving silviculture works;

c) Management costs: in percentage of total construction costs and equipment costs or detail estimates, including: management costs for silviculture works from preparation to conclusion, commissioning and use;

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dd) Provision expenditure, other expenditure.

e) Management costs, construction counseling fees, provision expenditure, other expenditure where percentage model is applied for agriculture and rural development works.

2. Estimates of natural regeneration zoning and promotion, natural regeneration zoning and promotion with additional forestation and forest protection

a) Expenditure on natural regeneration zoning and promotion, natural regeneration zoning and promotion with additional forestation and forest protection, documentation, and other expenditure conform to Clause 2 and Clause 3 Article 5, Clause 2 Article 6, Clause 2 and Clause 3 Article 9, Clause 2 Article 10, Clause 2 and Clause 3 Article 12 and Clause 3 Article 13 hereof.

b) In respect of natural regeneration zoning and promotion, natural regeneration zoning and promotion with additional forestation and forest protection that are implemented by delegation to households, individuals, and local communities: delegation fees, expenditure on documentation, and other expenditure conform to Clause 2 Article 6, Clause 2 Article 10, Clause 2 Article 13, and Clause 3 Article 19 hereof.

Article 30. Documents requesting approval for design and estimates

1. Written request for approval of design and estimates using Form No. 13 under Appendix attached hereto.

2. Design explanation including estimates and map of silviculture work design using Form No. 14 under Appendix attached hereto.

3. Copies of decisions approving investment projects or capital plan in respect of activities using state budget expenditure and other relevant documents.

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1. Agencies appraising design and estimates of silviculture works:

a) In respect of projects where the Minister of Agriculture and Rural Development decides on investment: forestry authority is assigned to appraise design and estimates of silviculture works;

b) In respect of projects where other ministries and central departments decide on investment: affiliated authority is assigned to appraise design and estimates of silviculture works;

c) In respect of projects where Chairpersons of People’s Committees of provinces decide on investment: Departments of Agriculture and Rural Development shall appraise design and estimates of silviculture works;

d) In respect of silviculture works within projects that Chairpersons of People's Committees of districts, communes decide on investment: District department or district forest ranger authority shall appraise design and estimates of silviculture works.

2. Procedures for appraising design and estimates of silviculture works:

a) Project developers shall submit 1 set of documents according to Article 30 hereof to presiding agencies according to Clause 1 of this Article in person or via post service or online (national public service portal, ministerial public service portal, provincial public service portal);

b) presiding agencies shall examine legitimacy of the documents, issue acceptance or rejection notice to the applicants immediately in case of in-person submission or after 2 working days in case of submission via post service or electronic environment;

c) Within 15 days from the date on which adequate documents are received, presiding agencies shall appraise and record appraisal results using Form No. 15 under Appendix attached hereto and notify the applicants of the results.

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Project developers shall approve design and estimates of silviculture works after consulting agencies assigned to conduct appraisal in accordance with Clause 1 of this Article. Approval of design and estimates of silviculture works shall conform to Form No. 16 under Appendix attached hereto.

Article 32. Approval of design of natural regeneration zoning and promotion, natural regeneration zoning and promotion with additional forestation and forest protection utilizing state budget expenditure

1. Request for approval of design and estimates shall conform to Article 30 hereof.

2. Entities using state budget expenditure shall appraise, at their discretion, or hire counselors to appraise design of natural regeneration zoning and promotion, natural regeneration zoning and promotion with additional forestation and forest protection.

3. Entities using state budget expenditure shall approve design of natural regeneration zoning and promotion, natural regeneration zoning and promotion with additional forestation and forest protection at their discretion.

4. The production and approval of estimates of natural regeneration zoning and promotion, natural regeneration zoning and promotion with additional forestation and forest protection shall conform to the Law on State Budget and other relevant law provisions.

Article 33. Adjustment of design and estimates

1. Design and estimates shall be adjusted when:

a) Investment projects require adjustment to design, estimates of silviculture works;

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c) Design adjustment must be made for quality purposes during implementation.

2. Documents on adjustment to design and estimates under Article 30 hereof; appraisal and approval of adjustment to design and estimates shall conform to Article 31 and Article 32 hereof.

3. Where the expenditure is only changed structurally without altering value of the approved estimates and provision expenditure, project developers or entities using state budget shall decide on the adjustment and inform individuals deciding on investment or agencies allocating expenditure regarding the change to estimates.

4. Project developers or entities using state budget expenditure shall determine the adjusted estimates which serve as the basis for amendments to contract value.

Article 34. Risk handling in investment phase

1. Cause of risk:

a) natural disaster according to natural disaster preparedness and prevention laws;

b) Other risk identified and reported to competent authority by project developers or entities using state budget.

2. Risk handling:

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b) Project developers or entities using state budget expenditure shall produce records evaluating the damage, identifying the cause and submit to competent authority for consideration and amendment to investment projects or amendment to capital plans; amend design and estimates in accordance with Article 33 hereof.

Chapter V

ORGANIZING IMPLEMENTATION

Article 35. Responsibilities of ministries and ministerial agencies

1. The Ministry of Agriculture and Rural Development has the responsibility to:

a) take charge and cooperate with Ministry of Planning and Investment, Ministry of Finance, and relevant agencies in guiding and inspecting implementation of this Decree by local governments;

b) promulgate standards and technical - economic norms for the implementation of this Decree.

2. The Ministry of Planning and Investment has the responsibility to:

a) take charge and cooperate with Ministry of Finance, Ministry of Agriculture and Rural Development in balancing, allocating development investment capital for the implementation according to this Decree;

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3. The Ministry of Finance has the responsibility to:

Take charge of balancing, allocating annual profession expenditure in accordance with the Law on State Budget and relevant legislative documents; cooperate with Ministry of Planning and Investment in requesting competent authority to consider and decide on medium-term and annual capital investment plans in order to ensure compliance with the Law on State Budget and the Law on Public Investment.

4. Other ministries and relevant ministerial agencies shall adhere to their functions and tasks.

Article 36. Responsibilities of People’s Committees of provinces

1. Direct, organize implementation, inspection, evaluation, and production of periodic reports on implementation of this Decree.

2. Allocate local government budget and integrate other funding sources (central government budget, local government budget, and other funding sources) in order to purposefully and effectively implement forest protection and development in provinces in accordance with this Decree and other relevant documents.

3. Assign Departments of Agriculture and Rural Development to take charge and cooperate with relevant agencies in communicating and publicizing policies under this Decree.

4. On the basis of the applicable forestation norms, direct or authorize the authority to provide guidelines on producing estimates of silviculture works appropriate to local conditions.

Article 37. Entry into force

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2. The following documents and regulations expire from the effective date hereof:

a) Points a, d, dd, e, g, and h Clause 1 Article 91 of Decree No. 156/2018/ND-CP dated November 16 of 2018 of the Government elaborating the Law on Forestry;

b) Chapter II, Article 20 and Appendix I, Appendix III of Circular No. 15/2019/TT-BNNPTNT dated October 30 of 2019 of the Minister of Agriculture and Rural Development guiding investment management of silviculture work.

3. Where documents referred to in this Decree are amended or replaced, the new documents will prevail.

Article 38. Transition clauses

1. Where programs, projects, investment operations are approved under applicable legislative documents before the effective date hereof, implementation will comply with said programs and projects whereas investment, investment funding, and procedures for implementation shall conform to this Decree.

2. Where programs, projects, investment operations are developed under applicable legislative documents which have been submitted but have not been approved before the effective date hereof, implementation will comply with this Decree.

Article 39. Responsibility for implementation

Ministers, heads of ministerial agencies, heads of Governmental agencies, Chairpersons of People’s Committees of provinces and relevant agencies, organizations, and individuals are responsible for the implementation of this Decree.

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ON BEHALF OF THE GOVERNMENT
PP. PRIME MINISTER
DEPUTY PRIME MINISTER




Tran Luu Quang

 

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Decree No. 58/2024/ND-CP dated May 24, 2024 on investment policies in forestry
Official number: 58/2024/ND-CP Legislation Type: Decree of Government
Organization: The Government Signer: Tran Luu Quang
Issued Date: 24/05/2024 Effective Date: Premium
Gazette dated: Updating Gazette number: Updating
Effect: Premium

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Decree No. 58/2024/ND-CP dated May 24, 2024 on investment policies in forestry

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