Decision No. 11/2011/QD-TTg on policies to encourage the development of the rattan and bamboo industry

Pursuant to …;

On encouraging policies for the development of rattan and bamboo industries

_____________________

PRIME MINISTER

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

Pursuant to the Law on Forest Protection and Development dated December 23, 2004;

On the basis of Decree No. 23/2006/NĐ-CP dated March 3, 2006 of the Government on the implementation of the Forest Protection and Development Law;

Pursuant to Decree No. 66/2006/ND-CP dated July 7, 2006 of the Government on developing rural crafts;

Pursuant to Decision No. 186/2006/QD-TTg dated August 14, 2006 of the Prime Minister on promulgating the Forest Management Regulations;

Pursuant to Decision No. 18/2007/QD-TTg dated February 5, 2007 of the Prime Minister on approving the Strategy for Forestry Development in Vietnam for the period 2006-2020;

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

DECISION:

PART I

GENERAL PROVISIONS

Article 1. Scope of application

This Decision stipulates the planning, policies, and measures to encourage the development of the rattan and bamboo industries; responsibilities of various levels, sectors, and related organizations in creating raw material areas, harvesting raw materials, processing, and marketing rattan and bamboo products in Vietnam.

Article 2. Applicability

This policy applies to organizations, households, individuals, village communities within the country, overseas Vietnamese, foreign organizations, and individuals involved in activities related to creating raw material areas, harvesting raw materials, processing, and marketing rattan and bamboo products.

Article 3. Objective

1. Developing raw material areas for rattan and bamboo to meet the demand for raw materials for the rattan and bamboo processing industry and other industries, contributing to increasing forest coverage and protective capacity, preventing soil erosion in headwater areas, along rivers, and streams.

2. Developing the rattan and bamboo manufacturing industry to gradually increase the economic value and efficiency of rattan and bamboo product production and trading facilities, contributing to the country's socio-economic development.

3. Preserving and developing traditional crafts and villages producing rattan and bamboo products to promote their economic, cultural, ecological, and environmental values.

4. Promoting the formation of markets for rattan and bamboo products to serve domestic consumption and exports.

5. Creating jobs and increasing income for people, contributing to restructuring the economy and building new countryside.

Article 4. Definitions

1. Rattan raw material is a product harvested from Calamus and Daemonorops species belonging to the Arecacae family living in natural forests or planted for use and processing of rattan and bamboo products.

2. Bamboo raw material is a product harvested from bamboo, reed, bengal bambus, river cane, lotus stem, water caltrop, and other species belonging to the Bambusoideae subfamily of the Poaceae family living in natural forests or planted for the production of rattan and bamboo products.

3. The raw material area for rattan and bamboo includes: natural rattan and bamboo areas consisting of pure or mixed species with timber trees in protective and production forests; planted rattan and bamboo areas on protective and production forest land and other types of land.

4. The rattan and bamboo industry is a general term for the production of goods using rattan and bamboo raw materials, including activities from raw material creation to harvesting, processing, and marketing of rattan and bamboo products.

Chapter II

PLANNING FOR THE DEVELOPMENT OF THE RATTAN AND BAMBOO INDUSTRY

PART 1

PLANNING FOR THE DEVELOPMENT OF RAW MATERIAL AREAS FOR RATTAN AND BAMBOO

Article 5. Orientation for the development of raw material areas

1. Raw material area development must be linked to the planning of rattan and bamboo product processing facility development.

2. Raw material area development should follow the specialization direction of production.

3. Raw material area development must ensure effectiveness and sustainability.

Article 6. Planning for the development of raw material areas

1. Based on the planning for the development of raw material areas

The planning for the development of raw material areas for rattan and bamboo is based on the ecological regions and distribution of rattan and bamboo species; village craft production areas; potential for the development of processing industries; infrastructure conditions serving the development of the rattan and bamboo industry.

2. Content of the planning for the development of raw material areas

a) Developing natural raw material areas for rattan and bamboo

Encouraging the development of natural raw material areas for rattan and bamboo in regions with pure or mixed species of rattan and bamboo forests, including protective and production forests managed by state organizations (forestry companies, forest protection management boards...):

- Forests managed by state organizations (forestry companies, forest protection management boards...).

- Forests not yet transferred or leased, currently under the responsibility of the People's Committee of communes.

- State-owned forests already transferred to households, individuals, and village communities for long-term stable use for forestry purposes.

b) Developing planted raw material areas for rattan and bamboo

Encouraging the planting of raw material areas for rattan and bamboo in the following areas:

- Land classified as forest land states IA, IB, IC planned for production and protective forests; unused land, low-efficiency agricultural land, land unsuitable for other crops, land along river and stream banks, and areas prone to erosion and soil loss under the management of organizations.

- Land owned by households, individuals, and village communities allocated by the state for long-term stable use for agriculture and forestry purposes.

c) Prioritizing the establishment of concentrated specialized raw material areas for rattan and bamboo with advantages in natural, economic, and social conditions to serve large-scale production; planting rattan and bamboo along river and stream valleys and vulnerable areas prone to erosion.

d) The state prioritizes investment in developing transportation infrastructure in raw material areas for rattan and bamboo linked to processing and marketing.

đ) Implementing pilot models for establishing concentrated specialized raw material areas according to sustainable forest development criteria to facilitate the export of rattan and bamboo products.

Article 7. Establishing and approving the planning for the development of raw material areas

Provincial People's Committees base on approved land use plans and organize the establishment and approval of the planning for the development of raw material areas for rattan and bamboo within their jurisdictions.

PART 2

PLANNING FOR THE DEVELOPMENT OF RATTAN AND BAMBOO PRODUCTION FACILITIES

Article 8. Orientation for the development of rattan and bamboo production facilities

1. Prioritize the development of production facilities linked to concentrated specialized raw material areas, utilizing scattered raw materials among the population and employing rural labor.

2. Develop rattan and bamboo production bases towards specialization combined with comprehensive production development. Encourage the production of various rattan and bamboo products, maximize the use of rattan and bamboo raw materials to meet domestic consumption needs and export requirements, replacing wooden products.

3. Prioritize the development of production and business bases for rattan and bamboo aimed at exports, industrial bamboo products, while focusing on supporting the development of traditional rattan and bamboo production bases.

4. Encourage rattan and bamboo production bases to establish scientific and technological organizations or joint ventures with organizations and individuals to research and apply advanced science and technology in production and processing to enhance the value of rattan and bamboo products.

Article 9. Planning rattan and bamboo production bases

1. Encourage rattan and bamboo production bases to enter existing industrial zones and clusters in localities to organize continuous production from raw material pre-processing to processing and export.

2. Prioritize planning industrial clusters and production facilities with high economic value for regions with concentrated raw material areas and traditional rattan and bamboo production.

Article 10. Planning craft villages producing rattan and bamboo products

1. The State encourages the restoration, conservation, and development of traditional craft villages, promoting social, economic, and cultural values in a clean and environmentally friendly production direction.

2. The State supports investment in developing new craft villages in places with favorable conditions regarding raw materials, labor, and markets.

Article 11. Building and approving plans for the development of rattan and bamboo production bases

Provincial People's Committees organize the construction and approval of plans for the development of rattan and bamboo production bases within their provinces.

Chapter III

SOME INCENTIVE POLICIES TO PROMOTE THE RATTAN AND BAMBOO INDUSTRY

Article 12. Land policy

1. Provincial People's Committees organize reviews of land use planning, forest protection and development planning, allocate land for raw material development areas, industrial processing facilities, and craft villages producing rattan and bamboo products.

2. Accelerate the progress of land allocation, forest allocation, land leasing, forest leasing, long-term forest management contracts, and issuance of land use right certificates to organizations, households, individuals, and community groups in villages to develop raw material areas, industrial processing facilities, and craft villages producing rattan and bamboo products according to the law.

3. Organizations, households, individuals, and community groups in villages allocated, contracted, managed, and used productive forest land within planned raw material development areas may use less effective land and unused land to develop raw materials. Encourage businesses producing and trading in joint ventures and partnerships with organizations, households, individuals, and community groups allocated, contracted land and forests to produce raw materials.

4. Businesses with projects investing in the rattan and bamboo industry enjoy incentives for exemption and reduction of land use fees as stipulated in the List of Particularly Preferential Investment Fields in Agriculture issued together with Decree No. 61/2010/NĐ-CP dated June 4, 2010 of the Government on policies encouraging enterprises to invest in agriculture and rural areas.

5. Organizations, individuals, and households granted land by the state for planting rattan and bamboo, developing production and trade in rattan and bamboo products enjoy incentives for exemption and reduction of land use fees and land lease fees according to the law on land.

Article 13. Investment and credit policy

1. Investment support

a) Eligibility for support

- Organizations, households, individuals, and community groups in villages authorized by competent authorities to be allocated or leased land.

- Organizations, households, individuals, and community groups in villages assigned long-term stable forest management contracts by state-owned forest owners.

b) Specific support contents:

- Planting concentrated bamboo and rattan forests on vacant hills and barren mountains within planned raw material development areas is supported with capital from the state budget as follows:

+ Organizations, households, individuals, and community groups in particularly difficult communes (as defined by the Prime Minister) planting bamboo, rattan, and reed species enjoy support levels as prescribed in Resolution No. 30a/2008/NQ-CP dated December 27, 2008 of the Government on the program to rapidly and sustainably reduce poverty in poor districts; + Organizations, households, individuals, and community groups not in particularly difficult communes (as defined by Decision No. 164/2006/QĐ-TTg dated July 11, 2006 of the Prime Minister on approving the list of particularly difficult communes, border communes, and safe area communes for investment in the socio-economic development program for particularly difficult communes inhabited by ethnic minorities and mountainous areas during the period 2006-2010) planting bamboo, rattan, and reed species enjoy support levels as prescribed in Decision No. 147/2007/QĐ-TTg dated September 10, 2007 of the Prime Minister on certain policies for developing productive forests.

- Scattered planting of bamboo and rattan within planned raw material development areas:

Organizations, households, individuals, and community groups in villages are supported with 100% of the cost of purchasing seedlings for the first time, with specific amounts determined by the provincial People's Committee based on the annual price of seedlings in the province.

- New planting of bamboo and rattan forests on vacant hills and barren mountains, protective zones, and natural regeneration promotion zones within protective forests are supported according to Decision No. 60/2010/QĐ-TTg dated September 30, 2010 of the Prime Minister on issuing principles, criteria, and specific allocation rates for investment development funds from the state budget for the period 2011-2015. Specific support levels are determined by the provincial People's Committee.

2. Credit policy

a) Organizations, households, and individuals planting bamboo and rattan; processing, consuming, and providing services for the production of bamboo and rattan products can borrow credit according to Decree No. 41/2010/NĐ-CP dated April 12, 2010 of the Government on credit policies serving agricultural and rural development.

b) Production and business establishments exporting bamboo and rattan products can borrow export credit according to current laws.

3. Investment incentives

3. Regarding investment incentives

Enterprises with projects for planting rattan and bamboo; producing rattan and bamboo products; supplying direct services to support planting rattan and bamboo and consuming rattan and bamboo products shall enjoy investment incentives and investment support as prescribed in Decree No. 61/2010/NĐ-CP dated June 4, 2010 of the Government on policies encouraging enterprises to invest in agriculture and rural areas and guiding documents for implementation.

Article 14. On science and technology

1. The State encourages investors and production and business establishments in the rattan and bamboo industry to invest in researching and applying advanced science and technology in selecting, breeding, preserving, and processing rattan and bamboo products; enhancing joint ventures and collaborations between management agencies, science, businesses, and rattan and bamboo growers.

2. The state budget shall support 100% of the funding to implement:

a) Surveying the reserves and area of different rattan and bamboo varieties; establishing collections of high-value rattan and bamboo varieties adaptable to each ecological region.

b) Researching and testing new rattan and bamboo varieties; organizing trials and inspections of rattan and bamboo varieties to select new high-yielding and quality varieties to supplement the existing variety structure.

c) Applying advanced equipment and biotechnology in preservation and processing stages of rattan and bamboo.

d) Research topics on technological advancements and modern machinery and equipment in breeding, planting, caring, harvesting, processing, and manufacturing rattan and bamboo products carried out by research institutes and universities under the Program to Support Application and Transfer of Scientific and Technological Progress Serving Rural Economic and Social Development in Mountainous Areas from 2011 to 2015 as decided in Decision No. 1831/QĐ-TTg dated October 1, 2010.

The annual funding is allocated from the Program to Support Application and Transfer of Scientific and Technological Progress Serving Rural Economic and Social Development in Mountainous Areas from 2011 to 2015 as decided in Decision No. 1831/QĐ-TTg dated October 1, 2010.

3. Local budgets shall support funding to implement:

a) Reviving local rattan and bamboo varieties that have lost their original seed sources but still hold high economic value.

b) Establishing nurseries to test new rattan and bamboo varieties before planting them locally.

c) Training, guiding, and building models to quickly transfer new varieties, cultivation methods, and advanced preservation and processing technologies; providing new scientific and technological information to farmers and production and business establishments. Specific levels of support are determined by the Provincial People's Committee.

4. Regarding support for applying science and technology: production and business establishments in the rattan and bamboo industry with projects to develop raw material regions and produce rattan and bamboo products shall be supported by the Science and Technology Development Fund with 50% of the funding for implementing research projects to create new technologies led by enterprises; supporting 30% of the total new investment funding to implement pilot production projects approved by competent authorities (excluding existing equipment and factories from the total funding amount).

5. Establish standards and regulations on planting, caring, preserving, and processing rattan and bamboo.

6. Establish a system of technical standards and regulations to manage the quality of rattan and bamboo products ensuring community health and environmental standards.

7. The Ministry of Agriculture and Rural Development shall establish a Center for Research, Application, and Transfer of Science and Technology to Develop the Rattan and Bamboo Industry.

Article 15. On labor and training

1. Labor

Production and business establishments and households participating in the production and business of rattan and bamboo may borrow funds from the National Employment Fund under the National Target Program on Employment.

2. Training

a) Ensuring sufficient human resources, especially specialized and high-quality personnel to meet the development needs of the rattan and bamboo industry. Priority policies shall be given to those studying vocational skills in rattan and bamboo weaving at intermediate level in traditional craft villages and rattan and bamboo manufacturing enterprises to secure high-quality human resources.

b) Concentrating on improving the skills of non-permanent workers; training and improving the skills of permanent workers currently working in rattan and bamboo production and processing establishments.

c) Rural labor in the rattan and bamboo industry shall apply the vocational training policy according to Decision No. 1956/QĐ-TTg dated November 27, 2009 of the Prime Minister approving the "Vocational Training Program for Rural Labor until 2020".

d) Enterprises with projects to develop the rattan and bamboo industry within the priority investment fields in agriculture as stipulated in Decree No. 61/2010/NĐ-CP of the Government on policies encouraging enterprises to invest in agriculture and rural areas shall be supported by the state budget with 100% of the domestic vocational training funding costs according to this Decree.

Article 16. Raw Material Extraction and Benefit Enjoyment

1. Extraction

Raw material extraction from production forests and protective forests shall be carried out in accordance with the regulations of the Ministry of Agriculture and Rural Development.

2. Benefit Enjoyment

a) When extracting, after deducting the amounts required by the state, the forest owner shall enjoy 100% of the extracted product.

b) For households, individuals, and village communities that have been assigned long-term contracts to protect state-owned forests, they may extract and benefit from the contract terms agreed upon by both parties.

Article 17. On Taxation

1. Organizations, households, individuals, and village communities investing in planting raw material forests of rattan and bamboo shall be exempted or granted tax reductions on land use as prescribed in Resolution No. 55/2010/QH12 dated November 24, 2010 of the National Assembly on Exemption and Reduction of Agricultural Land Use Tax and guiding documents for implementation.

2. Production establishments producing rattan and bamboo products shall enjoy a zero percent (0%) import tariff rate for specialized machinery and equipment for rattan and bamboo production not yet produced domestically according to the list issued by the Ministry of Industry and Trade. New production and business establishments producing rattan and bamboo products shall enjoy corporate income tax benefits according to current regulations.

3. Rattan and bamboo extracted from natural forests shall be subject to a 10% resource tax. Households and individuals permitted to extract rattan and bamboo from natural forests for personal use shall be exempted from the resource tax according to the law.

Article 18. On Market Consumption of Products

1. The State encourages enterprises, production and business establishments, consumption, and export units to enter into long-term and stable contracts for the purchase of rattan and bamboo products with farming households.

2. Enterprises engaged in the production and trade of rattan and bamboo shall be supported by the State with funds for promoting trade both domestically and internationally in accordance with Decree No. 61/2010/NĐ-CP dated June 4, 2010 of the Government on policies to encourage investment in agriculture and rural areas, and other guiding documents; annual programs and funding for trade promotion of relevant ministries, sectors, and localities.

3. Encouragement is given to the establishment of research centers, design models, and new product development centers serving production bases in line with import demand for rattan and bamboo products in domestic and international markets.

4. Organizations shall implement the provision of regular information about market conditions, quality and design requirements for products, consumer preferences, and technical barriers to facilitate production and export decisions for rattan and bamboo product manufacturing bases.

5. Provincial People's Committees shall create favorable conditions for the allocation of locations and provide financial support for the construction of markets for buying and selling raw materials for rattan and bamboo linked to concentrated raw material areas; establish markets, shops, and centers in local craft villages and tourist sites to promote and sell products; pilot the development of rattan and bamboo craft villages linked to craft village tourism routes and points.

Chapter IV

IMPLEMENTATION

Article 19. Responsibilities of Ministries and Sectors

1. The Ministry of Agriculture and Rural Development shall take the lead in implementing this Decision; coordinate with relevant ministries and sectors to carry out the following tasks:

a) Develop and approve the Plan for the Development of the Rattan and Bamboo Industry for the period 2011-2015 and orientations up to 2020.

b) Coordinate with the Ministry of Finance, the Ministry of Planning and Investment, and the Ministry of Industry and Trade to issue guiding documents for the implementation of this Decision before July 2011.

c) Coordinate with political and social organizations, professional associations, and international organizations to effectively implement this Decision.

d) Annually organize inspections, mid-term reviews, and final evaluations of the implementation of policies encouraging the development of the rattan and bamboo industry, and report.

2. The Ministry of Planning and Investment and the Ministry of Finance shall coordinate with the Ministry of Agriculture and Rural Development to issue guiding documents for the implementation of this Decision; ensure appropriate funding for its implementation in accordance with current regulations.

3. The Ministry of Industry and Trade, the Ministry of Science and Technology, and the Ministry of Natural Resources and Environment shall coordinate with the Ministry of Agriculture and Rural Development to develop plans to implement annual trade promotion and scientific research programs to effectively advance this Decision.

4. Relevant ministries and sectors such as the Ministry of Labor, Invalids and Social Affairs, the Ministry of Culture, Sports and Tourism, the State Bank of Vietnam, the Committee for Ethnic Minorities, and other relevant ministries and sectors shall coordinate with the Ministry of Agriculture and Rural Development to implement this Decision according to their assigned functions and responsibilities.

Article 20. Responsibilities of Provincial People's Committees

The Department of Agriculture and Rural Development shall take the lead and coordinate with the Department of Natural Resources and Environment and related agencies at the provincial level to implement the following key contents:

1. Develop specific plans to implement policies encouraging the development of the rattan and bamboo industry at the local level, submit them to the provincial People's Committee for approval; direct and encourage economic sectors to collaborate during the implementation process.

2. Organize reviews, adjustments, or the creation and approval of new plans for the development of rattan and bamboo raw material regions (concentrated specialized planting areas, scattered planting areas), and plans for the development of rattan and bamboo production facilities.

3. Organize land reviews, accelerate land allocation and forest transfer, and issue certificates of land use rights to enterprises, households, individuals, and community residents participating in the development of rattan and bamboo raw material regions.

4. Direct the organization and effective integration of policies encouraging the development of the rattan and bamboo industry with other programs and projects in the locality.

5. Regularly inspect and monitor the implementation of policies encouraging the development of the rattan and bamboo industry and report regularly as prescribed.

Article 21. Effectiveness

This Decision shall take effect from April 5, 2011.

Article 22. Responsibility for Implementation

Ministers, Heads of ministerial-level agencies, Heads of agencies under the Government, Chairmen of provincial and centrally-run city People's Committees, and Heads of related agencies are responsible for enforcing this Decision./.