Joint Circular No. 28/1999/TTLT/BKH-BNN-BTC guiding the implementation of Decision No. 661/QĐ-TTg dated July 29, 1998 of the Prime Minister on the objectives, tasks, policies, and organization of implementing the project to plant five million hectares of new forests.

This Circular guides the implementation of the project to plant five million hectares of new forests according to Decision No. 661/QĐ-TTg, including objectives, tasks, policies, and organizational measures. The objective is to protect and develop sustainable forests, increase forest production areas, and improve the living standards of people in special mountainous regions.

Document No.28/1999/TTLT/BKH-BNN-BTC
Document typeJoint Circular
Issuing authorityMinistry of Finance
Updated01/07/2026
SectorAgriculture and Rural Development; Finance; Planning and Investment
FieldUncategorized
Issued date02/03/1999
Effective date02/03/1999
Expiry date
StatusIn effect
✦ Smart summary

This Circular guides the implementation of the project to plant five million hectares of new forests according to Decision No. 661/QĐ-TTg, including objectives, tasks, policies, and organizational measures. The objective is to protect and develop sustainable forests, increase forest production areas, and improve the living standards of people in special mountainous regions.

Scope of application

Localities, related sectors, People's Committees of provinces and centrally governed cities, provincial-level project management boards, communes, enterprises, and individuals investing in afforestation.

Key points

  • For localities and related sectors → comply with Directive No. 286/TTg and 287/TTg on forest protection and development; implement protective, special-use, productive, and regeneration reforestation tasks.
  • For the afforestation project → classified into protective, special-use, productive, long-term industrial, and fruit tree forests; having a suitable planting structure for local conditions.
  • Regarding land policy → Provincial People's Committees review the forestry and agricultural land fund to establish land use plans for the afforestation project; allocate land to organizations, households, and individuals under contractual management.
  • Regarding state budget capital → invest in forest protection, regeneration reforestation combined with supplementary planting, and new planting; allocated according to types of forests and specific investment levels.
  • Regarding credit policy → individuals and organizations investing in afforestation enjoy tax incentives and preferential loans from banks.

🌐 Social impact of this document

  • Positive impacts: Increase forest area, protect the environment, provide timber for industry, and improve the living standards of people in special mountainous regions.
  • Negative impacts: High investment costs, cumbersome procedures may cause difficulties for businesses and individuals wishing to participate in the project.

❓ Frequently asked questions

What must localities implement according to this circular?

Localities must comply with Directive No. 286/TTg and 287/TTg on forest protection and development, and simultaneously implement protective, special-use, productive, and regeneration reforestation tasks as prescribed.

How are afforestation projects classified?

Afforestation projects are classified into protective, special-use, productive, long-term industrial, and fruit tree forests; having a suitable planting structure for local conditions.

What are the land policies?

Provincial People's Committees review the forestry and agricultural land fund to establish land use plans for the afforestation project; allocate land to organizations, households, and individuals under contractual management.

What types of capital are invested in the afforestation project?

State budget capital, preferential investment credit capital, Official Development Assistance (ODA) capital, Foreign Direct Investment (FDI) capital, self-owned enterprise capital, and other sources.

What policies do individuals and organizations investing in afforestation enjoy?

Individuals and organizations investing in afforestation enjoy exemptions and reductions in land use fees, lease fees; preferential loans from banks and other sources.

Full text

MINISTRY OF PLANNING AND INVESTMENT-MINISTRY OF AGRICULTURE AND RURAL DEVELOPMENT-MINISTRY OF FINANCE
********

SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
********

No.: 28/1999/TTLT/BKH-BNN-BTC

Hanoi, February 3, 1999

JOINT CIRCULAR

Guidelines for Implementing Decision 661/QĐ-TTg dated July 29, 1998 of the Prime Minister on Objectives, Tasks, Policies, and Implementation Organization of the Project to Plant Five Million Hectares of New Forests

______________________ 

Implementing Decision No. 661/QĐ-TTg dated July 29, 1998 of the Prime Minister on "Objectives, Tasks, Policies, and Implementation Organization of the Project to Plant Five Million Hectares of New Forests";

Joint Circular of the Ministry of Agriculture and Rural Development - Ministry of Planning and Investment - Ministry of Finance guiding implementation as follows:

I. OBJECTIVES, GUIDING PRINCIPLES, AND TASKS OF THE PROJECT TO PLANT FIVE MILLION HECTARES OF NEW FORESTS

1. Objectives and Guiding Principles

The objectives and guiding principles of the project to plant five million hectares of new forests have been set forth in Decision 661/QĐ-TTg, which aims to both plant five million hectares of new forests and effectively protect the existing nine million three hundred thousand hectares of forests, contributing to ensuring environmental security, providing sufficient forest products for industrialization, while also ensuring stability and improving the living standards of people in mountainous regions, particularly among ethnic minorities. The decision clearly states that the guiding principle is to mobilize the strength of the entire population to plant and manage forests sustainably; at the same time, to mobilize all resources and economic sectors to develop forests during the period from 1998 to 2010.

2. Tasks

a - Relevant localities and sectors strictly implement Directive 286/TTg and 287/TTg dated May 2, 1997 of the Prime Minister on strengthening urgent measures to protect and develop forests, with the aim of protecting the entire area of existing forests, focusing on natural forests in special-use and protective zones in highly and moderately vulnerable areas, productive forests with high and medium reserves, and areas planted under Program 327.

b- Planting forests.

- Planting protective and special-use forests (two million hectares).

+ Encircling and promoting natural regeneration combined with supplementary planting one million hectares.

Encircling and promoting natural regeneration combined with supplementary planting is carried out on land where forests have been lost but have the potential for natural regeneration in highly and moderately vulnerable upstream protective zones and ecological restoration areas of special-use forests. It includes two forms:

* Encircling and promoting natural regeneration where the local population supplements planting with long-term industrial crops, fruit trees, and specialty trees with canopies similar to those of forest trees.

* Encircling and promoting natural regeneration combined with supplementary planting using forest trees funded by the state.

+ Planting one million hectares of new forests: On barren hills and mountains without the ability for natural regeneration, designated as special-use forests, highly and moderately vulnerable protective zones, mainly concentrated in large river basins, reservoirs, and major hydropower projects, protecting major cities, coastal areas suffering erosion and sand drift, and places requiring urgent ecological restoration. Particularly prioritizing northern mountainous areas with very low coverage and central regions frequently affected by floods.

- Planting three million hectares of productive forests including:

+ Planting productive forests with forestry trees: Two million hectares

Where:

* Raw material forests for industry: One point six to one point six two million hectares, primarily planting species such as acacia, bamboo, pine, banyan, camphor, eucalyptus, etc.

* Timber trunk forests: Eighty thousand hectares, planting species such as pine, cedar, eucalyptus, etc.

* Specialty tree forests: Two hundred thousand hectares, including species such as cinnamon, clove, resin pine, bamboo, crabapple, bamboo shoots, etc.

* Precious rare timber forests: One hundred thousand hectares, including species such as teak, ironwood, pine, pơmu, rosewood, etc., belonging to Group Ia and IIa according to Decree 18/HĐBT dated January 17, 1992 of the Council of Ministers (now the Government).

+ Planting long-term industrial crops and fruit trees: Approximately one million hectares.

Long-term industrial crops included in the project to plant five million hectares of new forests include: rubber, castor bean, cocoa, specialty trees, and other types of fruit trees that provide both economic value and canopy cover like forest trees. For tea and coffee, they must be planted according to planning, without clearing forests for planting, and must be planted together with at least three hundred forest trees per hectare: Pure tea plantations may be allowed for snow tea.

II. POLICIES AND SOLUTIONS

1. Crop Structure:

a- For special-use forests: In principle, the selection of planting species must align with the goal of restoring primary ecosystems, which are native species at the site, and in extremely poor areas, shade trees and soil improvement plants should be planted first, followed by native species, and natural regeneration promotion should be the main method for restoring forests towards a primary state.

b- For upstream protective forests, in addition to large timber trees, intercropping with long-term industrial crops, fruit trees, and specialty trees with canopy cover like forest trees is possible; these trees are counted as primary protective trees. For protective forests against river dikes, sea dikes, farmlands, sand drift, and flood prevention, suitable species should be selected based on protective goals and combined with maximum economic benefits for the growers and custodians.

c- For productive forests, including long-term industrial crops and fruit trees, the choice of planting species must first be based on climatic and soil conditions, market demand, and processing and circulation conditions.

Developing productive forests must be linked with processing technology and product consumption to quickly recover capital and generate profits.

Based on the above principles and requirements, each province and centrally administered city shall instruct relevant agencies to research and select specific planting species for their locality to submit to the provincial authorities and the Ministry of Agriculture and Rural Development for approval.

2. Land Policy:

a- Provincial People's Committees (hereinafter referred to as Provinces) shall proactively review the current agricultural and forestry land fund to establish land use plans for the forest planting project according to three types of forests and must conduct this from commune to district and province levels both on-site and on maps. Coordinate with the results of additional surveys and revisions of natural forest inventories or re-planning of forestry development schemes (or comprehensive forestry surveys) within the province. This is one of the bases for building new projects and supplementing or revising old projects.

b- On the basis of the forest development plan and investment projects approved by competent authorities, the People's Committees of provinces shall direct the allocation of land for forest lease and issuance of certificates of land use rights to organizations, households, and individuals. Land allocation must be accompanied by the issuance of certificates of land use rights.

c- Land shall only be allocated to entities that genuinely have a need, capability to protect, and develop forests. If an entity does not put the allocated land into use within twelve months from the date of allocation, the land must be reclaimed and returned to the reserve fund. Strict guidance must be provided to avoid delays in land allocation procedures affecting the pace of forest development. Land allocation must be conducted openly and democratically, with priority given to allocating land to households residing in the local area. The allocation of land and issuance of certificates of land use rights must be completed before December 31, 2000.

The Ministry of Agriculture and Rural Development and the General Department of Land Administration will issue a Joint Circular to provide specific guidelines on this matter.

3. Regarding investment and credit policies.

a- State budget capital

- Investment in forest management

+ Forest protection:

* For special-use forests: Mainly using forestry rangers and dedicated forest protection forces, funded from the operating expenses of forest management boards to protect the forests. In areas where people are living and there is a risk of forest damage, the state will support funding for forest protection contracts up to a maximum of 50,000 VND per hectare per year. Depending on each locality and project, the provincial People's Committee will decide on appropriate forest protection contract amounts, but these must be publicly announced.

* For protective forests: The target for investment in protection is natural forests, forests that have been fenced off and newly planted under Program 327 in very critical and critical protection zones, where there is still deforestation for shifting cultivation damaging the forests, the funding for protection contracts shall not exceed 50,000 VND per hectare per year. Depending on local conditions, the provincial People's Committee will determine specific investment amounts for each project, with a maximum duration of five years for the contract funding, which must be publicly announced.

* For areas of forests that were contracted for protection under Program 327 but are not in critical or very critical zones, no further investment will be made now, and they will be converted to production forests. If they are in critical zones and still require protection, funding for continued forest protection contracts for five years will be provided, after which the state will implement policies allowing those who have contracted the protection to benefit from the forests.

+ Fencing and promoting natural regeneration combined with supplementary planting:

* For areas of fencing and promoting natural regeneration where households contract to plant supplementary industrial trees, fruit trees, and specialty trees, the investment shall not exceed 50,000 VND per hectare per year over five years. Depending on local conditions, the provincial People's Committee will determine specific investment amounts suitable for each project and must publicly announce them.

* For areas of fencing and promoting natural regeneration combined with supplementary planting of forestry trees: The maximum investment is 1,000,000 VND per hectare over six years. Based on specific conditions, design and budget according to the levels of forest regeneration needed: plowing to welcome seeds, supplementary seeding, clearing vines and thickets, supplementary planting of timber trees in rows and patches. Year one: Investment for seed dispersal or supplementary planting includes localized soil preparation, clearing shrubs and weeds. Supplementary planting by seedlings according to design (including materials and labor); the following two years: Continue caring for and thinning the supplementary planted trees from the first year according to the approved design; protection for the next three years: Depending on the difficulty of protection in each location, allocate protection funds appropriately but not exceeding 50,000 VND per hectare per year. After six years, a thorough evaluation must be organized to handle the situation further. Detailed design and budgeting based on Decision No. 175-1998/QĐ-BNN-KHCN dated November 4, 1998 of the Ministry of Agriculture and Rural Development.

Based on the above regulations, the provincial People's Committee will determine specific investment amounts for each region, site conditions, and forest management needs for regeneration promotion.

+ New forest planting:

* For special-use forests: Includes planting in ecological restoration areas of special-use forests, experimental forests, botanical gardens. The planting structure, density, and investment amount according to the approved design.

* For protective forests in very critical and critical zones.

Planting structure and density: Average density about 1,600 trees per hectare, including protective trees such as forest trees at approximately 600 trees per hectare and supportive trees like fast-growing species for soil improvement as specified in Decision No. 556/TTg. The number of supportive trees will depend on the site conditions. In cases where protective trees cannot be planted immediately, fast-growing shade trees or soil-improving trees must be planted first, followed by long-term tree planting, which must be clearly reflected in the design. The density of coastal protective forests such as sea pine, mangrove, acacia, etc., will not follow the above regulation but will be designed specifically by the Department of Agriculture and Rural Development and submitted to the provincial People's Committee for approval. If there is planting of long-term industrial trees or fruit trees with canopy cover like forest trees, the planting density will follow the planting procedures for those types of trees.

Investment level:

For upstream protective forests, the average investment is 2.5 million VND per hectare, including planting and care for three years. Based on this average, the provincial People's Committee will consider and decide on specific investment amounts depending on site conditions and planting structures.

* For rare and precious timber species planted in production forests for long-term conservation, the forest owner must have a project and technical procedures approved by competent authorities. The state will support new planting and care at 2 million VND per hectare, mainly supporting seedlings and necessary materials and labor. Priority will be given to less critical protective zones through a joint effort between the state and the people.

- Infrastructure construction:

Localities must coordinate and integrate programs and projects in their areas, mobilize basic construction funds from specialized sources to invest in infrastructure for afforestation projects, such as rural roads, irrigation, clean water, healthcare, education, etc.

The budget capital for the project to plant five million hectares of new forest shall only be invested in construction works serving forestry activities, with a maximum not exceeding 5% of the total state budget capital invested in the project annually.

Types of infrastructure projects using the budget capital of this project for protective forests and special-use forests are defined as follows: Investment in direct works serving the protection and construction of protective forests and special-use forests such as forest protection stations, fire prevention works, pest control works, nurseries, etc. Works belonging to administrative areas, wildlife breeding facilities, eco-tourism combined works, etc., are funded from other sources.

- Regarding project management costs:

+ Project management costs are allocated for project management activities including:

* Surveying and designing the project, reviewing and approving the project.

* Training, mid-term review meeting, final summary meeting expenses; information dissemination, propaganda, commendation and reward expenses.

* Supplementing necessary equipment, office supplies, and expenses for general management and directive activities.

* Allowances, subsidies, travel expenses, etc., according to the administrative and public service system for staff of the Protective Forest and Special-Use Forest Management Board, provincial project management board.

* Subsidies for Forestry Wardens at commune level.

+ The allocation ratio of project management costs is specified as follows:

* For the project owner of protective and special-use forests at the grassroots level, it is 6% of the total investment capital from the state budget for the project. This is the average rate, but projects located in remote and difficult areas where project managers do not receive public service salaries will have a higher allocation ratio compared to projects in favorable areas or where project managers are on public service payroll, the specific rate is decided by the Provincial People's Committee.

* For provinces, districts, and communes, it is 1.3% of the total budget of the program allocated to each locality. This capital is used for the activities of the provincial project management board and subsidies for Forestry Wardens at commune level. The number of communes receiving subsidies and the subsidy amount are decided by the Provincial People's Committee, but must not exceed the quota for commune-level key cadres.

* For central ministries and agencies, it is 0.7%, (including the Treasury system serving the project) to cover the operating costs of the Central Project Management Board, summarization, commendation, and reward activities.

- Seedling preparation capital:

Seedling preparation capital advanced from Program 327, relevant sectors and localities must accurately determine the capital already provided, usage status, and remaining capital to be settled at the end of 1998 and transferred to the five million hectare forest planting project.

- Capital disbursement procedure:

To ensure that the forest planting project achieves results, the capital disbursement is regulated as follows:

+ To be eligible for capital disbursement, the project must have the following documents:

* Decision approving the project by the competent authority.

* Annual plan documents on capital and volume issued by the province for local projects; by central ministries and agencies for central projects.

* Design and budget approved by the competent authority.

* Completion acceptance report of the provincial acceptance committee chaired by the Department of Agriculture and Rural Development together with relevant provincial departments. (The specific composition of the acceptance committee is decided by the Provincial People's Committee; the State Treasury does not participate in the provincial acceptance committee). The Ministry of Agriculture and Rural Development will issue the acceptance procedures for forestry works.

* Other related documentation and certificates.

+ Capital disbursement is carried out through the State Treasury system in accordance with the current state budget management regulations, consistent with the capital disbursement method stipulated in Decision No. 661/QĐ-TTg dated July 29, 1998 of the Prime Minister.

+ Capital allocated for the project in a given year is disbursed for the completed volume up to December 31 of that year, and the remaining capital is recovered for settlement with the state budget.

The Ministry of Finance will issue a circular detailing the management and disbursement of state budget capital for the five million hectare forest planting project.

b- Regarding investment credit capital:

- Individuals and organizations investing in afforestation, encirclement and promotion of natural regeneration combined with supplementary planting, long-term industrial tree planting, and fruit trees on degraded hillsides, developing processing facilities for forestry and agricultural products, are entitled to preferential policies as prescribed in the Law on Encouraging Domestic Investment (amended in May 1998), implementing guidelines under the Law to take effect from January 1, 1999.

- Conditions for enjoying investment encouragement policies:

+ Individuals, organizations, and companies engaged in business operations who have been assigned land by the central or local government and have received land use rights certificates (or lease certificates) according to the Land Law.

+ The area for developing forestry and agriculture must be within the planning for raw material development and centralized processing, and must have a project approved by the competent authority.

+ Based on the Law on Encouraging Investment and the approved project, the Provincial People's Committee or relevant central ministries and agencies will issue investment preference certificates along with production and business registration certificates for individuals or enterprises.

- Rights and obligations of investors:

+ Investor rights:

* Exemption or reduction of 50-100% of land use tax and land lease fees for a period of three years or more until the end of the first forest rotation cycle, depending on the difficulty of the area.

* Exemption of land tax for the first forest rotation cycle in remote areas for commercial forest planting. Right to use land as collateral for loans.

Loan interest rates are determined annually from the preferential provisions of the Law on Encouraging Domestic Investment.

Maximum loan amount not exceeding 70% of the total approved project investment. In cases of higher loan amounts, approval from the Prime Minister is required.

+ Investor obligations:

* Production and business operations must comply with the contents and tasks of the approved project.

* Must abide by all regulations concerning national defense, security, environmental protection, labor laws, etc.

* If investors fail to meet the requirements, contents, and deadlines of the approved project, the project management agency will consider adjustments or revocation of all preferences granted to the investor.

- Regarding the limit of preferential loan capital under the Law on Encouraging Domestic Investment:

Implementation is based on guidelines under the Law specifying investment levels and interest rates for different categories.

In addition to the preferential loan capital mentioned above, according to the Law on Encouraging Domestic Investment, afforestation production projects are also eligible to borrow from the National Investment Support Fund and other preferential sources at preferential credit rates.

c- Capital from ODA sources

- Financial resources provided by international organizations and countries lending to Vietnam, prioritized for afforestation production projects to borrow or re-lend at preferential interest rates.

- The conditions for borrowing, interest rates, and repayment period will be specified in each project in accordance with Vietnamese law and the agreement of the lender.

d- Capital from FDI sources

Foreign Direct Investment (FDI) capital is clearly stipulated in the Law on Foreign Investment (amended), prioritizing concentrated afforestation raw material projects linked to processing industries through various investment forms (100% foreign capital, joint ventures, and business cooperation).

4. Benefit policies and product consumption.

a- For protective and special-use forests.

In addition to the policies prescribed in Clause 2 of Article 7 of Decision 661/QD-TTg dated July 29, 1998 of the Prime Minister, households undertaking protective forest management contracts shall enjoy thinning products if the protective forest planted with mixed species has ensured more than 600 protective trees, then they will enjoy 100% of the products of the supportive trees planted within the protective forest; if the protective trees are fruit-bearing, resin-producing, or flowering trees, then the contractor shall enjoy the flowers, fruits, oil, and resin products.

b- For production forests.

Implement Clause 2 of Article 7 of Decision 661/QD-TTg dated July 29, 1998 of the Prime Minister.

5. Tax policies.

Implemented as Article 8 of Decision 661/QD-TTg dated July 29, 1998 of the Prime Minister.

6. Science and technology policies.

In addition to the policies prescribed in Article 9 of Decision 661/QD-TTg dated July 29, 1998 of the Prime Minister, the People's Committees of provinces direct the Departments of Agriculture and Rural Development to complete the network of local seed production and supply systems and perfect the planting procedures and norms of various tree species in their respective areas.

III. IMPLEMENTATION ORGANIZATION AND PROJECT MANAGEMENT

1. Project management machinery at the local level and Ministry/Department level.

a- The local project management machinery operates in accordance with Article 12 of Decision 661/QD-TTg dated July 29, 1998 of the Prime Minister.

b- The provincial project management board is established by the decision of the Chairman of the Provincial People's Committee and serves as an auxiliary body to the provincial steering committee in directing the implementation of the project, located at the Forestry Development Office.

Where there is no Forestry Development Office, the provincial project management board is located at the Department of Agriculture and Rural Development, which is included in the provincial civil service establishment and salary fund. In provinces or cities with only one to two basic projects, the provincial or city People's Committee does not need to establish a provincial project management board but assigns this management function to the Department of Agriculture and Rural Development.

c- The provincial project management board assists the steering committee in performing the following tasks:

- Preparing and compiling long-term, medium-term, and annual plans and submitting them to the Provincial People's Committee. Coordinating with the Department of Planning and Investment to allocate annual plans and investment funds and submit them to the Provincial People's Committee for specific assignment to basic projects.

- Directing and managing the implementation of the project throughout the province, inspecting basic projects.

- Taking the lead in coordinating with relevant provincial agencies to resolve issues arising during the project implementation process.

- Preparing periodic reports as required. Organizing meetings of the project steering committee.

- Based on the above guidance, the Provincial People's Committee specifies the functions, duties, and operational regulations of the provincial project management board.

d- In communes participating in afforestation projects with a scale of over 500 hectares or with over 1,000 hectares of forests requiring protection (excluding those communes already allocated forest rangers), the Provincial People's Committee decides to allocate one dedicated forestry staff member to assist the commune People's Committee in implementing the forestry work of the protection and afforestation project and receives a subsidy from the project management fund. The number of communes allocated dedicated staff members is decided by the Provincial People's Committee. In cases below the aforementioned threshold, it is assigned to the nearest Forestry and Agricultural Stations to organize implementation, but must closely coordinate with the local authorities.

e- The basic project management board, established by the Ministry/Department or the Provincial People's Committee with a lean staffing structure including a director, chief accountant, and some field supervisors, is a legal entity with its own account. Basic project management boards currently receiving public service funding continue to receive such funding for operation, while those not receiving public service funding operate from project funds.

f- Ministries and Departments implementing the five million hectare afforestation project should establish project management boards similar to the provincial level to direct and manage operations without establishing a project steering committee.

2. Transfer of Steering Committees and Management Boards of Program 327 to the Five Million Hectare Afforestation Project.

At all levels, the Steering Committees of Program 327 need to urgently complete the following tasks:

- Directing the implementation and completion of the 1998 Program 327 plan before December 31, 1998.

- Summarizing the implementation of Program 327 at the local level to draw lessons learned to help the steering committee and the management board of the five million hectare afforestation project organize implementation effectively.

- Proceeding with the handover to the new project steering committee.

3. Reorganizing Program 327 projects to transition to the Five Million Hectare Afforestation Project.

a- Program 327 projects that are special-purpose forests will continue to be invested in according to approved projects until the Prime Minister revises Decision 194/CT.

b- Program 327 projects that are protective forests need to be reviewed and reorganized as follows: Projects located within the planning area designated as very critical and critical protective zones and operating effectively should be transferred to implement under this project.

Projects not located within very critical and critical protective zones, or where the area of critical protective zones constitutes a small proportion, should be integrated into other projects, converted to production forest projects, or dissolved.

c- Provincial People's Committees and relevant Ministries and sectors shall proactively assess and rearrange Project 327 and compile a list to transfer to the New Planting 5 Million Hectares Forest Project for submission to the Central Management Board in 1999 for implementation from 2000 onwards. All projects transferred to the New Planting 5 Million Hectares Forest Project must prepare a comprehensive budget estimate according to the mechanism and policies stipulated in Decision 661/QĐ-TTg for approval by the competent authority in accordance with current State regulations on investment management and construction.

4. To compile and allocate annual plans.

a- To compile comprehensive plans.

Provincial People's Committees, municipal people's committees under the central government, and relevant Ministries and sectors shall develop and compile local project planting plans for five million hectares of new forests, send them to the State Steering Committee and the Central Management Board - Ministry of Agriculture and Rural Development, Ministry of Planning and Investment, Ministry of Finance at least fifteen days before the deadline set by the Government for consolidation and submission to the State.

b- The contents of the plan to be submitted include:

- Evaluation of the implementation situation from the start of construction to the year of the plan and estimated implementation of the plan year (according to the content of the plan that has been assigned)

- Plan scheme for the following year:

+ Indicators for forest protection, encirclement and promotion of natural regeneration, encirclement and supplementary planting of long-term industrial trees, special trees, fruit trees, and encirclement and promotion of natural regeneration combined with supplementary planting of forestry trees.

+ New forest planting includes:

* Area for protective forest and special-use forest planting

* Area for production forest planting classified according to types: raw material for industry (paper, chips, artificial boards,...), timber pillars, large timber, rare timber, specialty forests,...

* Area for planting long-term industrial crops and fruit trees (divided into: rubber, cashew, cocoa, coffee, tea, fruit trees,...)

+ Forest and industrial crop care:

* Area for protective forest and special-use forest care.

* Area for production forest care.

* Area for industrial crop and fruit tree care.

+ Capital structure:

* Capital for planting forests, caring for and protecting forests, encirclement and promotion of natural regeneration combined with supplementary planting, from the state budget (for protective forests, special-use forests), capital for planting rare timber.

* ODA capital, divided into:

Non-repayable capital (PAM, Germany,...).

Loan capital from ADB, WB (Asian Bank, World Bank,...).

* FDI capital (foreign direct investment capital).

* Preferential credit capital.

For planting and caring for production forests.

For planting and caring for industrial crops and fruit trees.

* Own capital of enterprises.

* Capital from resource taxes, standing tree sales revenue.

* Capital for infrastructure construction serving forestry activities.

* Capital for scientific research, forestry and agricultural extension.

* Capital for design fees for protective forests and special-use forests.

* Capital for management expenses.

Specifically, the cost for cadastral survey work for the new planting five million hectares forest project will be planned annually by the General Department of Cadastre for submission to the Prime Minister for decision.

+ List of projects.

5. Allocation of plans.

After the National Assembly approves the total capital allocated for the project, the Ministry of Agriculture and Rural Development, in coordination with the Ministry of Planning and Investment, the Ministry of Finance, will distribute the plan targets and investment capital to localities and ministries and sectors for submission to the Government for allocation.

- The Prime Minister allocates the total investment capital to provinces and centrally governed cities and ministries and sectors.

- The Prime Minister authorizes the Minister of Planning and Investment to allocate guidance indicators:

+ Objectives and tasks;

+ Capital structure;

+ List of basic projects.

Chairmen of provincial and municipal people's committees under the central government and ministers of relevant sectors shall allocate specific plan targets to project managers directly overseeing the projects.

The allocated plan targets include:

a- Tasks: Protection, encirclement and promotion of natural regeneration combined with supplementary planting, forest care, protective forest planting, special-use forest planting, production forest planting, planting of long-term industrial crops, and fruit trees.

b- Capital structure: Budget capital for protective and special-use forests, loan credit capital, infrastructure construction capital, non-repayable aid capital, loan capital, scientific research capital, forestry and agricultural extension capital, design and management fees.

c- List of basic projects:

- Project for planting protective and special-use forests and rare timber.

- Project for planting production forests.

- Project for planting long-term industrial crops and fruit trees.

6. Reporting System (According to the model of the Central Management Board):

a- On the 15th of each month, project managers are responsible for reporting quickly on results, volume, and capital expenditure to the provincial project management board.

b- The supervisory agency (provincial and municipal management boards, central ministry and sector agencies) compiles monthly reports and sends them to the Central Project Management Board no later than the 20th of each month.

c- On the 20th of each month, the Central Management Board compiles and reports to the Minister of Agriculture and Rural Development, the State Steering Committee for the New Planting Five Million Hectares Forest Project, and the Prime Minister.

d- The Ministry of Agriculture and Rural Development is responsible for compiling semi-annual and annual reports and submitting them to the Prime Minister.

IV. IMPLEMENTATION PROVISIONS

- This Circular takes effect from the date of signature.

- Relevant ministries and sectors and localities may issue separate guidelines based on their specific circumstances for issues within their functional and managerial responsibilities.

Any difficulties encountered during implementation should be promptly reported in writing to the Ministry of Agriculture and Rural Development, the Ministry of Finance, and the Ministry of Planning and Investment for consideration and resolution./.

DEPUTY MINISTER

Nguyễn Thị Kim Ngân

(Signed)

DEPUTY MINISTER

Nguyen Xuan Thao

(Signed)

DEPUTY MINISTER

Nguyen Van Dang

(Signed)

 

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Joint Circular No. 28/1999/TTLT/BKH-BNN-BTC guiding the implementation of Decision No. 661/QĐ-TTg dated July 29, 1998 of the Prime Minister on the objectives, tasks, policies, and organization of implementing the project to plant five million hectares of new forests.
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