Decision No. 661/QD-TTg On the objectives, tasks, policies, and implementation organization of the Project to plant five million hectares of new forest

 

Pursuant to …;

On the objectives, tasks, policies, and implementation organization of the Project to plant five million hectares of new forest

PRIME MINISTER

Pursuant to the Resolution of the National Assembly of the Socialist Republic of Vietnam, Session X, Second Meeting on the project to plant five million hectares of new forest;
Pursuant to the Forest Protection and Development Law dated August 19, 1991;
Pursuant to the Government Organization Law dated September 30, 1992;
Pursuant to the Resolution of the regular monthly meeting of the Government in May 1998;
Considering the proposals of the Ministers of Agriculture and Rural Development, Planning and Investment, Finance, Science, Technology and Environment, Labor, Invalids and Social Affairs, Chairman of the State Committee for Ethnic Minorities and Mountainous Areas, Governor of the State Bank of Vietnam, Director General of the Land Administration General Department;

DECISION:

I. OBJECTIVES, TASKS AND GUIDING PRINCIPLES OF THE PROJECT:

Article 1. Objective

1. To plant five million hectares of new forest along with protecting existing forest areas, thereby increasing forest coverage to 43%, contributing to environmental security, mitigating natural disasters, enhancing water production capacity, conserving genetic resources and biodiversity.

2. To effectively utilize vacant land and barren hills, creating more job opportunities for workers, helping to eradicate poverty, stabilize settlement, increase income for rural mountain residents, ensure political, social, national defense, and security stability, especially in border regions.

3. To provide wood raw materials for paper, plywood production, meeting domestic demand for timber, firewood, and other forest products, as well as export production, promoting the development of forest product processing industry, making forestry an important economic sector, contributing to the socio-economic development of mountainous regions.

Article 2. Guiding Principles

1. The people are the main force in planting, protecting, and nurturing new forests, and benefiting from forest-related activities. The State creates a favorable legal environment; organizes research and technology transfer; implements policies to encourage those engaged in forestry; supports investment from state budget or preferential credit sources; and assists in building essential infrastructure.

2. To closely integrate afforestation, nurturing, and protection of existing forest areas with the tasks of stabilizing settlement, eradicating poverty, and reducing hunger.

3. To maximize the combined economic, social, and environmental benefits of forests through a sustainable agro-forestry system with a rational and multi-purpose crop structure, applying advanced plantation techniques linked to modern processing industries.

4. To reasonably allocate tasks of planting protective and productive forests among regions, but focusing on priority areas, combining concentrated and scattered tree planting.

- For protective forests, prioritize investment in critical and key protective zones, headwaters of rivers, reservoirs, particularly hydropower projects, cities, coastal protective zones, and areas urgently needing ecological restoration.

- For productive forests, prioritize developing high-yield crops that also serve protective purposes both in the short and long term.

5. Afforestation in each phase shall be implemented through projects developed at the grassroots level, involving the participation of the people and approved by competent authorities according to current regulations, carried out promptly but firmly, ensuring the schedule and effectiveness of each project.

Article 3. Task

1. Effectively protect existing forest capital, prioritizing the protection of natural forests classified as special-use forests, protective forests in highly and moderately vulnerable areas, including protective forests planted under Program 327, productive forests with rich and medium reserves. Immediately implement land allocation and forest allocation to organizations, households, and individuals tied to stable settlement, poverty reduction, and protection, nurturing, and replanting forests.

2. Planting forests:

a. Plant two million hectares of protective and special-use forests: nurture and regenerate one million hectares, plant one million hectares tied to stable settlement.

b. Plant three million hectares of productive forests: industrial raw material forests for paper, plywood, timber, specialty trees, rare and precious woods... about two million hectares; perennial industrial and fruit trees about one million hectares; simultaneously mobilize organizations and the public to fully utilize vacant land for scattered tree planting.

The afforestation project for each phase is as follows:

- Phase 1998-2000: plant one million seven hundred thousand hectares (of which six hundred twenty thousand hectares are protective and special-use forests), nurture and regenerate combined with supplementary planting three hundred fifty thousand hectares.

- Phase 2001-2005: plant one million three hundred thousand hectares (of which three hundred fifty thousand hectares are protective and special-use forests), nurture and regenerate combined with supplementary planting six hundred fifty thousand hectares;

- Phase 2006-2010: plant two million hectares (of which three hundred ninety thousand hectares are protective and special-use forests).

II. POLICIES AND SOLUTIONS:

Article 4. Crop Structure

Crops in this project include long-term agricultural and forestry crops with canopy cover and protective functions like forests. To enhance environmental protection, mitigate natural disasters, and meet biological diversity and socio-economic efficiency requirements, the crop structure is directed as follows:

1. Special-use forests:

Based on the ecological recovery needs of each type of special-use forest, the Special-Use Forest Management Board selects specific crop structures suitable for the ecosystem of the region, approved by the Ministry of Agriculture and Rural Development or the People's Committees of provinces and centrally-administered cities.

2. Protective forests in highly and moderately vulnerable areas:

Depending on the protective needs of each area and local climate and soil conditions, select crops with good protective effects, mixed species, capable of tolerating harsh climates, poor soils, steep slopes, and coastal areas, resistant to pests and fires, and economically valuable crops are encouraged where conditions permit. Specific crop types are determined by the People's Committees of provinces and centrally-administered cities.

3. Productive forests and protective forests in less vulnerable areas:

Select high-value economic tree species (including long-term industrial crops, fruit trees, specialty crops, medicinal plants, etc., with good canopy coverage). The specific composition of each type of tree is determined by organizations, households, or individuals granted land by the State for afforestation purposes according to provincial and centrally-administered municipal planning, gradually forming specialized and concentrated production areas that are suitable for local conditions and linked to the development of processing industries and market demands.

Article 5. Land Policy

Provincial People's Committees under the guidance of the Ministry of Agriculture and Rural Development and the General Department of Land Administration are responsible for reviewing the forestry and agricultural land fund, developing plans for using vacant land and barren hills for a project to plant five million hectares of forest at the provincial, district, and commune levels; specifically identifying special-use forests, protective forests in very critical, critical, and less critical areas, and production forests according to the regulations of the Ministry of Agriculture and Rural Development; directing the allocation of land, leasing of land, and issuance of land use right certificates to organizations, households, and individuals in accordance with Decree No. 02/CP dated January 15, 1994 of the Government.

1. Allocation of forestry land tied to allocation of forests and issuance of land use right certificates for special-use forests and protective forests.

a. Allocation of forestry land tied to allocation of forests planned for constructing special-use forests to Forest Management Boards to protect and develop according to approved investment projects.

b. Allocation of land planned for planting protective forests in very critical and critical areas to Forest Protection Management Boards. Forest Protection Management Boards allocate land on a contractual basis to organizations (including forest farms), households, and individuals for planting, caring for, and protecting the forest.

c. Allocation of land and leasing of land planned for constructing protective forests in less critical areas to protect and plant mixed forestry and agricultural crops primarily for forestry and agricultural production purposes, combined with protective functions, following the same methods as for production forests.

2. Allocation of land and leasing of land for planting production forests to organizations of various economic sectors, households, and individuals.

a. Provincial People's Committees coordinate with relevant Ministries to review the forestry and agricultural land fund previously allocated to forest and agricultural farms, while simultaneously reorganizing state-owned forest and agricultural farm operations to determine the area and boundaries of land to be allocated to these farms. The remaining forestry land must be fully allocated by the year 2000 to organizations, households, and individuals for afforestation.

b. Allocation of vacant land and barren hills to organizations, households, and individuals for afforestation. Priority should be given to allocating land to local households.

3. Limits and terms for allocation of land and leasing of land are defined as follows:

a. Limits for allocation of land and leasing of land for organizations are based on approved investment projects. Limits for allocation of land and forests to households and individuals are set by provincial and centrally-administered municipal People's Committees in accordance with local circumstances.

b. Terms for allocation of land and leasing of land for organizations and allocation of land and forests to households and individuals are fifty years. Upon expiration of this term, if organizations, households, or individuals still have needs and use the land for its intended purpose, they may be reallocated or leased again by the State. If planting trees with cycles exceeding fifty years, they will be reallocated or leased until harvest.

4. Issuance of land use right certificates.

Provincial People's Committees direct the issuance of land use right certificates to organizations, households, and individuals immediately after land allocation and leasing. Organizations, households, and individuals granted land by the State must use it for its intended purpose and plant forests according to the approved project schedule.

Article 6. 1. Regarding investment: The budget (including both central and local budgets) will invest in:

1. Investment capital from the State budget:

a. Continue implementing policies to protect special-use forests and protective forests in very critical areas over approximately two million hectares carried out under Program 327, with allocations not exceeding 50,000 dong per hectare per year for provinces and centrally-administered municipalities, for a period not exceeding five years.

Contractual management for regeneration and supplementary planting not exceeding one million dong per hectare, with a six-year contract period. Annual funding allocation ratios follow the regeneration and supplementary planting procedures specified by the Ministry of Agriculture and Rural Development.

b. Planting protective forests in very critical and critical areas directly to forest planters, averaging 2.5 million dong per hectare, including new planting and care according to technical procedures established by the Ministry of Agriculture and Rural Development.

The Ministry of Agriculture and Rural Development directs localities to organize pilot bidding for economic organizations, including volunteer youth forces, to protect, manage regeneration, and plant forests in areas where household contracting is not feasible.

c. Support averaging two million dong per hectare for organizations, households, and individuals who self-fund the planting of production forests consisting of rare and precious timber species with cycles over thirty years, prioritizing species that can be planted under Group IA and IIA as stipulated in Decree No. 18/HĐBT dated January 17, 1992 of the Council of Ministers (now the Government).

Provincial People's Committees direct the use of these funds for contractual protection, regeneration, and supplementary planting of protective and special-use forests, supporting the planting of production forests with rare and precious timber species, linked to stable settlement and poverty reduction programs suitable for local conditions.

d. Project management costs for planting protective and special-use forests are allocated 8% of the total State budget investment amount for the project, with central ministries accounting for 0.7%, provincial, district, and commune levels accounting for 1.3%, and project managers at the grassroots level accounting for 6%.

Point d. Investment capital for infrastructure construction, scientific research, forestry promotion, agricultural promotion, design fees, funds to transfer land and issue land use right certificates shall be balanced by the Ministry of Planning and Investment and the Ministry of Finance for relevant sectors and localities in accordance with project requirements. The financial management mechanism for investment capital in forest protection, regeneration combined with supplementary planting, protective forest planting, and special-purpose forest planting is regulated as follows:

- State budget capital is allocated through the National Treasury system.

- The State advances funds for preparing tree seedlings in the first year. From the second year onwards, the project owner must collect seedling costs from the planting cost of that year to circulate and prepare seedlings for the following year. Upon completion of the afforestation project, the project owner is responsible for recovering and returning the advanced funds for seedling preparation of the first year to the state budget.

- Annually, when projects are assigned plans by competent authorities and approved design estimates, the National Treasury temporarily advances 30% of the project funds. After projects achieve 50% progress, they may receive an additional advance of 40%. At the end of the year, after receiving the acceptance certificate from the provincial Acceptance Committee chaired by the Department of Agriculture and Rural Development, the remaining capital will be settled for the project.

2. Investment credit capital

Organizations, households, individuals planting forests and protecting protective forests in less critical areas, production forests (including long-term industrial crops, fruit trees, specialty trees, and medicinal plants...) and developing processing facilities for forestry and agricultural products enjoy preferential policies according to the Law on Encouraging Domestic Investment (amended) and can borrow funds from the national investment support fund, other preferential credit sources, ODA from countries, international organizations, and other loan sources.

Forest owners who are non-state organizations, households, and individuals have the right to use production forests and granted forest land use rights as collateral when borrowing from banks.

Article 7. Benefit policy and product consumption

1. For special-purpose forests and protective forests:

a. Priority is given to allocating contracts to households engaged in settlement, poor households, households near forests, and those who previously received contracts to protect and regenerate special-purpose forests and protective forests in highly and critically vulnerable areas. Upon expiration of the contract period, if the contracting household wishes to continue and has performed well in forest protection during the contract period, they may receive the next contract cycle.

b. Households contracted to protect highly and critically vulnerable protective forests are allowed to harvest firewood and minor forest products under the forest canopy.

c. Households contracted to regenerate protective forests combined with supplementary planting are entitled to all thinning products and minor forest products under the forest canopy.

d. Households planting protective forests are entitled to all thinning products, agricultural products, and minor forest products under the forest canopy.

2. For production forests:

a. Households investing in planting production forests are the forest owners and have the right to decide the timing and method of harvesting forests but must replant within two years after harvesting.

b. All products harvested from planted forests, bamboo, rattan, and minor forest products harvested from natural forests can freely circulate in the market.

Timber and forest products harvested from naturally regenerating production forests owned by households and individuals can freely circulate in the market (except those listed in the rare flora and fauna catalog stipulated in Decree No. 18/HĐBT dated January 17, 1992, now the Government). When harvesting and consuming these products, forest owners only need to report to the nearest forest inspection agency or the People's Committee of the commune or town where they are located to obtain certification of legality within ten days.

c. The State encourages the processing and export of processed plantation forest products. In cases where domestic processing facilities cannot fully utilize raw materials or lack the conditions to invest in building processing facilities, it is permissible to export unprocessed plantation forest products.

d. The State implements policies to ensure the consumption of plantation forest products and other policies to guarantee the interests of forest planters.

Article 8. Tax policy

1. Investors, organizations, households, and individuals planting forests, long-term agricultural crops on degraded lands, hillsides, and processing agricultural and forest products enjoy tax incentives according to the Law on Encouraging Domestic Investment (amended).

2. Resource taxes are exempted for forest products harvested from restored natural production forests through regeneration measures.

3. Transit taxes are exempted for legally collected forest products from plantations and non-timber forest products harvested from natural forests.

Article 9. Science and technology policy

1. The Ministry of Agriculture and Rural Development collaborates with the Ministry of Science and Technology and Environment to focus on directing research on selecting, breeding, introducing tree species suitable for growth, achieving high efficiency, and intensive afforestation techniques, as well as measures to protect and prevent forest fires, to rapidly disseminate them widely.

2. The Ministry of Agriculture and Rural Development collaborates with provincial People's Committees to encourage the development of seed production facilities across various economic sectors, support investment in seed production, implement seed certification, and firmly refuse to use substandard seeds.

Article 10. Foreign investment cooperation

1. Encourage foreign investors to form joint ventures with domestic organizations and individuals to invest in afforestation and forest product processing, continue testing the model of leasing land and investing 100% foreign capital for afforestation.

Foreign investors enjoy preferential policies stipulated in the Law on Foreign Investment, Decree No. 10/1998/NĐ-CP dated January 23, 1998, of the Government regarding certain measures to encourage and ensure direct foreign investment activities in Vietnam.

2. Assign the Ministry of Planning and Investment, the Ministry of Agriculture and Rural Development, and related ministries and sectors to prioritize arranging ODA resources, while seeking financial assistance from countries and international organizations to provide additional funding for the 5 million hectare afforestation project.

III. IMPLEMENTATION ORGANIZATION AND PROJECT MANAGEMENT.

Article 11. Central project management machinery.

1. The State Project Steering Committee has been established pursuant to Decision No. 07/1998/QĐ-TTg dated January 16, 1998, of the Government Prime Minister.

2. Establish the Project Management Board under the Ministry of Agriculture and Rural Development with the participation of representatives (at the directorate level) from the following Ministries: Finance, Planning and Investment, State Bank of Vietnam, National Ethnic Minorities Commission and Mountainous Areas, Land Administration General Department, Ministry of Science, Technology and Environment, Vietnam Farmers' Association.

Assign the Minister of Agriculture and Rural Development to specify the functions, tasks, and operational regulations of the Project Management Board. The permanent support unit for the Project Management Board shall be undertaken by the Ministry of Agriculture and Rural Development without increasing the staffing quota.

Article 12. Local project management apparatus

1. In provinces and centrally-administered cities implementing forest planting projects: The Chairman of the People's Committee of the province or centrally-administered city shall be responsible for the overall results of the project implementation in their locality. Establish the Provincial Project Management Board headed by a Vice-Chairman of the People's Committee of the province or centrally-administered city, with the leadership of the Department of Agriculture and Rural Development serving as Deputy Head, and members being leaders of the Departments of Planning and Investment, Finance, Land Administration, State Treasury, and the State Bank branch at the provincial level.

Establish the Project Management Board under the Department of Agriculture and Rural Development to assist the Project Management Board:

- In provinces and centrally-administered cities having a Forestry Development Office, the office shall perform the functions of the Provincial Project Management Board.

- In provinces and centrally-administered cities not having a Forestry Development Office, establish a Project Management Board. The staffing and salary fund of this board shall be within the staffing and salary fund of the province's public service.

2. At the district level, do not organize a Project Management Board; the Chairman of the People's Committee of the district shall be responsible for state management over projects within the district.

3. In communes participating in forest planting projects on a certain scale decided by the People's Committee of the province or centrally-administered city, arrange a dedicated forestry officer to assist the Chairman of the Commune People's Committee in directing the forest planting project and protecting the forest, and such officer shall receive allowances from the project budget.

4. Grassroots-level forest planting projects shall have a Project Management Board with a lean staff including the Project Director, Chief Accountant, and some technical officers directing the field. Members of the Project Management Boards currently receiving salaries from the provincial public service fund shall continue to do so; new members of newly-established projects shall receive salaries from the project budget. Forest Protection and Specialized Forest Management Boards under Program 327 shall be reorganized accordingly.

The Minister of Agriculture and Rural Development shall specify the functions, tasks, and operational regulations of the Project Management Boards at various levels.

Article 13. The Steering Committees and Project Management Boards at various levels under Program 327 shall complete their summary and handover before December 31, 1998.

The Steering Committees and Project Management Boards at various levels under the New Forest Planting 5 Million Hectares Project shall be responsible for taking over and continuing to direct the unfinished forest protection and specialized forest projects 327 according to the mechanisms and policies stipulated in this Decision.

Article 14. This Decision shall take effect fifteen days from the date of signature, and all previous provisions contrary to this Decision shall be abolished.

Article 15. Ministers, Heads of ministerial-level agencies equivalent to ministries, and Chairmen of the People's Committees of provinces and centrally-administered cities shall be responsible for implementing this Decision./.