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THE
GOVERNMENT
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SOCIALIST
REPUBLIC OF VIETNAM Independence
- Freedom – Happiness
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No.
661/QD-TTg
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Hanoi,
July 29 1998
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DECISION
ON OBJECTIVES, TASKS, POLICIES AND ORGANIZATION FOR THE
ESTABLISHMENT OF FIVE MILLION HECTARES OF NEW FOREST
THE PRIME MINISTER
Based on:
Resolution of Session 2 of the 10th National Assembly of Socialist Republic of
Vietnam on establishment of five million hectares of new forest;
Law on Forest Protection and Development dated 19 August 1991;
Law on Governmental Organization dated 30 September 1992;
Resolution of regular meeting in May 1998 of the Government;
Considering the proposal of the Ministers of Agriculture and Rural Development,
Planning and Investment, Finance, Science, Technology and Environment, Labour,
Invalids and
Social Affairs, Chairman of the Committee for Ethnic Minorities and Mountain
Areas, Governor of the State Bank c, f Vietnam, Director o f the General
Department of Land Administration;
DECIDES
I.
OBJECTIVES, TASKS AND PRINCIPLES OF THE PROGRAMME
Article 1. Objectives
1. Establish five million
hectares of new forest together with protection of existing forests in order to
increase the forest cover to 43% of the national territory, protect the
environment, decrease the severity of natural disasters, increase water
availability, preserve gene resources and protect biodiversity.
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3. Provide material for
construction as well as raw material for production of paper, woodbased panels,
non wood products and also fuelwood, for local consumption as well as for
export; develop the industry processing forest products, make forestry become
an important economic sector, and contribute to improvement in the socio
economic situation in mountain areas.
Article 2.
Principles
1. People are the main force for
establishment, protection, and regeneration of forests and are entitled to
enjoy benefits from forest related activities. The State is to create a
favourable legal environment; organise research and transfer technologies,
issue policies which encourage people to engage in reforestation, provide funds
or favorable credits, and support construction of essential infrastructure.
2. Planting of forest, assisted
natural regeneration, and protection of existing forest should be closely
combined with the programmes for fixed cultivation and sedentarization and for
hunger elimination and poverty reduction.
3. The socio economic situation
is to be improved and environmental problems are to be reduced by applying a
sustainable agro forestry system for multiple purposes, with a varying cropping
structure, using suitable technologies, which supplies an advanced processing
industry.
4. The new forests should be
appropriately distributed between protection forests and production forests and
be located in different areas of the country with focus on priority areas.
Establishment of forests should also be closely integrated with plantation of
scattered trees.
- For protection forests
priority should be given to such forests in important watersheds, especially
where water is provided to hydro power plants, cities and coastal areas and
also to areas in urgent need of ecological rehabilitation.
- For production forests,
priority should be given to species of high economic value which also provide
environmental protection in both the short and long term.
5. Over the three phases of the
Programme, the creation of new forests will be implemented in the form of a
number of local projects designed in close cooperation with the local people,
submitted to the appropriate authorities for appraisal and approval. The
projects should be implemented rapidly, forcefully, timely and efficiently.
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1. Protection of existing
forests
Highest priority will be given
to protection of natural forests classified as special use forests
and very essential and essential protection forests, including protection
forests established in Programme 327, as well as to production forests with
rich and mediumstock. Allocation of forest land to organizations, households
and individuals combined with the programmes for fixed cultivation and
sedentarisation and for hunger elimination and poverty reduction should be
carried out from the very beginning.
2. Planting of new forests
a) Two million hectares of
protection and special use forests are to be created, of which one million
through assisted natural regeneration and one million through planting in combination
with fixed cultivation and sedentarisation.
b) Three million hectares of
production forest are to be created, of which about two million hectares for
supply of raw material for paper production, wood based panels, non wood
products, logs of valuable species and about one million hectares of
plantations of long-
term industrial species and
fruit trees. In addition, organisations and people are encouraged
to plant scattered trees on open
land.
The new forests are to be
created over a period of 13 years divided into three phases as follows:
- 1998-2000: plantation of
700,000 ha (of which 260,000 ha of protection and special use forests), and
assisted natural regeneration of 350,000 ha
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- 2006-2010: new plantation of
2,000,000 ha (of which 390,000 ha of protection and special use forests).
II. TECHNICAL
ASPECTS
Article 4.
Structure of the new forests
Species to be used for
reforestation will include various forest tree species and also species of long
term agricultural crops that establish a canopy and are able to protect the
soil like forest trees.
In order to achieve good
environmental protection, reduce the severity of natural disasters and also in
order to preserve biodiversity and improve the socio economic situation, the
following guidelines are provided for the structure of the new forests:
1. Special use forests
Based on the need for ecological
rehabilitation in different kinds of special use forest, the
Management Boards for special
use forests are to propose species structures suitable to the specific local
situation and forward the proposals to the Ministry of Agriculture and Rural
Development or the People's Committee of provinces and province level cities
for appraisal and approval.
2. Watershed protection forests
in very essential and essential areas
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The specific species structure
is to be decided by the People's Committees of provinces and
provincial level cities.
3. Production forest and non
essential protection forest
Species with a high economic
value (including long term industrial crops, fruit trees, plants
providing non wood products, and medical plants, etc. which develop a good
crown cover) are to be selected. The specific species structure is to be
decided by the organizations, households and individuals who are allocated or
lease land for reforestation in accordance with the general plans prepared by
provinces and province level cities. Certain areas where special conditions
prevail may be designated for concentrated production, where new forests and
processing industry are gradually built up in close coordination in order to
meet the demand from the market.
Article 5.
Policy on land
Under the direction of the
Ministry of Agriculture and Rural Development and the General Department of
Land Administration, People's Committees of provinces and provincial level
cities are to review the extent of forestry and agriculture land and to make a
plan for use of open land and bare hills in provinces, districts, and communes
where local projects of the National Five Million Hectare Reforestation.
Programme are to be established. The People's Committees are also to identify
location and extent of special use forests, watershed protection
forests in very essential, essential, and non essential areas, and production
forests, all in accordance with regulations by the Ministry of Agriculture and
Rural Development. They are also to supervise the allocation or lease of land
and the issuance of Land Tenure Certificates to organizations, households and
individuals according to Decree No. 02/CP by the Government, dated 15 January
1994.
1. Allocation of forest land and
forests and issuance of Land Tenure Certificates for special use and watershed
protection forests.
a) Forest land and forests in
areas classified as special use land are to be allocated to the respective
Management Boards, to be protected and managed in accordance with plans
approved by the competent authorities.
b) Land in watersheds classified
as very essential and essential is to be allocated to the respective Management
Boards. The Boards are subsequently to contract organisations
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c) Land in watersheds classified
as non essential is to be allocated or leased for protection, plantation of
forest trees and agriculture crops, primarily for production of
forestry and agricultural
products but also in order to protect the land. The procedures for allocation
and lease of this land are the same as for production forests.
2. Land classified as production
forest land is to be allocated or leased to organisations in different economic
sectors, households and individuals. Land Tenure Certificates are to be issued
for the land.
a) The People's Committees of
provinces and provincial level cities in cooperation with the concerned
Ministries are to make a review of the extent of forestry and agriculture land
allocated to State Forest Enterprises and State Farms. After the operations of
those enterprises have been revised, the area and the borders of the land to be
allocated to the enterprises should be determined. The remaining forest land
(after allocating to the State enterprises) should be allocated to organizations,
households and individuals before the year 2000.
b) Open lane and bare hills
should be allocated or leased to organisations, households and individuals for
reforestation. Priority should be given to households residing in the area.
3. Area and duration of
allocation and lease of land are as follows:
a) The area of land to be
allocated or leased to organisations is to be as stated in the official plans
or projects for the area, approved by the competent authorities. The area of
land and forest to be allocated to households and individuals is to be decided
by the People's Committee of provinces and provincial level cities in
accordance with the specific situation in each locality.
b) The validity of the
allocation or lease of land to organizations and allocation of land and forest
to households and individuals is 50 years. If the organizations, households or
individuals still need the land after that period has passed, and they have
been using it for the correct purposes, the validity of the allocation or lease
will be prolonged. If the land user has established a tree crop with a rotation
period of more than 50 years, the validity of the allocation or lease will be
prolonged at the 50th year, for the period remaining until the harvesting
occasion.
4. Issuance of Land Tenure
Certificates
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Article 6.
Investment and credit policy
1. Non reimbursable State funds
are to be used as follows:
a) For the continued protection
of two million hectares of special use forests and protection
forests located in very essential and essential watersheds until now protected
through Programme 327. The payment for protection per hectare is to be no more
than 50,000 VND/year over a period not exceeding 5 years.
For contracts for assisted
natural regeneration, at a cost of no more than 1 million VND/ha. The payment
is to be distributed over a period of 6 years in accordance with decisions by
the Ministry of Agriculture and Rural Development.
b) For reforestation and tending
of the new forest in very essential and essential watersheds, the person
responsible will be compensated by an amount of up to 2.5 million VND/ha, in
accordance with the technical standards established by the Ministry of
Agriculture and Rural Development.
The Ministry of Agriculture and
Rural Development is to guide local authorities in organising trial bidding
among economic organisations, including youth associations, for undertaking
protection, assisted natural regeneration or other forms of reforestation in
areas which are not suitable for allocation or contracting to households.
c) For support with an average
amount of 2 million VND/ha to organisations, households or individuals who use
their own funds to create production forests with especially valuable species
(with rotation periods of more than 30 years). Priority is to be given to
species belonging to groups IA and IIA as specified in Decree 18/HBDT by the
Council of Ministers (now the Government), dated 17 January 1992.
The People's Committees of
provinces and provincial level cities are to guide the use of the funds
mentioned above for protection, assisted natural regeneration and supplementary
planting of protection forests and special use forests as well as in support of
those who create production forests with especially valuable species, so that
complementarity in accordance with the local conditions is achieved with efforts
in the programmes for fixed cultivation and sedentarization and for hunger
elimination and poverty reduction.
d) Expenditures for management
of projects for afforestation on watershed protection forest land and in
special use forests may amount to a total of 8% of the amount of State funds
for the entire project, of which the central level may use 0.7%, the
provincial, district and commune level 1.3% and the project owners 6%.
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Management of the funds for
protection, assisted natural regeneration and plantation of protection and
special use forest is to be as follows
- The State funds are allocated
through State Treasury system
- The State pays in advance for
supply of tree seedlings for the first year. From the second year, the project
owners have to recover the costs for seedlings from the units carrying out
plantation during that year and prepare seedlings for the following year. When
the project ends, the project owners have to recover the advance paid to
seedlings for the first year and return it to the State.
- When the annual plans for the
local projects have been approved by the competent authority, the State
Treasury pays 30% of the annual project budget as an advance. An additional 40%
is paid when the project has implemented 50% of its targets for the year. By
the end of the year, the State pays the remainder after receiving a report by
the provincial Evaluation and Approval Team (under the authority of the
Department of Agriculture and Rural Development) certifying that the project
has been correctly managed.
2. Credits are to be used for
the following purposes:
Organizations, households and
individuals who plant forests, assist natural regeneration, and protect non
essential watershed protection forests and production forest (including
plantations of long term industrial crops, fruit trees, plants
yielding non wood products, and medical plants) as well as for those who
develop facilities for processing of agricultural and forest products have the
right to credits on favourable terms as regulated in the Law (revised) on
encouragement of domestic investment, the right to borrow from national
investment support funds, from other favorable sources of credits, from ODA
funds of foreign countries, international organisations as well as other
sources.
Forest owners who are non state
organizations, households and individuals can use their production forest and
Land Tenure Certificates as collateral when borrowing in the bank.
Article 7.
Policy on rights and benefits and on marketing
1. For special use and watershed
protection forests.
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b) Households contracted for
protection of very essential and essential protection forests have the right to
exploit fuelwood and minor forest products growing under the tree canopy.
c) Households contracted for
assisted natural regeneration in protection forests have the right to all
products from thinning as well as minor forest products growing under the tree
canopy.
d) Households who have planted
protection forests have the right to all products from thinning as well as
agricultural products and minor forest products growing under the tree canopy
2. For production forests
a) A household who has invested
in the creation of a forest plantation on production forest land is considered
as the owner and has the right to decide when and how to harvest the forest.
However, the area has to be reforested within two years after harvesting
b) All products harvested in
planted forests as well as bamboo and minor forest products harvested in
natural forests can be freely marketed.
Logs and other forest products
(except precious and rare species listed in Decree 18MBT by the Council of
Ministers, now the Government, dated 17 January 1992) exploited from natural
production forest regenerated by households and individuals can be freely
marketed. Before harvesting and marketing, however, the forest owner must
inform the closest forest inspection unit or the People's Committee of his commune
or town; within 10 days of submitting the information, the forest owner is to
receive a certificate that the products are legally harvested.
c) The State encourages the
processing and export of processed products from plantation forests. In cases
when processing units in the country are not able to process all the raw
material available or are unable to invest in processing facilities, un
processed products harvested in plantation forests can be exported.
d) The State will issue policies
on sale of products from planted forests and other policies aimed at ensuring
that those who invest in reforestation receive adequate benefits.
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I. Investors, organizations,
households and individuals who plant forests and long term agricultural
crops on open land and bare hills as well as process agricultural and forest
products are to enjoy favourable tax treatment as provided in the Law on
encouragement of domestic investment (revised).
2. Exemption from payment of
natural resource tax is granted for products harvested in natural production
forest rehabilitated by assisted natural regeneration.
3. Exemption from payment of
trade tax is granted for forest products legally harvested in planted forests
and for non wood products harvested in natural forests.
Article 9.
Policy on science and technology
1. The Ministry of Agriculture
and Rural Development in cooperation with the Ministry of Science, Technology
and Environment is to direct research on selection, breeding and import of tree
seeds with good adaptability and high productivity. Research is also needed on
suitable planting methods and on methods for forest protection and fire
prevention that can easily be widely disseminated.
2. The Ministry of Agriculture
and Rural Development in cooperation with People's Committees of provinces and
provincial level cities are to develop ways to encourage the development of
seed production units belonging to different economic sectors, support
investments in seed production, issue seed certificates and prevent utilization
of bad quality seeds.
Article 10.
Foreign investment
1. Foreign investors are
encouraged to set up joint ventures with domestic organizations and individuals
for reforestation and processing of forest products. Trials with lease of land
will be continued. 100% foreign owned investments are allowed for
reforestation. Foreign investors are accorded favourable treatment as regulated
in the Foreign Investment Law, Decree no. 10/1998/ND CP dated 23 January 1998
by the Government.
2. The Ministry of Planning and
Investment, the Ministry of Agriculture and Rural
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III.
ORGANIZATION AND MANAGEMENT.
Article 11.
Management at the Central level
1. The National Steering
Committee was established in accordance with Decision No.
07/1998/QD TTg by the Prime
Minister, dated 16 January 1998.
2. An Executive Committee is to
be established under the Ministry of Agriculture and
Rural Development with
representatives (from departments) of the Ministry of Finance, the Ministry of
Planning and Investment, the State Bank of Vietnam, the Committee for Ethnic
Minorities and Mountain Areas, the General Department of Land Administration
the Ministry of Science, Technology and Environment, and the Farmers'
Association of Vietnam.
The Minister of Agriculture and
Rural Development is to determine the specific functions, responsibilities and
working regulations for the Executive Committee. Personnel supporting the
Executive Committee is to be provided by the Ministry of Agriculture and Rural
Development without increasing its number of staff
Article 12.
Management at the local level
1. In provinces and provincial
level cities where local projects are being implemented, the Chairman of the
People's Committee is responsible for the overall result of projects
implementation in his locality.
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Project Management Boards are to
be established under the Department of Agriculture and
Rural Development to assist the
provincial Executive Committees, as follows:
• In provinces and provincial
level cities which have a Forestry Development Branch, that
Branch will perform the function
as Project Management Board at the provincial level.
In provinces and province level
cities where there is no Forestry Development Branch, a Project Management
Board will be established. Salaries for staff in the Board is to come from the
provincial funds for salaries.
2. No Executive Committee is to
be established at the district level. In districts, the
Chairman of the People's
Committee is responsible for state management of projects in the district.
3. For communes where local
projects are implemented, the People's Committees of provinces and provincial
level cities will decide whether to engage a full time forester to assist the
Chairman of the Commune People's Committee to direct the implementation of
the reforestation or protection
activities. His allowance is to be paid from the project management budget.
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The Minister of Agriculture and
Rural Development is to determine the specific functions, responsibilities and
working regulations for Project Management Boards at different levels.
Article 13.
The
Steering Committees and Management Boards for projects at different levels
under
Programme 327 have to finalise
their activities and transfer them to this programme before 31 December 1998.
The Steering Committees and the
Executive Committees at different levels for the National Five Million Hectare
Reforestation Programme are to take over the responsibility from the
corresponding units of Programme 327 and direct the implementation of
unfinished
projects within that programme
in special use and protection forests as given in this decision.
Article 14.
This
Decision comes into effect 15 days after the date of signing. All previous
decisions which are contrary to this decision are hereby abrogated.
Article 15.
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PRIME
MINISTER
Phan Van Khai