Decree No. 163/1999/ND-CP On allocating and leasing forestry land to organizations, households, and individuals for stable and long-term use for forestry purposes

DECREE

Regarding the transfer of forest land and leasing of forest land to organizations, households, and individuals for stable and long-term use

for forestry purposes

_______________________

THE GOVERNMENT

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

Pursuant to the Forest Protection and Development Law dated August 19, 1991;

Pursuant to the Land Law dated July 14, 1993 and the Law Amending and Supplementing Certain Provisions of the Land Law dated December 2, 1998;

At the proposal of the Minister of Agriculture and Rural Development, the Director General of the Land Administration Bureau.

DECREE:

PART I

GENERAL PROVISIONS

Article 1. Scope of application

This Decree stipulates the State's transfer of forest land to organizations, households, and individuals for stable and long-term use in the form of transferring land without payment of land use fees and leasing forest land.

Article 2. Forest land

Forest land specified in this Decree includes:

1. Natural forest land, land currently with planted forests.

2. Land not yet with forests but planned for forestry purposes such as planting forests, encircling and nurturing, protecting to restore naturally, and conducting forestry research experiments.

Article 3. Purpose of using forest land

The State transfers and leases forest land to organizations, households, and individuals for stable and long-term use for forestry purposes, including the following types of forest land:

1. Special-use forest land is forest land planned for constructing and developing forests to conserve nature; national ecosystem model forests; sources of plant and animal genetic resources; scientific research; protecting historical, cultural, and scenic spots, serving rest and tourism, protecting the ecological environment, including:

a) National parks;

b) Nature conservation forests;

c) Cultural-historical-environmental forests (landscape protection).

2. Protective forest land is forest land planned for constructing and developing forests mainly to protect water sources, soil, prevent erosion, mitigate natural disasters, regulate climate, contribute to protecting the ecological environment, including:

a) Upstream protective forests divided into very critical, critical, and less critical areas;

b) Windbreak and sand control forests;

c) Coastal wave protection and land reclamation forests;

d) Environmental protection forests.

3. Production forest land is forest land planned mainly for producing and trading timber, other forest products, forest specialties, wild animals, and combining protective functions to safeguard the ecological environment.

Article 4. Subjects to whom the State transfers forest land

The State transfers forest land without payment of land use fees to the following subjects:

1. Households and individuals directly engaged in forestry, agriculture, fishing, salt production whose main source of income comes from these activities, confirmed by the People's Committee of the commune, ward, or town where the forest land is located;

2. Management Boards of special-use and protective forests;

3. State-owned enterprises that were using forest land transferred by the State before January 1, 1999;

4. Stations, camps, nurseries, schools, vocational training centers;

5. Other organizations under various economic sectors that were granted forest land by the Government according to Decree No. 02/CP dated January 15, 1994, before January 1, 1999, and continue to use it until the end of the grant period. Upon expiration of the grant period, they must switch to leasing forest land;

6. Units within the people's armed forces using forest land in combination with national defense.

Article 5. Subjects to whom the State leases forest land

The State leases land to the following subjects for use in forestry purposes:

1. Households and individuals, including those specified in Clause 1, Article 4 of this Decree, who have the need and ability to use forest land for production and business;

2. Domestic organizations under all economic sectors;

3. Foreign organizations and individuals.

Chapter II

TRANSFER OF FOREST LAND, LEASING OF FOREST LAND, AND ISSUANCE OF LAND USE RIGHTS CERTIFICATES

FOR FOREST LAND

Article 6. Transfer of forest land to households and individuals

1. Households and individuals who were granted forest land by the State according to Decree No. 02/CP dated January 15, 1994, continue to use it stably and long-term and are issued land use rights certificates.

2. Households currently using forest land exceeding the limit specified in Clause 1, Article 13 of this Decree before January 1, 1999, continue to use it stably and long-term and are issued land use rights certificates.

Article 7. Transfer of forest land planned for constructing and developing special-use forests

1. The State grants forest land planned for constructing and developing special-use forests to the Management Board of national parks, the Management Board of nature conservation zones, and the Management Board of cultural-historical-environmental zones (hereinafter referred to collectively as the Management Board of special-use forests) for management and use according to the Prime Minister's Decision or the Chairman of the provincial People's Committee.

2. The Management Board of special-use forests allocates forest land to households living in strictly protected areas but unable to relocate according to the regulations on allocating land for agricultural, forestry, and aquaculture purposes in state-owned enterprises issued together with Decree No. 01/CP dated January 4, 1995.

3. For ecological restoration zones, the Management Board of special-use forests allocates forest land to households living there for protection and afforestation according to contractual agreements.

4. For special-use forests with buffer zone projects, if the buffer zone land area does not fall within the planning scope of the special-use forest, the transfer and leasing of buffer zone forest land shall be carried out according to the provisions of Clause 2, Article 8 and Article 9 of this Decree.

Article 8. Transfer of forest land planned for constructing and developing protective forests

1. The State transfers forest land planned for constructing and developing upstream protective forests to the Management Board of protective forests according to the Prime Minister's Decision or the Chairman of the provincial People's Committee for management, protection, and construction according to approved plans and programs.

2. The State transfers forest land planned for constructing and developing less critical upstream protective forests, fragmented upstream protective forests unsuitable for establishing a Management Board of protective forests, and other types of protective forests as specified in Points b, c, and d, Clause 2, Article 3 of this Decree to other organizations, households, and individuals for management, protection, planting, and harvesting according to guidelines from the Ministry of Agriculture and Rural Development.

3. Organizations, households, and individuals using protective forest land must comply with laws on land and laws on protecting and developing forests.

Article 9. Allocation of forestry land for constructing and developing production forests

The State allocates forestry land planned for constructing and developing production forests to households, individuals, and domestic organizations specified in Clauses 1, 3, 4, 5, and 6 of Article 4 and Article 6 of this Decree for use in forestry production purposes.

Article 10. Leasing of forestry land

The State leases forestry land to domestic organizations, households, individuals, and foreign organizations for use in forestry purposes as follows:

1. Land planned for constructing and developing production forests.

2. Upstream protective forest land in areas with low vulnerability and other types of protective forest land as stipulated at points b, c, d of Clause 2 of Article 3 of this Decree.

3. Special-use forest land for operating landscape and ecotourism under the forest canopy, in accordance with regulations issued by the Ministry of Agriculture and Rural Development.

Article 11. Contracting out forestry land

1. Special-use Forest Management Boards, Protective Forest Management Boards, state-owned enterprises that have been allocated or leased forestry land by the State shall implement contracting out of forestry land according to the provisions of the Regulation on the allocation and contracting out of land for agricultural, forestry, and aquaculture purposes in state-owned enterprises promulgated together with Decision No. 01/CP dated January 4, 1995 of the Government and Decision No. 187/1999/QD-TTg dated September 16, 1999 of the Prime Minister regarding the reform of organizational structure and management mechanism of state-owned forestry farms.

2. Organizations, households, and individuals who have planted long-term agricultural crops on forestry land without forests which has been allocated to state-owned enterprises, if appropriate to approved projects, may be converted to the contracting out of forestry land according to the provisions of the Regulation on the allocation and contracting out of land for agricultural, forestry, and aquaculture purposes in state-owned enterprises promulgated together with Decision No. 01/CP dated January 4, 1995 of the Government or lease forestry land.

Article 12. Basis for allocating and leasing forestry land

1. Forestry land fund of each locality.

2. Current status of forestry land management and use by organizations, households, and individuals.

3. Limit on allocation and leasing of forestry land as prescribed in Article 13 of this Decree.

4. Demand for forestry land use by organizations recorded in approved projects by competent state agencies; applications for allocation and leasing of forestry land by households and individuals confirmed by the People's Committee of the commune where the forestry land is located.

Article 13. Limit on allocation and leasing of forestry land

1. The limit of forestry land allocated to households is decided by the provincial People's Committee but not exceeding 30 hectares.

2. The limit of forestry land allocated to organizations according to approved projects by competent state agencies.

3. The limit of forestry land leased to organizations according to approved projects by competent state agencies; the limit of forestry land leased to households and individuals according to their applications for leasing land.

4. For vacant land, barren hillsides, coastal sand land, and reclaimed sea land, the limit of land allocated to households for forestry use is decided by the provincial People's Committee based on the local land fund and their production capacity, ensuring the implementation of policies encouraging and creating favorable conditions for utilizing these lands for forestry purposes.

Article 14. Term of allocation and leasing of forestry land

1. The term of allocation of forestry land is defined as follows:

a) The term of allocation of forestry land to organizations as stipulated in Clauses 2, 3, 4, and 6 of Article 4 of this Decree according to approved projects by competent state agencies;

b) The term of allocation of forestry land to organizations as stipulated in Clause 5 of Article 4 of this Decree is determined until the end of the period already allocated by the State;

c) The term of allocation of forestry land to households and individuals for stable long-term use is 50 years. When this term expires, if the land user requests continued use and complies with laws on land and laws on protecting and developing forests during the use of forestry land, they will be considered by competent state agencies for continued allocation of the land for use. If planting forestry trees with a cycle over 50 years, when this term expires, the State will continue to allocate the land for use.

2. The term of allocation of forestry land is calculated as follows:

a) Organizations, households, and individuals allocated forestry land from October 15, 1993 or earlier, are uniformly calculated from October 15, 1993;

b) Organizations, households, and individuals allocated forestry land after October 15, 1993 are calculated from the date of allocation.

3. The term of leasing forestry land to organizations, households, and individuals is determined according to approved projects by competent state agencies and applications for leasing land by households and individuals but not exceeding 50 years.

In cases where projects require leasing forestry land for more than 50 years, it must be decided by the Prime Minister but not exceeding 70 years.

After this term, if organizations, households, and individuals still need to lease the forestry land and use it for its intended purpose, the State will consider continuing the lease.

Article 15. Combined forestry and agriculture production

Organizations, households, and individuals allocated or leased forestry land as stipulated in Clause 4 of Article 7, Clause 2 of Article 8, and Article 9 of this Decree can use the area of land without existing forests to plant long-term agricultural crops with sustainable environmental protection effects or build tourism facilities under the forest canopy according to approved projects by competent state agencies.

Article 16. Authority for allocating and leasing forestry land

1. The People's Committee of the district decides on allocating and leasing forestry land to households and individuals;

2. The People's Committee of the province decides on allocating and leasing forestry land to organizations.

Article 17. Issuance of certificates of land use rights for forestry land

1. The competent state agency allocating and leasing forestry land as prescribed in Article 16 of this Decree is also the authority issuing certificates of land use rights for forestry land. In cases where the Government decides on allocating forestry land, the provincial People's Committee issues the certificate of land use rights.

2. Organizations, households, individuals who have been granted land or leased forest land by the State shall be issued certificates of land use rights.

3. Organizations, households, individuals currently using forest land that have not been granted or leased before this Decree takes effect, if there is no dispute and the land is used for its intended purpose, shall be considered for land grant or lease and issuance of certificates of land use rights.

4. The Land Administration agency assists the People's Committee at the same level in handling procedures for land grant, lease, and issuance of certificates of forest land use rights.

Chapter III

RIGHTS AND OBLIGATIONS

Article 18. Rights and obligations of organizations granted forest land by the State

1. Organizations granted forest land by the State shall have the following rights:

a) The rights stipulated in Clauses 1, 2, 4, 5, 6, 7, and 8 of Article 73 of the Land Law;

b) Exemption or reduction of land use tax according to the provisions of the law; enjoyment of state support policies in protecting and developing forests;

c) State-owned enterprises and domestic economic organizations also have the right to mortgage assets under their management attached to the land use rights with Vietnamese credit institutions to borrow funds for production and business activities; contribute capital for joint production and business activities with domestic organizations and individuals, and foreign organizations and individuals through the value of land use rights to continue using for forestry purposes.

2. Organizations granted forest land by the State shall have the following obligations:

a) The obligations stipulated in Clauses 1, 2, 3, 6, and 7 of Article 79 of the Land Law;

b) Payment of taxes and land administration fees according to the provisions of the law;

c) Implementation of legal regulations on forest management, protection, and development.

Article 19. Rights and obligations of households and individuals granted forest land by the State

1. Households and individuals granted forest land by the State shall have the following rights:

a) The rights stipulated in Clause 3 of Article 3, Article 73, and Clause 3 of Article 76 of the Land Law;

b) Contribution of capital through the value of land use rights for joint production and business activities with domestic organizations and individuals;

c) Exemption or reduction of land use tax according to the provisions of the law; enjoyment of state support policies in protecting and developing forests.

2. Households and individuals granted forest land by the State shall have the following obligations:

a) The obligations stipulated in Clauses 1, 2, 3, 4, 6, and 7 of Article 79 of the Land Law;

b) Implementation of legal regulations on forest management, protection, and development.

Article 20. Rights and obligations of organizations, households, and individuals leased forest land by the State

1. Organizations, households, and individuals leased forest land by the State shall have the rights stipulated in Clauses 1, 2, 4, 5, 6, 7, and 8 of Article 73 of the Land Law. Depending on the method of paying the land lease fee for the entire lease period, paying the land lease fee for multiple years, or paying the annual land lease fee, households and individuals leased forest land by the State shall have the rights stipulated in Clause 9 of Article 1 of the Law amending and supplementing certain articles of the Land Law, and organizations leased forest land by the State shall have the rights stipulated in Clause 12 of Article 1 of the Law amending and supplementing certain articles of the Land Law.

2. Organizations, households, and individuals leased forest land by the State shall have the obligations stipulated in Clauses 1, 2, 3, 4, 6, and 7 of Article 79 of the Land Law; payment of the land lease fee, implementation of legal regulations on forest management, protection, and development.

concerning the classification and determination of state management authority in the field of crop production

Article 21. Rights and obligations of organizations, households, and individuals receiving transfer of forest land use rights

Organizations, households, and individuals receiving transfer of forest land use rights from organizations, households, and individuals who have been granted or leased forest land by the State according to the provisions of the law shall have the rights and obligations stipulated in Articles 18, 19, and 20 of this Decree during the time the land has been granted or leased by the State.

Chapter IV

IMPLEMENTING PROVISIONS

Article 22. Effectiveness

1. This Decree replaces Decree No. 02/CP dated January 15, 1994 of the Government regarding the granting of forest land to organizations, households, and individuals for stable and long-term use for forestry purposes.

2. This Decree shall take effect fifteen days from the date of signature.

Article 23. Implementation organization

1. The Minister of Agriculture and Rural Development, the Minister of Finance, and the Director of the General Department of Land Administration shall guide the implementation of this Decree.

2. Ministers, Heads of ministerial-level agencies, Heads of agencies directly under the Government, Chairmen of People's Committees of provinces and centrally governed cities shall be responsible for implementing this Decree.