Circular No. 32/2018/TT-BNNPTNT on the valuation methods for forests and the forest price framework

CIRCULAR

REGULATIONS ON METHODS FOR VALUING FORESTS; FRAMEWORK PRICES FOR FORESTS

Pursuant to DecreeNo. 15/2017/ND-CP dated February 17, 2017 of the Government"b) In addition to the lists of public services issued according to the provisions of Clause 2, Article 4 of this Decree, specialized agencies under provincial People's Committees shall report to the provincial People's Committee for decision-making on amending, supplementing, or issuing the list of public services funded by the state budget within their jurisdiction and consistent with the local budget capacity within the approved budget by the Provincial People's Assembly, and send it to the Ministry of Finance and relevant ministries and sectors for supervision during implementation.""4. As of March 31, 2021, credit card issuers that issue cards with BINs issued by the State Bank of Vietnam must comply with the Domestic Chip Card Standard."onThe Director of the Office, Heads of Payment Department, Heads of units under the State Bank of Vietnam; credit institutions, foreign bank branches, payment switching organizations, electronic transaction settlement organizations are responsible for implementing this Circular.of the Government stipulating functions, tasks, powers, and organizational structure of the Ministry of Home Affairsu t, amended and supplemented by Decree No. 109/2025/NĐ-CP and Decree No. 193/2025/NĐ-CP issued by the Ministry of Agriculture and Rural Development;

BASED ON THE FORESTRY LAW promulgated on June 15,June 2024;energy 11 2017;

BASED ON THE PRICE LAW promulgated on December 20,June 2024;2012;

Decree No. 177/2013/ND-CP dated November 14, 2013 of the Government detailing and guiding the implementation of certain provisions of the Price Law 2012 and Decree No. 149/2016/ND-CP dated November 11,June 2024;2016 of the Government"b) In addition to the lists of public services issued according to the provisions of Clause 2, Article 4 of this Decree, specialized agencies under provincial People's Committees shall report to the provincial People's Committee for decision-making on amending, supplementing, or issuing the list of public services funded by the state budget within their jurisdiction and consistent with the local budget capacity within the approved budget by the Provincial People's Assembly, and send it to the Ministry of Finance and relevant ministries and sectors for supervision during implementation."amending and supplementing some articles of Decree No.on 3/2013/ND-CP dated November 14, 2013;, amended and supplemented by Decree No. 109/2025/NĐ-CP and Decree No. 193/2025/NĐ-CPi, supplement some articles of the Decree number 177/201The Director of the Forest Administration;

At the proposal of the Director of the General Bureau of Meteorology and Hydrology, the Head of the Science and Technology Department, and the Head of the Legal Department;, amended and supplemented by Decree No. 109/2025/NĐ-CP and Decree No. 193/2025/NĐ-CPThe Minister of Agriculture and Rural Development issues this Circular regulating methods for valuing forests; framework prices for forests.

This Circular regulates methods for valuing forests; framework prices for forests for special-use forests, protective forests, and production forests owned by the whole people.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular applies to agencies, organizations, households, individuals, and community groups involved in activities related to methods for valuing forests; framework prices for forests.

Article 2. Applicability

Section 1. METHODS FOR VALUING NATURAL FORESTS

Chapter II

SPECIFIC PROVISIONS

Article 3. Price of natural forests

1. The price of special-use forests, protective forests, and production forests which are natural forests

(Gtn) shall be calculated in monetary terms for 1 hectare (VND/ha), including standing timber value (Gcđ) and forest land use rights value (Gsđ) with the following formula:For coal-fired thermal power plants where the enterprise holds 100% of the registered capital and uses 100% of its own capital to invest in the project approved by the competent authority, E is determined as 100%;)Gtn = Gcđ + Gsđ

2. Standing timber value

is the value of timber at the forest, calculated in monetary terms for 1 hectare (VND/ha) of the forest area; and forest land use rights value 3. Forest land use rights value

(Gsđ) (is the total income calculated in monetary terms for 1 hectare (VND/ha) that the forest owner enjoys from the forest during the period of being allocated or renting the forest. Article 4. Valuation of standing timber

The standing timber value is determined based on market prices and carried out as follows:

1. Collecting, compiling, and determining the total volume of wood and the average volume of wood per group of wood for the forest area to be valued, including:

a) Wood volume: determine the total volume, the volume of each group of wood for 1 hectare;

b) Group of wood: determine according to the regulations of the Ministry of Agriculture and Rural Development.

2. Determining the selling price of roundwood at the unloading site (the unloading site is the location planned for concentrating wood with convenient transportation conditions for transporting wood decided by the People's Committee of the province), including:

a) Collecting and compiling information on the selling price of roundwood in the vicinity of the forest area to be valued; information on auctioning wood; regulations on the price of roundwood for calculating resource taxes;

b) Collecting and compiling information from forest areas with logging operations and interviewing relevant parties;

c) Determining the selling price of roundwood by group of wood;

d) In case the selling price of roundwood at the unloading site cannot be determined, then apply the price of roundwood in nearby areas with similar characteristics and conditions.

3. Determining costs related to logging, transporting, and transporting wood from the forest to the unloading site, resource tax, and other costs, including:

a) Collecting and compiling information on standards for forest logging operations;

b) Collecting documents and calculation files on logging costs at the nearest time point; regulations on resource taxes, fees, and other related information;

c) Collecting information and interviewing relevant parties about logging, transporting, and transporting costs to the unloading site and other reasonable costs;

d) Determining logging, transporting, and transporting costs to the unloading site (averaged for 1 cubic meter of roundwood). In case there is no information on logging costs, estimate logging, transporting, and transporting costs in places with similar logging conditions;

đ) Collecting and compiling information on resource taxes payable according to regulations.³ 4. Calculating standing timber value

a) The standing timber value (VND/ha) is calculated as follows:

Mi

 is the volume of wood of the group of wood

Where:

measured in cubic meters; Pi i  is the selling price of roundwood at the unloading site after deducting logging costs, taxes, and other costs of the group of wood³;

measured in VND for 1 cubic meter of roundwood;  is the number of groups of wood classified (n runs through the groups of wood, according to the regulations of the Ministry of Agriculture and Rural Development). i b) An example of calculating standing timber value is provided in Appendix I attached to this Circular.³ round wood;

For power plants invested under the Build-Operate-Transfer (BOT) model, n is determined according to the operational period of the power plant stipulated in the BOT contract.  is the quantity of wood groups classified (n runs according to the wood group, as prescribed by the Ministry of Agriculture and Rural Development).

b) Example of calculating standing tree value at Appendix I attached to this Circular.

Article 5. Valuation of Forest Use Rights

The price of forest use rights shall be determined based on income from the forest during the period of management and use of the forest, including income from timber harvesting, forest environmental services, and other benefits, as follows:

1. Determine the average revenue from the valuation forest area in the three consecutive years immediately preceding the valuation date, including:

a) Revenue from timber products (wood, non-timber forest products);

b) Revenue from forest environmental services;

c) Revenue from scientific research, teaching, and internships;

d) Revenue from ecotourism, resort, and entertainment activities;

đ) Other lawful sources of income.

2. Determine the average costs in the three consecutive years immediately preceding the valuation date, including:

a) Main harvesting costs, residual harvesting costs, utilization costs, and other costs related to harvesting;

b) Costs for scientific research, teaching, and internships;

c) Costs for ecotourism, resort, and entertainment activities;

d) Costs for planting, encircling nurturing to promote regeneration, protecting the forest, and maintaining facilities directly serving ecotourism, resort, and entertainment activities;

đ) Environmental service costs;

e) Taxes, fees, and other reasonable costs;

These costs shall be calculated according to state regulations; labor costs shall be calculated based on standard rates or actual expenditures; labor costs shall be calculated at the valuation date; costs not regulated by the state shall be calculated based on actual market prices in the local area corresponding to the relevant time period (annually).

3. Determine the period of forest management and use: the remaining number of years for managing and using the forest shall be determined based on the forest transfer records and rental agreements.

4. Calculate the price of forest use rights (VND/hectare)

a) In the case of calculation for one year according to the following formula:

b) In the case of calculation for a period exceeding one year according to the following formula:

Where:

B  is the total average revenue (VND/hectare) from the forest area to be valued in the three consecutive years immediately preceding the valuation date, from timber products (wood, non-timber forest products), forest environmental services, scientific research, teaching, internships, ecotourism service business, resort, entertainment, and other income sources;

C  is the total average cost (VND/hectare) in the three consecutive years immediately preceding the valuation date;

organize credit institutions, foreign bank branches are responsible for organizing the implementation of this Circular.  is the remaining period of forest management and use calculated in years (t runs from 1 to n);

F  is the discount rate expressed as a percentage (%) to determine the present value of cash flow. The applicable discount rate is the average deposit interest rate, calculated as follows:

- Determine the highest annual deposit interest rate in the three consecutive years immediately preceding the valuation date of commercial banks in the locality;

- Determine the lowest annual deposit interest rate in the three consecutive years immediately preceding the valuation date of commercial banks in the locality;

- Calculate the average annual deposit interest rate.

c) In the case where the income and costs necessary for valuing the forest cannot be accurately determined, apply the income and costs of another forest area in a nearby locality with similar characteristics and conditions, with adjustments (if necessary) based on topographical conditions and specific features of the forest area to be valued.

d) An example of calculating the price of forest use rights is provided in Appendix II attached to this Circular.

Section 2. METHODS FOR VALUING PLANTED FORESTS

Article 6. Price of Planted Forests

1. The price of special-use forests, protective forests, and production forests that are planted shall be calculated in monetary terms (VND/hectare) for one hectare of planted forest that the forest owner benefits from during the period of being allocated or leasing the forest.

2. The price of planted forests (Grt) includes total investment costs to create the forest (CP) and expected income (TN) for the planted forest at the time of valuation, calculated as follows:_rt) includes total investment costs for forest creation (CP_rt) and expected income (TN_rt) for planted forests at the valuation time, calculated as follows:

of_rt =  dated October 20, 2015 of_rt + TN_{Forganize credit institutions, foreign bank branches are responsible for organizing the implementation of this Circular.}

3. In cases where newly planted forests have not yet matured and are related to land recovery and land use change activities, the minimum price of planted forests shall be determined based on the total investment costs to create the forest (CPrt). (CPrt).

Article 7. Determining Total Investment Costs

1. Total investment costs for planted forests are calculated as follows:

Where:

 dated October 20, 2015 of_rt  is the total investment cost to create the forest;

Ci  is the investment cost to create the forest in year i;

i = 1 (the year of initial investment), 2, 3... up to the year of valuation;

F  calculated according to point b, Clause 4, Article 5 of this Circular;

For power plants invested under the Build-Operate-Transfer (BOT) model, n is determined according to the operational period of the power plant stipulated in the BOT contract.  is the period from the year of initial investment (year 1) to the year of valuation.

2. Investment costs include all direct and indirect costs from the start of planting the forest to the valuation date:

a) Direct costs, including: forest creation costs, which include seedling costs, materials, labor, equipment, machinery, tools, forest protection costs (labor for protection, equipment, investments in facilities directly serving fire prevention and control, pest control);

b) Indirect costs, including: management costs, surveying, design, supervision, acceptance, inventory, taxes, fees; other costs allocated for forest protection, fire prevention, and control;

c) Other costs.

3. In cases where investment costs cannot be determined as a basis for determining the price of planted forests, apply the level of costs for another forest area nearby with similar characteristics and conditions, and adjust (if necessary) based on topographical conditions and specific features of the forest area to be valued.

4. Example of calculating investment costs in Section 1, Part II, Appendix III attached to this Circular.

Article 8. Determining Expected Income

1. Expected income of planted forests is calculated as follows:

Where:

B  is the total revenue (VND) of the forest area to be valued from forest products (timber, non-timber forest products), forest environmental services, scientific research, teaching, internships, ecotourism, leisure, entertainment, and other sources of income from the valuation date until the end of the forest plantation business cycle. For protective and special-use forests that are planted, calculate from the valuation date plus an additional 10 years.

C  is the total cost (VND) of the forest area to be valued from the valuation date until the end of the forest plantation business cycle;

F  calculated according to point b, Clause 4, Article 5 of this Circular;

organize credit institutions, foreign bank branches are responsible for organizing the implementation of this Circular.  is the remaining forest usage period (in years) from the valuation year to the end of the allocation or lease period.

2. Sources of expected income for planted forests include:

a) Revenue from forest products (timber, non-timber forest products);

b) Revenue from forest environmental services;

c) Revenue from scientific research, teaching, and internships;

d) Revenue from ecotourism, leisure, and entertainment;

đ) Other lawful sources of income.

3. In cases where expected income cannot be determined as a basis for determining the price of planted forests, apply the income level of another forest area within the same region with similar characteristics and conditions, and adjust (if necessary) based on topographical conditions and specific features of the forest area to be valued.

4. Example of calculating expected income in Section 2, Part II, Appendix III attached to this Circular.

Article 9. Procedure for Valuing Planted Forests

1. Survey, collect, and compile information on the current status of forests, works, and infrastructure related to the purpose of protecting and developing forests at the time of valuation.

2. Collect and compile data on reasonable costs invested in creating forests from the investment date to the valuation date.

3. Determine the expected income of planted forests at the time of valuation.

4. Determine the average interest rate for one-year term deposits at commercial banks in the area at the time of valuation.

5. Determine the corresponding interest rates for bank deposits corresponding to the investment costs during the period from the investment date to the valuation date.

6. Determine the value of planted forests based on the collected, compiled, and analyzed information according to the valuation procedure.

Section 3. VALUATION OF FORESTS

Article 10. Principles of Forest Valuation

The principles of forest valuation are stipulated in Clause 2, Article 90 of the Forestry Law.

Article 11. Valuation of Natural Forests

1. In cases of leasing forests:

a) The lease price of the forest is the initial price expressed in money (VND/hectare) during the lease period;

b) The initial lease price of the forest is calculated as follows:

Where:

GTtn  is the initial lease price of natural forests (VND/hectare);

Gsd  is the land use fee for one year (VND/hectare);

F  calculated according to point b, Clause 4, Article 5 of this Circular;

organize credit institutions, foreign bank branches are responsible for organizing the implementation of this Circular.  is the lease period in years (from 1 to n years).

c) The lease price of the forest is determined through public auction for leasing forests in accordance with the law on public auctions.

2. In cases of reclaiming forests, liquidating forests; determining the contribution value; state-owned enterprise shareholding, divestment of state capital (transfer of capital):

a) The forest price when reclaiming forests, liquidating forests is calculated based on the land use fee and is determined according to the provisions of Article 5 of this Circular;

b) The forest price when contributing capital; state-owned enterprise shareholding, divestment of state capital is calculated based on standing timber value (VND/hectare) and is determined according to the provisions of Article 4 of this Circular. State-owned enterprise shareholding, divestment (transfer of capital) of state capital shall be carried out in accordance with the law.

3. Cases prescribed in Clause 3, Article 91 of the Forestry Law are determined as follows:

Where:

Gtn  is the natural forest price determined according to the provisions of Clause 1, Article 3 of this Circular;

BTtn  is the damage value, compensation value for natural forests;

Dtn  is the estimated damage level expressed as a percentage for each hectare of natural forests;

Ktn  is the adjustment factor for environmental damage and ecological function of natural forests valued at: 05 for special-use forests, 04 for protective forests, and 03 for production forests.

4. Taxes, fees, and charges related to forests:

a) The forest price serving as the basis for calculating taxes, fees, and charges related to forests is calculated based on the land use fee;

b) Determine the tax, fee, and charge levels according to the current laws on taxes, fees, and charges.

Article 12. Valuation of Planted Forests

1. In cases of leasing forests:

a) Lease Price (GTrt) is the initial price expressed in money (VND/hectare) during the lease period;

b) The initial lease price of the forest is calculated as follows:

GTrt = TNrt x organize credit institutions, foreign bank branches are responsible for organizing the implementation of this Circular.

Where:

TNrt  is the expected income during the lease period (VND/hectare) determined according to the provisions of Article 8 of this Circular;

organize credit institutions, foreign bank branches are responsible for organizing the implementation of this Circular.  is the lease period in years.

c) The lease price of the forest is determined through public auction for leasing forests in accordance with the law on public auctions.

2. In cases of reclaiming forests, liquidating forests; determining the contribution value; state-owned enterprise shareholding, divestment of state capital (transfer of capital):

a) The forest price when reclaiming forests, liquidating forests is calculated based on the total expected income during the lease period and is determined according to the provisions of Article 8 of this Circular;

b) The forest price when contributing capital; state-owned enterprise shareholding, divestment of state capital is calculated based on the planted forest price (Grt), including the total investment cost in creating forests (CPrt) determined according to the provisions of Article 7 of this Circular and the expected income (TNrt) determined according to the provisions of Article 8 of this Circular. State-owned enterprise shareholding, divestment (transfer of capital) of state capital shall be carried out in accordance with the law.

3. Cases prescribed in Clause 3, Article 91 of the Forestry Law are determined as follows:

BTrt = Grt x Drt x Krt

Where:

BTrt  is the damage value, compensation value for planted forests;

Grt  is the planted forest price determined according to the provisions of Clause 2, Article 6 of this Circular;

Drt  is the estimated damage level expressed as a percentage for each hectare of planted forests;

Krt  is the adjustment factor for environmental damage and ecological function of forests valued at: 03 for special-use forests, 02 for protective forests, and 01 for production forests.

4. Taxes, fees, and charges related to forests:

a) The forest price for calculating taxes, fees, and charges related to forests is based on the determination of the expected income (TNrt);

b) Determine the tax, fee, and charge levels according to the current laws on taxes, fees, and charges.

Section 4. FRAMEWORK FOR FOREST PRICES

Article 13. Principles and Authority to Issue the Framework for Forest Prices

1. The framework for forest prices shall be determined through general valuation methods applicable to special-purpose forests, protective forests, and production forests under state ownership as stipulated in this Circular and other relevant laws.

2. Based on legal provisions governing forest management and forest valuation, the People's Committee of each province shall issue the framework for forest prices for each type of forest within its jurisdiction and promptly adjust the framework for forest prices when factors affecting forest prices change.

3. The framework for forest prices shall be reviewed and adjusted in cases where there is a continuous increase or decrease of more than twenty percent (20%) compared to the current regulated price for a period of six (06) months or longer.

Article 14. Method for Determining the Framework for Forest Prices

1. The framework for forest prices sets minimum and maximum prices for various types of forests, serving as a basis for establishing price lists for different specific areas.

2. Minimum and maximum prices for natural forests shall be determined as follows:

a) The minimum price for natural forests shall be based on standing tree value and the minimum forest use right value. The minimum standing tree value shall be based on the minimum roundwood sale price of wood groups specified by the State for resource tax purposes. The minimum forest use right value shall be calculated based on the minimum income derived from the forest area.

b) The maximum price for natural forests shall be based on standing tree value and the maximum forest use right value. The maximum standing tree value shall be based on the maximum roundwood sale price of wood groups specified by the State for resource tax purposes (or according to market conditions in specific cases). The maximum forest use right value shall be calculated based on the maximum income derived from the forest area.

3. Minimum and maximum prices for planted forests shall be determined as follows:

a) The minimum price for planted forests shall be based on the maximum investment cost to establish the forest and the minimum expected income from the forest area.

b) The maximum price for planted forests shall be based on the minimum investment cost to establish the forest and the maximum expected income from the forest area.

Chapter III

IMPLEMENTATION

Article 15. Responsibilities of the Forestry General Department

1. Organize inspections of the issuance of the framework for forest prices and forest valuation at local levels.

3. Aggregate and report on the situation of establishing the framework for forest prices and forest valuation nationwide.

Article 16. Responsibilities of the Department of Agriculture and Rural Development

1. Advise the provincial People's Committee to implement this Circular and issue the framework for forest prices at the local level.

2. Organize inspections and handle issues related to forest valuation and issuing the framework for forest prices within their authority.

3. Report on the situation of establishing the framework for forest prices and forest valuation at the local level.

Article 17. Implementation Provisions

1. This Circular shall take effect from January 1, 2019.

2. Circular Joint No. 65/2008/TTLT-BNN-BTC dated May 26, 2008, of the Ministry of Agriculture and Rural Development and the Ministry of Finance guiding the implementation of Decree No. 48/2007/NĐ-CP dated March 28, 2007, of the Government on principles and methods for determining the prices of various types of forests becomes invalid from the date this Circular takes effect.

3. Repeal Article 5, Article 6, Article 7, and the provisions regarding the valuation of planted forests in Circular Joint No. 17/2015/TTLT-BNNPTNT-BTC dated April 22, 2015, of the Ministry of Agriculture and Rural Development and the Ministry of Finance guiding the method for determining the value of planted forests and orchards for restructuring, reform, and development to improve the efficiency of agricultural and forestry companies.

4. During the implementation process, if any issues arise or difficulties occur, relevant agencies, organizations, and individuals shall promptly reflect them to the Forestry General Department for consolidation and reporting to the Ministry of Agriculture and Rural Development for consideration.