Decision No. 24/2012/QD-TTg dated June 01, 2012 of the Prime Minister investment policy of special - use forest development stage 2011 - 2020

DECISION

INVESTMENT POLICY OF SPECIAL - USE FOREST DEVELOPMENT STAGE 2011 – 2020

Pursuant to the Law on Government organization dated December 25, 2001;

Pursuant to the Law on State budget 2002;

Pursuant to the Law on forest protection and development 2004;

Pursuant to the Investment Law 2005;

Pursuant to Decree No. 23/2006/ND-CP dated March 3, 2006 by the Government on implementation of the Law on forest protection and development;

Pursuant to Decree No. 117/2010/ND-CP dated December 24, 2010 by the Government on organization and management of special use forest systems;

At the proposal of the Minister of Planning and Investment;

The Prime Minister has promulgated the Decision on investment policy of special-use forest development, stage 2011 - 2020

Chapter 1.

GENERAL PROVISIONS

Article 1. Viewpoint of investment and encourage of investment in special-use forest development

1. Special-use forest is the national property. Protection and development of special forest is the responsibility of the State and society.

2. The State has invested in building of infrastructure and material facilities and ensures the fund for the operation of the management machine and forest protection, conservation and monitoring of biodiversity, scientific research, human resource training, and propagation and education of forest protection and improve people s lives in special use forest and buffer zone.

3. The State encourages the development of activities of forest environment services, performing eco-tourism business in special use forests in accordance with law to generate revenues to offset the costs, raising income for officials, public servants and employees and gradually replacing investment from the state budget.

4. The State has policies to support investment and crate benefit-sharing mechanism for the economic sectors, village communities to participate in investment and protection and development of special forest.

Article 2. Objective to promulgate investment policies and encourage special forest development

1. Promulgating investment policies, mechanisms of special forest development to increase the investment efficiency. Ensuring the close supervision of the management agencies of all levels for special use forests, while increasing the initiative of the special-use forest management board in operations of business and management of services in the special-use forests in order to increase revenues in the special-use forests in the principle of conservation associated with development.

2. Attaching the responsibility of the user of the forest benefits with the development investment and development protection of special use forest, increasing the efficiency of state investment capital.

3. Mobilizing all economic sectors to participate in investment, protection and development of special use forests. Gradually reducing the state payroll for special use forest protection and increasing use of local communities for special use forest protection.

4. Investing in developing special use forest to conserve the nature, standard samples of forest ecosystem, genetic sources of forest creatures, scientific research, protection of historical and cultural monuments, landscape, relaxation services and tourism, in combination with protection contributing to environmental protection.

Article 3. Scope of adjustment and subjects of application

1. This Decision prescribes the contents and criteria for the investment, the fund for forest protection using the state budget fund and mechanisms to encourage investment and development of special use forests.

2. This decision applies to state agencies, organizations, communities, households and individuals related to investment and development special-use forests in Vietnam.

Article 4. Explanation of terms

1. Special-use forest management board is forest owner assigned to manage one or a number of special use forests in accordance with the law on forest protection and development.

2. The residential communities in the buffer zone including residential communities in hamlets and villages legally residing in the areas with natural borders adjacent to special use forest, or in special use forest are called the buffer zone residential community in hamlets and villages of special use forests.

3. Agency making investment decision: For projects of special-use forest management board under the management ministries and sectors, the ministries and sectors are the agencies to make investment decisions. For the projects of the special-use forest management board directly under the locality, the provincial People s Committee is the agency to make investment decisions (hereinafter referred to as the competent authority).

Chapter 2.

STATE BUDGET FOR SPECIAL-USE FOREST INVESTMENT

Article 5. Planning and investment projects for special use forest development

1. Planning and development of special use forest: The special forest management Board shall make planning for special forest development (including eco-tourism development) and submit to competent authorities for approval; the time limit of the planning is 10 years.

2. Formulating and approving investment projects: The management Board shall formulate project of investment and development of special-use forests in accordance with approved plans and submit it to the competent authorities for approval in accordance with regulations on management of current investment of the State.

Article 6. Items and criteria for investment and development of special-use forests

Investment and development of special-use forests are developed step by steps and economically in accordance with the capability of investment capital. The state budget invested in works items in the special-use forests in order of priority as follows:

1. Working office and shelter for officials:

a) Working office of special-use forest management Board shall comply with Decision No. 147/1999/QD-TTg dated July 5, 1999 and Decision No. 260/2006/QD-TTg dated November 14, 2006 by the Prime Minister regulating the standards and norms of the use of working office at the state agencies and non-business units.

b) Forest protection management station averages 200 m2/station and other ancillary works and other works such as clean water, protective barrier.

c) The shelter (collective) associated with the workplace of officials and employees for officials without shelter in the area averages 12 m2/person.

d) In special cases at the place where the office of special-use forest management Board is located, the forest protection management station without planning of the national power grid system is allowed to make investment in independent power systems (solar power, wind power, hydro power…)

2. Investment in traffic roads:

a) Roads from the existing main roads to the office of special-use forest management Board are under the standards from grade III to grade V, consistent with the level of existing roads in the area.

b) Internal roads in the administrative and services subdivision, quarters of the staff; instruction signs, forest patrol roads with a width not exceeding 1.5 m.

c) Berth for office locations, forest protection management station is located next to rivers and seas in accordance with the plan for special use forest development and the ability to balance the budget.

3. Fire alarm and forecasting equipment; the works, equipment for forest fire prevention and fighting are: fire watch-tower, canal system, exercising house, lake and dam, water storage tanks, fire prevention runway, fire prevention billboard system, other means and equipment and tool for fire prevention and fighting equipment are under the guidance of the Ministry of Agriculture and rural Development.

4. The projects invested by the other approved projects include: Garden of collection and storage of genetic resources of plant associated with the breeding garden; rescue centers in combination with pasturing of wild animal, environmental education center in combination with guest houses, flora and fauna museum, works for scientific research.

5. Infrastructure works for eco-tourism, environmental services; giving priority to investment in tourism infrastructure projects in the planning approved by the competent authority of special use forest management Boards performing the pilot transfer of the business department.

Article 7. Non-business fund and fund for management and protection of special use forest.

1. The State budget shall ensure non-business fund regularly for the operation of the special-use forest management machine decided by the competent and allocated in the estimates of the annual state budget expenditure.

2. In addition to regular non-business fund specified in clause1 of this Article, the State shall stably allocate fund for forest management and protection in order for the special-use forest management Board actively hire, hire by piece, contract with the local residential communities, purchase equipment for forest management and protection; the average of VND 100,000 / ha / year of the total assigned area (the specified rate shall be decided by the competent authorities). The contents of this expenditure shall be approved by the competent authorities annually.

3. Plan for annual expenditure of forest protection and management for each particular item must be made public at the special use forest management Board and made into copies to be sent to all units under management Board.

Article 8. Support and development of buffer zone community of special use forests

1. The State budget shall support the investment for the buffer zone residential community in hamlets and villages in order to co-manage special-use forest, the supporting rate for each hamlet and village is VND 40 million/hamlet, village/year.

2. This budget is spent on contents: investment to improve production development capacity (agricultural and forestry extension, plant varieties and seedling, forestry and agricultural processing equipment of small-scale), supporting building materials for hamlets and villages (for the public works of the community such as clean water, lighting, communications, roads in hamlets and villages, the cultural house...).

3. The special-use forest management Board is assigned to manage this fund in accordance with the current economic non-business fund management. The annual detailed estimates of investment support for the buffer must be planned and proposed by hamlets and villages. The special-use forest management board shall preside over and coordinate with the communal People’s Committee to organize meeting with each hamlet and village for co-approval (no need to set up investment project). This expenditure plan must be associated with the plan and commitment to protect the special-use forest. If any village or hamlet does not perform well the forest protection, the special-use forest management Board has the right to transfer the supporting capital to other villages. The residential community shall organize the monitoring of the implementation of this content in accordance with the grassroots democracy.

Article 9. Investment capital for special-use forest

1. The central budget shall invest in special-use forests administered by the Ministry of Agriculture and Rural Development.

2. The local budgets shall invest in special-use forests administered by the local authorities. The central budget shall support investment with the aims to the national forests of the localities and special use ocated in the border districts and islands of the localities with budget constraint

3. Capital sources gained from the profit of service activities, joint venture and association activities, business division, joint stock companies trading in special use forest service (if any), leasing of forest environment, collection of forest environmental services fees and other services of special-use forest management Board.

4. The legally mobilized capital of the organizations and individuals to invest and develop special-use forest.

5. Total investment capital and non-business capital from the state budget for this policy is about VND 5,500 billion in which the invested capital is 50%.

Chapter 3.

ENCOURAGEMENT OF INVESTMENT AND DEVELOPMENT OF SPECIAL-USE FOREST.

Article 10. Eco-tourism business in special-use forest

1. The State shall encourage the economic sectors to invest and develop eco-tourism in special-use forest.

2. Development of eco-tourism in special-use forest shall comply with the approved planning and provisions of the Enterprise Law, Law on forest protection and development, this Decision and other current regulations of the State.

a) In the strictly protected areas: Paths shall be built with the width not exceeding 1.5 m, sheltering tent, placement of instruction signs to patrol in combination with eco-tourism services, the natural landscape of the forest must not be changed.

b) In the ecological rehabilitation subdivision: The main road shall be opened, building works to protect and develop forests in combination with other services – tourism activities. The level of impact of infrastructure for ecotourism activities shall be up to 20% of the total planning area for service - tourism activities. In particular, the area for building facilities for services – tourism activities must not exceed 5%, the area for building path, rest stop, parking lots not exceeding 15%.

c) In the administrative services subdivision, landscape protected areas; forest of scientific research, the maximum area to build works for services – tourism activities shall not exceed more than 20% of the total area of the administrative services subdivision or the landscape protected areas and forest of scientific research.

Article 11. Pilot innovation of eco-tourism business division with accounting record dependent from special-use forest management Board to establish Joint Stock Company

1. The eco-tourism business division with current dependent accounting record (tourist centers, tourist board ...) of the special-use forest management with the revenue of over VND 3,000 million / year shall be transformed into joint stock company in which the special-use forest management Board shall own the governing share at least equal to 51% of charter capital of joint-stock company (hereinafter referred to as joint stock company).

2. The Ministry of Agriculture and Rural Development shall preside over and coordinate with the Ministry of Planning and Investment to select a national park directly under the Ministry and a national park directly under the locality to direct the pilot implementation and set up joint stock Company specified in clause 1, 3 and 4 of this Article.

3. Transforming the eco-tourism business division to the joint stock company permitted to apply the provisions in Decree 59/2011/ND-CP of July 18, 2011 on the transformation of state enterprises into joint stock Company (hereinafter referred to as Decree 59/2011/ND-CP). The special use forest management Board shall make a scheme for transformation of business division and submit to the competent authorities for approval. The assets of the special use forest management Board shall be transferred to special-use forest joint development joint stock company including: Rest house, right to exploit the eco-tourism, visitor center, representative offices (including land outside the area of the special-use forest) and other assets likely to do business, the assets assessed the price as prescribed in Decree No. 59/2011/ND-CP and the current guiding documents; no calculation of the land use right planned as special-use forest upon assessment of price on that land.

4. The special-use forest joint development joint stock company shall make​​all the business activities of the special-use forest management Board (including collection of forest landscape sightseeing tour). The special-use forest joint development joint stock company shall lease the forest environment at the floor price as prescribed; leasing the visiting point of the special-use forest management Board for business, the leasing price shall be determined by the two sides every 5 years, the leasing period does not exceed 50 years.

Article 12. Leasing special-use forest for eco-tourism development

1. Based on the plan of special-use forest development approved, the special-use forest management Board is permitted to lease the special-use forest to organizations and individuals (attached to land and water surface) for eco-tourism business. No leasing of ticket selling and fee collection activity into forest not under the area of that organization.

2. The leasing price of forest environment shall be decided by the competent authority or through auctions in case there are two individuals or organizations requesting to lease forest environment. The initial leasing price shall be agreed by the two sides to adjust every 5 years but not exceeding 2% of the turnover. The lease term shall not exceed 50 years, after this time if the lessee complies well with the contract, the special-use forest management board shall consider to extend the lease term, but no longer than 20 years.

3. In addition to leasing and business of forest environment, the special-use forest management Board is allowed for short-term lease of forest environment for scientific research (leasing without impact), the leasing price shall be agreed by the parties and in accordance with the law on forest protection and development.

4. Before signing the contract of forest environment leasing, the special-use forest management Board must make a statistical survey on forest resources on the leasing area as a basis for leasing and monitoring later.

5. The Ministry of Agriculture and Rural Development in collaboration with the Ministry of Finance shall make guidance on calculation of the leasing price of the special use forests.

Article 13. Incentive investment for development of special-use forests

1. Doing business in services development in special use forests shall apply the preferential enterprise income tax as prescribed in Article 8 of Decree No. 69/2008/ND-CP dated May 30, 2008 by the Government on policy to encourage socialization of activities in the field of education, health, culture, sports and environment. Also the investment projects for development of special use forests under approved planning shall receive the highest level of incentive under current regulations of the State.

2. The area of land for infrastructure construction in the development projects of special use forests approved by the competent authority with the rates of less than 5% of the area of special use forests shall be permitted to perform the activities of investment and building under the progress of projects approved. The special-use forest management Board shall make the procedures for transformation of land use purpose once for all items of land use after the completion of project investment or with the 5 year planning and use period of land of locality to submit to the competent authorities for approval.

3. The special-use forest management board has the right to actively use dead animals and plants confisticated from the area of its​​management (with written certification of forest rangers and district police) for investment in forest protection management, scientific research, ecotourism development. Before use, the special-use forest management Board must make report to the competent authorities on the content used.

Article 14. Using revenue from ecotourism activities in the special use forest

All profits including: Revenues from service activities, forest environment leasing, service fee for the forest environment (under Decree 99/2010/ND-CP), profits from joint ventures and association, the profits of the special-use forest management Board in the special use forest development joint stock company (if any) and other lawful sources of profit are used as follows:

1. Using 25% of the above revenue sources to replace the budget capital for the non- business expenditure and forest management prescribed in Article 7 and Article 8 of this Decision. If there is a surplus after capital replacement, that surplus shall be transferred to the payment for the contents specified in Clause 2 of this Article.

2. The special use forest management Board is entitled to use 75% of the remaining revenue for purposes in the order of priority as follows:

a) Salary increase support for officials and employees working in the special-use forest management Board but the gross pay (including base salary and allowance) shall not exceed 2.5 times of the basic salary as prescribed.

b) Supporting for community development activities in buffer zones of special-use forest (under Article 8 of this Decision).

c) Expenditure for investment and activities of eco-tourism business

d) Deducting and formulating funds as stipulated in Decree No. 43/2006/ND-CP dated April 25, 2006 of the Government of autonomy and self-responsibility for implementation of tasks, organizational structure, staff and finance of public snon-business units.

Chapter 4.

IMPLEMENTATION ORGANIZATION

Article 15. Responsibilities of the ministries, sectors and localities

1. Ministry of Agriculture and Rural Development:

a) Inspecting and supervising the implementation of this Decision, making the annual report on monitoring of the implementation of this decision submitted to the Prime Minister and Ministry of Planning and Investment, Ministry of Finance;

b) Formulating and issuing the annual evaluation criteria for the quality of management and protection work of special use forest.

2. Ministry of Planning and Investment:

a) Presiding over and coordinating with the Ministry of Finance, Ministry of Agriculture and Rural Development to balance investment and development capital sources and submitting to the Prime Minister for decision.

b) Being responsible for state management on investment in collaboration with the Ministry of Agriculture and Rural Development, Ministry of Finance and provincial People s Committee to inspect and supervise the investment in special-use forests.

c) Making guidance on the implementation of Article 11 of this Decision.

d) Being responsible for comprehensive assessment of the economic, social and environmental aspect within 3 years and 5 years to report to the Prime Minister for consideration and adjustment and supplement of this policy.

3. Ministry of Finance:

a) Presiding over and coordinating with the Ministries and sectors concerned to balance and guarantee the non-business fund and forest management fund to the ministries, sectors and localities; upon allotting the annual budget expenditure plan, specify the item of expenditure for the special-use forest development and submit to the Prime Minister for decision.

b) Making guidance on the detailed content and expenditure norm prescribed in Article 7 and 8 of this Decision.

4. Provincial People’s Committee

a) Within 2 years from the effective date of this decision, Chairman of the provincial People s Committee shall issue a certificate of land use right to the special-use forest management board that has not certificate of land use right in the area.

b) Ensuring adequate funds for forest management career as prescribed in Article 6, Article 7 and Article 8 of this Decision for the special-use forest management Board under the local management in accordance with the law on state budget.

c) Directing the special-use forest management Board Committee to set up and approve the planning and investment projects as prescribed.

d) Directing, organizing the implementation, inspecting and supervising the process of implementation of this Decision at the locality. Annually in the 1st quarter of a year a report shall be made on the implementation of this decision of the previous year sent to the Ministry of Agriculture and Rural Development, Ministry of Planning and Investment and the Finance Ministry for aggregation.

Article 16. Investment management and supervision

1. Planning management and capital construction investment under the current regulations of the State. The special-use forest management Board shall formulate and submit to the competent State agencies to approve and organize the implementation of the planning and plans of the programs, the projects aimed at protecting and developing special use forest; investors for works by the state budget on special forest area allotted

2. The special-use forest management board shall take full responsibility before the competent agency before the competent authorities on the use of State capital for the right purposes, right objects, effectively and economically.

3. The special-use forest management Board is responsible for formulation, making report on monitoring every 6 months and annually on the implementation of strategy, planning, plans, financial leasing of forest environment of the special-use forest management Board and submitting to investment-deciding agency and the relevant agencies of the province.

4. The state competent agencies shall organize inspection of investment and investment organization monitoring and supervision of forest management and protection of special-use forest management as prescribed.

Article 17. Effect

1. This Decision shall take effect from July 20, 2012

2. The previous provisions contrary to the ones of this Decision shall be annulled.

3. The Ministers, Heads of ministerial-level agencies, Heads of Governmental agencies, Chairman of People’s Committee of provinces and cities directly under the Central Government shall implement this Decision.