Decision No. 38/2016/QD-TTg on issuing policies for forest protection, development, investment support for infrastructure, and public service tasks for agricultural and forestry companies.

This Decision aims to issue policies for developing production forests, including land use planning for forestry, investment and post-investment support, forest plantation project management, and responsibility allocation among ministries, sectors, and localities. The Decision takes effect from January 1, 2016, and replaces two previous Decisions on policies for developing production forests.

Document No.38/2016/QĐ-TTg
Document typeDecision
Issuing authorityMinistry of Finance
Signed byVương Đình Huệ — Phó Thủ tướng Chính phủ
Updated17/06/2026
SectorPlanning and Investment
FieldUncategorized
Issued date14/09/2016
Effective date01/11/2016
Expiry date
StatusIn effect
✦ Smart summary

This Decision aims to issue policies for developing production forests, including land use planning for forestry, investment and post-investment support, forest plantation project management, and responsibility allocation among ministries, sectors, and localities. The Decision takes effect from January 1, 2016, and replaces two previous Decisions on policies for developing production forests.

Scope of application

Economic organizations, households, individuals, and communities involved in planting production forests.

Key points

  • Issuing land use planning for forestry to attract investment.
  • Providing investment and post-investment support for forest plantation projects.
  • Establishing criteria and managing forestry tree seedlings.
  • Allocating specific responsibilities to ministries, sectors, and localities in implementing this policy.
  • Adjusting unit prices, areas, and product types according to new regulations without increasing the total project investment level.

🌐 Social impact of this document

  • Enhancing the development of production forests.
  • Supporting local economies through forest planting and exploitation.
  • Improving living environments with greenery.
  • Creating job opportunities for people in the forestry sector.

❓ Frequently asked questions

Which decisions does this Decision replace?

Replacing Decision No. 147/2007/QD-TTg and Decision No. 66/2011/QD-TTg of the Prime Minister on policies for developing production forests.

How will projects approved before this Decision takes effect be subject to support provisions?

Continuing implementation and applying support provisions under the new Decision from January 1, 2016.

Full text

PRIME MINISTER

SOCIALIST REPUBLIC OF VIET NAM
Independence – Freedom – Happiness

Number: 38/2016/QĐ-TTg
Hanoi, September 14, 2016

Pursuant to …;

REGARDING THE ISSUANCE OF CERTAIN POLICIES FOR FOREST PROTECTION AND DEVELOPMENT AND INVESTMENT SUPPORT FOR INFRASTRUCTURE AND ASSIGNMENT OF PUBLIC TASKS TO AGRICULTURAL AND FORESTRY COMPANIES

PRIME MINISTER

||| Pursuant to the Law on Organization of the Government dated June 19, 2015;

Pursuant to the Law on Forest Protection and Development dated December 23, 2004;

On the basis of  Decree No. 23/2006/NĐ-CP dated March 3, 2006 of the Government on the Implementation of the Law on Forest Protection and Development;

Pursuant to Decree No. 118/2014/NĐ-CP dated December 17, 2014 on the Restructuring, Reforming, Developing, and Enhancing the Efficiency of Agricultural and Forestry Companies;

Considering the proposal of the Minister of Planning and Investment;

The Prime Minister issues this Decision regarding the issuance of certain policies for forest protection and development and investment support for infrastructure and assignment of public tasks to agricultural and forestry companies.

 PART I

GENERAL PROVISIONS

Article 1. Guiding viewpoints on forest development

1. The State encourages organizations, households, and individuals from various economic sectors to invest in afforestation and wood processing in accordance with the laws on forest protection and development.

2. Production forests are multi-purpose forests, with afforestation aimed at increasing income for those engaged in forestry work and contributing to environmental protection and ecological balance.

3. Organizations, households, individuals, and communities that invest directly in afforestation, logging, and wood processing benefit directly; the State supports part of the initial costs to encourage forest development, while also compensating for part of the environmental value provided by planted forests and offsetting low profits due to the specific nature of the forestry industry.

4. Forest development must be linked to wood processing and product consumption industries to ensure stable and sustainable forestry operations.

5. Priority support will be given to economic sectors investing in production forests to promote the development of forestry in particularly difficult communes. Special priority will be given to investment in production forests and wood processing in the Northwest, Central Highlands regions, and mountainous districts of central provinces.

Article 2. Scope of Application

1. Scope of regulation: This Decision stipulates certain mechanisms and policies for forest protection and sustainable forestry development.

2. Applicability: Organizations, households, individuals, and community residents within the country operating in accordance with Vietnamese law to implement, protect, develop forests, log, process timber products, and entities specified in Clause 2, Article 1 of Decree No. 118/2014/NĐ-CP dated December 17, 2014 of the Government on the Restructuring, Reforming, Developing, and Enhancing the Efficiency of Agricultural and Forestry Companies (hereinafter referred to as Decree No. 118/2014/NĐ-CP).

Article 3. Objectives of forest development

1. Target by 2020: Plant 900,000 hectares of production forests, averaging 180,000 hectares annually. Plant 75,000 hectares of protective and special-use forests, averaging 15,000 hectares annually. Enclose and regenerate 360,000 hectares of forests.

2. Address employment and increase income to stabilize the livelihoods of ethnic minorities in mountainous areas.

3. Promote the formation of a stable and long-term forestry market, including seed supply markets, technical service markets, wood processing and consumption markets.

Article 4. Definitions

1. Investment support: This is a form of support where a portion of the investment capital is provided from the state budget to organizations, households, individuals, and communities as prescribed.

2. Post-investment support: This is a form of support where the investor (organization, household, individual, and community) self-invests in afforestation and wood processing activities according to this Decision, then the State verifies the investment results (partially or entirely), and the State will reimburse the investor for the supported capital from the budget as stipulated in this Decision.

3. High-tech forestry zone: This is a zone implementing research and development projects of the forestry sector; a production area for new products; a zone applying high-tech production techniques for forestry products including: producing forestry seeds through tissue culture technology; a production area for auxiliary products (adhesives, coatings, mechanical accessories); a manufacturing area for equipment serving the wood processing and forestry product industries.

Chapter II

FOREST PROTECTION AND DEVELOPMENT INVESTMENT SUPPORT POLICY

Article 5. Support for planting production forests, scattered trees, and promoting forestry

1. Organizations, households, individuals, and communities planting forests on vacant land, barren hills planned as production forests shall be supported with capital from the state budget at specific levels as follows:

a) Planting large timber-producing tree species (harvested after 10 years of age), multi-purpose trees, native trees, at a support level of VND 8 million per hectare; planting small timber-producing tree species (harvested before 10 years of age) and scattered trees (equivalent to 1,000 trees per hectare), at a support level of VND 5 million per hectare.

b) Planting production forests in border communes, Son La, Lai Chau, Dien Bien provinces, and the Central Highlands provinces shall receive additional support of VND 2 million per hectare beyond the support level specified in point a Clause 1 of this Article.

2. Organizations, households, individuals, and communities planting experimental forests (new varieties, on new lands) according to approved plans shall be supported with capital equal to 60% of the cost of planting forests approved. Each experimental forest model shall be supported up to a maximum of 2 hectares.

3. Supporting costs for forestry promotion work: supporting VND 500,000 per hectare every four years (one year of planting and three years of care).

4. One-time support for surveying, designing, and signing contracts for planting forests: VND 300,000 per hectare.

5. One-time support for issuing sustainable forest certificates for enterprises, communities, groups of households, and households: 70% of the cost, not exceeding VND 300,000 per hectare for a minimum area of 100 hectares (for natural forests and planted forests).

6. Forms of support: post-investment support and investment support.

7. Conditions for receiving support:

a) The forest owner, which is an organization, household, individual, or community, must have land planned for planting production forests assigned or leased by the competent authority and hold a certificate of land use rights or have been using the land stably for at least three years without disputes. For state-owned enterprises and other organizations, the land for planting production forests must be allocated to organizations, households, individuals, and communities for long-term stability (at least one cycle).

b) The source of forest planting seeds (seeds, fruits, or seedlings) must originate from a seed production facility that has been certified by the competent authority regarding the seed source as prescribed.

Article 6. Support for planting protective forests, special-use forests, enclosing and nurturing natural regeneration of forests, and contracting management and protection of forests.

1. Investment in planting protective and special-use forests: the planned capital from the central budget is VND 30 million per hectare; the specific investment level is determined based on economic and technical norms and the project approved by the competent authority. The provincial People's Committee and the central agency responsible for investment will balance and supplement the remaining budget according to the approved estimate. In cases where organizations (non-state-owned), households, or individuals plant protective forests, the shortfall (compared to the VND 30 million per hectare support level) according to the technical design estimate shall be self-funded.

2. Support for planting bamboo and reeds to protect river and stream banks, and high-risk erosion structures. The support level is VND 100,000 per cluster (minimum 3 trees per cluster; one year of planting and three years of care).

3. Contracting management and protection of forests: an average of VND 300,000 per hectare per year. The specific level is decided by the provincial People's Committee. Among this, the support for preparing the contract for management and protection of forests is VND 50,000 per hectare every five years.

a) For households in poor districts according to Resolution 30a/2008/NQ-CP dated December 27, 2008 of the Government: implemented according to Decision No. 2621/QD-TTg dated December 31, 2013 of the Prime Minister amending and supplementing some support levels for production development stipulated in Resolution No. 30a/2008/NQ-CP dated December 27, 2008 of the Government on the Program for Rapid and Sustainable Poverty Reduction in Poor Districts;

b) For households of ethnic minorities, poor Han households, and village communities assigned forests in economically disadvantaged communes (areas II, III) in ethnic regions and mountainous areas: implemented according to Decree No. 75/2015/NĐ-CP dated September 9, 2015 of the Government on mechanisms and policies for protecting and developing forests, linked to rapid and sustainable poverty reduction policies and support for ethnic minorities during the period 2015-2020;

c) For contracting the protection of coastal protective and special-use forests: implemented according to Decision No. 120/QĐ-TTg dated January 22, 2015 of the Prime Minister approving the Project on Protecting and Developing Coastal Forests to Respond to Climate Change for the period 2015-2020.

4. Enclosing and nurturing natural regeneration of forests: The State encourages the development of protective and special-use forests through natural regeneration methods with specific support levels as follows:

a) Without supplementary planting: support level of VND 3 million per hectare over six years, the specific level is determined by the provincial People's Committee.

b) With supplementary planting: maximum support level of VND 1.6 million per hectare per year for the first three years and VND 600,000 per hectare per year for the following three years.

Article 7. Support for the development of forestry applying high technology

1. The State supports investment in three high-tech forestry areas in the Northern, Central, and Southern regions.

2. Content of investment: The State invests in a synchronized infrastructure system, research and development (R&D) facilities, and equipment serving research.

3. Enterprises investing in high-tech forestry zones enjoy incentives and support according to Decree No. 210/2013/NĐ-CP dated December 19, 2013 of the Government.

Article 8. Rights and obligations of organizations, households, individuals, and communities (referred to as forest owners) when planting production forests.

1. Benefits: Enjoy all products from planted forests, freely circulate products upon harvesting, and benefit from tax and land use fee exemptions and reductions according to current laws.

2. Forest owners may use up to 30% of the allocated or leased land area without existing forests for investments in eco-tourism, leisure, agriculture, and aquaculture, with a maximum of 20% of the area reserved for infrastructure construction (roads, permanent structures, factories).

3. Obligations: When harvesting products from planted forests, forest owners must pay to the Village Forest Protection and Development Fund and the Commune, Ward, or Group Forest Protection and Development Fund an amount equivalent to VND 80 kg of rice per hectare per forest cycle, with each fund receiving 50%.

For household, individual, and community forest owners who have contracted management of special-use forests, protective forests, or state-owned enterprises (referred to as the contracting party), the forest owner (the contracting party) must pay the above amount to the contracting party. Additionally, the forest owner does not need to pay any additional amounts to the contracting party.

After harvesting planted forests, within 12 months, the forest owner must replant the forest according to regulations.

If the forest planted with government support does not meet national standards after five years, the forest owner must self-fund the replanting or repay the government the support funds received plus commercial interest rates at the time of recovery.

In cases where forests are lost due to force majeure such as natural disasters, fires, or pests, there is no obligation to repay the support funds received.

4. For areas of planted forests that were previously special-use forests or protective forests funded by Program 327 and state budget funds under the New Forest Planting Project of 5 million hectares, now re-planned as production forests, the rights and obligations of the forest owners shall be implemented according to Articles 1, 2, and 3 of this provision.

Article 9. Rights and obligations of organizations, households, individuals, and communities (referred to as forest owners) when planting protective forests; protecting and nurturing natural forest regeneration.

1. Benefits: Receive state budget support as stipulated in this Decision and all products from the forest when permitted to harvest according to state regulations.

2. May use up to 30% of the land area without existing forests for developing agriculture, eco-tourism, leisure, and constructing infrastructure serving forestry.

3. Obligations: Must plant and protect protective forests and natural forests according to current forest protection laws.

Article 10. Support for investment in planting and managing seedling forests and nurseries

1. The State supports investment in constructing and maintaining management and protection of seedling forests and nurseries. Among these, the State (including state-owned enterprises and organizations established by the State) shall directly manage seedling forests and nurseries of national importance with a maximum area of 30% of the total planned area for seedling forests and nurseries; the remaining portion shall be assigned, sold, or contracted to other economic sectors for management and business operations in accordance with the provisions of the law.

2. Seedling forests and nurseries managed by economic sectors must be within the approved planning of the competent authority, and initial investment support for construction of infrastructure and equipment according to the approved project is provided. The maximum level of support from the State budget for forest production, infrastructure construction, and equipment is specified as follows:

a) Not exceeding 55 million VND per hectare for newly planted nurseries.

b) Not exceeding 40 million VND per hectare for newly planted seedling forests.

c) Not exceeding 15 million VND per hectare for converted seedling forests.

d) In addition to the aforementioned support levels, there is also support of 300,000 VND per hectare per year for the cost of protecting and managing seedling forests and nurseries; the support period does not exceed five years.

Article 11. Support for investment in building high-quality tree seedling production centers

1. Criteria for supported seedling centers:

a) It is a tissue culture facility with a minimum capacity of one million trees per year.

b) The concentrated land area for building the seedling center must be at least 3.0 hectares (including land for building houses, workshops, and seedling gardens).

2. Conditions for receiving investment support:

a) For provinces without tissue culture facilities, they can receive support to build one seedling center according to the criteria stipulated in Clause 1 of this Article.

b) It is a non-state-owned enterprise or a state-owned enterprise that has been privatized, where the State holds no more than 50% of the charter capital.

c) The enterprise's capital must participate in at least 30% of the total investment amount for the project to build the seedling center.

3. Investment support items: construction of office buildings, workshops, roads, power lines, procurement of equipment, and technology costs.

4. Maximum level of support from the State budget is 5 billion VND for one seedling center.

5. Implementation procedure for support: the total support amount is disbursed in two installments after inspection and acceptance. The first installment of 70% of the support capital is disbursed after the investor completes the construction of the items specified in Clause 3 of this Article. The second installment is disbursed after one year when the investor has produced seedlings reaching the designed capacity and quality.

Article 12. Support for investment in seedling nurseries

1. Criteria for supported seedling nurseries:

a) It is a facility for growing forest trees using cutting, bud, seed, and tissue-cultured plantlet methods.

b) The minimum land area for building the nursery is 0.5 hectares.

2. Nursery planning: On average, each commune or cluster of communes with 1,000 hectares or more of planned industrial forest land should have one nursery. When planning nurseries, existing nurseries should be primarily utilized; new construction should only be planned when there are new forest plantation projects or in truly necessary locations.

3. Conditions for receiving support:

a) The nursery must be within the provincial forestry seedling production plan or belong to concentrated forest plantation projects.

b) The nursery owner must commit to using the allocated land for seedling production for at least ten years.

c) The nursery belongs to non-state-owned economic sectors. If there is state capital (state-owned enterprises, Forest Protection Management Board, Specialized Forest Management Board), then the state capital ratio does not exceed 50%.

4. Investment support items: initial infrastructure construction, including: electricity, irrigation system, fence, material garden, site leveling, and hardening of the foundation.

5. Level of support: on average 300 million VND for newly constructed nurseries; nurseries built in border communes are supported according to the approved project capital; for nurseries being renovated and upgraded to meet the nursery standards specified in Clause 1 of this Article, the support level does not exceed 75 million VND per nursery.

6. Implementation procedure for support: the total support amount is disbursed in two installments after inspection and acceptance. The first installment of 70% of the support capital is disbursed after the investor completes the construction of the items specified in Clause 4 of this Article. The second installment is disbursed after one year of construction.

Article 13. Support for Forestry Road Investment

1. Fire Prevention Forest Boundary Roads (Fire Barrier Roads)

a) Support Standards: Fire prevention forest boundary roads combined with transportation roads for seedlings and materials within the project area shall be supported at a rate of 15 to 20 meters of road per hectare. When planning a support investment project for industrial timber plantations, the system of fire prevention and control roads must be planned, with participation from forest owners (including those who lease land for forestry plantations) in the project area. For previous projects that have not been supported for fire prevention and control roads, supplementary planning and support according to this Decision are permitted.

b) The level of investment support is 30 million VND/km, including 25 million VND/km for construction of road components; the remainder is used for maintenance and upkeep throughout the entire plantation cycle.

c) Investment procedures and final acceptance: After receiving the provincial People's Committee's budget allocation for the planning year, the district Project Management Board is authorized to design technical specifications and budgets for fire prevention forest boundary roads according to standards issued by the Ministry of Agriculture and Rural Development, and submit them for approval by the district People's Committee. Upon approval, the district Project Management Board may organize construction independently; upon completion, the Department of Agriculture and Rural Development is responsible for organizing the acceptance of fire prevention forest boundary roads as the basis for settlement with the State Treasury. The district Project Management Board is responsible for managing and maintaining the entire road system throughout the entire plantation cycle.

2. Forestry Roads: In concentrated industrial timber planting areas with a scale of 500 hectares or more, the maximum support rate is 20 meters of road per hectare for forestry road investment, with a limit of 450 million VND/km for reinforced concrete culverts crossing streams. The management and construction of forestry roads shall be carried out in accordance with current regulations.

Article 14. Support for Special Wood Processing of Plantation Forests in Poor Provinces

1. Domestic investors with projects to build wood processing factories for plantation forests and industrial bamboo in Northwest Vietnam, Central Highlands, and provinces with poor districts as stipulated in Resolution 30a/2008/NQ-CP dated December 27, 2008 of the Government shall receive state budget support as follows:

a) Investment Support: Support of 200 billion VND/factory for MDF production plants with a capacity of over 30,000 cubic meters/year; support of 100 billion VND/factory for industrial bamboo and particleboard processing plants with a capacity of over 20,000 cubic meters; support of 100 billion VND/factory for plywood plants with a capacity of over 100,000 cubic meters for infrastructure development such as transportation, electricity, water supply, factory buildings, and waste treatment facilities.

b) Post-Investment Support: Post-investment support is calculated based on product transport distance at a rate of 1,500 VND/ton/km; the distance is measured from the factory location to the nearest center of Hanoi, Da Nang, or Ho Chi Minh City via automobile routes; the amount of support is calculated based on the actual equipment capacity of the factory multiplied by five years, ensuring that at least 70% of the total support funds are available immediately after the factory is completed.

2. Projects eligible for support under Clause 1 of this Article must meet the following conditions:

a) The project must have an investment proposal in accordance with the Law on Public Investment (replacing the investment proposal under the Investment Law).

b) MDF and particleboard production plants must combine production with at least one of the products such as floor panels, boards, or laminated boards to avoid resource wastage; the production volume of these combined products will be included in the supported capacity.

c) Equipment must be produced in developed countries (with an average income per capita of over 10,000 USD/year); if produced in developing countries, the equipment must be brand new. The factory cannot relocate from its registered production site within 20 years.

d) The existing planted forest area and raw material sources in the province must be sufficient to ensure the factory operates at a minimum of 60% capacity in the first five years. The project must employ at least 30% local labor.

đ) The total actual equipment capacity of supported factories in each province shall not exceed 200,000 tons. The equipment capacity is calculated as: the verified production volume of one shift multiplied by three shifts/day and 300 days/year.

e) If a province already has a paper pulp factory with a capacity of 50,000 tons/year or an MDF factory with a capacity exceeding 100,000 cubic meters, it does not qualify for support.

g) Compliance with environmental protection requirements as stipulated by environmental protection laws.

Chapter III

INVESTMENT SUPPORT AND ORDERING POLICY TO IMPLEMENT PUBLIC INTEREST TASKS

Article 15. Investment support and procurement orders for forestry and agricultural companies (as stipulated in Clause 2, Article 1 of Decree No. 118/2014/ND-CP)

1. Support for protective and special-purpose forest planting: The planned budgetary support level from the central government's budget is 30 million VND per hectare; the specific investment level is determined based on economic and technical norms and projects approved by competent authorities. The portion of capital exceeding the allocated amount shall be integrated and mobilized from other legitimate sources to implement the project.

2. Procurement plan for public service tasks:

a) For areas of protective forests and productive forests that are natural forests not yet at the harvesting stage, managed directly by forestry and agricultural companies, support for costs of contracted forest management and protection, and encirclement and regeneration of forests will be at a rate of 50% compared to the average rate of contracted forest management and protection, encirclement and regeneration of forests for households, individuals, and communities.

b) Support for constructing forest management and protection stations, fire prevention facilities, and collective housing for workers.

Chapter IV

INVESTMENT MECHANISM

Article 16. Sources of investment support funds

1. Central government budget.

2. Local government budget: Based on the provisions of this Decision, the Provincial People's Committee is responsible for using revenue from standing tree sales, forest resource taxes, fines from violations of the Forest Protection and Development Law, retained revenue from hydropower plants, and other revenues as prescribed by law to ensure local funding.

3. Integrated capital from other programs and projects with the same objectives.

4. The total investment level for the 2016-2020 period to implement this Decision is approximately 61 trillion VND, including mobilizing other economic sectors for 45 trillion VND (environmental services payment 8 trillion VND; credit 10 trillion VND; capital of organizations, individuals, and households 27 trillion VND). State capital: State development budget investment about 9 trillion VND (central government budget 8 trillion VND, local government budget 1 trillion VND); economic affairs capital 5.115 trillion VND. Official Development Assistance (ODA) capital 3 trillion VND

Article 17. Mechanism for investment support

1. The central government budget supports projects with state budget support levels from Group C upwards and project implementation periods according to the forestry cycle and production approved by competent authorities.

2. Post-investment support: The State prioritizes payment for afforestation costs for areas (allocated, contracted) to organizations, individuals, and households who self-fund afforestation (2016-2020) immediately upon successful forest establishment according to regulations.

3. Investment and post-investment support from the budget for contracted forest protection, encirclement and regeneration of forests, afforestation, and wood processing does not count towards taxable income (income tax) of organizations, individuals, households, and communities.

4. The central government budget will only focus on targeted support for provincial budgets that still receive subsidies from the central government and certain high-spreading impact projects in provinces decided by the Prime Minister; provinces not falling under the above category must allocate local government budgets to implement as prescribed in this Decision.

5. Where multiple policies apply to the same support content, organizations, individuals, and communities may only receive support from the most beneficial policy for the recipient.

Chapter V

SOLUTIONS AND IMPLEMENTATION ARRANGEMENTS

Article 18. Regarding land

1. For land planned for commercial forest planting currently managed by state organizations, if not yet meeting conditions to transfer land to organizations, households, individuals, and communities, before implementing this Decision, state organizations must implement long-term stable forestry land contracts (at least one forest planting cycle) for organizations, households, individuals, and communities to plant commercial forests.

2. Funding implementation

a) Funding for land planning, land allocation, forest allocation, land leasing, contracting land for commercial forest planting, and establishing support projects for commercial forest planting shall be sourced from the state budget funds as stipulated in this Decision.

b) Organizations, individuals, and households are permitted to advance their own funding according to regulations to carry out tasks specified in point a, Clause 2 of this Article, with the State arranging repayment of the funding in the following fiscal year.

Article 19. Support investment projects

1. Investors and establishment of support investment projects for forest planting

a) Support investment projects for commercial forest planting by households, individuals, and communities on areas of land planned for commercial forest planting within buffer zones of special-use and protective forests shall be established and led by the Special-Use Forest Management Board or Protective Forest Management Board.

b) Support investment projects for commercial forest planting for households, individuals, and communities on areas of land planned for raw material supply regions of state-owned enterprises shall be established and led by the enterprise.

c) Support investment projects for commercial forest planting by non-state-owned enterprises and cooperatives shall be established based on actual areas of land allocated, leased, and land of households, individuals, and communities agreeing to participate in supplying raw materials to enterprises and cooperatives, led by the enterprise or cooperative.

d) Remaining areas of land suitable for forest planting in districts and provinces may establish one or two support investment projects for commercial forest planting for households, individuals, and communities, led by forestry inspection agencies, border guard stations, or protective forest management boards.

đ) The Association of War Veterans may establish scattered tree planting projects, bamboo and reed planting projects to protect river and stream banks within their jurisdiction; manage and benefit according to the provisions of this Decision.

e) Support investment projects for commercial forest planting for households, individuals, and communities shall be established simply, ensuring the principle of not overlapping with other commercial forest planting project areas; clearly defining the area of forest planting on each plot, section, small forest management unit, whether the land is vacant or already has planted forests, and aligning with the three types of forest planning.

g) Reforestation and regeneration projects for protective and special-use forests shall be established by the forest owner according to current regulations.

h) The implementation period for support investment projects for forestry activities shall follow the forestry cycle.

i) Project management fees for support investment projects for forest planting, scattered tree planting, forest regeneration, and forest protection shall be calculated at 10% of the total support investment amount for forestry activities in the locality: 2% for provincial, district, and commune levels, and 8% for the project investor (of which the investor allocates 1% to the Village Forest Development Board). Management costs shall be implemented according to current regulations.

2. Post-investment support projects, investors are permitted to approve design estimates and implement them independently, only disbursing 70% of the support amount for the investment component upon acceptance, and disbursing 100% of the support amount upon completion acceptance of the entire project. For support investment projects, investors can organize implementation themselves or hire consultants to undertake the investment.

Article 20. Responsibilities of Ministries, sectors, and localities

1. The Ministry of Agriculture and Rural Development:

a) Take the lead and coordinate with relevant agencies to plan the use of forestry land, allocate forestry land, allocate forests, lease forestry land, and contract forestry land to implement this Decision.

b) Guide localities in establishing and promulgating: Operation regulations for project management boards at all levels, steering committees for implementing projects at district level, forest development boards at commune and village levels; Management and usage regulations for communal forest protection and development funds, village forest protection and development funds.

c) Issue criteria for state-managed seedling forests and seedling gardens; develop planning for the system of seedling forests and seedling gardens; guide the transfer, sale, and contracting of state-managed seedling forests and seedling gardens to other economic sectors according to the provisions of the law. Specify specific criteria for tissue culture facilities of seed centers and seedling nurseries.

d) Organize support for trademark registration for seed centers and seedling nurseries. Post information on the electronic website for seed management of the Ministry of Agriculture and Rural Development regarding all seed sources and seed production facilities that have been inspected by authorized agencies. Establish a system of information management to track and compile results.

đ) Develop Fire Prevention and Control Forest Boundary Standards and establish Procedures for Determining and Liquidating Forests Damaged by Natural Disasters and Unavoidable Fires.

e) Coordinate with the Ministries of Planning and Investment, Finance to compile annual and medium-term plans for state investment support according to the provisions.

g) Mobilize sponsors to provide financial and technical support. Utilize ODA funds to support the planting of productive forests, construction of forestry infrastructure, and training of cadres at all levels to effectively implement this Decision.

h) Promote and disseminate the main contents of policies stipulated in this Decision and related policies to the relevant subjects. Direct, inspect, and supervise during the implementation of this Decision.

i) Publish a list of forestry products with technology and use the allocated capital from the Ministry of Agriculture and Rural Development to support enterprises investing in three high-tech forestry zones.

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 annual and medium-term funding and submit to the Prime Minister for decision.

b) Take the lead and coordinate with the Ministry of Agriculture and Rural Development to provide detailed guidance on the procedures for support and specify the specific support quotas of this Decision.

c) Be responsible for state management of forestry development investment according to this policy; coordinate with the Ministry of Agriculture and Rural Development, the Ministry of Finance, and provincial People's Committees to inspect and supervise the implementation of this Decision.

d) Coordinate with the Ministry of Agriculture and Rural Development to periodically report on monitoring and evaluating comprehensive impacts on economic and social aspects every three and five years in the implementation of this Decision to propose adjustments and supplements to meet practical requirements and submit to the Prime Minister for decision.

3. Ministry of Finance

a) Take the lead in guiding the State Treasury to settle accounts and payments from the budget to implement this Decision.

b) Coordinate with the Ministry of Planning and Investment and the Ministry of Agriculture and Rural Development in compiling, building plans, and preparing annual and medium-term budgets to implement this Decision.

4. Other relevant ministries and sectors shall perform their duties according to their assigned functions and tasks.

5. Provincial People's Committees:

a) Plan and announce the plan for land use to attract various economic components to invest in planting productive forests.

b) Develop and approve the planning for the system of seedling forests and nurseries until 2020, with a vision to 2030 (seek comments from the Ministry of Agriculture and Rural Development before approval). Direct the Department of Agriculture and Rural Development to urgently issue certificates for seed sources meeting standards according to the Ministry of Agriculture and Rural Development's Seed Management Regulations. Publicly announce on mass media the facilities that meet conditions for producing seeds.

c) The provincial People's Committee announces prices and technical standards for seedlings leaving the nursery of tree species planted in the locality as a basis for investors to settle accounts and pay capital. Do not approve seedling prices for individual projects.

d) Allocate capital for investment support from the state budget for projects. Direct project management boards at all levels to ensure funding for areas of planted forests under post-investment support; approve projects according to regulations.

đ) Strengthen propaganda and dissemination of the main contents of policies stipulated in this Decision and related policies to all levels, sectors, enterprises belonging to various economic components, households, individuals, and communities within the province to be aware and comply.

e) The provincial People's Committee assigns the Department of Agriculture and Rural Development to take the lead and coordinate with relevant agencies to inspect the results of investments in projects supported after investment. The inspection record serves as the basis for disbursing state support funds.

g) Direct, organize implementation, inspect, and supervise the process of implementing this Decision.

Article 21. Effective Date

1. This Decision takes effect from... month... year 2016 and replaces Decision No. 147/2007/QĐ-TTg dated September 7, 2007, and Decision No. 66/2011/QĐ-TTg dated December 9, 2011 of the Prime Minister on issuing certain policies for developing productive forests.

2. Projects approved before the effective date of this Decision and currently being implemented according to Decision No. 147/2007/QĐ-TTg dated September 7, 2007, and Decision No. 66/2011/QĐ-TTg dated December 9, 2011 will continue to be implemented and apply the support provisions of this Decision from January 1, 2016. Project investors may proactively adjust unit prices, area, and product types according to this Decision but must not increase the total investment amount of the project.

Article 22. Implementation Provisions

The Ministers, Heads of ministerial-level agencies, Heads of government agencies, Chairpersons of People's Committees of provinces and centrally governed cities, and Heads of relevant agencies are responsible for implementing this Decision./. 

PRIME MINISTER
Nguyen Xuan Phuc
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38/2016/QĐ-TTg
Decision No. 38/2016/QD-TTg on issuing policies for forest protection, development, investment support for infrastructure, and public service tasks for agricultural and forestry companies.
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