Decision No. 24/2012/QD-TTg On investment policies for the development of special-use forests during the period 2011-2020

Pursuant to …;

On the policy for investment in the development of special-use forests during the period from 2011 to 2020

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

The Government promulgates this Decree amending and supplementing certain articles of Decree No. 130/2005/NĐ-CP dated October 17, 2005 of the Government on the self-management system and responsibility for the use of staffing levels and administrative management expenses for state agencies,

Pursuant to the Forest Protection and Development Law 2004;

Based on the Investment Law 2005;

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;

Based on Decree No. 117/2010/NĐ-CP dated December 24, 2010 of the Government on the organization and management of special-use forest systems;

At the proposal of the Minister of Planning and Investment;

The Prime Minister issues this Decision on the policy for investment in the development of special-use forests during the period from 2011 to 2020,

PART I

GENERAL PROVISIONS

Article 1. Investment perspective and encouragement for investment in the development of special-use forests

1. Special-use forests are national assets. Protecting and developing special-use forests is the responsibility of the State and the entire society.

2. The State invests in building infrastructure, essential material resources, and ensures funding for the operation of the forest management and protection machinery, conservation, monitoring biodiversity, scientific research, human resource training, education and propaganda for forest protection, improving the living standards of people residing within special-use forests and buffer zones.

3. The State encourages the development of forest environmental service activities and eco-tourism business operations within special-use forests in accordance with legal regulations, aiming to generate revenue to offset costs, increase income for the forest management staff, civil servants, and public officials, and gradually replace state budget investments.

4. The State has policies to support investment and create benefit mechanisms for economic sectors, community groups participating in investment for the protection and development of special-use forests.

Article 2. Objectives of issuing the investment policy and encouraging investment in the development of special-use forests

1. To issue investment policies and development mechanisms for special-use forests to enhance investment efficiency. Ensure strict supervision by management agencies at all levels over special-use forests, while increasing the autonomy of the special-use forest management boards in managing and operating services within special-use forests to increase revenue in these areas based on the principle of conservation combined with development.

2. To link the responsibility of those benefiting from the forest with investment in the development and protection of special-use forests, thereby enhancing the effectiveness of state investment.

3. To mobilize various economic sectors to participate in investment for the protection and development of special-use forests. Gradually reduce the state workforce dedicated to protecting special-use forests and increase the involvement of local communities in their protection.

4. To invest in the development of special-use forests to conserve nature, ecological forest system benchmarks, forest biological gene sources; conduct scientific research; protect historical, cultural, scenic spots; serve rest and tourism, combining protective functions, contributing to environmental protection.

Article 3. Scope of Regulation and Applicability

1. This Decision stipulates the content and criteria for investment; management and protection funds for special-use forests using state budget capital and mechanisms to encourage investment in the development of special-use forests.

2. This Decision applies to state agencies, organizations, community groups, households, and individuals related to investment and development of special-use forests in Vietnam.

Article 4. Definitions

1. The special-use forest management board is the forest owner entrusted by the State to manage one or more special-use forests according to the laws on forest protection and development.

2. Buffer zone community includes village and commune communities residing legally within areas with natural boundaries adjacent to special-use forests, or located within special-use forests, referred to as village and commune communities in the buffer zone of special-use forests.

3. The authority deciding on investment: For projects under the central ministries and departments' management, the ministry or department is the authority deciding on investment; for projects under local management, the provincial People's Committee is the authority deciding on investment (hereinafter referred to as the competent authority).

Chapter II

STATE BUDGET INVESTMENT FOR SPECIAL-USE FORESTS

Article 5. Planning and investment projects for special-use forests development

1. Special-use forest development planning: The management board of special-use forests shall prepare the special-use forest development planning (including ecotourism development) and submit it to the competent authority for approval; the planning period is ten years.

2. Preparation and approval of investment projects: The management board shall prepare investment and development projects for special-use forests in accordance with the approved planning and submit them to the competent authority for approval in accordance with current State regulations on investment management.

Article 6. Components and criteria for investment in special-use forest development

Investment in special-use forest development shall be implemented gradually, economically, and in accordance with the available investment capital. The state budget shall invest in components of works within the special-use forest area in the following priority order:

1. Office space and temporary accommodation for staff:

a) The office space of the special-use forest management board shall comply with Decision No. 147/1999/QĐ-TTg dated July 5, 1999, and Decision No. 260/2006/QĐ-TTg dated November 14, 2006, of the Government Chairman, which stipulate standards and norms for the use of office space at state agencies and public service units.

b) Forest protection station at an average distance of 200 meters/station and auxiliary facilities such as clean water supply and protective fences.²c) Temporary accommodation (collective) linked to the workplace for staff who do not have accommodation in the area, at an average size of 12 square meters.

d) In exceptional cases where the special-use forest management board's office and forest protection station do not have national grid power planning, independent power systems (solar, wind, hydroelectric...) may be invested.²/person.

2. Transportation infrastructure investment:

a) Roads from existing main roads to the office of the special-use forest management board according to standards from Class III to Class V, consistent with the level of existing main roads in the area.

b) Internal roads within administrative and service zones, staff residential areas; signposts, patrol paths with a width not exceeding 1.5 meters.

c) Berths for boats and ships for locations of offices and forest protection stations adjacent to rivers or seas, in accordance with the special-use forest development planning and financial capacity.

3. Equipment for fire prediction and warning; fire prevention and firefighting facilities and equipment including: Fire lookout towers, drainage systems, training centers, dams, water reservoirs, firebreaks, fire prevention signage systems, other firefighting equipment and tools according to guidelines of the Ministry of Agriculture and Rural Development.

4. Other works to be invested in according to approved projects include: Plant gene conservation gardens combined with seedling nurseries; wildlife rescue centers combined with breeding facilities; environmental education centers combined with guest houses; animal and plant museums; facilities serving scientific research.

5. Infrastructure for ecotourism and environmental services; priority shall be given to investment in tourism infrastructure projects within the approved planning of special-use forest management boards implementing pilot business unit conversion programs.

5. Infrastructure projects serving eco-tourism and environmental services; priority shall be given to investing in tourism infrastructure projects within the planning framework approved by the competent authority for management boards of special-use forests implementing pilot conversion of business units.

Article 7. State budget for forest management activities and expenses for special-use forest protection

1. The state budget ensures regular operating funds for the activities of the management board of special-use forests as decided by the competent authority; these funds are allocated in the annual state budget estimate.

2. In addition to the regular operating funds stipulated in Clause 1 of this Article, the State provides stable management and protection funds for the special-use forest management board to proactively organize leasing, contracting, community contracts, procurement of equipment for forest management and protection; the average amount is 100,000 VND/ha/year based on the total area assigned (the specific amount is determined by the competent authority). The contents of these expenditures each year are approved by the competent authority.

3. The annual expenditure plan for forest management and protection funds for each specific item must be publicly disclosed at the special-use forest management board and sent to all subordinate units.

Article 8. Support for Community Development in Buffer Zones of Special-Use Forests

1. The state budget supports investment for village communities in buffer zones to co-manage special-use forests; the support level for each village is 40 million VND/village/year.

2. These funds are allocated for the following purposes: Investment to enhance production development capacity (agricultural extension, forestry extension, seeds, livestock breeds, small-scale agricultural and forestry product processing equipment); provision of construction materials for villages (for communal facilities such as clean water, lighting, communication, village roads, cultural houses...).

3. The special-use forest management board manages these funds according to the current regulations on economic operating fund management. Detailed annual investment support plans for buffer zones must be proposed by the villages; the special-use forest management board leads and coordinates with the People's Committee of the commune to discuss and jointly approve these plans (no need to prepare investment projects). These spending plans must be linked to forest protection plans and commitments; if a village does not properly protect the forest, the special-use forest management board has the right to transfer the support capital to another village. Village communities organize supervision of implementation according to the regulations on grassroots democracy.

Article 9. Sources of Investment for Special-Use Forests

1. Central government budget invests in special-use forests managed by the Ministry of Agriculture and Rural Development.

2. Local government budget invests in special-use forests managed by local authorities. The central government provides targeted investment support for national parks and special-use forests located in border districts and islands of localities with difficult budgets.

3. Revenue from profit-generating services, joint ventures, partnerships, business divisions, joint-stock companies operating services within special-use forests (if any), environmental lease fees, forest environmental service fees, and other services provided by the special-use forest management board.

4. Legally raised capital from organizations and individuals for developing special-use forests.

5. Total investment capital and state budget operating funds for this policy are approximately 55 trillion VND, of which investment capital accounts for 50%.

Chapter III

ENCOURAGEMENT FOR INVESTMENT AND DEVELOPMENT OF SPECIAL-USE FORESTS

Article 10. Ecotourism Business in Special-Use Forests

1. The State encourages economic sectors to invest in developing ecotourism in special-use forests.

2. Developing ecotourism in special-use forests shall be carried out according to approved planning and the provisions of the Enterprise Law, the Law on Protection and Development of Forests, this Decision, and other current regulations of the State.

a) In the strictly protected zone: Trails with a maximum width of 1.5 meters may be established, along with tent camps and signposts for patrolling combined with ecotourism services, without altering the natural landscape of the forest area.

b) In the ecological restoration zone: Main roads may be opened, and facilities constructed for protecting and developing the forest while serving service and tourism activities. The maximum impact level of infrastructure facilities serving ecotourism activities shall not exceed 20% of the total planned area for service-tourism activities. Among which, the construction area for facilities serving service-tourism activities shall not exceed 5%, and the construction area for trails, rest stops, and parking lots shall not exceed 15%.

c) In the administrative service zone, scenic protection zone, and scientific research forest area: The maximum construction area for facilities serving service-tourism activities shall not exceed 20% of the total area of the administrative service zone, scenic protection zone, or scientific research forest area.

Article 11. Pilot Reform of the Dependent Accounting Unit for Ecotourism Business under the Forest Management Board into a Joint Stock Company

1. The dependent accounting unit for ecotourism business currently under the forest management board (tourism center, tourism department, etc.) with annual revenue exceeding 3 billion VND may be converted into a joint stock company where the forest management board holds controlling shares, at least 51% of the registered capital of the joint stock company (hereinafter referred to as the joint stock company).

2. The Ministry of Agriculture and Rural Development shall take the lead and coordinate with the Ministry of Planning and Investment to select one national park directly under the Ministry and one national park under local administration to pilot the establishment of a joint stock company in accordance with Clause 1, 3, and 4 of this Article.

3. The conversion of the ecotourism service business unit into a joint stock company is permitted to apply the provisions of Decree No. 59/2011/ND-CP dated July 18, 2011, on the conversion of state-owned enterprises into joint stock companies (hereinafter referred to as Decree No. 59/2011/ND-CP). The forest management board shall develop a restructuring plan for the business unit to be submitted to the competent authority for approval. Assets of the forest management board transferred to the joint stock company for developing special-use forests include: guesthouses, rights to exploit ecotourism sites, tourist centers, representative offices (including land outside the special-use forest area), and other assets that can be operated, valued according to Decree No. 59/2011/ND-CP and current guiding documents; the value of land use rights within the special-use forest area shall not be included when valuing assets on such land.

4. The joint stock company for developing special-use forests shall undertake all business operations of the forest management board (including admission fees for scenic spots). The joint stock company for developing special-use forests shall lease the forest environment at the floor price stipulated; lease ecotourism sites from the forest management board for business purposes, with rental prices determined every five years, and the lease term shall not exceed fifty years.

Article 12. Leasing Special-Use Forest Environment for Ecotourism Development

1. Based on the approved special-use forest development plan, the Special-Use Forest Management Board is permitted to lease the special-use forest environment (attached to land and water surfaces) to organizations and individuals for ecotourism business operations. Leasing activities involving selling tickets for entry fees into areas not covered under the leased area of that organization will not be allowed.

2. The rental price for the forest environment is determined by the competent authority; or through auctioning when two or more organizations or individuals request to lease the forest environment. The initial rental price agreed upon by both parties can be adjusted every five years but not exceeding 2% of revenue. The leasing period shall not exceed fifty years; thereafter, if the lessee fulfills the contract, the Special-Use Forest Management Board may consider extending the lease period, but not beyond twenty years.

3. Apart from leasing and operating the forest environment, the Special-Use Forest Management Board is also permitted to lease the forest environment temporarily for scientific research purposes (non-intrusive leasing); the rental price is agreed upon by both parties and in accordance with current laws on forest protection and development.

4. Prior to signing the lease contract for the forest environment, the Special-Use Forest Management Board must conduct a survey of forest resources within the leased area to serve as a basis for leasing and future monitoring.

5. The Ministry of Agriculture and Rural Development shall coordinate with the Ministry of Finance to guide the determination of rental prices for special-use forests.

Article 13. Investment Incentives for Special-Use Forest Development

1. Business services and investments within special-use forests are entitled to preferential corporate income tax rates as stipulated in Article 8 of Decree No. 69/2008/NĐ-CP dated May 30, 2008 of the Government regarding policies encouraging socialization in education, healthcare, culture, sports, and environmental activities. Additionally, investment projects for developing special-use forests according to approved plans enjoy the highest level of incentives as currently prescribed by the State.

2. For construction land areas within approved special-use forest development projects that account for less than 5% of the total special-use forest area, such activities may proceed according to the project schedule; the Special-Use Forest Management Board shall handle the process of changing land use purposes once for all land use categories after completing the project investment or concurrently with the local five-year land use planning period, subject to approval by the competent authority.

3. The Special-Use Forest Management Board has the right to independently utilize animals and plants seized from the management area (confirmed by rangers and district police) for forest management and protection, scientific research, and ecotourism development. Before utilization, the Special-Use Forest Management Board must report to the competent authority on the intended use.

Article 14. Utilization of Revenue from Ecotourism Activities in Special-Use Forests

All profits derived from: service activities, leasing of the forest environment, forest environmental service fees (as per Decree No. 99/2010/NĐ-CP), profits from joint venture activities, the profit portion of the Special-Use Forest Management Board in a joint-stock company for special-use forest development (if applicable), and other lawful revenues shall be utilized as follows:

1. Allocate 25% of the aforementioned revenue to replace budget funds for expenses stipulated in Articles 7 and 8 of this Decision for forest management. If the entire budget allocation is replaced and there is surplus, the surplus shall be transferred to fund the purposes specified in Clause 2 of this Article.

2. The Special-Use Forest Management Board may allocate 75% of the remaining revenue for the following priorities in sequence:

a) Supporting salary increases for staff working at the Special-Use Forest Management Board, with the total salary (including basic salary and supplements) not exceeding 2.5 times the basic salary as prescribed.

b) Supporting community development activities in buffer zones around special-use forests (as stipulated in Article 8 of this Decision).

c) Funding for ecotourism business activities.

d) Establishing funds as prescribed in Decree No. 43/2006/NĐ-CP dated April 25, 2006 of the Government concerning the autonomy and responsibility of public service units in fulfilling tasks, organizational structure, staffing, and finance.

Chapter IV

IMPLEMENTATION

Article 15. Responsibilities of Ministries, sectors, and localities

1. The Ministry of Agriculture and Rural Development:

a) Inspect and supervise the implementation of this Decision, annually submitting a report on the supervision of the implementation of this Decision to the Prime Minister and the Ministry of Planning and Investment, the Ministry of Finance.

b) Develop and promulgate annual criteria for evaluating the quality of forest management and protection work for special-use forests.

2. The Ministry of Planning and Investment:

a) Take the lead and coordinate with the Ministry of Finance and the Ministry of Agriculture and Rural Development to balance investment capital for development, to be submitted to the Prime Minister for decision.

b) Be responsible for state management of investment; coordinate with the Ministry of Agriculture and Rural Development, the Ministry of Finance, and the People's Committee of the province to inspect and supervise investment in special-use forests.

c) Guide the implementation of the provisions stipulated in Article 11 of this Decision.

d) Have the responsibility to comprehensively evaluate economic, social, and environmental aspects within three years and five years to report to the Prime Minister for consideration and adjustment of this policy.

3. Ministry of Finance:

a) Take the lead and coordinate with relevant ministries and sectors to balance and ensure operating funds and forest management funds for ministries, sectors, and localities; when allocating the annual budget plan, clearly record the expenditure items for developing special-use forests to be submitted to the Prime Minister for decision.

b) Provide detailed guidance on the content and expenditure standards specified in Articles 7 and 8 of this Decision.

4. Provincial People's Committees

a) Within two years from the date this Decision takes effect, the Chairman of the People's Committee of the province shall be responsible for issuing land use right certificates to the Forest Management Board of special-use forests that have not yet received such certificates in their jurisdiction.

Ensure sufficient investment and operating funds for forest management for the Forest Management Board under local management in accordance with the provisions of Articles 6, 7, and 8 of this Decision, in compliance with national budget laws.

Direct the Forest Management Board to prepare and approve planning and investment projects in accordance with regulations.

Direct, organize the implementation, inspect, and supervise the implementation of this Decision at the local level. Submit a report on the implementation of this Decision of the previous year to the Ministry of Agriculture and Rural Development, the Ministry of Planning and Investment, and the Ministry of Finance by the first quarter of each year for consolidation.

Article 16. Investment Management and Supervision

1. Manage planning and basic construction investment in accordance with current State regulations. The Forest Management Board has the responsibility to develop, submit to competent authorities for approval, and implement plans and programs aimed at investing in the protection and development of special-use forests; the project owner for works funded by the State budget within the assigned special-use forest area.

2. The Forest Management Board is fully responsible to competent authorities for the proper, efficient, and economical use of State investment capital according to purpose and target.

3. The Forest Management Board has the task of preparing periodic six-monthly and annual reports on the implementation of strategies, plans, financial leasing of forest environments, and send them to the investment decision-making authority and related provincial agencies.

4. Competent State authorities organize investment supervision and supervision of forest management and protection activities of the Forest Management Board in accordance with regulations.

Article 17. Implementation Provisions

1. This Decision takes effect from July 20, 2012.

2. All previous regulations contrary to the provisions of this Decision are abolished.

3. Ministers, heads of ministerial-level agencies, heads of government agencies, Chairpersons of People's Committees of provinces and centrally governed cities shall be responsible for enforcing this Decision./.