Decree No. 05/2008/ND-CP on the Forest Protection and Development Fund

DECREE

Regarding the Forest Protection and Development Fund

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THE GOVERNMENT

Pursuant to the Law on Organization of the Government dated December 25, 2001;

The Government issues this Decree on mechanisms and policies to encourage forest protection, encirclement and regeneration of forests, afforestation, development of non-timber forest products, and increased income in connection with policies to quickly reduce poverty, sustainably and to support ethnic minority groups during the period 2015-2020.

Considering the proposal of the Minister of Agriculture and Rural Development,

DECREE:

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

1\. This Decree stipulates the establishment, management, and utilization of the Forest Protection and Development Fund (hereinafter referred to as the Fund).

2\. In cases where international treaties or agreements to which Vietnam is a party contain provisions different from those set forth in this Decree, such provisions shall be applied.

Article 2

. Applicability

This Decree applies to state agencies; organizations, households, individuals, and village communities within the country participating in contributions, sponsorships, or receiving support from the Fund; international organizations, foreign organizations and individuals, and overseas Vietnamese participating in contributions or sponsorships for the Fund.

Article 3. Purpose of Establishing the Fund

1\. To mobilize social resources for forest protection and development, contributing to the implementation of the policy of socializing forestry activities.

2\. To enhance awareness and responsibility for forest protection and development work among those who benefit from forests or engage in activities directly affecting forests.

3\. To improve the capacity and effectiveness of forest management, utilization, and protection for forest owners, contributing to the implementation of the forestry development strategy.

Article 4. Principles of Operation of the Fund

1\. The Fund operates without profit-making objectives but must ensure the preservation of the initial capital provided by the state.

2\. The Fund supports programs, projects, or non-project activities that the state budget has not invested in or adequately funded.

3\. It must ensure transparency, efficiency, appropriate use for intended purposes, and compliance with legal regulations.

Article 5. Conditions for Establishing the Fund

1\. There is a need to establish the Fund to serve forest protection and development work.

2\. Possess the ability to mobilize financial resources and organize Fund management, ensuring stable, long-term, and effective operation of the Fund.

3\. Commit to preserving the initial capital provided by the state.

4\. Have a proposal (plan) for establishing, managing, and utilizing the Fund, and obtain approval from competent state authorities.

Chapter II

ORGANIZATION AND ACTIVITIES OF THE FUND

Article 6. Tasks and Authorities of the Fund

1. Tasks of the Fund

a\. Mobilize, accept, and manage mandatory contributions; sources of aid, sponsorship, voluntary contributions, and entrusted funds from domestic and foreign organizations and individuals; financial support from the state budget;

b\. Organize the evaluation and selection of programs, projects, or non-project activities for submission to competent authorities for approval or investment support decisions;

c\. Provide financial support for programs, projects, or non-project activities;

d\. Direct and guide beneficiaries of financial support from the Fund;

đ\. Implement legal regulations on statistics, accounting, and auditing;

e\. Perform other tasks assigned by competent state authorities or prescribed by law.

2. Powers of the Fund

a\. Allocate funding for each program, project, or non-project activity according to the annual plan approved;

b\. Inspect, evaluate, and verify the results of implementing programs, projects, or non-project activities supported by the Fund;

c\. Suspend or recover funding already provided when violations of commitments regarding the use of funding or other relevant legal provisions are discovered by organizations, households, individuals, or village communities;

d\. Propose to competent state management authorities the issuance, supplementation, or amendment of regulations concerning beneficiaries and activities supported by the Fund.

3\. The Fund is a state financial organization, possessing legal personality, its own seal, and bank accounts or State Treasury accounts in accordance with legal regulations.

Article 7. Fund Organization

1. Central Fund Organization

a) The Central Fund (hereinafter referred to as the Central Fund) shall be established and managed by the Ministry of Agriculture and Rural Development.

b) The management and operation structure of the Fund includes the Fund Management Board (hereinafter referred to as the Board), the Audit Committee, and the operational staff.

- The Fund Management Board shall be established by the Minister of Agriculture and Rural Development. The Fund Management Board consists of the Chairman of the Board, Vice Chairmen of the Board, and Board members. Members of the Board operate on a part-time basis.

The Chairman of the Board is the representative leader of the Ministry of Agriculture and Rural Development, and the Vice Chairmen of the Board shall be appointed by the Minister of Agriculture and Rural Development.

Board members shall be appointed by the Minister of Agriculture and Rural Development, including senior officials from the Departments of the Ministries and sectors: Agriculture and Rural Development, Finance, Planning and Investment.

The Fund Management Board is responsible for all its activities under the law and before the Minister of Agriculture and Rural Development.

- The Audit Committee of the Fund shall be decided by the Fund Management Board.

- The operational staff of the Fund shall be established at the Forest Protection Department (under the Ministry of Agriculture and Rural Development), responsible to the Fund Management Board, the Director of the Forest Protection Department, and under the law.

c) The Ministry of Agriculture and Rural Development shall approve the Charter regarding the organization and operation of the Fund.

2. Provincial Fund Organization

a) The Provincial Fund (hereinafter referred to as the Provincial Fund) shall be established by the Chairman of the People's Committee of the province when meeting the conditions prescribed in Article 5 of this Decree. The Fund is directly under the People's Committee of the province or the Department of Agriculture and Rural Development.

b) The management and operation structure of the Fund shall be determined by the Chairman of the People's Committee of the province or the Director of the Department of Agriculture and Rural Development.

3. The State encourages the establishment of Funds at the district, commune, and village levels; the tasks, powers, and organizational structure of the Fund shall be stipulated by the Chairman of the People's Committee of the province.

Article 8. Relationship between the Central Fund and the Provincial Fund

1. Responsibilities of the Central Fund

a) Providing financial support to the Provincial Fund;

b) Guiding, inspecting, and supervising the management and use of funds provided by the Central Fund;

c) Exchanging experiences and guiding on fund management practices.

2. Responsibilities of the Provincial Fund

a) Receiving, managing, and using the financial support from the Central Fund;

b) Being subject to inspection and supervision by the Central Fund over the capital provided by the Central Fund;

c) Reporting the situation of fund management and use to the Ministry of Agriculture and Rural Development.

Chapter III

SOURCES OF FUNDS FOR THE FUND AND MANAGEMENT AND USE OF THE FUND AND MANAGEMENT, USE OF THE FUND

Article 9. Sources of Funds Forming the Fund

1. Sources of Funds for the Central Fund

a) Initial state budget support upon establishment is 100 billion VND and will be fully provided within two years from the date of establishment of the Fund;

b) Voluntary contributions from international organizations; domestic and foreign organizations and individuals;

c) Entrusted capital from international organizations, domestic and foreign organizations and individuals; from other Funds and sources of finance.

2. Sources of Funds for the Provincial Fund

a) Initial provincial state budget support upon establishment. The specific level of support shall be considered and decided by the People's Committee of the province within its authority;

b) Revenue from mandatory contributions from the objects specified in Article 10 of this Decree;

c) Voluntary contributions from international organizations; domestic and foreign organizations and individuals;

d) Entrusted capital from international organizations, domestic and foreign organizations and individuals; from other Funds and sources of finance;

đ) Support from the Central Fund.

Article 10. Subjects required to contribute to the Fund at provincial level

1. Contributions from forest owners when exploiting and trading timber under the following circumstances:

a) Economic organizations assigned forests for production by the State without payment for forest use;

b) Economic organizations assigned forests for production with payment for forest use or receiving transferred forests, but the forest use payment or forest transfer payment has its origin from the state budget;

c) Households and individuals assigned forests for production without payment for forest use.

2. Contributions from businesses operating landscapes, resorts, and ecological-environmental services in forests.

3. Contributions from investment projects that must exploit forests for land clearance and have a requirement to replant forests but lack the conditions to do so.

4. The Ministry of Agriculture and Rural Development shall take the lead and coordinate with the Ministry of Finance to stipulate the amount of contributions and the agencies or organizations responsible for organizing the collection of contributions to the Fund.

Article 11. Cases exempted from or granted reductions on contributions

1. Cases exempted from contributions:

a) Organizations, households, and individuals specified in Clause 1 of Article 10 of this Decree who exploit and trade timber and suffer losses due to natural disasters or force majeure shall be considered for full or partial exemption from contributions;

b) Households and individuals specified in Clause 1 of Article 10 of this Decree permitted to exploit timber to meet their household needs shall be exempted from all contributions.

2. Cases granted reductions on contributions:

Organizations, households, and individuals specified in Clause 1 of Article 10 of this Decree directly exploiting and trading timber in areas with difficult socio-economic conditions as defined in the Investment Law dated November 29, 2005 shall be granted a 50% reduction in contribution levels.

3. The Ministry of Agriculture and Rural Development shall take the lead and coordinate with the Ministry of Finance to stipulate procedures, formalities, and authority for considering exemptions and reductions on contributions as prescribed in Clauses 1 and 2 of this Article.

Article 12. Subjects and contents eligible for support

1. Recipients of support are organizations, households, individuals, and village community residents within the country with programs, projects, or non-project activities as stipulated in Clause 2 of this Article.

2. Contents eligible for support

Depending on specific conditions of the Fund at each level, the contents of programs, projects, or non-project activities to be considered for support include:

a) Organizing propaganda, dissemination, and implementation of policies and laws on forest protection and development;

b) Testing and disseminating models of forest protection and development, sustainable forest management;

c) Funding to combat illegal logging and the production, trading, and transportation of illegal forest products;

d) Testing and applying new tree species in forestry;

đ) Supporting scattered tree planting;

e) Developing non-timber forest products on forest land;

g) Training human resources for forest protection and development at grassroots levels;

h) Implementing other programs, projects, or non-project activities entrusted by domestic and foreign organizations and individuals.

Article 13. Conditions for eligibility for support

1. Programs, projects, or non-project activities must be decided by competent authorities.

2. Supported organizations must have staff with forestry expertise and experience in implementing programs, projects, or non-project activities supported by the Fund.

3. Supported households, individuals, and village community residents must have the capacity to implement programs, projects, or non-project activities supported by the Fund.

4. There must be a commitment to fully or partially repay the capital according to the regulations of the agency authorized to establish the Fund.

Article 14. Methods of Financial Support from the Fund

1. Full or partial non-repayable capital support for the implementation of programs, projects, or non-project activities as stipulated in Article 12 of this Decree.

2. The competent authority establishing the Fund shall specify the procedures, formalities, beneficiaries of full or partial non-repayable capital support according to each type of program, project, or non-project activity; at the same time, it shall define the level of support, repayment period for the support amount, and cases eligible for exemption or reduction of the repayment budget.

Article 15. Budget Preparation and Finalization of Financial Accounts of the Fund

1. Central Fund

a) Annually, the Fund is responsible for preparing and reporting to the Ministry of Agriculture and Rural Development the plan for revenue and expenditure of the Fund's financial accounts;

b) Periodically (quarterly, annually), the Fund prepares and sends reports on the implementation of the revenue and expenditure plans of the Fund's financial accounts to the Ministry of Agriculture and Rural Development. At the end of the accounting year, the Fund prepares the annual financial finalization report for submission to the Ministry of Agriculture and Rural Development for review and approval.

2. Provincial Fund

The People's Committee of the province shall specify the procedures and formalities for preparing and reporting the revenue and expenditure plans; finalizing the revenue and expenditure of the provincial-level Fund in accordance with the provisions of the law on finance.

Chapter IV

REVIEW AND MANAGEMENT OF PROGRAMS, PROJECTS OR NON-PROJECT ACTIVITIES SUPPORTED BY THE FUND

PROJECTS OR NON-PROJECT ACTIVITIES SUPPORTED BY THE FUND

Article 16. Procedures and Steps for Registration, Review, and Approval of Programs, Projects, or Non-Project Activities

1. Central Fund

The registration, review, and approval of programs, projects, or non-project activities requesting support from the Central Fund are regulated as follows:

a) Beneficiaries specified in Clause 1 of Article 12 who request support must submit registration documents to the Fund's management agency.

1. A registration form for issuing a journalist card filled out by the applicant according to the model; approved and stamped by the head of the applying agency (Model No. 1);

- Request for support document;

- Programs, projects, or non-project activities already approved by the competent authority.

b) The Fund's management agency shall take the lead and coordinate with relevant agencies to conduct evaluations, submit to the Management Board for consideration and approval;

c) After the Management Board makes a decision to approve, the Fund Director informs the beneficiary of the support and directs the implementation.

2. Provincial Fund

The registration, evaluation, review, and approval of programs, projects, or non-project activities supported by the Provincial Fund are regulated by the Chairman of the People's Committee of the province or the Director of the Department of Agriculture and Rural Development.

Article 17. Implementation of Programs, Projects, or Non-Project Activities

1. Organizations and village communities receiving support under programs or projects are responsible for establishing a project management board and organizing the implementation of the approved programs or projects.

2. Organizations, households, and individuals receiving support under non-project activities do not establish a project management board, but must assign someone to oversee and direct the implementation of the approved activities.

Article 18. Inspection and Evaluation of the Implementation of Programs, Projects, or Non-Project Activities

1. Central Fund

The Fund's management agency directs the implementation, inspects the implementation of programs, projects, or non-project activities supported by the Central Fund periodically or unexpectedly. In necessary cases, the Fund's management agency may hire consultants to inspect and evaluate the implementation of programs, projects, or non-project activities supported by the Central Fund.

2. Provincial Fund

The organization of inspections and evaluations of the implementation of programs, projects, or non-project activities of the Provincial Fund is regulated by the People's Committee of the province.

Chapter V

RESPONSIBILITIES OF THE AUTHORITIES STATE MANAGEMENT OVER THE FUND

Article 19. Responsibilities of Ministries and Central Agencies

To take the lead and coordinate with the Ministry of Finance and relevant ministries and sectors to urge, inspect, supervise, and resolve issues arising during the implementation of this Decree.

a) Issuing the Charter on the organization and operation of the Central Fund and a model charter for the operation of provincial funds;

b) Approving the annual operational plans of the Central Fund;

c) Approving the annual budget estimates and final accounts of the Central Fund;

d) Directing, guiding, and inspecting the operations of the Central Fund and provincial funds;

đ) Being authorized by the Government to negotiate and sign bilateral financial assistance agreements with international donors committed to contributing to the Fund in accordance with the provisions of the law;

e) Annually reporting to the Prime Minister on the operational situation and results of programs, projects, or non-project activities of both the Central Fund and provincial funds;

2. Ministry of Finance

a) Taking the lead and coordinating with the Ministry of Agriculture and Rural Development to guide all levels of the Fund in implementing financial management and usage systems;

b) Providing sufficient initial support capital for the Central Fund within two years from the date of establishment of the Fund according to the approved budget plan;

c) Inspecting and supervising the financial activities of the Central Fund and provincial level;

3. The Ministry of Planning and Investment

Coordinating with the Ministry of Agriculture and Rural Development and the Ministry of Finance to develop plans for providing initial support capital to the Fund, submitting them to the Government for consideration and decision;

4. Other relevant ministries and agencies shall perform state management functions within their assigned scope regarding the operations of the Fund;

Article 20. Responsibilities of Provincial People's Committees

1. Provincial People's Committees shall issue the Charter on the organization and operation of the Fund at their level based on the model charter of the Ministry of Agriculture and Rural Development and in compliance with legal regulations;

2. Directing and inspecting the Fund in the process of mobilizing, mandatory contributions, and financing sources for provincial funds;

3. Implementing and monitoring programs, projects, or non-project activities supported by the Central Fund and provincial funds within their jurisdiction;

4. Directing the provincial-level Fund agency to prepare budgets, settle revenues and expenditures of the Fund, and implement reporting systems to the People's Committee, the same-level finance agency, and the Central Fund.

Chapter VI

IMPLEMENTING PROVISIONS

Article 21. Effective Date

This Decree shall take effect fifteen days after its publication in the Official Gazette.

Article 22. Responsibility for enforcement

The Ministers, Heads of ministerial-level agencies, Heads of government-attached agencies, Chairpersons of provincial People's Committees under the central city shall be responsible for implementing this Decree./.