Decision No. 886/QD-TTg dated June 16, 2017 of the Prime Minister on approving target program for sustainable forestry development during 2016 – 2020 period

THE PRIME MINISTER

Decision No. 886/QD-TTg dated June 16, 2017 of the Prime Ministeron approving target program for sustainable forestry development during 2016 – 2020 period

THE PRIME MINISTER

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

Pursuant to the Law on Protection and Development of Forests dated December 3, 2004;

Pursuant to the Law on Public Investment dated June 18, 2014;

Pursuant to the Resolution No.18/2011/QH13 dated November 25, 2011 of the 2^ndMeeting Session of the XIII^thNational Assembly on termination of implementation of the Resolution No. 08/1997/QH10 and the Resolution No. 73/2006/QH11 on the Five-Million-Hectare Forestation Project;

Pursuant to the Government’s Resolution No. 73/NQ-CP dated August 26, 2016 on approval of policies for investment in Target Programs in the 2016 – 2020 period;

In the light of the request of the Minister of Planning and Investment, and the Minister of Agriculture and Rural Development,

HEREBY DECIDES

Article 1.Approval of the target program for sustainable forestry development during the 2016 – 2020 period, including the following main contents:

I. OBJECTIVES

1. General objectives

Improve the production output and quality, promote the value of each forest type, increase the value of production forests per each area unit; contribute to meeting the requirements of natural disaster mitigation, ecological and environmental protection, response to climate change and sea level rise; create jobs, increase income, contribute to hunger eradication and poverty alleviation, improve livelihood for people working in the forestry sector, closely align these activities with the process of building new rural areas, maintaining national defense, security, social order and safety.

2. Specific objectives to be accomplished by 2020

a) Rate of growth in the value of forest products is expected to reach from 5.5% to 6.0% per year.

b) Nationwide forest coverage rate is expected to reach 42% and total area of forests is expected to reach 14.4 million of hectares.

c) Production output of plantation forests is expected to average 20 m³/ha/year.

d) Value of export of timber and forest products is expected to reach from USD 8.0 to 8.5 billion.

dd) Stably maintaining 25 million of employments, increasing income, contributing to hunger eradication, poverty alleviation, improving likelihood for people working the forestry sector, closely aligning these activities with construction of new rural areas and assuring national defense and security.

II. SCOPE, SUBJECTS AND DURATION OF THE PROGRAM

1. Program scope

Centrally-controlled ministries, sectoral administrations and provinces and centrally-run cities with projects funded by the program. Localities facing difficulties or having not yet had their own budget for the program shall be preferred to receive support.

2. Subjects of the program

a) Program beneficiaries: Organizations, family households and individuals involved in protection and development of forests.

b) Program executors: People and residential communities at rural or mountainous villages; political systems at the central level through the local level; enterprises and socio-economic organizations.   

3. Program duration: From 2016 to end of 2020.

III.MAIN TASKS

1. Protecting forests and conserving natural resources.

a) Protect and sustainably develop existing forests and newly-cultivated ones during the period of 2016 – 2020.

b) Ensure that 15% of forest ecosystem degradation areas are restored and conserved, especially special-use forests; by 2020, increase by approximately 100,000 hectares of special-use forests.  The number of endangered, rare and precious species at risk of extinction and the population of species will be improved.

c) Strengthen law enforcement capacity and basically reduce violations against the law on forest protection and development, including the area of damaged forests and the number of violations reduced by 30-35% compared to the 2011 – 2015 period.

2. Developing and improving forest production and quality

a) Forestation and reforestation after production: 1,025,000 ha, including 75,000 ha of protection or special-use forests; 200,000 ha of large timber intensive plantation forests.

b) Forest regeneration in cutover areas: 360,000 ha/year.

c) Total number of dispersed trees: 250 million.

d) Transformation from commercial small timber plantation forests into commercial large timber forests: 90,000 ha.

dd) Rate of plantation forests subject to the quality control of plant varieties: 75 – 80%.

3. Improving the added value of silvicultural products.

a) Develop the wood processing industry by supporting the construction of wood processing workshops, hi-tech forestry zones and auxiliary industry parks located within key economic regions.

b) Increase the proportion of investment and development of premises, infrastructure facilities and services in the forestry sector, especially the system of forest roads, to reduce direct costs attributed to the cultivation, exploitation, transportation and processing of forest products.

c) Give support for the grant of sustainable management certificates for 100,000 ha/year, ensure that Vietnam s wood products are qualified to meet international requirements if Vietnam participates in free trade agreements.

IV.INVESTMENT CONTENTS

In each ministry, sectoral administration and locality, developing and implementing major constituent projects and investment contents, including:

1. Investing in forest protection and biodiversity conservation of forest ecosystems, especially the system of special-use forests; conserving elephants and some wild and rare plants and animals and those at risk of extinction.

2. Investing in developing and improving forest production output and quality: Develop silvicultural plant varieties; protection, special-use and production forests; grow plants in a dispersing manner; promote forest regeneration in cutover areas; develop non-timber forest products.

3. Investing in support for development of intramural infrastructure facilities and traffic systems, wood processing industry, forestry services and improving the value of silvicultural products, specifically including: 

a) Invest in support for the construction of forest roads for entities and localities that have raw material concentration areas located within regions facing socio-economic difficulties; make investments in and upgrade forest fire fighting and prevention equipment; develop premises, infrastructure facilities and services intended for performing forest protection activities of Forest Management Boards.

b) Invest in building forestry zones specialized in applying high technologies and promoting forest products (01 forestry zone in the North, 01 forestry zone in the Central Coast and 01 forestry zone in the South); give support for investments in processing of wood harvested from plantation forests to Northwestern provinces and provinces having poor districts under the Government’s Resolution No. 30a/2008/NQ-CP dated December 27, 2008.

4. Investing in and strengthening the capacity of management, coordination and monitoring of the forestry sector: The Ministry of Agriculture and Rural Development shall directly develop and implement the following projects:

a) Investigating, assessing and monitoring national forest resources with the intention of assessing forest reserves, quality and calculating forest ecological indices nationwide, and measuring forest carbon stocks, to serve the purposes of formulation of national forestry policies, strategies, planning schemes and payment for forest environmental services, reducing emissions from deforestation and forest degradation (REDD +) and implementing international commitments.

b) Supporting enhancement of capacity and awareness of sustainable forest management and sustainable forest management certification.

c) Monitoring and evaluating the target program for sustainable forestry development during the period of 2016 - 2020 in order to build databases on public investment management and management of projects in the entire program; setting up systems for monitoring and evaluating public investments in specific projects; strengthening and improving the investment monitoring and reporting capacity from central to local agencies, coordinating tasks/activities in the Program according to the objectives and plans.

V. TOTAL INVESTMENT OUTLAY

Total investment in the Program: VND 59,600 billion, including:

1. The amount of central budget allocations for the Program: VND 14,575 billion, including:   VND 9,460 billion of capital expenditure and VND 5,115 billion of non-business expenditure.If capital expenditures are allocated insufficiently in a phase of implementation of the Program, an extension shall be granted.

2. ODA funds and other legitimate funding sources: Approximately VND 45,025 billion.

VI.MEASURES

1. Law propaganda, dissemination and education

a) Conduct campaigns for propaganda about economic, social, environmental and national defense and security value of forests via mass media.

b) Strengthen the education about laws on forest protection and development, raise the public awareness of forest protection; stimulate family households living in and near forests to sign forest protection commitments; develop and implement forest protection conventions; transform forestry business and production awareness and practices from extensive forestry production to intensive forestry production in combination with small and large timber production.

2. Forest planning and forestry land management

a) Improve the planning quality, ensure compliance with guidelines set out in the Forestry Development Strategy by 2020; simultaneously, enhance the state management and supervise implementation of planning schemes and plans.

b) Finish reviewing and evaluating national and regional forest master plans, clearly identify national stable forest areas; localities organizing the review of the current status of forest land management and use, promptly adjust the irrationalities, ensure the alignment between the forest planning information shown on the map and the forest planning at the project site, between the planning of the Agriculture and Rural Development sector and the one of the Natural Resources and Environment sector.

c) Ensure the reasonable planning scheme and layout of workshops with priority given to the construction of wood processing workshops in mountainous areas with an adequate amount of raw materials to contribute to creating jobs and incomes for people and promoting industrialization and  modernization of rural and mountainous areas.

d) Strictly control the conversion of purposes of forestry land into other purposes, resolutely handle violations against laws on land, illegal sale and purchase of forestry land. Local jurisdictions shall be responsible for directing and overseeing the full implementation of planting of substitute forests with respect to projects of which the purpose is transformed from other purpose in accordance with applicable regulations.

dd) Provincial-level People’s Committee shall continue to boost the transfer and lending of forests to organizations and residential communities at villages, family households and individuals; ensure that all forests must be managed and carry out the forest co-management method; facilitate the accumulation of forest land plots intended for building major raw material contribution areas by applying the model of an affiliation and joint venture in forestation and a processing business.

3. Fund mobilization

Call for funds from the private sector and a variety of funding sources for the implementation of the Program, ensure adequate and timely capital allocation according to the prescribed structure; increase the mobilization of capital from local government’s budget and other legitimate capital contributions by enterprises and mobilize grants or aids from domestic and foreign organizations and individuals; call for reciprocal capital and capital participations of people and beneficiaries of the Program. Prioritize the use of state budget allocations for projects implemented in a PPP investment form.

4. Fortification and reform of the production machinery

a) Accelerate the progress of arranging, innovating and improving the business efficiency of forestry companies according to the Government s Decree No. 118/2014/ND-CP dated December 17, 2014 on arranging, innovating, developing and improving the business efficiency of agricultural and forestry companies in conformity with the overall plans of the provinces approved by the Prime Minister; the Government’s Resolution No. 19/2016/NQ-CP dated April 28, 2016 on major tasks of and solutions to improving the business environment and the national competitiveness in the 2016-2017 period with vision towards 2020 and the Government s Resolution No. 35/2016/NQ-CP dated May 16, 2016 on enterprise support and development by 2020.

b) Organize the forestry production in product chains from afforestation, raw material procurement, processing and consumption of forestry products; promote and encourage the incorporation of medium and large-sized enterprises in each economic region; make existing strong enterprises become centers for linkage of production chains with respect to each major product, especially exported products.

c) Encourage the establishment of commodity associations, transfer a number of the State s public service functions to associations (e.g. trade promotion, forestry extension, market forecasting, quality standards and dispute settlement, etc.).

d) Build and multiply economic models of cooperation in the forestry sector; promote and provide favorable institutional conditions for farmers and family households to make contributions to enterprises to organize the large-scale forestry production by using the "large field" model. Promote the role of forestry ranches and family-run forestry farms; exploit and promote the advantages of tropical forestry, build and develop large-scale forest cultivation areas.

dd) Robustly develop and exploit domestic wood and wood product consumption markets, improve the competitiveness of domestic trading and forest product processing enterprises.

e) Promote sustainable forest management and certification of plantation forest timber according to Vietnamese standards in conformance to international regulations and practices.

5. Enhancement of scientific and technological researches

Focus on researches on the application and transfer of technologies for the purposes of restructuring the industry, eliminating researches separated from practical needs, and conduct such researches mainly by using the order placement method. Prioritize researches on improvement of plant varieties and intensive cultivation of forests, high-quality imported varieties, genetically modified varieties for production forest development and technologies for processing of woodchips and ancillary products in replacement of imported commodities; setting out industry standards and regulations. Provide the mechanism for connecting scientific research organizations with enterprises and forest planters. Combine research activities with forestry training and extension, and forestry production with product processing and consumption, in order to create the closed research chain for training activities.

6. Workforce development

Stimulate and create favorable environment and conditions for enterprises and training organizations to cooperate with and give mutual support for each other to perform training and improve capabilities of employees of enterprises.   Expand the forms of vocational training associated with the transfer of new technologies, techniques and production processes for farmers’ households; provide domestic and overseas training for managers, researchers and officials to strengthen and supplement the contingent of excellent timber traders in the international market.

7. International cooperation and trade promotion

Actively accede to and fully implement international commitments; take reasonable measures to protect the domestic market and develop the forest product export market in accordance with international law. Build partnerships, based on the potentials and advantages of each international and national organization, run propaganda campaigns for calling for aids, foreign technologies and investments in the rural agriculture sector. Expand international cooperation, enhance trade promotions and negotiation of engineering agreements and expand international market.

Make best use of international assistance funds, especially aids, for payment for carbon sequestration in forests. Strengthen trade promotion and market development activities. Reform the system of management of circulation of forest products; ensure that forest products are of legal origin, encourage and create a healthy competitive environment and ensure harmony of the interests of producers and consumers; create the market’s driving forces and encourage the growth in domestic forestry production.

VII.IMPLEMENTATION ORGANIZATION

1. Administration and management of the Program

a) At the central level

- Establish the State Steering Committee for the Target Program for Sustainable Forestry Development in the period of 2016 - 2020 as a replacement for the State Steering Committee on Forest Protection and Development Plan for the period 2011-2020. The Committee shall be composed of 01 Deputy Prime Minister acting as the Committee’s Chairman and the Minister of Agriculture and Rural Development appointed as the Committee’s Deputy Chairman and the Committee’s members who are the leaders of the concerned ministries and sectoral administrations.

-The Office shall assist the State Steering Committee on the Sustainable Forestry Development Program in the period of 2016-2020, and at the same time, shall help the Minister of Agriculture and Rural Development manage, implement, inspect and supervise the implementation of the Program on the basis of strengthening the Office of the State Steering Committee on the Forest Protection and Development Plan for the 2011-2020 period.

b) At the local level

- Establish the provincial Steering Committee for the Target Program for Sustainable Forestry Development in the period of 2016 - 2020 as a replacement for the provincial Steering Committee on Forest Protection and Development Plan for the period 2011-2020. The Committee shall be composed of the Chairman or Vice Chairman of the provincial People s Committee serving as the Committee’s Chairman, the Director or the Deputy Director of the Department of Agriculture and Rural Development acting as the Committee’s Deputy Chairman.

- The Standing Office of the provincial Target Program for Sustainable Forestry Development in the period of 2016 - 2020 shall be located at the Department of Agriculture and Rural Development, help the provincial Steering Committee organize the implementation of the Program and manage projects belonging to the Target Program for Sustainable Forestry Development in the period of 2016 - 2020 in the locality.

c) Mechanism for management and administration of the Program: Implement the regulations on management and administration, and carry out the national Target Program, regulated by the Prime Minister.

2. Responsibilities of central ministries and sectoral administrations

a) Ministry of Agriculture and Rural Development (Presiding body)

- Preside over or cooperate with concerned ministries, sectoral administrations, People’s Committees of provinces and centrally-governed cities in undertaking the Program in accordance with regulations in force.

- Preside over and cooperate with the Ministry of Planning and Investment, and the Ministry of Finance, in providing organizations and individuals with instructions for implementation of the Program.

- Synthesize and work out proposals and plans for allocation of central budget funds to ministries, sectoral administrations, provinces and centrally-run cities for the implementation of the annual, 3-year and 5-year programs and send them to the Ministry of Planning and Investment and Ministry of Finance for synthesis purposes.

- Preside over synthesis and formulation of plans for assigning specific targets and tasks every year, 3 years and 5 years to implement the Program to provinces and centrally-run cities.

- Preside over providing instructions for relevant ministries, sectoral administrations and localities to effectively implement the Program for the period of 2016 - 2020 and annual plans to fulfill the Program’s predetermined objectives.

- Preside over the establishment of monitoring and evaluation systems for the Program and guide implementing agencies on the Program monitoring and evaluation processes.

- Cooperate with the Ministry of Planning and Investment, and the Ministry of Finance, in assessing funding sources and capabilities of balancing of investment capital of projects financed by the central budget allocations, ODA and other preferential borrowed funds of foreign sponsors in the Program.

- Preside over and coordinate with relevant ministries and sectoral administrations to review and improve the mechanisms and policies for implementing the Program; formulate regulations on care and maintenance of forestry works.

- Advise the Prime Minister on assigning specific tasks, direct the strengthening of the coordination of ministries and sectoral administrations, and promote the roles of the Vietnam Fatherland Front and political and social organizations in organizing the implementation of the Program.

-Assume the prime responsibility and coordinate with ministries and sectoral administrations in examining and supervising the implementation of the Program by localities.

b) Ministry of Planning and Investment

- Preside over and cooperate with the Ministry of Finance in balancing and allocating capital investment funds for the implementation of the Program and reporting to the Prime Minister to seek his decision.

- Preside over and cooperate with the Ministry of Finance and the Ministry of Agriculture and Rural Development in assessing funding sources and capabilities of balancing of investment capital of projects financed by the central budget allocations, ODA and other preferential borrowed funds of foreign sponsors in the Program.

- Cooperate with the Ministry of Agriculture and Rural Development and the Ministry of Finance in guiding organizations and individuals to implement the Program.

- Perform the duties of a member of the State Steering Committee for the Sustainable Forestry Development Program in the period of 2016 - 2020 as assigned by the Chairman of the Steering Committee.

c) Ministry of Finance

-Preside over balancing and allocating non-business capital for the implementation of the Program on the basis of the general report on such capital by the Ministry of Agriculture and Rural Development and submitting that report to competent authorities for consideration and grant of decisions.

- Preside over formulating regulations on financial mechanism and make payments or final account of state budget funds for implementation of the Program.

- Cooperate with the Ministry of Planning and Investment in balancing and allocating sufficient capital investments to implement the Program according to the schedule and medium-term and annual investment plans.

- Cooperate with the Ministry of Planning and Investment, and the Ministry of Agriculture and Rural Development, in assessing funding sources and capabilities of balancing of investment capital of projects financed by the central budget allocations, ODA and other preferential borrowed funds of foreign sponsors in the Program.

- Cooperate with the Ministry of Agriculture and Rural Development, and the Ministry of Planning and Investment, in guiding organizations and individuals to implement the Program.

- Perform the duties of a member of the State Steering Committee for the Sustainable Forestry Development Program in the period of 2016 - 2020 as assigned by the Chairman of the Steering Committee.

d) Ministry of Natural Resources and Environment

Determine the boundaries and area of ​​land planned for forestry activities by 2020 to be used for forest development purposes; cooperate with the Ministry of Agriculture and Rural Development in allocating land and forests to organizations, individuals and households according to the approved planning scheme.

dd) The State Bank of Vietnam shall inspect and supervise commercial banks’ implementation of credit policies applied to the agriculture and rural sector and contributing to the implementation of the Program.

e) Communications agencies shall be responsible for carrying out communications programs to meet requirements of the Program.

3. Responsibilities of local jurisdictions

a) Provincial People’s Committee

- Prepare the synthesis report and build projects within its locality, send them to the Ministry of Agriculture and Rural Development, the Ministry of Planning and Investment and the Ministry of Finance to collect their comments on investment contents and capital balancing capabilities before grant of approval.

- Develop and approve annual, 3-year or 5-year program implementation plans for each project, including the following informationThe capital plan, objectives and tasks which are sent to the Ministry of Agriculture and Rural Development and concerned agencies according to regulations

-Take charge of implementing the Program; supervise and evaluate the program implementation results in the province.

- Assign and decentralize the responsibilities at each level and departments and agencies in organizing the implementation of the Program according to the principles of strengthening decentralization and raising a sense of responsibility at each entity.

- Issue mechanisms and policies, guide the implementation of the Program in the province.

- Take charge of the review and coordination of the district-level Sustainable Forestry Development Program within its remit in accordance with the provincial sustainable forestry development plan.

- Formulate the planning and promote the development of commercial forest product concentration areas in the province in the direction of linking value chains in line with the forestry restructuring orientation.

b) Standing Program implementation bodies at the provincial level

- Preside over and cooperate with relevant departments and agencies to develop capital plans and allocate funds to implement the Program annually according to the medium-term plan of the province approved by competent authorities.

- On the basis of the assigned annual targets, tasks and annual budget, preside over and cooperate with relevant departments and agencies to advise the Chairman of the provincial People s Committee on the plan of allocating targets to strive for and specific tasks for districts and submit it to the People s Council to seek its decision.

- Preside over and cooperate with relevant departments and agencies to check and monitor periodically and unexpectedly the use of direct state budget support and other mobilized capital sources to implement the Program;

- Prepare the general report on the state budget allocation results in the Program in the province which is presented by specific contents and fields for submission to the provincial Steering Committee and the Chairman of the provincial People s Committee.

-Monitor and report on the implementation of the Program.

Article 2.This Decision shall enter into force from the signature date. This Decision shall replace the Prime Minister’s Decision No. 57/QD-TTg dated January 9, 2012 on approval of the Plan for protection and development of forests for the period of 2011 – 2020.

Article 3.Ministers, Heads of Ministry-level agencies, Heads of Governmental bodies, and Chairpersons of People’s Committees of centrally-affiliated cities and provinces, shall be responsible for implementing this Decision./.

The Prime Minister

Nguyen Xuan Phuc