Decision No. 141/2000/QĐ-TTg on investment policies and benefits for households, individuals, and communes participating in forestry projects and management of upstream protective forests in Thanh Hoa, Quang Tri, Phu Yen, and Gia Lai provinces under Credit Agreement No. 1515-VIE (SF).

Pursuant to …;

Regarding investment policies and benefits for households, individuals, and communes participating in the forestry project and management of upstream protective forests in Thanh Hoa, Quang Tri, Phu Yen, and Gia Lai provinces under Credit Agreement No. 1515-VIE (SF)

the communes participating in the project for the forestry area and management of upstream protective forests in the provinces of Thanh Hoa, Quang Tri, Phu Yen, and Gia Lai under Credit Agreement No. 1515-VIE (SF)

households at the headwaters in the provinces of Thanh Hoa, Quang Tri, Phu Yen,

Gia Lai under Credit Agreement number 1515-VIE (SF)

PRIME MINISTER

Pursuant to the Government Organization Law dated September 30, 1992;

Based on the Law on Forest Protection and Development dated August 19, 1991;

Pursuant to Credit Agreement No. 1515-VIE (SF) dated June 11, 1997 between the Socialist Republic of Vietnam and the Asian Development Bank (ADB) for the Forestry Sector Project;

Pursuant to Decision No. 22/TTg dated January 11, 1997 of the Prime Minister approving the feasibility study of the Forestry Sector Project and management of upstream protective forests in Thanh Hoa, Quang Tri, Phu Yen, and Gia Lai provinces;

Considering the proposal of the Minister of Agriculture and Rural Development (Circular No. 3683/BNN-CS dated October 31, 2000);

DECISION:

Article 1. The specific regulations regarding investment policies and benefits for households, individuals, and communes participating in the Forestry Sector Project and management of upstream protective forests using ADB funds and counterpart funds from the state budget in Thanh Hoa, Quang Tri, Phu Yen, and Gia Lai provinces are hereby stipulated as follows:

1. Planting new trees and encircling nurturing regeneration combined with supplementary planting of forest trees in areas of very weak and weak protective forests: The State invests 100% of the costs; the investment rate is determined by the provincial People's Committee based on the technical procedures of the Ministry of Agriculture and Rural Development and the local economic-technical norms.

2. Planting forest trees (concentrated forest planting, scattered tree planting, and agroforestry integration in areas of less weak protective forests and production forests); improving grazing land is invested and supported by the State according to Circular No. 26/1999/TT-BTC dated March 10, 1999 of the Ministry of Finance.

3. Improving and constructing village-level infrastructure including small irrigation works, clean water supply, inter-village roads, primary schools, and health stations: The State invests not exceeding 90% of the total approved budget estimate, the remaining part is contributed by the beneficiaries and the local budget according to self-balancing principles. The investment mechanism is implemented according to Decision No. 135/1998/QĐ-TTg dated July 31, 1998 of the Prime Minister on the Special Program for Economic and Social Development in Mountainous and Remote Areas.

4. Research and application activities, agricultural and forestry extension services: The State invests according to the design and budget approved by the provincial People's Committees.

5. Improving mixed gardens, opening up new land, and land improvement:

The State provides support not exceeding 5% of the total investment cost of the feasible sub-project approved by the competent authority.

Article 2. Households, individuals, and communes participating in the project enjoy the following benefits:

1. For very weak and weak protective forests:

- Households and individuals who undertake the task of protecting the forest (collectively referred to as the forest owner) are allowed to harvest firewood and minor forest products under the canopy of the forest, except for those types of forest products belonging to Group 1 and 1A (as specified in Decree No. 18/HĐBT dated January 17, 1992 of the Council of Ministers, now the Government).

- Forest owners undertaking encircling nurturing regeneration combined with supplementary planting of forests are entitled to all thinning products and minor forest products under the canopy of the forest, except for those types of forest products belonging to Group 1 and 1A (as specified in Decree No. 18/HĐBT dated January 17, 1992 of the Council of Ministers, now the Government).

- Forest owners undertaking planting forests are entitled to all thinning products, agricultural products, and minor forest products under the canopy of the forest. If the planted protective forest contains more than 600 protective trees per hectare, then they are entitled to 100% of the products of the auxiliary trees planted within the protective forest; if the protective trees are fruit-bearing, resin-producing, or flowering trees, then the forest owner undertaking the task is entitled to all products such as flowers, fruits, oil, resin when harvesting.

2. For less weak protective forests and production forests:

- The forest owner has ownership rights over the forest they have planted. When the forest reaches the age for harvesting, the forest owner can harvest according to the Forest Management Regulations and enjoy all products harvested from the forest.

When harvesting and selling forest products from planted forests, bamboo, and minor forest products from natural forests, the forest owner only needs to notify the nearest forest protection agency or the People's Committee of the commune or town ten days in advance.

- Products harvested from planted forests, bamboo, and minor forest products from natural forests can be freely circulated in the market, except for those types of forest products belonging to Group 1 and 1A (as specified in Decree No. 18/HĐBT dated January 17, 1992 of the Council of Ministers, now the Government).

Article 3. Obligations of forest owners participating in the Project:

- Fulfill all commitments in the contracts signed with the Project Manager.

- When harvesting planted forests in areas of less weak protective forests and production forests, the forest owner must pay taxes according to the law and contribute to the commune budget an amount equivalent to 50-100 kg/ha if it is long-term crops harvested once, or 2-3% of the value of the harvested products annually if it is long-term crops harvested multiple times. The specific amount is decided by the provincial People's Committee. This fund can only be used for the purpose of managing, protecting, and developing forests in the commune.

- The forest owner is responsible for replanting the forest or implementing measures to promote regeneration to restore the forest within two years after harvesting.

Article 4. THIS DECISION SHALL TAKE EFFECT 15 DAYS FROM THE DATE OF SIGNATURE.

The Ministers of Planning and Investment, Agriculture and Rural Development, Finance; Governor of the State Bank of Vietnam; Chairmen of the People's Committees of Thanh Hoa, Quang Tri, Phu Yen, and Gia Lai provinces, and heads of relevant agencies are responsible for enforcing this Decision./.