Joint Circular No. 10/TT-LB guiding the implementation of Decision No. 88-HĐBT dated September 24, 1981 of the Council of Ministers on establishing forest nurturing funds.

JOINT CIRCULAR

GUIDELINES FOR IMPLEMENTING DECISION NO. 88-HĐBT OF THE STATE COUNCIL ON MARCH 24, 1981 REGARDING THE ESTABLISHMENT OF FOREST NURTURE FUNDS ISSUED BY THE JOINT MINISTRIES OF FORESTRY AND FINANCE - STATE BANK OF VIETNAM NUMBER 10-TT/LB ON MARCH 13, 1982.

On September 24, 1981, the State Council issued Decision No. 88-HĐBT regarding the establishment of forest nurture funds.

To implement the above decision, the Joint Ministries of Forestry and Finance issued a decision on collecting forest nurture fees. Now, the Joint Ministries of Forestry, Finance, and the State Bank provide guidelines for establishing and using forest nurture funds as follows: 

2. Individuals who have registered as the principal investigator of a Research Project or Pilot Production Project and those participating in its implementation shall not participate in the Evaluation and Selection Council for that Research Project or Pilot Production Project (hereinafter referred to as the Council). In necessary cases, members of the Council may be staff members of the organization registering as the principal investigator of the Research Project or Pilot Production Project, but not more than one person and they cannot serve as Chairperson, Vice-Chairperson, or reviewing member.

1. The forest nurture fund is a component of the central budget formed from the forest nurture fee revenue (after deducting 10% to be submitted to local budgets) and is specifically used for purposes stipulated in Article 5 of Decision No. 88-HĐBT (hereinafter referred to as forest construction capital and forest protection expenses). The State assigns the Ministry of Forestry to organize and direct the establishment and use of the forest nurture fund to effectively construct and protect forests.

2. The forest nurture fund is uniformly allocated to meet national needs including the requirements of central units and organizations and those of local units and organizations managed according to state plans and must be managed in accordance with Circular No. 26-TT/LB dated July 17, 1981 and the guidelines provided in this joint circular.

II. CONTENTS OF COLLECTION AND EXPENDITURE OF THE FOREST NURTURE FUND

A. SOURCES OF REVENUE FOR THE FOREST NURTURE FUND

1. Forest nurture fees collected from various forest products. The specific collection rates for each type are detailed in Decision No. 1101-QĐ/LB dated October 23, 1981 of the Joint Ministries of Forestry and Finance and subsequent supplementary documents.

2. Fines and compensation payments resulting from the handling of forestry violations.

B. EXPENDITURES FROM THE FOREST NURTURE FUND

The forest nurture fund shall be expended for the following purposes:

1. Expenditure on public services.

Expenditure on forest management work:

- Expenditure to define boundaries between different forest compartments to establish forest sub-districts;

- Expenditure on allocating land and forests to cooperatives, production groups, non-forestry state economic units, agencies, military forces, and schools in accordance with state policies.

Expenditure on forest protection work:

- Expenditure on preventing forest fires;

- Expenditure on controlling pests and diseases;

- Expenditure on training civilian forest protection forces and educating the public about forest protection.

- Expenditure on people's forest rangers and part-time forest management and protection staff in accordance with state policies.

b) Expenditure on forest management operations:

- Development of forest management programs and plans;

- Implementation of forest management programs and plans in the field, including pre-harvest and post-harvest activities annually.

c) Expenditure to support the public in planting scattered trees, based on the principle that the public plants and benefits, while the state provides technical guidance, establishes model units, builds nurseries, and subsidizes seedling and sapling supply units when necessary.

2. Expenditure on basic construction investment:

a) Expenditure on new forest planting and afforestation of barren hills.

b) Expenditure on repairing and improving natural forests.

c) Expenditure on joint investment with cooperatives and production groups in concentrated forest planting areas that have been allocated land and forests to provide raw materials for the state (hereinafter referred to as cooperatives and production groups).

d) Expenditure on basic construction work to serve tree planting, care, repair, improvement, management, and protection of forests such as building nurseries, roads, irrigation systems, buildings (residential, office, storage, assembly halls, clubs, health stations, hospitals, schools...), purchasing machinery, equipment, and other fixed assets.

3. The aforementioned expenditures are based on economic and financial norms established by the Ministry of Forestry. For financial norms, the Ministry of Forestry must consult with the Ministry of Finance before promulgation.

Units may not use the forest nurture fund for purposes other than those specified above. Local budgets (provincial, district) do not include and allocate funds for these expenditure items except in cases where the Ministry of Forestry transfers funds and authorizes local budgets to allocate them. 

III. ORGANIZATION OF PLANNING, IMPLEMENTATION OF PLANS, AND SETTLEMENT OF FOREST NURTURE FUND INCOME AND EXPENDITURE RESULTS

1. Planning income and expenditure of the forest nurture fund.

During each planning period, the Ministry of Forestry directs the planning of income and expenditure of the forest nurture fund, concurrently with production and business plans, basic construction plans, and forest protection service plans throughout the sector. The Ministry of Forestry assigns inspection, guidance, review, and task assignment for planning to forestry departments and subordinate units. Forestry departments and subordinate units assign inspection, guidance, review, and task assignment for planning to units under their management.

a) Revenue and submission plan:

- State-owned forestry economic units directly exploiting forest products base on inspection and guidance from higher-level management authorities to formulate plans for submitting forest nurture fees.

- Units under the People's Forest Ranger Force base on current forest capital availability and anticipated forest product exploitation levels to formulate plans for collecting and submitting forest nurture fees for state-owned, non-state-owned enterprises, and collective and individual entities exploiting forest products within their management area.

After the higher-level management authority approves the revenue and submission plan, the unit whose plan has been approved must notify the local finance authority within ten days (from the date the unit receives the approval notice).

b) Expenditure plan:

Expenditure on public services.

The basis for formulating the expenditure plan on public services from the forest nurture fund and the staffing of the People's Forest Ranger Force is the budgeted costs of other public service units calculated based on service types and workload volumes they handle, according to established economic and financial norms.

Expenditure on basic construction investment.

The basic construction capital plan must be formulated according to the assigned tasks and budget for projects or project components to be put into use in the year, as stipulated in the current basic construction regulations.

2. Consolidation of the forest nurture fund income and expenditure plan.

a) The superior supervisory agencies, units directly under the Ministry managing have the responsibility to review and consolidate the plans for collecting and spending the forest nurturing fund of the facilities under their management and promptly submit them to the Ministry for review in accordance with the regulations of the Ministry of Forestry (if there is no superior supervisory agency, then the units directly under shall establish and submit the plan directly to the Ministry for review).

b) The forestry departments have the responsibility to review and consolidate the plans for collecting and spending the forest nurturing fund of the units under local management (including both state-owned and cooperative parts, and the part supporting people in planting trees, if any), and submit them to the People's Committee of the province, city, and centrally governed municipality for comments before sending them to the Ministry of Forestry.

c) The Ministry of Forestry has the responsibility to review plans for localities and units directly under it, and to consolidate the plans for collecting and spending the forest nurturing fund throughout the industry within the overall plan of the Ministry, and send it to the State Planning Commission, Ministry of Finance for consideration and balance within the national investment plan and the state budget estimate.

These plans must be divided by quarter according to each type: central-managed state-owned units, locally-managed state-owned units; collective and individual entities; basic construction investment portion and operating expenses portion, in accordance with the prescribed forms and timeframes set by the Ministry of Forestry.

3. Implementation of the plan

Based on the plan approved by the Council of Ministers, the Ministry of Forestry announces the annual plan (divided into four quarters) for collecting and spending the forest nurturing fund to each forestry department and units directly under it, informing the investment bank about the basic construction portion and the State Bank about the forest nurturing fund collection.

Depending on the progress of implementation by units and localities, the Ministry of Forestry will adjust materials and funds from surplus areas to deficient areas within the total amount already approved by the State, after consulting the opinions of localities and promptly informing the State Planning Commission, Ministry of Finance, and State Bank.

a) Organizing the payment of forest nurturing funds.

Units responsible for paying the forest nurturing funds must pay according to the specified time and procedures. Each time money is paid into the forest nurturing fund, the units must simultaneously pay 10% into the local budget. On the payment slip for the forest nurturing fund (90%), the amount paid into the local budget at the same time must be noted to replace the report.

For state-owned forestry economic units.

The forest nurturing fund (90%) paid into the central forest nurturing fund (as specified by the Ministry of Forestry for each type of enterprise) through bank transfer, while simultaneously paying 10% into the local budget by cash deposit slips calculated per period; each month two periods are submitted according to the plan, period 1 from the 1st to the 5th day submitting 40 to 50% of the plan, period 2 from the 15th to the 20th day submitting 60 to 50% of the plan, and settling the actual payment after confirmation by the local forestry inspection authority. Monthly, the unit must report to its superior supervisory agency and direct financial agency on the implementation of the forest nurturing fund payment and inform the local forestry inspection authority managing the area. The district and local forestry inspection agencies have the responsibility to urge and inspect state-owned forestry economic units to pay the forest nurturing fund fully and timely into the central forest nurturing fund and the local budget.

For state-owned economic organizations outside the forestry sector and agencies, military units, and collective and individual organizations permitted to exploit special forest products.

If units, collectives, or individuals are permitted to exploit major forest products such as wood, firewood, bamboo, etc., they must pay the forest nurturing fund immediately upon obtaining the exploitation permit. Units with bank accounts must pay the forest nurturing fund through bank transfer, while those without bank accounts may pay in cash to the local forestry inspection authority managing the area. After completing the exploitation, the exploiter must notify the local forestry inspector to come to the site for inspection, confirmation of the volume exploited, and settlement of the forest nurturing fund according to the actual amount.

For other forest products and special forest products that local residents are permitted to exploit, the exploiter must pay the forest nurturing fund to the nearest local forestry inspection station. For forest products that the state permits responsible agencies or economic organizations to purchase on-site, these agencies or organizations must pay the forest nurturing fund to the nearest local forestry inspection station.

The system of local forestry inspectors is assigned by the Joint Ministry of Forestry-Finance to implement the collection of the forest nurturing fund and handle violations related to forestry. To fulfill this task, local forestry inspectors must organize full and timely collection to avoid loss and prevent negative phenomena. The collection receipts for the forest nurturing fund are uniformly issued and managed by the National Forest Inspection Bureau according to the principle of tax collection receipts stipulated in Circular No. 15-ST/KT dated January 2, 1958 of the Central Tax Department. The quantity issued must be reported to the Ministry of Forestry and the Ministry of Finance. When local forestry inspection stations receive collection receipts for use, they must register with the same-level financial agency. Quarterly and annually, they must consolidate and report to the directly supervising superior agency and the same-level financial agency on the usage of receipt books and must store them according to the current retention system.

Local forestry inspection stations can open dedicated accounts for collection at the State Bank where they are headquartered. This account is used to collect the forest nurturing fund and remit 10% to the local budget as well as remit 90% to the central forest nurturing fund account (the funds in this sub-account are not remitted to the local budget). The balance in the local forestry inspection station account cannot exceed 1,000 dong. If it exceeds the limit, the station must immediately process the remittance.

District forestry inspection stations can open dedicated accounts for the collection of the forest nurturing fund and remit according to the above ratio. Specifically, regarding the forest nurturing fund collected by local forestry inspection stations, the district needs to open a sub-account in the transfer account to concentrate before transferring to the central forest nurturing fund (funds in this sub-account are not remitted to the local budget). The balance in the district forestry inspection station account (including the sub-account concentrating the forest nurturing fund collected by local stations) cannot exceed 3,000 dong.

In cases where cash collection is permitted, the forest rangers' units must promptly deposit the collected funds into the special account for forest nurturing revenue opened at the bank. The amount of cash reserve regarding this revenue at the unit or the forest rangers' division shall not exceed 300 dong.

Forest ranger units must report on the collection and submission of forest nurturing funds monthly according to the following regulations:

On the 10th day of each month, the forest rangers' unit shall submit the previous month's report to the Division along with the finance department of the district, accompanied by a copy of the account statement for the special collection account of the unit, confirmed by the district bank.

The forest rangers' divisions must compile the situation of the collection and submission of forest nurturing funds from the previous month throughout the province, along with the account statement for the special transfer account of the division, confirmed by the provincial bank, and send it to the National Forest Ranger Department, also sending it to the provincial financial departments before the 20th of each month.

The National Forest Ranger Department must compile the situation of the collection and submission of forest nurturing funds nationwide from the previous month and report it to the Ministry of Forestry and the Ministry of Finance before the 30th of each month.

b) Allocation of forest nurturing fund

The forest nurturing fund is allocated for expenditure in accordance with the contents specified in Section B, Part II above.

Allocation for expenditure on public services (Point 1, Section B, Part II).

Based on the announced plan, the Ministry of Forestry will quarterly allocate funds from the central forest nurturing fund to be transferred to the forestry departments and subordinate units. These departments and units will then transfer the funds to their managed units for expenditure according to the approved plan.

Units that are allowed to spend from the forest nurturing fund must open a special disbursement account for the forest nurturing fund at the State Bank branch to receive and utilize the allocated funds. Monthly, quarterly, and annually, these units must report on the use of the allocated funds, the balance of the special disbursement account for the forest nurturing fund to their direct superior management authority for consolidation and reporting to the Ministry of Forestry.

Allocation of capital for basic construction investment (Point 2, Section B, Part II).

Based on the investment plan and the financial plan for basic construction investment using the forest nurturing fund, the Ministry of Forestry will allocate funds from the forest nurturing fund to be transferred to the self-owned capital account for basic construction investment using the forest nurturing fund opened at the Vietnam Investment and Construction Bank (central level). The transfer of funds will be conducted quarterly. If the revenue is insufficient, multiple transfers can be made within the quarter to ensure sufficient capital. Quarterly, the Ministry of Forestry will distribute the capital and transfer funds from this account to the self-owned capital accounts for basic construction investment using the forest nurturing fund of the forestry departments, forestry-industrial cooperatives, companies... forest farms (central level) opened at the local investment and construction banks. If the revenue situation does not guarantee sufficiency, multiple transfers can be made within the quarter. Units with such accounts will assign construction tasks to subordinate forest farms and use the transferred investment capital from the Ministry of Forestry to settle completed projects and project components. The determination of completed projects and project components is guided specifically by the Ministry of Forestry and the Vietnam Investment and Construction Bank in accordance with the characteristics of basic construction in the forestry sector. Based on the completion acceptance record of projects and project components by the acceptance committee, the forestry departments, forestry-industrial cooperatives, companies... forest farms (central level) will verify and confirm according to the authorization of the Ministry of Forestry and process the payment procedures with the investment and construction bank. Monthly and quarterly (end of the month, end of the quarter), these forestry departments, forestry-industrial cooperatives, companies... forest farms (central level) must report to the Ministry of Forestry the number of completed projects and project components settled and the amount of money settled. Forestry units undertaking construction through internal self-construction (A, B relationship) may borrow capital from the investment and construction bank to prepare materials, seedlings, fertilizers, and ongoing construction costs according to current regulations.

The Vietnam Investment and Construction Bank has the responsibility to strictly check the completed projects put into use and jointly with the local financial authorities to inspect and confirm the settlement and finalization of these projects to ensure that the forest nurturing fund is spent according to purpose, regulation, and achieves practical effectiveness. The Vietnam Investment and Construction Bank will notify the Ministry of Forestry of the remaining balance quarterly via an account reconciliation statement.

c) At year-end, the Ministry of Forestry must consolidate the balance of the forest nurturing fund accounts of all units in the industry (for public service expenses and the settlement of completed basic construction projects and project components). Subsequently, the Ministry of Forestry will work with the Ministry of Finance to determine the amount to be transferred to the next year and the amount to be paid into the central budget at the beginning of the year according to the ratio stipulated in Decision No. 88-HĐBT of the Council of Ministers.

4. Settlement of income and expenditure by the forest nurturing fund.

Each item of income and expenditure of the forest nurturing fund must be settled quarterly and annually according to the current reporting and settlement system for public service funding, basic construction investment capital, and the portion of forest nurturing fund revenue.

Forest ranger units under the forest ranger force must settle the portion of forest nurturing fund revenue according to the vertical system, compiling from the grassroots level up to report to the Ministry of Forestry.

Units directly spending from the forest nurturing fund must settle separately each part of the public service funding, basic construction investment capital, and report on completed projects and project components put into use to their direct superior management authority.

Forestry-industrial cooperatives, companies... have the responsibility to review and settle the accounts of units under their management and consolidate the settlement reports sent to the Ministry of Forestry.

Provincial forestry departments must review and consolidate the settlement reports of units under local management and send them to the Ministry of Forestry.

The Ministry of Forestry must consolidate and report the settlement of income and expenditure of the forest nurturing fund to the Ministry of Finance in time to be included in the annual state budget settlement report.

Local financial authorities have the responsibility to inspect the settlement reports of units and make necessary recommendations to the superior forestry management authority before these authorities approve the settlement.

IV. REWARD AND PENALTY MATTERS

In addition to rewards and penalties under the state system already prescribed for production and business units and administrative and service units, units with income and expenditure from forest breeding funds that achieve tangible benefits quantifiable in specific values shall be allowed to use part of such value to form a reward fund.

1. Rewards: All units, collectives, and individuals with achievements in building forest capital and protecting forests shall be considered for rewards.

a) For state-owned economic forestry units.

Units that complete plans for planting, caring, repairing, improving, managing, and protecting forests according to technical procedures, ensuring survival rates, canopy closure times, and forest area as stipulated while also saving costs shall extract 70% of the savings achieved by reducing actual total costs below budgeted costs and quantifiable savings in specific values to form a reward fund (of which the unit must contribute 20% to the reward and encouragement fund, for expanding application, rational organization, and new techniques of the Ministry). The remaining 30% shall be deposited into the forest breeding fund.

The reward for officials, workers, and employees who have achieved savings and effectiveness in using the forest breeding fund shall not exceed three months' salary (average rank pay and temporary allowance), if it exceeds this amount, it shall be transferred to the Ministry's reward fund.

b) For people's forest rangers.

People's forest ranger units that achieve success in managing and protecting forests, exceeding the plan for collecting forest breeding funds according to regulations and policies shall be considered for rewards by the Minister of Forestry for completing the plan. The reward for officials, workers, and employees shall not exceed two months' salary (average rank pay and temporary allowance).

The Ministry of Forestry's reward fund, contributed by units, shall only be retained at a maximum of 0.2% of the total annual forest breeding fund collected. If this amount is exceeded, the excess shall be paid into the central budget.

Those who have made contributions in discovering and participating in capturing violations related to forestry (including people's forest rangers) shall be considered for rewards according to Decision No. 312-CP dated October 1, 1980, of the Council of Ministers.

2. Disciplinary Measures: State-owned economic forestry units that fail to complete the plan for submitting forest breeding funds or fail to submit them on time... shall be penalized by reducing the amount extracted from the enterprise fund as stipulated in Circular No. 3-TC/CNXD dated March 28, 1978, of the Ministry of Finance.

People's forest ranger units that commit errors in managing and protecting forests, implementing regulations and policies... shall be penalized by reducing the amount considered for rewards for completing the plan, depending on the severity of the error, as decided by the Minister of Forestry.

V. IMPLEMENTATION

Establishing a forest breeding fund is a very new issue requiring full attention from all sectors and levels to create favorable conditions for afforestation, exploitation, management, and protection of forests to become routine.

Request the People's Committees of provinces, cities, and special administrative regions directly under the Central Government to organize and create conditions for local forestry economic establishments to implement the provisions of this Joint Circular correctly, and at the same time perform their functions towards central forestry economic units located in their areas according to current regulations.

Departments of Forestry, Finance, and Banking shall assist the People's Committee of the province in organizing and directing the implementation of this Circular in accordance with the actual situation of each locality.

This Circular takes effect from January 1, 1982. Previous regulations contrary to this Circular are abolished.