Circular No. 80/2007/TT-BNN guiding the planning of agricultural and forestry production linked with processing and consumption of agricultural and forestry products in the resettlement areas for the Son La Hydropower Project and procedures for production support.

CIRCULAR

Guidelines for planning agricultural and forestry production linked to processing,

consumption of agricultural and forestry products and procedures for production support

for resettlement areas of the Son La Hydropower Project

_________________________

Pursuant to Article 26, Clause 4 of Article 34 of Decision No. 02/2007/QĐ-TTg dated January 9, 2007 of the Government Chairman on compensation, support, and resettlement for the Son La Hydropower Project, the Ministry of Agriculture and Rural Development guides the planning of agricultural and forestry production linked to processing and consumption of agricultural and forestry products, the procedures for establishing and implementing production support plans in the resettlement areas of the Son La Hydropower Project.

I. PLANNING AND ARRANGEMENT OF AGRICULTURAL AND FORESTRY PRODUCTION LINKED TO PROCESSING OF AGRICULTURAL AND FORESTRY PRODUCTS

Based on the overall relocation planning for the Son La Hydropower Project and detailed planning for resettlement zones approved by competent authorities, and based on local agricultural and forestry development planning, the People's Committees of provinces shall direct:

The Department of Natural Resources and Environment shall guide the People's Committees of districts and towns to establish land use planning and plans for communes with resettlement zones, to be submitted to the competent authority for approval.

The Department of Agriculture and Rural Development shall guide the People's Committees of districts and towns within the Son La Hydropower Project resettlement area to develop and approve plans for agricultural and forestry production linked to processing and consumption of products in resettlement zones.

During the process of developing and approving these plans, attention should be paid to the following points:

1. General direction

a) Exploit effectively the potential and advantages of land, climate, labor, and cultural traditions in resettlement zones to develop agricultural and forestry production and aquaculture towards diversified, unique, sustainable, and efficient commercial production to increase income, stabilize, and gradually improve the living standards of households in resettlement areas.

- Main product group: rice, corn, soybeans, high-quality tea, sugar cane, fruit trees (mangoes, mangosteens, persimmons, bananas), rubber (according to investment projects), livestock (cattle, buffaloes, goats, horses, pigs, poultry, freshwater fish); forest products (wood and non-wood).

- Unique and diverse product group: specialty rice, temperate fruit trees (apricots, peaches), temperate vegetables and flowers, coffee, cotton, mulberry, medicinal plants.

- Processed product group: tea processing, coffee processing, vegetable and fruit processing, sugar, animal feed, forest product processing.

b) Vigorously apply scientific and technological advances in seeds, cultivation techniques, and preservation and processing technologies to increase productivity, quality, income value, and sustainable use of land resources.

c) Mobilize all sources of investment: funds from the Son La Hydropower Project resettlement program and other investment projects in the area, credit capital, and self-owned capital of organizations and individuals from various economic sectors to invest in production linked to processing of agricultural and forestry products and the development of trade services in the region.

2. Specific Arrangement

a) For arable land

- For paddy fields:

+ Utilize well the area of paddy fields for rice cultivation: prioritize support funds for building small and medium-sized irrigation works to intensify multiple cropping; for newly reclaimed paddy fields, enhance field improvement and organic fertilizer application to increase water retention capacity. Use drought-resistant rice varieties, hybrid rice with high yields; balanced fertilization and timely pest control to increase rice yield and production. In resettlement zones with suitable land and climate conditions, encourage the development of specialty rice varieties and high-quality rice varieties to meet domestic consumption and export needs.

+ For paddy fields without stable irrigation water, unstable rice production should be replaced with cash crops (corn, root vegetables), soybeans, or grass for livestock feeding to increase economic efficiency.

+ Near towns and cities, plan areas for vegetable and flower cultivation to meet local demand and produce for sale.

- For garden land attached to residential land: due to limited area, mainly plant vegetables, beans, short-term fruit trees (bananas, papayas, gac fruits) for local consumption and sale.

- For sloping farmland and mountainous land:

+ Sloping farmland with less than 15 degrees slope: plant corn, upland rice in rotation with short-term industrial crops (soybeans, peanuts, beans); promote terrace design, green manure planting, and utilizing crop residues to cover soil and increase organic matter in the soil. Limit expansion of cassava planting areas; only plant cassava in regions designated as raw material supply areas for processing factories; implement terrace farming and intercropping with legumes to reduce erosion.⁰+ Mountainous land with slopes of 15 degrees or more: mainly develop long-term industrial crops and fruit trees. Based on specific conditions of each locality, select and arrange appropriate types of crops among those mentioned in Point 1, Clause 1, Section 1 above, according to the principle:

Types of crops and varieties that are currently thriving in the local area and have market demand should be expanded in area and intensified to create high-yield and high-quality commodity zones.⁰ to 20⁰ New crops planned for introduction into the region need thorough investigation and survey to determine sub-regions with suitable land and climate conditions for the ecological requirements of the crops; at the same time, establish experimental and demonstration models to draw lessons and gradually expand.

- Some main crops that need research and development in the Son La Hydropower Project resettlement areas:

+ Tea: concentrate on developing selected Shan tea varieties, imported tea varieties, and some domestic tea varieties based on recognized mother gardens, applying safe tea production techniques, organic tea production, and advanced processing technology to produce high-quality tea products for domestic and export markets.

- Certain main crops that need to be researched and developed in the areas of relocation for the Son La Hydropower Project:

+ Tea plants: focus on developing selected Shan tea varieties, imported tea varieties, and some domestic tea varieties based on recognized seedling gardens, applying safe tea production techniques, organic tea production methods, and advanced processing technologies to produce high-quality tea products serving both the domestic market and export.

+ Robusta coffee trees: shall only be developed in certain sub-regions that have been planned or adjacent to areas already planned for developing Robusta coffee in the Northwest provinces. It must ensure conditions regarding sea level height, soil type, soil depth, slope, suitable climate for Robusta coffee, applying measures such as planting shade trees, mulching coffee roots during winter to mitigate the effects of salt fog. The Robusta coffee cultivation area must be concentrated for convenient harvesting and processing; production scale should match investment capacity and labor resources of each household. Use selected Robusta coffee seeds, test new varieties recognized for expanding planting areas.

+ Rubber trees: are new crops in the northern mountainous region, which must be linked with planned regions and development projects for rubber in the Northwest provinces, not to develop spontaneously or in scattered areas. Ensure conditions regarding land, climate, transportation systems, seedling bases, purchasing and processing facilities, investment capital, and training for relocated residents to produce effectively and sustainably.

+ Fruit trees: initially develop fruit trees with local advantages such as lychee, apricot, peach, persimmon, mango. Strengthen management of tree seeds to ensure quality, implement advanced cultivation techniques like contour planting, cover cropping, soil improvement, increased organic fertilization, mulching, pruning, and canopy shaping to increase yield and product quality.

+ Sugarcane: initially develop in areas with favorable conditions for sugarcane growth, near raw material sources of sugar factories while intensively using new varieties and advanced cultivation methods in sugarcane production.

b) For animal husbandry and aquaculture

Regarding animal husbandry:

+ Main livestock includes grass-eating animals (buffalo, cattle, goats, horses), pigs, and poultry. Additionally, develop beekeeping, rabbit, and hedgehog farming in households with appropriate ecological conditions.

+ Utilize local livestock and poultry breeds reasonably, combining breeding techniques to improve beef cattle, pig, and goat herds through direct mating or artificial insemination; strictly control the introduction of breeds from other places and perform good veterinary work to ensure safety for livestock and poultry herds.

+ Exploit and apply appropriate processing methods to efficiently utilize agricultural by-products as feed for animal husbandry; develop high-yielding and high-quality forage grasses and apply intensive cultivation techniques to increase forage yields. Use native breeds that have been selected and hybrid breeds to increase productivity and quality of livestock and poultry herds.

+ Establish models for intensive grazing of buffalo and cattle with forage grasses; fatten buffalo and cattle before slaughter or sale; bio-safe free-range chicken farming models. Organize training sessions to guide technical practices, site visits, and exchange experiences in safe animal husbandry for relocated residents.

+ Organize markets for trading livestock, poultry, animal husbandry materials, and feed.

- Regarding aquaculture:

+ Low-lying paddy fields with constant water flow can be transformed into fish ponds or arranged for one crop of rice and one crop of fish; ensure embankments and spillways to prevent floods. + One fish farming season; ensure embankments and spillways are constructed to prevent flooding.

+ Develop high-yielding and widely adaptable aquatic species such as grass carp, hybrid silver carp; Chinese mitten crab, Indian carps, and households with good capital and technology can develop high-value species such as soft-shelled turtle, eel, frog.

+ Exploit natural food sources combined with processed feed to intensively raise aquatic species for high yield and efficiency.

c) For forestry land

Land with a slope over 20%, mainly allocated for forestry crops or agroforestry integration and planning the development of forestry within the relocation area of Son La Hydropower must follow the structure of the forestry development plan for the Northwest region from 2006 to 2020 according to the National Forestry Development Strategy approved by the Prime Minister's Decision No. 18/2007/QD-TTg dated February 5, 2007; Forest allocation according to Circular No. 38/2007/TT-BNN dated April 25, 2007 of the Ministry of Agriculture and Rural Development on Procedures and Formalities for Forest Allocation, Forest Leasing, and Forest Recovery for Organizations, Households, Individuals, and Village Communities.⁰, primarily arranging for the planting of forestry trees or combined agriculture-forestry activities and planning the development of forestry within the Son La Hydropower Relocation Area must comply with the structure of the forestry development plan for the Northwest region during the period of 2006-2020 according to the National Forestry Development Strategy approved by the Prime Minister through Decision No. 18/2007/QD-TTg dated February 5, 2007; The allocation of forests shall follow Circular No. 38/2007/TT-BNN issued on April 25, 2007 by the Ministry of Agriculture and Rural Development regarding the procedures and formalities for allocating forests, leasing forests, and reclaiming forests for organizations, households, individuals, and village communities.

- Areas planned for protective forests need to prioritize funding from Program 661 for the relocation areas; for areas planned for production forests, based on land conditions, terrain, and market potential, allocate forestry structures appropriately, focusing on groups of raw materials for wood processing, non-timber forest products, bamboo shoots, and combine long-term industrial crops and perennial fruit trees in suitable locations.

d) Regarding processing and consumption of agricultural and forestry products

During the planning process for agricultural and forestry production development at resettlement sites, it needs to be linked with the planning of preservation, processing, and consumption facilities for agricultural and forestry products in the following directions:

- For centralized processing facilities on an industrial scale: based on reviewing the current processing capacity of units in the area, balancing with stable raw material supply when production stabilizes, if raw material exceeds current processing capacity, solutions to expand scale or increase capacity, modernize technology and equipment to enhance processing capacity and improve product quality and value. Building new industrial-scale processing facilities requires careful consideration to ensure a stable long-term raw material production area.

- For small-scale or semi-industrial processing facilities in resettlement areas, specific planning must be done in conjunction with raw material regions for products of smaller scale and requiring quick preliminary processing (high-quality tea, fresh fruits and vegetables). Quantity and processing technology of these facilities need to be managed to avoid disputes over raw materials with centralized processing facilities or producing low-quality products.

Consumption of products: Encourage processing facilities to enter into investment and purchase contracts for agricultural products concentrated at resettlement points pursuant to Decision 80/2002/QĐ-TTg dated June 24, 2002 of the Prime Minister on policies encouraging the consumption of agricultural products through contracts. Develop rural markets in resettlement areas to facilitate the exchange and consumption of small-scale products.

II. PROCEDURES FOR ESTABLISHING AND APPROVING SUPPORT PROGRAMS FOR PRODUCTION IN RESIDENTIAL AREAS AND RELOCATION POINTS

1. In accordance with Clause 1, Article 26 of Decision 02/2007/QĐ-TTg dated January 9, 2007 of the Prime Minister, households relocated for production support must meet the following conditions: Relocation in accordance with approved planning; Allocation of land for production; Having an effective production plan ensuring a stable life at the relocation site, consistent with local production planning, approved by competent state authorities at the district level; Commitment to use funds for their intended purpose.

Below are guidelines for establishing and approving support programs for production in residential areas and relocation points:

a) The project management board for relocation and resettlement at the district level, People's Committees of communes, wards, and towns, and the Agricultural Extension Station at the district level convene meetings with relocated households that have been allocated land for production to guide them in formulating production plans suitable to natural conditions and approved production planning of the region.

b) Content of the production plan for relocated households (attached template).

c) Households base their production plans on guidance provided and specific conditions of their own households. For households unable to formulate production plans independently, village chiefs, group leaders, and grassroots extension workers provide advice and assistance in developing production plans.

d) Village chiefs compile production plans of households within their jurisdiction and submit them to the People's Committee of the commune for confirmation, along with detailed production plans of each household. The People's Committee of the district assigns the Economic Department of the district to coordinate with the project management board for relocation and resettlement to review individual household production plans. If these plans align with district-level production planning, they are submitted to the People's Committee of the district for approval.

e) Each household's production plan is prepared in five copies. After approval, the project management board for relocation and resettlement retains one copy, the bank responsible for disbursing relocation funds retains one copy, the Economic Department of the district retains one copy, the People's Committee of the commune retains one copy, and the supported household retains one copy.

2. Level of Support and Content of Production Support for Relocated Households

a) The level of support for relocated households is stipulated in Clause 1, Point b, Article 26 of Decision 02/2007/QĐ-TTg dated January 9, 2007 of the Prime Minister.

b) Support includes funding for purchasing planting materials, fertilizers, and pesticides for annual and perennial crops and livestock breeding.

c) Based on the total amount of support, each household calculates and proposes the amount and timing of support needed for purchasing planting materials and production supplies as specified above in their production plan.

a) Participants in voluntary social insurance who qualify for support under this Article shall pay their own share of social insurance contributions to the social insurance agency or voluntary social insurance collection service organization authorized by the social insurance agency;

a) Support is provided according to the progress of the approved production plan. The project management board for relocation and resettlement, together with the Agricultural Extension Station and village chiefs or group leaders, organize meetings with supported relocated households to guide them on production techniques, arrange planting material structures, and assist households in registering their needs.

b) Based on the approved production plan of the relocated household, the household actively seeks sources for planting materials and supplies and obtains an assessment from the project management board for relocation and resettlement and the Agricultural Extension Station regarding the type, quantity, quality, price, and supplier. On this basis, the relocated household prepares a list of required support funds with confirmation from the project management board for relocation and resettlement as the basis for disbursing support funds.

In cases where relocated households cannot find active sources for planting materials and supplies, the project management board for relocation and resettlement coordinates with the Economic Department of the district to select suppliers capable of providing high-quality materials and reasonable prices. The project management board signs a contract with the supplier to ensure the quantity, type, quality, and delivery time as registered by the households, at market-based prices.

Relocated households directly receive planting materials and supplies from the supplier. Receipts must be signed by the household head, village chief, or group leader. At the end of the supply period, the supplier compiles receipts and lists for confirmation by the People's Committee of the commune, serving as the basis for settlement and contract termination.

4. Funding for Agricultural Extension, Forestry Extension, and Fisheries Extension with content including training and technology transfer

a) Based on Circulars 30/2006/TTLT-BTC-BNN&PTNT-BTS dated April 6, 2006 and 50/2007/TTLT-BTC-BNN&PTNT-BTS dated May 21, 2007 issued jointly by the Ministry of Finance, the Ministry of Agriculture and Rural Development, and the Ministry of Fisheries on guiding the management and use of public funds for economic activities related to agricultural extension and fisheries extension; based on the needs of relocated households, the project management board for relocation and resettlement at the district level, in coordination with the Agricultural Extension Station at the district level, develops a plan for the content, target groups, time, location, and budget for training and technology transfer for new types of crops, livestock, and industries for relocated households, to be submitted to the People's Committee of the district for approval and sent to the project management board for relocation and resettlement at the provincial level to allocate agricultural extension funds from the annual budget of the Son La Hydropower Relocation Project.

b) On the basis of the approved plan and budget for agricultural extension activities and the notified capital sources, the Project Management Board for Resettlement and Relocation at the district level shall enter into a contract with the District Agricultural Extension Station or the Provincial Agricultural Extension Center (for those contents that the District Agricultural Extension Station is unable to implement) to carry out training and technology transfer activities in agricultural extension and pay the costs to the entity implementing the contract. The expenditures according to the approved budget shall be directly paid by the entity implementing the contract to the participants in training and technology transfer activities.

III. IMPLEMENTATION

1. The People's Committees of the provinces shall direct relevant functional sectors, the People's Committees of districts and towns with resettlement areas, and the Provincial Management Boards for Resettlement and Relocation to effectively implement planning for agricultural and forestry production linked with processing and marketing of products in accordance with the contents of this Circular and related documents to support relocated households in developing production, stabilizing their lives, and gradually improving their living standards.

2. The Departments of Agriculture and Rural Development of the provinces shall direct and guide the People's Committees of districts and towns with resettlement areas to develop and effectively implement plans for agricultural and forestry production linked with processing and marketing of agricultural and forestry products; strengthen management, inspection, and supervision of the quality and prices of seeds and materials supplied by entities to relocated households, and strictly handle any violations.

3. This Circular shall take effect fifteen days from the date of publication in the Official Gazette.

In the course of implementation, if there are any difficulties, it is recommended that localities report them to the Ministry of Agriculture and Rural Development for timely supplementation and adjustment./.