Decision No. 178/2001/QD-TTg On the benefits enjoyed and obligations of households and individuals granted, leased, or contracted to manage forests and forest land.

Pursuant to …;

Regarding the benefits and obligations of households and individuals assigned,

leased, or contracted forests and forest land

_____________________

 

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 the Land Law, dated July 14, 1993; the Law Amending and Supplementing Certain Provisions of the Land Law, dated December 2, 1998; the Law Amending and Supplementing Certain Provisions of the Land Law, dated June 29, 2001;

Pursuant to Decree No. 163/1999/NĐ-CP dated November 16, 1999 of the Government on assigning and leasing forest land for organizations, households, and individuals for long-term stable use for forestry purposes;

Pursuant to Decree No. 01/CP dated January 4, 1995 of the Government on contracting land for use in agricultural, forestry, and aquaculture purposes in state-owned enterprises.

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

DECISION:

Chapter 1

GENERAL PROVISIONS

Article 1. This Decision stipulates the rights to benefits and obligations of households and individuals assigned, leased, or contracted forests and forest land for the purpose of protecting, enclosing for regeneration, and planting forests, thereby creating economic incentives to encourage people to actively participate in protecting and developing forests; making income from forests a significant source of revenue, contributing to ensuring the livelihood of those engaged in forestry work; at the same time, clarifying the responsibilities of those assigned, leased, or contracted forests for the protection and development of forests.

Article 2. This Decision applies to households and individuals in one of the following cases:

1. Assigned forests and forest land by the State according to Decree No. 02/CP dated January 15, 1994 of the Government; assigned or leased forest land according to Decree No. 163/1999/NĐ-CP dated November 16, 1999 of the Government on assigning and leasing forest land for organizations, households, and individuals for long-term stable use for forestry purposes.

2. Contracted by state organizations to protect, enclose for regeneration, and plant forests according to Decree No. 01/CP dated January 4, 1995 of the Government on contracting land for use in agricultural, forestry, and aquaculture purposes in state-owned enterprises.

Article 3. Principles for determining the rights to benefits and obligations of households and individuals assigned, leased, or contracted forests and forest land:

1. Ensuring harmonious interests between the State and those directly involved in protecting, enclosing for regeneration, and planting forests; between the economic benefits of forests and protective, environmental conservation, and natural preservation benefits; between short-term and long-term interests.

2. The rights to benefits on forest land include: timber, non-timber forest products, intercropped products, and compensation commensurate with the investment of money and labor by households and individuals in the forest.

3. Rights to benefits and obligations can only be exercised within the period assigned, leased, or contracted for forests and forest land.

Chapter 2

RIGHTS TO BENEFITS AND OBLIGATIONS OF HOUSEHOLDS AND INDIVIDUALS ASSIGNED FORESTS AND LEASED FOREST LAND BY THE STATE

Article 4. Households and individuals assigned special-use forests by the State to manage, protect, and construct:

1. The State shall provide funding to implement management, protection, enclosure for regeneration, and planting forest tasks according to approved investment projects.

2. They may conduct scientific research, cultural, social, and eco-tourism activities in accordance with the law.

Article 5. Households and individuals assigned protective forests by the State to manage, protect, and enclose for regeneration:

1. The State shall provide funding to implement management, protection, and enclosure for regeneration of forests according to current regulations.

2. They may harvest secondary forest products, flowers, fruits, oils, resins, etc., during the process of protecting and regenerating forests according to current regulations.

3. They may harvest dead standing trees, fallen trees, diseased trees according to harvesting designs approved by the Department of Agriculture and Rural Development and issued permits. Such forest products may freely circulate when all required procedures are completed.

4. They may harvest bamboo and rattan up to a maximum intensity of 30% when the forest cover reaches 80% of the assigned area according to current logging regulations; they may retain the full value of harvested forest products after paying taxes.

5. They may harvest timber through selective cutting with an extraction intensity not exceeding 20% when protective forests are permitted to be harvested (excluding animals and plants listed in the government's list of precious and rare forest flora and fauna and those listed in the appendices of the Convention on International Trade in Endangered Species of Wild Fauna and Flora - CITES) according to approved designs and issued permits. Harvesting must comply with current logging regulations. Households and individuals may retain 85% to 90% of the harvested product value after paying taxes, with the remainder paid to the state budget.

Article 6. Households and individuals assigned forest land without existing forests under protective forest planning:

1. The State shall provide funding for planting and caring for forests according to current regulations.

2. They may use perennial agricultural crops as the main forest plantation or intercrop with native perennial forest trees according to approved forest planting designs by the Department of Agriculture and Rural Development.

3. They may retain 100% of the products from auxiliary trees, intercropped products, and thinning products according to approved designs by the Department of Agriculture and Rural Development, while ensuring that the forest canopy cover remains above 0.6 after thinning.

4. They may use up to 20% of the forest land without existing forests for agricultural and fishery production.

5. They may harvest timber through selective cutting with an extraction intensity not exceeding 20% when protective forests are permitted to be harvested according to approved designs and issued permits.

After paying taxes, the value of harvested products will be divided as follows: households and individuals may retain 90% to 95%, with the remainder paid to the state budget.

6. In cases where households and individuals invest their own capital to plant forests, they may retain 100% of the products when the forest reaches the harvesting age, with permission to harvest up to 10% of the area planted by the forest owner each year according to current technical procedures and norms.

Article 7. Households and individuals assigned natural forests under production forest planning:

1. May intercrop agricultural crops, medicinal plants, graze livestock, and exploit other benefits of the forest in accordance with the management regulations for production forests.

2. May utilize products generated during the implementation of forestry technical measures according to current procedures and norms.

3. May harvest forest products to meet household needs (excluding animals and plants listed in the directory of precious and rare forest flora and fauna as prescribed by the Government and those listed in the appendices of the Convention on International Trade in Endangered Species of Wild Fauna and Flora - CITES). If there is a need to build a new house for separation of households or replacement of old houses, major repairs of houses within the commune where the forest is located, the household or individual must submit an application to the People's Committee of the commune for confirmation, which will then be reviewed by the People's Committee of the district and issued a permit for harvesting not exceeding 10 m³ of roundwood per household. Harvesting must be conducted under the guidance and supervision of the commune. All acts of exploiting wood for house construction for commercial purposes are strictly prohibited.

4. When the forest is permitted to be harvested, the household or individual must submit an application for permission to harvest to the People's Committee of the commune for review, which will then be approved by the Department of Agriculture and Rural Development and issued a harvesting permit. The harvesting must comply with the current forest product harvesting regulations.

Based on the status of the forest when transferred to the household or individual, the value of the main forest products harvested after tax payment shall be distributed as follows:

a. For timber forests:

- Secondary forests that are depleted: The household or individual shall enjoy 100%.

- Forests recovering from swidden agriculture or logging with trees having a diameter generally below 20 cm: The household or individual shall enjoy 70% to 80%, with the remainder paid into the State budget.

- Forests with a reserve level at medium or high levels, greater than 100 m³/ha, from the time of transfer to harvesting, each year the household or individual shall enjoy 2%, with the remainder paid into the State budget.

b. For bamboo forests: harvesting may be conducted according to current technical procedures and norms. After tax payment, the household or individual shall enjoy 95%, with the remainder paid into the State budget at 5%.

Article 8. Households and individuals assigned production forests planted with State budget funds:

1. Shall enjoy the rights stipulated in Clauses 1, 2, and 3 of Article 7 of this Decision.

2. Shall be allowed to harvest when the forest reaches the harvesting standard and shall enjoy 75% to 85% of the value of the harvested forest products after tax payment, depending on the age class of the planted forest at the time of assignment, with the remainder paid into the State budget.

Article 9. Households and individuals assigned land for forestry without forests within the planning area for production forests to plant forests:

1. Shall be supported by the State with funding to plant forests in accordance with current regulations.

2. If they receive project support funds to plant forests, they shall enjoy the rights stipulated in the project regulations.

3. If they self-fund the planting of forests, they shall have the right to decide the purpose and method of planting forests (enclosure and promotion of natural regeneration or planting new forests), select tree species and planting techniques; have the right to decide on the harvesting and use of forest products.

4. All products harvested from the forest shall be freely circulated.

5. May use part of the forestry land without forests for agricultural production and aquaculture but not exceeding 20% of the assigned land area.

Article 10Households and individuals leasing land for forestry without forests within the planning area for production forests to plant forests:

1. Shall have the right to decide the purpose and method of planting forests (enclosure and promotion of natural regeneration or planting new forests), select tree species and planting techniques; have the right to decide on the harvesting and use of forest products.

2. If households and individuals receive project support funds to plant forests, they shall enjoy the rights stipulated in the project regulations.

3. All products harvested from the forest shall be freely circulated.

4. May use part of the forestry land without forests for agricultural production and aquaculture but not exceeding 20% of the leased land area without forests.

Article 11. Households and individuals leased special-use forest land and protective forest land by the State for landscape business, tourism, and resort activities under the forest canopy:

1. May use the forest environment for eco-tourism and resort operations; may construct tourist service facilities under the forest canopy according to projects approved by competent state authorities.

2. Must strictly comply with laws governing the management and protection of special-use forests and protective forests; strictly prohibit activities causing pollution and harm to the normal growth and development of forest flora and fauna.

Article 12. Households and individuals assigned or leased forestry land have the following obligations:

1. Manage, protect, and use the assigned or leased forest land and forestry land for the intended purpose and within the boundaries specified in the decision on the assignment or lease of forestry land by competent state authorities.

2. Maintain and develop the assigned or leased forest capital. Must implement reforestation measures within one year after harvesting.

3. Fully fulfill financial obligations as prescribed by law.

Chapter 3

RIGHTS AND OBLIGATIONS OF HOUSEHOLDS AND INDIVIDUALS ASSIGNED BY STATE ORGANIZATIONS TO MANAGE, ENCLOSURE AND PROMOTE NATURAL REGENERATION AND PLANTING FORESTS

Article 13. Households and individuals assigned to plant, protect, and enclosure and promote natural regeneration of special-use forests:

1. Shall receive contractual payment for planting, protecting, and enclosure and promoting natural regeneration.

2. May be provided conditions by the Special-Use Forest Management Board to participate in service and tourism activities.

Article 14. Households and individuals assigned to protect and enclosure and promote natural regeneration of natural forests in upstream protective areas:

1. Shall receive contractual payment for protecting and enclosure and promoting natural regeneration of forests.

2. May collect non-timber forest products such as flowers, fruits, oil, resin, etc., during the process of protecting and enclosure and promoting natural regeneration of forests according to the guidance of the assigning party.

3. May harvest dead standing trees, fallen trees, diseased trees, and thinning products according to the design prepared by the assigning party, approved by the Department of Agriculture and Rural Development, and issued a harvesting permit. Such forest products may be freely circulated.

4. Is permitted to harvest bamboo and reed with a maximum intensity of 30% when the forest ensures a coverage rate of over 80% of the assigned area, under the guidance and supervision of the Assignor. After paying taxes, the household shall enjoy 80-90% of the value of the forest products obtained, with the remainder to be remitted to the Assignor.

5. Is permitted to harvest timber through selective cutting with a harvesting intensity not exceeding 20% when the protective forest is allowed to be harvested according to the design prepared by the Assignor, reviewed by the Department of Agriculture and Rural Development, submitted for approval by the Provincial People's Committee, and issued with a logging permit. Based on the current state of the forest at the time of assignment to the household or individual, the value of the timber harvested after tax payment shall be distributed as follows:

- For secondary forests that are severely depleted: The household or individual shall enjoy 95%, with the remainder to be remitted to the Assignor.

- For recovering forests following shifting cultivation or logging where trees have a diameter generally below 20 cm: The household or individual shall enjoy 75-85%, with the remainder to be remitted to the Assignor.

- For forests with medium or high stock levels, greater than 100 m³/ha: from the time of assignment until harvesting, the household or individual shall enjoy 2% annually, with the remainder to be remitted to the Assignor.

In cases where the household invests its own capital to encircle and nurture the recovery of the forest, it shall enjoy 100% of the value of the timber harvested after tax payment.

The household or individual must invest in forest regeneration within one year after harvesting.

Article 15. Households or individuals assigned to plant, care for, and protect forests in upstream protective areas:

1. Are entitled to receive State funding to plant, care for, and protect the forest in accordance with current regulations.

2. May use long-term agricultural crops as the main planting species in protective forests or intercrop them with native long-term forest trees according to the forest planting design prepared by the Assignor and approved by the Department of Agriculture and Rural Development.

3. Shall enjoy 100% of the products harvested from auxiliary trees, intercropped trees, thinning products, but must ensure that the canopy cover of the forest remains above 0.6 after thinning.

4. May gather non-timber forest products, flowers, fruits, oil, resin, etc., in accordance with the guidance of the Assignor.

5. May use up to 20% of the area of unwooded forest land for agricultural and fisheries production, subject to the guidance of the Assignor.

6. Is permitted to selectively harvest when the main tree species of the forest is allowed to be harvested with an intensity not exceeding 20% according to the design prepared by the Assignor, reviewed by the Department of Agriculture and Rural Development, submitted for approval by the Provincial People's Committee, and issued with a logging permit.

The value of the harvested product after tax payment shall be distributed as follows:

a. If the household or individual receives State funding to plant, care for, and protect the forest, they shall enjoy 80-90%, with the remainder to be remitted to the Assignor.

b. If the household or individual invests their own capital to plant, care for, and protect the forest, they shall enjoy 100% of the value of the product after tax payment.

The household or individual assigned to plant, care for, and protect the forest must invest in forest regeneration within one year after harvesting.

Article 16. Households or individuals assigned to plant, protect windbreak, sand-fixing, wave-blocking, and environmental protection forests:

1. Are entitled to receive State funding to plant, care for, and protect the forest in accordance with current regulations.

2. May intercrop agricultural crops with forest trees and enjoy all products from the intercropped crops.

3. May gather non-timber forest products, flowers, fruits, oil, resin, etc., in accordance with the guidance of the Assignor.

4. May fully utilize forest products during the implementation of forestry technical measures according to current technical procedures and norms.

5. Is permitted to harvest when the forest is allowed to be harvested according to the design prepared by the Assignor, reviewed by the Department of Agriculture and Rural Development, submitted for approval by the Provincial People's Committee, and issued with a logging permit. Each year, the household or individual assigned to plant the forest may harvest no more than 10% of the planted forest area.

The value of the harvested product after tax payment shall be distributed as follows:

a. If the household or individual receives State funding to plant and care for the forest, they shall enjoy 60-70%, with the remainder to be remitted to the Assignor.

b. If the household or individual invests their own capital to plant, care for, and protect the forest, they shall enjoy 100% of the value of the product after tax payment.

The household or individual assigned to plant, care for, and protect the forest must invest in forest regeneration within one year after harvesting.

Article 17. Households or individuals assigned to plant, care for, and protect protective forests in wetland areas:

1. Are entitled to receive State funding to plant and care for the forest in accordance with current regulations.

2. May fish and catch aquatic and marine products on the assigned forest land according to the guidance of the Assignor; may fully utilize forest products during the implementation of forestry technical measures according to current technical procedures and norms.

3. May use up to 30% of the assigned land area for integrated aquaculture, but must not adversely affect the forest trees, and must comply with the planning of the industry and locality and the guidance of the Assignor.

4. Is permitted to selectively harvest when the forest is allowed to be harvested with an intensity not exceeding 20% according to the design prepared by the Assignor, reviewed by the Department of Agriculture and Rural Development, submitted for approval by the Provincial People's Committee, and issued with a logging permit.

The value of the harvested forest products after tax payment shall be distributed as follows:

a. If the household or individual receives State funding to plant and care for the forest, they shall enjoy 80-90%, with the remainder to be remitted to the Assignor.

b. If the household or individual invests their own capital to plant, care for, and protect the forest, they shall enjoy 100% of the value of the product after tax payment.

The household or individual assigned to plant, care for, and protect the forest must invest in forest regeneration within one year after harvesting.

Article 18. Household, individual who contracts to protect production forests shall be natural forests:

1. May utilize forest products during the implementation of forestry technical measures according to current technical procedures and norms; may harvest non-timber forest products.

2. May intercrop special forest products, agricultural crops, and graze livestock under the forest canopy and in open spaces within the forest, but must not adversely affect the growth of the forest.

3. When the forest meets the harvesting criteria, the Assignor shall coordinate with the household or individual assigned to plant the forest to proceed with harvesting according to the design approved by the Provincial People's Committee and issued with a logging permit.

The value of forest products after tax payment shall be distributed as follows: Households and individuals receiving contracts for protecting forests shall enjoy from 1.5 to 2% for each year of contract performance in forest protection, with the remainder to be paid to the contracting party.

Article 19. Households and individuals receiving contracts for restoring natural forests as production forests through enclosure and regeneration promotion combined with supplementary planting:

1. Shall be provided by the contracting party with funds to enclose and promote forest regeneration according to current regulations.

2. Shall be allowed to produce agriculture and forestry under the forest canopy according to the guidance of the contracting party.

3. Shall be permitted to utilize forest products during the implementation of forestry techniques according to current technical procedures and norms.

4. Shall be allowed to harvest when the forest meets the harvesting standards set forth in the design prepared by the contracting party, approved by the Provincial People's Committee, and issued with a harvesting permit.

The value of forest products after tax payment shall be distributed as follows: Households and individuals receiving contracts for enclosing and promoting forest regeneration shall enjoy from 1.5 to 2% for each year of contract performance in enclosing and promoting forest regeneration; if households and individuals invest their own capital in enclosing and promoting forest regeneration, they shall enjoy from 2.5 to 3% for each year of contract performance in enclosing and promoting forest regeneration.

Article 20. Households and individuals receiving contracts for planting, caring for, and protecting production forests:

1. Shall be provided by the contracting party with funds for planting, caring for, and protecting the forest according to current regulations.

2. Shall be allowed to intercrop agricultural trees with forest trees when the forest has not yet closed its canopy; shall be allowed to produce agriculture and forestry under the forest canopy but shall not adversely affect the growth of forest trees; shall enjoy the entire product of intercropping.

3. Shall be permitted to utilize forest products during the implementation of forestry techniques according to current technical procedures and norms.

4. When the forest meets the harvesting standards, households and individuals receiving contracts shall agree with the contracting party on the time and method of harvesting.

The value of forest products after tax payment shall be distributed as follows: Households and individuals receiving contracts for protecting forests shall enjoy from 2 to 2.5% for each year of contract performance in forest protection; the remainder shall be paid to the contracting party.

If households and individuals self-fund planting, caring for, and protecting, they shall enjoy 95% of the value of harvested products after tax payment, with the remainder to be paid to the contracting party.

If households and individuals receiving contracts jointly invest with the contracting party, distribution shall be based on the ratio of capital contribution and labor days converted into money of each party.

Article 21. Households and individuals receiving contracts for protecting forests, enclosing and promoting forest regeneration, and planting forests (excluding special-use forests) are permitted to use part of the contracted land not exceeding 200 meters² for housing to oversee the contracted forest area, but must obtain written agreement from the contracting party and register with the local Commune People's Committee.

Article 22. Households and individuals receiving contracts for protecting, enclosing and promoting forest regeneration, and planting forests have the following obligations:

1. To use the contracted forestland and forest land for the intended purpose and according to the plan recorded in the contract.

2. To sell products produced on the contracted land according to the contract.

3. If violating the contract and causing damage to the contracting party, they must compensate for the damage according to the law.

Chapter 4

IMPLEMENTING PROVISIONS

Article 23. The portion of the value of forest products submitted to the budget as stipulated in this Decision shall be retained by the commune and mainly used for forest management, protection, and development. The portion of the value of forest products submitted to the contracting party shall be used as follows:

1. For the Management Board of Special-Use Forests, the Management Board of Protective Forests, and other state organizations: it is revenue and mainly used for forest management, protection, and development.

2. For state enterprises: it is revenue from forestry business activities, directly serving forest management, protection, and development.

Article 24. Implementation organization:

1. The Ministry of Agriculture and Rural Development shall take the lead, coordinating with the Ministry of Finance, relevant ministries, and sectors to guide the implementation of this Decision.

2. Ministers, heads of ministerial-level agencies, heads of relevant agencies, and Chairmen of the People's Committees of provinces and centrally-administered cities shall be responsible for implementing this Decision.

Article 25. This Decision shall take effect fifteen days from the date of signing, and all previous provisions contrary to this Decision shall be abolished.