Joint Circular No. 03/2012/TTLT-BKHĐT-BNNPTNT-BTC guiding the implementation of Decision No. 147/2007/QĐ-TTg and Decision No. 66/2011/QĐ-TTg of the Government Prime Minister.

JOINT CIRCULAR

Guidelines for implementing Decision 147/2007/QĐ-TTg and Decision 66/2011/QĐ-TTg of the Government Prime Minister

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Pursuant to Decision No. 147/2007/QĐ-TTg dated September 10, 2007 of the Government on certain policies for developing production forests during the period 2007-2015 (hereinafter referred to as Decision No. 147/2007/QĐ-TTg);

Pursuant to Decision No. 66/2011/QĐ-TTg dated December 9, 2011 of the Government on amending certain provisions of Decision No. 147/2007/QĐ-TTg dated September 10, 2007 of the Government (hereinafter referred to as Decision No. 66/2011/QĐ-TTg);

The Ministry of Planning and Investment - The Ministry of Agriculture and Rural Development - The Ministry of Finance provide guidelines for implementation as follows:

This technical regulation sets out technical requirements, testing methods, sampling procedures; management requirements; responsibilities of organizations and individuals producing, trading, and importing cigarettes.

1. Scope of application: This Circular applies to the contents prescribed in Decision No. 147/2007/QĐ-TTg of the Government on certain policies for developing production forests during the period 2007-2015 and Decision No. 66/2011/QĐ-TTg dated December 9, 2011 of the Government on amending certain provisions of Decision No. 147/2007/QĐ-TTg dated September 10, 2007 of the Government.

2. The terms used in this Circular shall be understood as follows:

a) Bare hills suitable for afforestation under this Circular refers to land that has been planned for production forests but has not had forests for at least three years (status la, Ib, Ic).

b) State-owned organizations under this Circular include: Forest Protection Management Board, Specialized Forest Management Board, State-owned Forestry Farms, Timber Companies, enterprises in which the State holds at least 50% of the charter capital and are granted or leased forest land by the State.

c) Non-state-owned organizations under this Circular include: cooperatives, private enterprises, limited liability companies, joint stock companies in which the State holds less than 50% of the charter capital, partnership companies, community groups.

d) Silvicultural activities under this Circular include: afforestation and forest management (including establishment of seedling nurseries, experimental forests, trial forests); construction of seedling nurseries; silvicultural advisory services (project development, technical design of silviculture; allocation of land and forests, long-term land leasing for afforestation); construction of firebreaks; mapping of afforestation areas.

đ) Long-term land leasing for afforestation: state-owned organizations are allowed to lease land to households, individuals, and community groups for a period equal to the remaining term of the land allocation decision or lease contract with the competent authority, but not exceeding 50 years.

e) Concentrated forest area refers to the total area of contiguous or adjacent forest plots forming a forest region, where the non-forest land area does not exceed 10% of the total concentrated forest area.

II. SPECIFIC PROVISIONS

1. Preparation, review, and approval of projects supporting afforestation of production forests

1.1. Determination of project sponsors and scope: the sponsor of projects supporting investment in afforestation of production forests is determined according to Clause 1, Article 15 of Decision No. 147/2007/QĐ-TTg of the Government.

a) Projects supporting afforestation of production forests for households (hereinafter referred to as households): based on the current capacity of state-owned organizations, Forest Inspection Stations, Border Guard Posts (hereinafter collectively referred to as state-owned organizations), and the existing area of production forest land, the county-level steering committee will uniformly assign each unit to build a project supporting afforestation of production forests in certain communes.

b) Non-state-owned organizations may independently establish projects supporting afforestation of production forests. These projects can overlap with the communes of projects supporting afforestation of production forests for households but must not overlap in actual location.

c) For supporting afforestation for individual households within specific raw material zones of wood processing plants (hereinafter referred to as wood plants) that have obtained investment certificates and provincial People's Committees have approved raw material zone projects for wood plants, the provincial People's Committee requires the Forest Inspection Station to authorize the wood plant investor and the People's Commune Committees within the raw material zone planning area to sign afforestation contracts with individual households. The wood plant investor is permitted to provide additional investment funds to improve forest quality and share products with residents on a voluntary basis.

d) For non-state-owned organizations without projects but with a need for afforestation: the provincial People's Committee allows the establishment of projects supporting afforestation of production forests, and after approval, these projects serve as the basis for land allocation and leasing.

1.2. Content of building projects supporting afforestation of production forests:

a) Determining the area and target of afforestation until the forest matures, including:

- Afforestation on bare hills suitable for production forests;

- Afforestation after harvesting from planted forests funded by sources 327 and 661 now designated as production forest land;

- Identifying the type of land eligible for support (extremely difficult communes, border communes, other communes);

- Preliminarily identifying the forest owners eligible for support (ethnic minorities or ethnic Kinh);

- Recommending the main tree species for planting to the forest owners.

b) Developing plans for land allocation, leasing, and long-term land leasing for afforestation (as per Section 2 of this Circular).

c) Planning a system of seedling nurseries (as per Section 14 of this Circular).

d) Planning a system of firebreaks (as per Section 15 of this Circular).

đ) An overall map (scale 1:10,000) clearly delineating the boundaries of the project area.

e) Total investment capital, including the required government investment support and detailed projected investment for each component.

g) Projected financial results.

h) The sponsor's ability to raise capital.

In some cases, planning a system of seedling nurseries, developing plans for land allocation, leasing, and long-term land leasing for afforestation, and planning a system of firebreaks may be developed as separate projects, but they must have specific reasons and be approved by the county-level steering committee, with costs within the allocated budget as specified in Clause 1.4 of this section.

1.3. Review and Approval:

a) For projects supporting investment in afforestation of production forests for households established by state-owned organizations:

- After the project is established, the Project Management Board (PMB) at the district level reports to the Steering Committee at the district level and seeks the review opinion of the Department of Agriculture and Rural Development (ARD). Within 15 working days from the date of receiving complete valid documents, if the ARD does not provide a written opinion, it shall be deemed to have agreed with the project. Within the following 10 working days, the PMB at the district level submits the project for review and approval by the People's Committee at the district level. The decision approving the project must be sent to members of the county steering committee, the provincial PMB, and related organizations and individuals; before approving, the People's Committee at the district level reports to the Provincial People's Committee to request a review of the funding source by the Ministry of Planning and Investment and the Ministry of Finance according to Directive No. 1792/CT-TTg dated October 25, 2011 of the Prime Minister.

b) For projects of non-state organizations:

- For projects funded from local government budgets: The Provincial People's Committee assigns competent agencies (the ARD leads for forest planting and investment in forestry works; the Department of Planning and Investment leads for comprehensive investment projects) to organize reviews and submit them for approval by the Provincial People's Committee.

- For projects funded from central government budgets: The Provincial People's Committee assigns competent agencies (the ARD leads for forest planting and investment in forestry works; the Department of Planning and Investment leads for comprehensive investment projects) to organize reviews, send them for funding review by the Ministry of Planning and Investment and the Ministry of Finance according to Directive No. 1792/CT-TTg dated October 25, 2011 of the Prime Minister, before submitting them for approval by the Provincial People's Committee.

- For non-state organizations that already have investment projects and have one of the following decisions from the competent authority: approval of the project; land allocation decision; land lease contract, only need to prepare the plan for using the investment support funds according to Decision No. 147/2007/QĐ-TTg for approval by the Provincial People's Committee and allocate the plan.

1.4. Costs for establishing and reviewing support projects for production forest planting for individuals and households are calculated at VND 45,000 per hectare including boundary firebreak planning, nursery system planning, and land allocation planning.

2. Procedures for preparing plans for allocating land and forests, issuing land use right certificates, and contracting land for forest planting for organizations and households under the Support Program for Production Forest Planting

2.1. Preparing plans for allocating land, issuing land use right certificates, and contracting forestry land:

a) Principles for allocating land, leasing land, and contracting forestry land:

- All forestry land areas within the project must be allocated, leased, and issued land use right certificates, or issued land allocation maps for planting forests, establishing nurseries, building seedling forests, seedling gardens, and seedling centers (only in places where conditions for issuing land use right certificates are not met);

- Areas of forestry land planned as production forests (or converted from protective forests to production forests) allocated to households by state-owned forest farms, agricultural and forestry companies, other state units, or non-state enterprises converted from state enterprises when implementing the state enterprise restructuring program, if within three consecutive years the contractor has not been supported with seeds, materials, techniques, or the party allocating the contract only uses state budget funds for support (New 5 million hectares of forest planting project, or the previous Program 327), in fact, the party allocating the contract only allocates bare land and collects rent, then the Chairman of the Provincial People's Committee shall consider and decide to reclaim this area to allocate, lease, and issue land use right certificates according to regulations.

In cases where the forestry land area is within the specific approved planning area for raw material supply for wood processing plants as per Decision No. 147/2007/QĐ-TTg when planting forests, the area does not need to be reclaimed but can be transferred to long-term stable land contracts for the contractor. Product distribution will be based on the specific capital contribution ratio of each party and the market price agreed upon in the contract. If the party allocating the land does not contribute capital, the contractor only needs to pay management fees as stipulated in Point a, Clause 2, Article 6 of Decision No. 147/2007/QĐ-TTg.

b) The ARD leads, in coordination with the Department of Natural Resources and Environment, is responsible for compiling the total area of forestry land to be reclaimed and reporting to the Provincial People's Committee for decision-making, assigning the competent agency to issue land use right certificates according to the guidance in Point a, Clause of this section.

c) Based on the approved classification of three types of forests and the principles of land allocation and reclamation, the PMB at the district level leads in preparing plans for land allocation, leasing, and contracting forestry land, conducting announcements and consultations with local people and communities to adjust the plan (if necessary). Then, hire units with surveying functions to complete the documentation and submit it to the competent authority for issuance of land use right certificates.

2.2. Content of land allocation plan preparation: determining the area of land within the project area, clearly distinguishing between land areas already having land use right certificates, land areas requiring issuance of land use right certificates or land contracts, and land areas requiring reclamation to transfer to issuance of land use right certificates. For contracted land areas (without issuance of land use right certificates), when contracting land, the party allocating the contract must prepare a land contract map at a scale of 1:5000 with confirmation from the district-level People's Committee to hand over to the contractor.

2.3. Costs for land allocation, forest allocation, and contracted land for forest planting (until obtaining land use right certificates)

a) Average costs for land allocation, leasing, and contracting forestry land for households are VND 300,000 per hectare, with specific costs approved by the competent authority.

b) Costs for land allocation and leasing for non-state organizations are VND 150,000 per hectare (from the stage of preparing the plan to the issuance of land use right certificates). The investor is permitted to prepare design estimates, approve land allocation and leasing costs, and implement according to the assigned plan.

2.4. The time limit for completing the issuance of land use right certificates is within 12 months from the date of signing the forest planting contract.

3. Procedures and formalities for investment support in forest planting (support beforehand)

3.1. For households

a) Procedures and formalities for support

- Based on the three-year forest planting support plan assigned and the project land area, the Project Management Board at the district level shall issue a notification to all communes and organize meetings with each village to disseminate the forest planting plan, planting locations, management and protection measures, discuss and amend (if necessary) until agreement from at least 70% of participants is reached, and provide a model application form for forest planting to households;

- If there is a need for forest planting, households shall submit an application (according to the attached model) to the People's Committee of the commune. Within ten days from the deadline for receiving applications, the People's Committee of the commune must compile the forest planting needs in its jurisdiction including lists of households, planting areas, and planting locations in priority order, and publicly announce them at the People's Committee of the commune and send them to the Project Management Board at the district level;

- Based on the application forms, minutes of the people's meetings, planned land areas, and approved forest planting plans, the Project Management Board at the district level shall coordinate with the People's Committee at the commune and village levels to unify the submission to the People's Committee at the district level for approval of the list of participating households, planting areas, and planting locations;

b) Advance support shall be paid in two installments. In the first year, support for seedling and fertilizer costs (if applicable) will be provided, and the remaining amount (if any) will be paid after the final inspection when the forest reaches 10-12 months old;

c) Regarding the time limit for resolution

- Within fifteen working days from the date of receipt of the household list compiled by the commune People's Committee, the district People's Committee must issue a decision approving the list, areas, and locations of households eligible for support and assign staff to guide the signing of contracts and technical guidance;

- The public announcement period for the list of households eligible for support and the signing of forest planting contracts is five working days from the date the district People's Committee approves the list;

d) Inspection and settlement:

- Annually, when the forest meets the inspection criteria, the project investor shall notify the schedule for inspection to all forest owners and the Commune Forest Development Boards, Village Forest Development Boards. Based on the inspection schedule, the project investor shall lead, invite the Commune Forest Development Board and Village Forest Development Board to participate as members to inspect the forest for the owner;

- Documents required for inspection for household forests: forest planting contract, certificate of origin of seeds (if seed type requires proof of origin);

- Settlement documents: extract of the contract prepared by the project investor, inspection record of the forest;

3.2. For non-state organizations

a) Advance support shall be paid in two installments: upon receiving the plan, the project investor is allowed to advance 30% of the support funds to prepare seeds and prepare the planting site; the remainder will be paid after the forest is inspected and approved by the Provincial Project Management Board;

b) Inspection and settlement:

- When the forest meets the inspection criteria, the project investor shall submit a request for inspection along with the internal inspection record to the Provincial Project Management Board. Within fifteen working days, the Provincial Project Management Board shall lead, invite relevant departments and the People's Committee of the district where the project is located to inspect the forest for the investor;

- Documents required for inspection: decision approving the project, document approving the plan, decision approving the technical design and budget for planting and caring for the forest, decision establishing the Project Management Board, certificate of origin of seeds (if seed type requires proof of origin);

- Settlement documents: document approving the forest planting plan and inspection record of the forest;

4. Procedures and formalities for post-investment forest planting support

4.1. For households

a) Object:

- Households have a certificate of land use rights (for production forest planting);

- Households have a long-term land lease contract (including production forest land and protective forest land now reclassified as production forest land) with state-owned organizations (including state-owned enterprises that have been privatized);

- Households have land within the production forest planting planning area, currently under stable cultivation for three years or more without disputes but without a certificate of land use rights or a long-term land lease contract. This area must complete the issuance of certificates of land use rights or land allocation maps for forest planting within twelve months for the forest owner;

b) Formalities: as stipulated in Clause 3.1, Section 3 of this Circular;

Within twenty working days from the date of receipt of the application, the Project Management Board at the district level, based on the approved forest planting support plan of the Project, shall be responsible for dispatching staff to verify the site and determine the level of support according to regulations to sign a forest planting support contract, accompanied by a technical guidance document for planting and caring for the forest for households;

c) Inspection and settlement:

- When the planted forest reaches 10-12 months old, the Project Management Board at the district level shall notify the schedule for inspection to all forest owners, Commune Forest Development Boards, and Village Forest Development Boards and organize inspections according to the announced schedule for the forest owner;

- Documents required for inspection: forest planting support contract, certificate of origin of seeds (if seed type requires proof of origin);

- Settlement documents: extract of the contract prepared by the project investor, inspection record of the forest;

- Post-investment support shall be paid in one lump sum immediately after the forest is inspected;

4.2. For non-state organizations

a) Upon receiving the project approval decision from the competent authority, the project owner shall register a three-year forest planting plan with the Provincial People's Committee. Within fifteen working days, the Provincial People's Committee, based on the assigned plan, shall issue a document approving the plan for the investor;

b) The project owner, based on the assigned plan, shall develop a technical design, budget for planting and caring for the forest, and self-approve according to current regulations to implement forest planting;

c) Inspection and payment:

- When the forest meets the inspection criteria, the forest owner shall submit a report (with internal inspection records for each plot and section) to the Provincial Project Management Board requesting forest inspection. Within fifteen working days, the Provincial Project Management Board shall be responsible for inviting relevant departments and representatives of the district People's Committee to organize forest inspection for the investor;

- Documents required for inspection: decision approving the project, document approving the plan, decision approving the technical design and budget for planting and caring for the forest, certificate of origin of seeds (if seed type requires proof of origin);

- Settlement files: approval documents for afforestation plans and inspection reports of the competent authority;

- Post-investment support shall be paid in one lump sum immediately after the forest is inspected;

5. Inspection time and quality standards for inspected forests

5.1. Inspection time: inspect the forest when it reaches 10-12 months old.

5.2. Quality standards for inspected forests:

The planted trees grow well, with a survival rate distributed relatively evenly, each gap without trees having an area smaller than 100 square meters,²the survival rate must be at least 85%, and all technical requirements stipulated in the signed contract must be completed. Areas that do not meet the standards must be replanted and re-inspected the following year.

6. Completion maps for afforestation: In the third year of the three-year afforestation plan, the Project Management Board at the district level is responsible for creating numbered maps to record the completion of afforestation results for the entire planted forest area within the three-year plan period, with a scale of 1/10,000. These maps are developed concurrently with the final monitoring and evaluation report to enable provincial Project Management Boards to supervise and compile reports for the Central Steering Committee. The cost for creating these digital maps is 45,000 dong per hectare.

7. Procedures and formalities for supporting scattered tree planting

7.1. Principles of support

a) The Project Management Board at the district level collaborates with the People's Committee of communes and villages, and organizations with land for scattered tree planting to develop a scattered tree planting plan in the project area. The Project Management Board organizes for participants to register their planting activities, clearly identifying planting locations, planting times, and types of trees.

b) Each organization, individual, or household can only receive support once during the implementation phase from now until 2015.

c) Scattered tree planting by households along field boundaries in shifting cultivation areas combines with agricultural crop protection; scattered trees planted by specific organizations (such as schools, health clinics...) and benefiting from them shall not exceed 200 scattered trees per hectare of existing land. Specific levels are determined by the District People's Committee.

d) Scattered trees on public land (roads, ditches), the Commune People's Committee may assign organizations such as youth unions, veterans' associations, cooperatives, farmers' associations, and communities to plant and benefit from them.

đ) Based on approved plans, the Project Management Board at the district level notifies organizations, individuals, and households to pre-register to prepare seedlings. Pre-registration time varies according to seedling cultivation time. Organizations and individuals wishing to plant scattered trees submit one registration form for scattered tree planting (according to the model attached to this Circular) to the Project Management Board at the district level. After households and organizations have registered their seedling needs, the Project Management Board publicly announces the allocation plan within ten working days from the date of receiving annual targets;

e) After compiling the planting plan and the scattered tree planting demand in the area, the Project Management Board at the district level, together with the commune and village, prioritize and submit the scattered tree planting plan to the District People's Committee for approval. The scattered tree planting plan must be publicly announced at the commune and village offices (village cultural centers) and notified to each relevant organization, individual, and household.

7.2. Methods and levels of support. Forest owners may choose one of the following two forms:

a) Post-investment support: Organizations and households planting scattered trees as specified in Clause 7.1 of this Section, after the planted trees reach 10-12 months old and meet the inspection standards set out in Clause 5.3 of Section 5, will be paid 100% of the seedling costs, at a rate of 2.25 million dong for 1,500 timber seedlings; and 2.25 million dong for 225 bamboo clumps.

b) Pre-support: scattered tree seedlings provided to organizations and households are supported at 100% of the seedling cost, but not exceeding the post-investment support amount.

7.3. Converted area from scattered tree planting is: 1,000 timber seedlings are equivalent to one hectare of concentrated planting for tree species with a cycle over 10 years; 1,500 timber seedlings are equivalent to one hectare for tree species with a cycle under 10 years, and 225 bamboo clumps per hectare.

8. Management of afforestation seed sources

8.1. Organizations, individuals, and households are permitted to produce and supply afforestation seed sources (seedlings, seeds, propagation materials) for major forestry tree species listed in the published directory, which must have a certificate of origin for the seed lot as prescribed in the Forestry Tree Seed Management Regulation issued by the Ministry of Agriculture and Rural Development (Decision No. 89/2005/QĐ-BNN).

8.2. Organizations and households planting forests may purchase propagation materials and seedlings from seed source providers and production facilities, but they must comply with the provisions of Clause 8.1 of this Section.

The Project Management Board at the district level bases its scattered tree planting plan on the seed supply needs of afforestation contracts and the seed supply requests of households, adapting to local conditions.

8.3. Seed price management: every January, the Provincial People's Committee approves and publishes the afforestation seed prices for all types of seeds in the locality.

8.4. Publicizing seed sources: annually, the Department of Agriculture and Rural Development publishes in writing the production facilities and seed sources meeting quality standards in the locality. The Ministry of Agriculture and Rural Development publicizes on the seed management website the production facilities and seed sources meeting quality standards nationwide.

9. Determining and implementing the level of afforestation support (including bamboo)

The support level for each item is taken from the total allocated budget, specifically as follows:

 

 

(bamboo includes: bamboo, rattan, reed, water oak, bamboo grass... as per Decision 11/2011/QĐ-TTg, February 18, 2011)

Provinces base on actual conditions of their locality may use local budget to supplement support for projects with high seedling costs implemented in difficult areas

For the support cost for forestry promotion work 150,000 VND - 300,000 VND per hectare every four years: mainly used for salary, training, and working expenses for staff

Use the survey and design support level of 75,000 VND per hectare:

+ For areas that have been allocated land, leased land, and granted land use rights certificates: Only a simple design description is required, specifying the type of trees to be planted and technical guidance for planting (with a copy of the land use rights certificate and plot map attached)

During the process of preparing the design file, the design support funding (75,000 VND per hectare) can be combined immediately at the outset with the funding for creating the final completion map (45,000 VND per hectare) and this map can be used for final monitoring and evaluation reports as stipulated in Clause 6, Section II

+ For areas that have not yet been allocated, leased, or granted land use rights certificates: Combine the allocation and lease funding with the survey and design support funding to implement: Use GPS to determine the area and location of the forest plot, draw a map according to the specified scale; then prepare a design description similar to the above case (attach the plot map after determining the area and location)

The acceptance cost is taken from the annual management fee of the Project

10. Benefits for non-state organizations, individuals, and households who were contracted to plant special-purpose forests and protective forests previously funded by Program 327 and the Five Million Hectares Reforestation Project, after being approved as production forests

10.1. For areas where households and non-state organizations have been contracted for all stages, from planting to protecting the forest, they will be transferred to a long-term stable contract or granted land use rights certificates according to regulations; benefits as stipulated in Article 6 of Decision 147/2007/QĐ-TTg

Upon harvesting, the forest owner must replant the forest within 12 months as prescribed without state budget support for the next cycle

10.2. For areas where households only contracted the protection stage of the forest (currently contracted for protection): upon harvesting, households will receive additional protection funds, averaging 300,000 VND per hectare annually from the proceeds of selling timber from the protected area. Specific amounts are proposed by state-owned entities and decided by the district People's Committee

All revenue after deducting legitimate costs for auctioning harvesting and supporting contractors must be deposited into a temporary account to support reforestation as prescribed in Decision 147/2007/QĐ-TTg. If the auction revenue is lower than (or insufficient) to support contractors, the revenue should first cover legitimate management, design, and auction preparation costs of state-owned entities, with the remainder distributed to households based on the area and number of years managed and protected

Harvesting and selling timber under this category must go through public auctions as prescribed: state-owned entities managing the forest decide the harvesting time, prepare auction documents for approval by competent authorities, and conduct public auctions

10.3. For protective forests where the project leader has invested additional capital for planting, caring, and protecting, which has been approved by competent authorities, when selling these forests, the proceeds are handled in the following priority order: legitimate costs for auctioning, harvesting timber, additional support for households, the remainder is divided according to the ratio of investment between state budget and project leader's capital, the portion corresponding to the state budget will be collected for continued reforestation under this policy. The project leader receives profits corresponding to the additional investment made

10.4. For protective forests where the project leader still manages independently without household participation, the project leader decides the harvesting time. The project leader prepares auction documents for approval by competent authorities to proceed, deposits the proceeds into a temporary account of the project leader, and reports to the provincial People's Committee for permission to invest according to Decision 147/2007/QĐ-TTg

10.5. For protective and special-purpose forests currently under basic construction (one year planting + three years caring), when planning to convert to production forests according to Directive 38/2005/CT-TTg dated December 5, 2005, the following handling applies:

a) For areas already allocated and stably contracted to non-state economic components, these components continue to fund care and protection of the forest and enjoy benefits

b) For state-owned organization areas, follow the approved standard for the full period of basic forest construction

11. Logging and payment of forest owners' obligations

11.1. Before logging, the forest owner submits a specific logging plan for each plot to the Forest Inspection Station of the district, copied to the commune People's Committee for monitoring. Within five working days of receipt, if the Forest Inspection Station does not object in writing, the forest owner may log, transport, and sell the product. Within 45 days of submitting the logging plan to the Forest Inspection Station, the forest owner must deposit money into the commune and village forest development fund as prescribed. If the owner fails to pay within this period, penalties for late tax payment apply

After logging, the planted area must be replanted within 12 months

11.2. The rice price for payment into the commune budget is calculated based on the common rice price set annually by the provincial People's Committee (like the agricultural tax rice price)

11.3. The Forest Development Board of the Commune and Village shall be responsible for opening separate accounts and collecting fees from forest owners. This amount shall be used in accordance with Clause 21.8, Section 21 of this Circular.

12. Investment support for seedling forests and nurseries

12.1. Develop planning projects for seedling forests and nurseries:

a) Planning for seedling forests and nurseries is long-term and stable, under unified management by the Ministry of Agriculture and Rural Development according to general regulations. The Department of Agriculture and Rural Development shall take the lead in developing a system of seedling forests and nurseries until 2050:

- The planning project for the system of seedling forests and nurseries shall, on the basic principle, ensure the supply of seedlings for the industry. Existing seed sources shall be primarily utilized, supplemented with new seed sources as appropriate to the approved strategic forestry seedling plan of the industry by the Ministry of Agriculture and Rural Development;

- Identify the investor, location, area of seedling forests and nurseries capable of supplying seedlings, areas requiring ownership transfer, where state-owned organizations manage only 30% of the area of national importance seedling forests and nurseries;

- Solutions for transferring investors for seedling forests and nurseries that require transfer;

- For newly planted seedling forests and nurseries, the minimum scale shall be at least 01 hectare. For converted seedling forests, the minimum scale shall be at least 05 hectares.

b) The planning for seedling forests and nurseries shall be submitted by the Department of Agriculture and Rural Development to the Ministry of Agriculture and Rural Development for review, and approved by the Provincial People's Committee. The approval decision must be sent to the seedling forest and nursery owners and publicly announced.

12.2. Investment, acceptance, settlement, and finalization of seedling forests and nurseries

a) Conditions for receiving investment support for seedling forests and nurseries: having a certificate of land use rights; having a long-term stable land and forest lease contract; or having a map of the seedling forest and nursery area drawn by the investor and confirmed by adjacent land users without dispute and by the commune People's Committee. The investor must commit to using the land for the long-term construction of seedling forests and nurseries and can only change the purpose of the seedling forest with the permission of the competent authority. Priority shall be given to planning for investors and households with knowledge in forestry (holding degrees from universities or specialized secondary schools).

b) The Department of Agriculture and Rural Development shall guide investors in designing technical plans and detailed budgets for planting new seedling forests and nurseries, converting seedling forests and nurseries, and protecting seedling forests and nurseries. Investors may hire consultants to prepare technical designs and budgets, or prepare them based on the guidance of the Department of Agriculture and Rural Development. The Department of Agriculture and Rural Development shall enter into an investment support contract (according to the attached contract model) with the investor within three months after the provincial People's Committee approves the planning for seedling forests and nurseries.

c) After signing the contract, the investor shall implement the investment according to the contract.

d) By the fourth quarter each year, the investor shall report the implementation results according to the contract to the Department of Agriculture and Rural Development. Within twenty working days, the Department of Agriculture and Rural Development shall establish an acceptance committee similar to the recognition committee for forestry seed sources (according to the regulation on forestry seed management), inviting the Project Management Board of the district and the Forest Development Board of the commune where the seedling forest and nursery are located to accept the investor's work.

đ) Acceptance documents: contracts between the seedling forest and nursery owner and the Department of Agriculture and Rural Development, documents proving the origin of superior trees, planting and construction logs compared to the guided technical design. These documents serve as the basis for issuing certificates of qualified seed sources to the seed source owners.

e) Settlement documents: acceptance minutes and the decision approving the planning project for seedling forests and nurseries by the provincial People's Committee.

g) The time for advance payment and final settlement of support capital shall be as follows:

- For seedling nurseries:

+ Advance payment: after approving the technical design and signing the contract, 30% of the annual planned capital can be advanced.

+ Payment for completed volume: after completing the volume, recover the advanced capital and pay the completed volume according to current construction management regulations and any replacement legal documents (if applicable).

+ Final payment time immediately after the first production year.

- For seedling forests:

+ Year 1 advance payment: after approving the technical design and signing the contract, 30% of the annual planned capital can be advanced. If the investor requests additional advance payments, they must complete the interim acceptance procedures and settle the previous advance before further advances can be made.

+ First acceptance and payment: in the second year, the investor and related parties shall accept and pay 80% of the total support capital.

+ Final payment time after accepting and caring for the seedling forest in the third year.

h) The Provincial Project Management Board shall benefit 3% of the total state support capital for seedling forest and nursery owners for implementing planning, technical guidance, contract management, and procedures for issuing land use right certificates and certificates of qualified seed origins. This cost shall be clearly stated in the contract between the parties. The Provincial Project Management Board shall allocate funds according to current administrative service costs.

13. Procedures for building investment support projects for high-quality tree seedling production centers

13.1. Investment policy and procedures:

a) In areas where there is no tissue culture seedling production facility, the Department of Agriculture and Rural Development or the Provincial Project Management Board (if any) shall publicly announce through mass media to select enterprises for investment, prioritizing those with large-scale forest plantations in the area, enterprises with joint ventures, collaborations, or partnerships with State-owned Institutes and Universities that have tissue culture technology for trees. After selection, the Department of Agriculture and Rural Development or the Provincial Project Management Board shall compile and submit to the Provincial People's Committee for permission to invest.

b) After receiving the directive, the project investor shall prepare the project for submission. The Department of Agriculture and Rural Development shall review it. Within twenty working days from the date of receipt of the complete file, the Department of Agriculture and Rural Development must issue a review document to the project investor. The content of the review must comply with Article 8 of Decision No. 147/2007/QĐ-TTg.

c) The project investor approves the budget estimate design. The decision of the project investor must be sent to relevant provincial agencies, the Ministry of Agriculture and Rural Development, and the Ministry of Planning and Investment.

d) After the approval decision, the Department of Agriculture and Rural Development shall sign a contract (according to the attached model) for the project investor within twenty working days from the date of receipt of the project investor's decision.

13.2. Capital advance and acceptance, settlement and final payment

a) After signing the contract, thirty percent of the support capital will be advanced. If the project investor requests further advances, they must complete the interim acceptance procedures between both parties and settle the previous advance before receiving further advances.

b) Acceptance and payment: After completion of the investment, the project investor shall submit a report to the Department of Agriculture and Rural Development. Within twenty days, the Department of Agriculture and Rural Development shall establish an acceptance committee and accept the project for the project investor. The committee shall be chaired by the Department of Agriculture and Rural Development, with participation from the Department of Planning and Investment, the Construction Department, and the Science and Technology Department. The minutes of acceptance, review documents, investment decisions, and directives shall serve as the basis for disbursing the first installment of support funds to the project investor, equivalent to eighty percent of the support level.

c) To disburse the remaining amount, the project investor shall report on the actual production volume consumed for verification by the Department of Agriculture and Rural Development. If consumption reaches one million trees per year, an acceptance certificate shall be issued to the project investor to disburse the remaining funds.

d) The provincial acceptance committee and the Provincial Project Management Board shall receive two percent of the total state support capital for the high-quality seed center to carry out reviews, acceptances, contract management, and procedures for issuing land use right certificates. These costs shall be clearly stated in the contract between the parties. The Provincial Project Management Board shall allocate these expenses according to current administrative service fees.

14. Seedling Nursery Investment Support

14.1. Procedures and formalities for planning the seedling nursery system of the Provincial Project Management Board under State-Owned Enterprises:

a) The Provincial Project Management Board shall compile a comprehensive list of existing seedling nurseries within its jurisdiction (location, area, scale, production capacity, nursery owner...).

b) Organize the planning of the seedling nursery system within its jurisdiction in accordance with Article 9 of Decision No. 147/2007/QĐ-TTg, which must include existing nurseries in the plan.

c) Determine the nursery owner: a domestic organization, a household, or an individual.

d) New planned nurseries must have a land use right certificate, or a nursery layout map drawn by the investor and confirmed by adjacent land users and the People's Committee of the commune. The nursery owner must provide a commitment to use the land for nursery construction for more than ten years.

đ) The planning content includes: determining the location of the nursery, whether it is a new or upgraded nursery, the current land area, and the nursery owner.

e) After planning, the investor shall submit one set of documents (including: land use right certificate; or a nursery layout map drawn by the investor and confirmed by the People's Committee of the commune; a commitment from the investor to use the land for nursery construction for more than ten years) to the Department of Agriculture and Rural Development for preliminary review, then submit to the People's Committee of the district for approval. The approval decision must be sent to members of the District Steering Committee, the Provincial Project Management Board, and the nursery owners.

The Department of Agriculture and Rural Development shall be responsible for preliminary review within ten working days from the date of receipt of the request for review from the organization.

The People's Committee of the district shall approve the investment plan within fifteen working days from the date of receipt of the preliminary review opinion from the Department of Agriculture and Rural Development.

g) After the approval of the plan, the Provincial Project Management Board shall be responsible for guiding technical design for the nursery owner.

h) After the design, the Provincial Project Management Board shall sign a contract with the nursery owner (contract model attached).

i) The level of state support is stipulated in Clause 4, Article 1 of Decision No. 66/2011/QĐ-TTg. The central government's budget support for nurseries in border communes shall not exceed seven hundred million dong per nursery, with the remainder supported by the local budget.

14.2. Capital advance and acceptance, settlement and final payment:

a) After signing the contract, thirty percent of the support capital will be advanced. If the investor requests further advances, they must complete the interim acceptance procedures between both parties and settle the previous advance before receiving further advances, but not exceeding eighty percent of the total support capital.

b) Final acceptance and disbursement: When the nursery is completed according to the contract, the nursery owner shall submit a written report to the Provincial Project Management Board. Within twenty working days, the Provincial Project Management Board shall invite representatives of the District Steering Committee and the Village Forest Development Board to accept the project for the nursery owner. The settlement and final payment documents include: the nursery owner's report to the Provincial Project Management Board; the investment support contract for the nursery; and the completion acceptance record of the nursery project.

c) The Provincial Project Management Board shall receive three percent of the total state support capital for the nursery owner to implement planning, technical guidance, contract management, and procedures for issuing land use right certificates for nurseries. These costs shall be clearly stated in the contract between the parties. The Provincial Project Management Board shall allocate these expenses according to current administrative service fees.

14.3. For nurseries of non-state-owned organizations with forest planting areas of one thousand hectares or more, the nursery investment decision is made during the forest planting project development process, with the enterprise being the nursery investor (no need for a nursery construction contract). The enterprise (which is the Provincial Project Management Board) shall independently develop the technical design and budget estimate for submission to the Department of Agriculture and Rural Development for review, followed by approval by the investor and independent implementation for new nurseries with a support of three hundred million dong per nursery and upgrading nurseries. The Provincial Project Management Board shall lead the acceptance for the Provincial Project Management Board.

15. Procedures and formalities for supporting the construction of fire prevention barriers (firebreaks)

15.1. Firebreak standards

a) Apply according to industry standards (standard 04 TCVN 89-2007), the firebreak width ranges from 8-12 meters on average and varies depending on the height of the forest trees, terrain, and financial capability. The firebreak is planned in conjunction with the logging compartments, facilitating transportation and connection to existing public roads. In each planting cycle, initial investment includes bulldozing, leveling, and building road bridges over streams (average road surface width of about 5 meters) for combined transportation purposes, while the remaining road width is cleared of vegetation, and subsequent years involve thorough clearing and maintenance throughout the entire firebreak.

b) In addition to the supported firebreaks mentioned above, the Project Management Board at the district level must plan auxiliary runways in concentrated forest areas of 100 hectares or more, dividing compartments and connecting to the firebreaks; or plan green runways in forests with high fire risk. Auxiliary runway widths range from 5-10 meters, with distances between runways being 50-100 meters.

15.2. Principles and procedures for planning firebreaks by the Project Management Board at the district level under state-owned organizations:

- Utilize existing footpaths and public roads;

- Ensure convenience for transportation and forest fire prevention;

- The network of roads should be evenly distributed and comply with Clause 1, Article 10 of Decision No. 147/2007/QĐ-TTg;

- Obtain agreement from at least 70% of the forest owners;

- The Project Management Board at the district level is the investor responsible for planning and investing in firebreaks. During the planning process, they must coordinate plans with forest owners. If the firebreak passes through land owned by forest owners, the Project Management Board at the district level must explain, promote, and negotiate so that the owners voluntarily donate the land for the common good without using state support funds for compensation;

- When planning, pay attention to previously planted production forests that have not yet been supported with firebreaks, allowing supplementary planning and receiving support according to Clause 5, Article 1 of Decision No. 66/2011/QĐ-TTg.

15.3. Investment procedures and final acceptance payment:

- After approval of the plan, the Project Management Board at the district level collaborates with forest owners to mark boundaries on-site to form the road system;

- Based on assigned plans, the Project Management Board at the district level can design themselves or hire a design estimate to submit for approval by the People's Committee at the district level. After the design estimate is approved, the Project Management Board at the district level can either construct it themselves or hire construction to complete the project;

- Final acceptance and settlement: after investment, the Project Management Board at the district level is responsible for reporting to the People's Committee at the district level within 20 days. The People's Committee at the district level is responsible for inviting representatives from the Provincial Project Management Board and the Forest Development Board at the commune level to inspect and accept the project for the investor.

15.4. Maintenance and upkeep.

Annually, the Project Management Board at the district level prepares a maintenance and upkeep plan to submit for approval by the People's Committee at the district level and implement. The average annual cost is 1 million VND/km.

15.5. Advance funding: after the design estimate is approved, the Project Management Board at the district level may advance 30% of the approved funding for the project. In cases where the investor requests additional advances, both parties must complete interim acceptance procedures and settle the previous advance.

16. Forest Industry Roads

Support for constructing roads for forest production development projects of processing facilities and concentrated raw material areas with a scale of 500 hectares or more, in regions without motorable roads for transporting products during the rainy season, will be provided with forest industry road investments up to 450 million VND/km (including bridges, culverts, and stream crossings). The remainder is local and project owner funding. Implementation follows current regulations on construction project management.

17. Wood Transportation Support in Northwest Region

Support for processing plantation wood, bamboo, and reed in the Northwest region includes pre-investment and post-investment support, prioritized in this policy to create market outlets for forestry, shift economic structures, and provide employment and income for residents.

17.1. Content of Investment Project Approval by the Provincial People's Committee:

- Approve factory scale suitable for raw material sources;

- Approve factory location.

17.2. Guidelines for Converting Volume Units (m³) of Wood Products to Weight Units (tons):

For MDF boards, 1 m³ product is equivalent to 750 kg;

For HDF boards, 1 m³ product is equivalent to 1000 kg;

For particle boards, 1 m³ product is equivalent to 700 kg;

For bamboo and reed: pressed boards, blocks, and strips, 1 m³ product is equivalent to 1000 kg (hereinafter referred to collectively as bamboo and reed boards).

17.3. Developed countries specified in Point d, Clause 6, Article 1, Decision No. 66/2011/QĐ-TTg are those with an average annual income per capita exceeding 15,000 USD according to the latest published data when importing equipment.

17.4. Post-Investment Support:

a) Total post-investment support capital: calculated according to Clause 6, Article 1, Decision No. 66/2011/QĐ-TTg and Section 17.1, 17.2 of this Circular. The total support capital is determined by the factory investor based on the provincial People's Committee's investment approval regarding transport distance, designed capacity of the factory, and this support rate, then submitted to the provincial People's Committee and relevant agencies. The investor is legally responsible for the authenticity of the figures regarding the support capital.

b) Factories that have received investment approval or investment certificate issuance and commenced construction are eligible for allocation of support capital plans, with a minimum allocation of 50% in the first year and the remainder in the second year.

c) First installment of support capital payment: when the factory is in the investment phase, with completed work volume reaching 30% or more including over 30% of the constructed factory buildings and 30% of purchased equipment delivered according to the sales contract, the Department of Agriculture and Rural Development or the provincial industrial park management board confirms and allows the investor to pay 30% of the total support capital. The documentation for the first installment payment consists of the capital allocation plan document and the first installment quantity confirmation record issued by the competent authority.

d) Payment of the second installment of support capital: when the factory is under construction, with the volume completed being 60% or more, including over 60% of the factory buildings constructed and equipment delivered reaching 60% according to the purchase contract, the Department of Agriculture and Rural Development or the provincial industrial park management board shall confirm and allow the investor to pay an additional 30% of the total supported capital according to the factory design (paid in two installments totaling 60% of the total supported capital); The documentation for the payment of the second installment of capital includes the capital allocation plan document and the confirmation record of the second installment volume issued by the competent authority.

đ) Disburse the entire support capital (third installment): When the factory is completed and operational, the Chairman of the Provincial People's Committee shall establish an acceptance committee for the factory investment. The committee shall consist of the leader of the Provincial People's Committee as the chairman, and members representing the Departments of Agriculture and Rural Development, Planning and Investment, Finance, Science and Technology, Industry and Trade. The acceptance content shall include determining the actual capacity of the factory to serve as the basis for paying the investment capital to the investor. The Provincial People's Committee shall be responsible for disbursing the entire support capital to the factory based on its actual capacity immediately after acceptance. If there is a shortfall, the local budget must repay both principal and interest at commercial rates to the factory to ensure it operates according to schedule.

17.5. Investment Support: As stipulated in item 2, point b, Clause 6, Article 1, Decision 66/2011/QĐ-TTg, it includes support inside and outside the factory perimeter, with the level of support being 20 billion VND/factory (including factories producing laminated bamboo boards with a production capacity exceeding 30,000 m³/year). This portion of the support is recorded in the plan from the start of construction, and the investor may implement disbursement in one of the following two ways:³a) Projects supported according to the design and budget approved by the Provincial People's Committee can be temporarily funded and invested in accordance with current regulations on basic construction investment management.

b) Projects supported by the state after investment: factory buildings at 1,000,000 VND/m²;

road traffic concrete and works along the road at 1,000,000 VND/m;²substation and power lines and substations at 1,000,000 VND/kVA; concrete foundation of various types at 500,000 VND/m²;²land leveling at 10,000 VND/m². After the investor completes these projects, the Department of Agriculture and Rural Development or the provincial industrial park management board shall inspect the volume; the inspection record serves as the basis for disbursing this support capital.²c) Advance funding: Based on the contents of points a and b of Article 17.5 above, after receiving the plan, the factory investor requests the State Treasury to advance 30% of the investment support capital (6 billion VND).³17.6. Allocation of Support Plan for Factories. The Provincial People's Committee allocates the plan clearly into two items: the investment support capital item and the post-investment support capital item. Of which, the investment support capital item is allocated 100% in the first year, and the post-investment support capital item is allocated according to the provisions of item 17.4, sub-item b.

17.7. Deduction of Support Funds from Tax Payments:

a) The deduction rate is 30% of the total amount supported.

b) The deduction period is within five years.

c) The deduction is carried out annually, and the enterprise determines the deductible amount and includes it in the annual tax settlement report of the enterprise, bearing responsibility for the accuracy of the tax settlement report. The deductible value in the year if not declared in the tax settlement report of that fiscal year can be deducted in the next fiscal year.

Annually, when determining the deductible amount, the enterprise must submit a confirmation of the deductible amount from the tax authority to the provincial project management board for consolidation and monitoring.

III. SOLUTIONS AND IMPLEMENTATION ORGANIZATION

18. Investment Support Management Boards for Industrial Forest Plantation at all levels

18.1. The provincial project management board is the 5 million hectare forest conversion project management board. If a province does not have a Forestry Inspection Service, it shall be transferred to the Forest Protection Service to implement. In cases where a province does not have a Forestry Inspection Service or a Forest Protection Service, it shall be assigned to a public service unit with forestry functions to implement.

18.2. County-level steering committees:

Counties with 1,000 hectares or more of industrial forest plantation land must establish a steering committee. The county-level steering committee must be linked with other forestry-related committees in the area (Committee for Urgent Issues on Forest Protection and Fire Prevention).

The county-level steering committee is established by the Chairman of the County People's Committee, headed by a deputy chairman of the County People's Committee responsible for agriculture and forestry, with members including: the County Forest Protection Station as the permanent body, representatives from the United Front, Farmers' Association, Veterans' Association, Youth Union, County Department of Agriculture and Rural Development, County Department of Natural Resources and Environment. The operation rules are unifiedly issued by the steering committee. The operating costs of the county-level steering committee are entitled to 0.8% of the management fees of the total forestry expenses in the area, and are used according to current regulations.

18.3. County-level project management boards are investors for support projects for industrial forest plantation, as stipulated in item a, b, d, Clause 1, Article 15, Decision No. 147/2007/QĐ-TTg.

a) The county-level project management board has a director, 1-2 deputy directors, an accountant, and some technical staff concurrently serving as investment supervisors.

b) The county-level project management board has a separate account and is allowed to use the existing seal of the agency for transactions.

c) In cases where forest growers register and request the county-level project management board to provide seedlings, the county-level project management board must organize public bidding to supply seeds according to a three-year plan.

18.4. Village Forest Development Board: The village forest development board is established according to the provisions of Clause 3, Article 16, Decision No. 147/2007/QĐ-TTg, consisting of:

A deputy village chief as the head of the board. Members include: the village forest protection officer, the village agricultural and forestry officer, the village land administration officer, representatives from the village youth union, village farmers' association, village militia, or village veterans' association, and representatives from each village forest development board (each village forest development board arranges one representative).

The operation rules of the village forest development board are designed towards democracy and transparency. All annual revenue and expenditure plans must be approved by at least 80% of the participants in the annual village member meeting. Specific rules are approved by the Chairman of the Village People's Committee (a reference model is available on the website along with this Circular).

A Vice Chairman of the Commune shall serve as the head of the board. Members include: the Forest Ranger of the commune, the Agriculture and Forestry Officer of the commune, the Land Administration Officer of the commune, a representative from the Youth Union of the commune, a representative from the Farmers' Association of the commune, the Self-Defense Force, or a representative from the Veterans' Association of the commune, and a representative from each Village Development Board (each village development board shall arrange for one representative).

The operational regulations of the Commune Forest Development Board are designed to be democratic and transparent. All annual revenue and expenditure plans must be approved by at least 80% of the attendees at the annual meeting of all members. Specific regulations are to be approved by the Chairman of the People's Committee of the commune (a reference model is available on the website along with this Circular).

18.5. Village Forest Development Board: The Village Forest Development Board is established in accordance with Clause 4, Article 16 of Decision No. 147/2007/QĐ-TTg, consisting of:

- The Village Head or Deputy Village Head serving as the Chairman. Members include: Elder of the village, representative of the Youth Union, representative of the Farmers' Group, representative of the Women's Group, representative of the Veterans' Group, and farmer representatives (from 01 to 03 farmers).

The operational regulations of the Village Forest Development Board are designed in a democratic and transparent manner, all annual revenue and expenditure plans must be approved by at least 80% of the participants in the village-wide meeting, held twice every six months. The regulations of the Village Forest Development Board are approved by the Chairman of the People's Committee of the commune (a reference model is available on the website along with this Circular).

19. Management of Forestry Production Contracts and Information System

19.1. All contracts must be managed through information technology systems. The Ministry of Agriculture and Rural Development will develop software to manage all contracts implementing Decision No. 147/2007/QĐ-TTg, providing management software to all localities and projects for uniform use.

19.2. All Project Management Boards at the district level must have computers connected to the Provincial Project Management Board. All signed contracts must be entered into the management database within no more than three days after signing the contract. On the 20th of each month, the District Project Management Board must transfer data and submit reports to the Provincial Project Management Board. The Provincial Project Management Board must update data and compile it to transfer to the Central Project Steering Committee by the 25th of each month.

19.3. Coding forest planting contracts for management:

- Forest planting contracts are coded as follows: first, the contract number, which is taken from natural numbers, the first contract being numbered 01, followed by the year the forest planting contract was signed, then the province code, followed by the district code, then the commune code, and finally the forest planting symbol (HĐTR);

- The province code consists of three letters derived from the initial letters of the province name and written in uppercase but not duplicated (using the province code in forest resource statistics (as listed in the attached list));

- The district code consists of two letters derived from the initial letters of the district name and written in uppercase, but not duplicated within the same province.

- The commune code consists of two letters derived from the initial letters of the commune name and written in uppercase, but not duplicated within the same district;

- The district and commune codes are uniformly assigned by the Provincial Project Management Board and notified to the District Project Management Board for use and to the Central Project Steering Committee for compilation.

Example: The forest planting contract of Mr. Nguyen Van A, with contract number 09, located in Phong Van Commune (PV), Luc Ngan District (LN), Bac Giang Province (BGI), planted in 2009 has the following code: 09/2009/BGI/LN/PV/HĐTR

19.4. Management of nursery contracts: similar to the management of forest planting contracts except for the final symbol of the nursery (which is: HĐVƯ)

19.5. Management of seedling forest and seedling garden contracts: similar to the management of forest planting contracts except for the final symbol of the seedling forest and seedling garden (which is: HĐRVG)

19.6. Management of high-quality seed center contracts: similar to the management of forest planting contracts except for the final symbol of the high-quality seed center (which is: HĐGCLC)

20. Management Costs

20.1. Management costs for the provincial level are 0.7%; the steering committee at the district level is 0.8%, and the District Project Management Board is 6%, the Village Forest Development Board is 1%, and the Village Forest Development Board is 1%. The management costs of the Village Forest Development Board and the Village Forest Development Board are combined and transferred by the District Project Management Board annually based on the area of forest planting in the village and commune. The District Project Management Board is responsible for transferring funds to the commune and village for disbursement.

20.2. Expenditure items: priority is given to training to enhance the capacity of cadres at all levels such as training, experience exchange, enhancing the capacity of cadres at all levels and the community; expenditure for project appraisal and approval, expenditure for information dissemination and community consultation, expenditure for mid-term and final review meetings, commendation and reward activities, office supplies for management and guidance activities, expenditure for management and operation work, salaries and allowances for Project Management Boards, travel expenses, annual financial settlement and project completion settlement, policy formulation. For necessary equipment (computers, bicycles, motorcycles) of the District Project Management Board, if they need to be equipped early, they may exceed 6% of the specified amount in the first year, but not exceeding 6% of the total amount allocated over three years.

20.3. Management costs of state-owned organizations and Provincial Project Management Boards are detailed budgeted according to the three-year plan and submitted for approval by the investment decision-making authority.

21. Compensation, Tax Reduction, and Payment of Obligatory Fees by Forest Owners

21.1. In cases where forest owners receive support for tree species that can only be harvested after ten years but wish to harvest earlier, provided that the earliest time does not precede five years, they must compensate the State 15% of the support money for each year of early harvesting. This compensation amount is collected into the recovery account of the District Project Management Board for reinvestment in forest planting.

21.2. For areas of forest planted by households under long-term lease from state-owned organizations, tax and land use fees are exempted or reduced as in the case of land allocation or leasing to households in the locality.

21.3. If forests do not meet the requirements stipulated in Point 5.3, Section 5 of this Circular, they shall be handled as follows:

- In cases of forest loss due to force majeure such as natural disasters, fires, pests, as determined in accordance with the regulations of the Ministry of Agriculture and Rural Development, the forest growers do not have to repay the support money received;

- In cases of forest loss not falling under the above category, compensation must be made in accordance with Clause 2, Article 6 of Decision No. 147/2007/QĐ-TTg. The contracting agency must terminate the contract and recover the capital, which can be used for investment in other areas within the same project.

21.4. For nurseries: if the nursery owner does not use the allocated land for producing sufficient forest seeds for ten years, for each year of discontinuing forest seed production, the nursery owner must compensate 15% of the support money provided by the State.

21.5. For seedling forests and seedling gardens: seedling forests and seedling gardens are fixed planning areas. When the owner of the seedling garden or seedling forest does not have a need to operate the seedling forest or seedling garden, or when the seedling forest or seedling garden does not meet quality requirements, the Department of Agriculture and Rural Development shall take the lead in coordinating with relevant sectors to report to the People's Committee at the provincial level to issue a decision to reclaim (seedling forests and seedling gardens attached to land) and transfer to another investor without compensation.

In cases where the land use plan for seedling forests and seedling gardens is changed for public use purposes, the Ministry of Agriculture and Rural Development will permit such changes and provide compensation.

21.6. For high-quality seedling centers: if the investor of the seedling center fails to comply with the provisions in the contract, they must reimburse the full amount of support funds provided plus commercial interest rates at the time of recovery.

21.7. The agency responsible for recovering and using the recovered funds: the agency that signed the contract is responsible for supervising the implementation of the contract, and if there is a violation, it must handle the reimbursement according to regulations, and the recovered funds must be deposited into the recovery account (reimbursement handling account) of that agency. Subsequently, report to the investment decision-making agency (People's Committee at the district level or People's Committee at the provincial level) to invest and support afforestation in accordance with Decision No. 147/2007/QĐ-TTg.

21.8. Collection and management of funds paid by forest owners as stipulated in Clause 2, Article 6 of Decision No. 147/2007/QĐ-TTg are as follows:

- For communes and villages: must establish operational regulations for the Forest Development Board and management regulations for the commune-level and village-level forest development fund, then open an account for forest owners to deposit funds according to regulations, the account number must be notified to forest owners in the area. If there are no operational and management regulations for the forest development fund, the communes and villages may only open accounts for forest owners to pay obligations without immediate use.

- For state-owned organizations: manage and use the budget as administrative expenses for forest protection and development.

22. Construction, compilation, allocation of plans and supervision and evaluation

22.1. Three-year plan construction:

a) Based on Decision No. 147/2007/QĐ-TTg, Decision No. 66/2011/QĐ-TTg, and this Circular, the Provincial People's Committee shall direct the construction of a three-year medium-term plan for supporting the planting of production forests with specific annual allocations based on approved projects and community consultations. Initially, construct the 2013-2015 plan and submit it to the Ministry of Planning and Investment and the Ministry of Agriculture and Rural Development.

b) The contents of the provincial plan include:

- Report on the assessment of the results of implementing the three-year plan before (end-of-plan period report, according to the assigned plan content, projects funded by other sources, and economic sectors participating);

- The next three-year plan including objectives, expected results, and investment sources, clearly distinguishing tasks and investments from state budget funds;

- List of projects, tasks, and funds according to policy regulations;

- The construction of the medium-term afforestation plan must be linked to the local socio-economic development plan according to the current five-year plan method.

22. Plan allocation

a) The Ministry of Planning and Investment shall take the lead, coordinating with the Ministry of Agriculture and Rural Development and the Ministry of Finance to compile and balance the plan, reporting to the Prime Minister for approval to allocate the three-year plan for implementation.

b) After receiving the plan, ministries, sectors, and localities shall allocate the three-year plan to each specific project within thirty working days, clearly distinguishing funds and tasks for each year for each project. The results of the plan allocation must be reported back to the Ministry of Agriculture and Rural Development and the Ministry of Planning and Investment for monitoring and tracking.

c) The subsequent three-year plan must prioritize the settlement of forest areas and investment contents implemented under the post-investment support form of the previous three-year plan.

22.3. Plan adjustment

a) In the third quarter of the second year of the three-year plan, provinces shall report on the implementation of the allocated plan (mid-term plan report) regarding volume, actual capital expenditure, and policies to the Ministry of Agriculture and Rural Development and the Ministry of Planning and Investment for consolidation and reporting to the Prime Minister for plan adjustment. The principle is that central authorities will reallocate funds from provinces that have not fully utilized their allocated capital to provinces with needs.

b) Annually, based on the implementation situation of the Project Management Board at the district level, the Provincial People's Committee shall reallocate plans from projects at risk of non-implementation to well-performing projects with funding needs. Funds cannot be transferred from forest management activities to infrastructure construction unless approved by the competent authority.

c) The adjustment of the plan by the Project Management Board at the district level shall be carried out in accordance with Point c, Clause 2, Article 17 of Decision No. 147/2007/QĐ-TTg.

22.4. Supervision and evaluation: based on this Circular and Decision No. 147/2007/QĐ-TTg, each level shall develop a supervision and evaluation plan to achieve the policy's goals and results.

22.5. Responsibilities of related ministries, sectors, and localities

a) The Ministry of Agriculture and Rural Development shall take the lead in guiding technical standards not covered in this Circular and sustainable forest harvesting of planted forests.

b) The Ministry of Planning and Investment shall take the lead in developing guidelines for supervision and evaluation to ensure transparent and effective implementation of the policy.

c) The Ministry of Finance shall take the lead in guiding procedures for payment and final accounting of state budget expenditures.

d) Provincial People's Committees shall proactively use local budgets to implement afforestation targets approved by the provincial People's Council; the central government will partially support the local budget to implement this policy.

23. Implementation Provisions

1. This Circular takes effect from July 20, 2012, replacing Circular No. 02/2008/TTLT-BKH-NN-TC dated June 23, 2008, on guiding the implementation of Decision No. 147/2007/QĐ-TTg dated September 10, 2007, of the Prime Minister on certain policies for developing production forests.

2. Policies for developing production forests during the 2007-2015 period as stipulated in Decision No. 147/2007/QĐ-TTg currently being implemented according to the procedures and processes specified in Joint Circular No. 02/2008/TTLT-BKH-NN-TC dated June 23, 2008, and the contents regulated in Decision No. 66/2011/QĐ-TTg currently being implemented before this Circular takes effect shall continue to be applied according to the provisions of this Circular.

Any issues arising during the implementation process shall be promptly reported in writing to the Ministry of Planning and Investment, the Ministry of Agriculture and Rural Development, and the Ministry of Finance for consideration and resolution./.