Decree No. 156/2018/ND-CP detailing the Law on Forestry

DECREE

Detailing a number of articles of the Law on Forestry^[1]

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

Pursuant to the November 15, 2017 Law on Forestry;

At the proposal of the Minister of Agriculture and Rural Development;

The Government promulgates the Decree detailing a number of articles of the Law on Forestry.

Chapter I

GENERAL PROVISIONS

Article 1.Scope of regulation

This Decree details a number of articles of the Law on Forestry, covering:

1. Criteria for forest identification and classification and the Regulation on forest management.

2. Allocation of forests, lease of production forests, re-categorization of forests, conversion of forests, and recovery of forests.

3. Forest fire prevention and fighting.

4. Payers, methods of payment, rates and adjustment, exemption from and reduction of forest environment service payments; and management of the use of collected money for forest environment services.

5. Forest protection and development investment policies.

6. Tasks, organizational structure, and mechanism of financial management and use of forest protection and development funds.

Article 2.Subjects of application

This Decree applies to domestic state agencies, organizations, households, individuals and residential communities; and foreign organizations and individuals involved in forestry activities in Vietnam.

Article 3.Interpretation of terms

1. Forest development means planting new forests, re-planting forests after harvest or destruction due to natural disaster or other causes; zoning off of forests for promoting fostering and regeneration, improving poor natural forests, and applying other silvicultural technical measures to increase forest areas, deposits and quality.

2. Continuous area means a land area with concentrated and continuous natural or planted forest where the distance between two forest strips does not exceed 30 meters and the total area of open space does not exceed 30% of the area.

3. Primary forest means a natural forest which has never or little been affected by humans, and the structure of which has not been altered.

4. Secondary forest means a natural forest which has been affected by humans to an extent that its structure has been altered, including secondary forest naturally regenerated after slash-and-burn farming, a forest fire or other deforestation activities; secondary forest after selective harvest of timber trees, and other forest products.

5. Main harvest means the cutting of forest trees to obtain timber mainly for economic purposes, while still ensuring sustainable development and use of forests as determined in sustainable forest management plans formulated in accordance with law.

6. Utilization harvest means the utilization of timber trees in the course of implementing silvicultural measures, conducting scientific research, and carrying out ground clearance for projects upon forest conversion.

7. Salvage logging means the collection of fallen and dead timber trees due to natural disaster; burnt timber, dry and rotted timber, and tree branches and tops still lying in the forest.

8. Forest environment means a component of the forest ecosystem, including soil, water, air, sound, light and other physical elements constituting the forest landscape.

Chapter II

REGULATION ON FOREST MANAGEMENT

Section 1

CRITERIA FOR FOREST IDENTIFICATION

Article 4.Criteria of natural forests

Natural forests, including primary and secondary forests, are those satisfying the following criteria:

1. The canopy cover of timber, bamboo and palm tree species (below referred to as forest trees) which constitute the main component of natural forest reaches 0.1 or higher.

2. The continuous area is 0.3 ha or larger.

3. The average height of forest trees being the main component of natural forest based on their site conditions is as follows:

a/ Five m or higher, for natural forests on earth hills and mountains and plains;

b/ Two m or higher, for natural forests on freshwater-submerged land areas;

c/ One and a half m or higher, for natural forests on alkaline land areas;

d/ One m or higher, for natural forests on rock mountains, sand land and sea-submerged land, and forests in other special ecological conditions.

Article 5.Criteria of planted forests

Planted forests, including forests newly planted on unforested land, forests re-planted after harvest or due to other causes, planted forests rehabilitated from poor natural forests, and regenerated planted forests after harvest, are those satisfying the following criteria:

1. The canopy cover reaches 0.1 or more.

2. The continuous area is 0.3 ha or larger.

3. The average height of forest trees based on their site conditions is as follows:

a/ Five m or higher, for planted forests on earth hills and mountains, plains and alkaline land areas;

b/ Two m or higher, for planted forests on mixed rock and earth mountains and freshwater-submerged land areas;

c/ One m or higher, for planted forests on sand land and sea-submerged land areas;

Article 6.Criteria of special-use forests

1. A national park must satisfy the following criteria:

a/ Accommodating at least 1 natural ecosystem typical in the region, a country or the world, or at least 1 indigenous living species of Vietnam or more than 5 species on the list of endangered, precious and rare species of forest flora and fauna;

b/ Having special scientific and educational values; having natural landscapes and unique beauty, having eco-tourism, resort and recreational values;

c/ Having a continuous area of at least 7,000 ha, of which forest ecosystems account for at least 70%.

2. A nature reserve must satisfy the following criteria:

a/ Having a natural ecosystem(s) of national or international importance, typical or representative of a natural eco-region;

b/ Being a natural habitat of at least 5 species on the list of endangered, precious and rare species of forest flora and fauna;

c/ Having special scientific and educational or eco-tourism, resort and recreational values;

d/ Having a continuous area of at least 5,000 ha of which forest ecosystems account for at least 90%.

3. A species and habitat reserve must satisfy the following criteria:

a/ Being a regular or seasonal natural living place of at least 1 indigenous living species or a species on the list of endangered, precious and rare species of forest flora and fauna;

b/ Ensuring living, feed and reproductive conditions for sustainable conservation of indigenous living species or species on the List of endangered, precious and rare species of forest flora and fauna;

c/ Having special scientific and educational values;

d/ Having a continuous area meeting the requirements on sustainable conservation of species on the List of endangered, precious and rare species of forest flora and fauna.

4. Protected landscape zones include:

a/ Historical-cultural relic or scenic place conservation forests satisfying the following criteria: having unique natural landscapes or beauty; having historical-cultural relics, natural landscapes or scenic places ranked by a competent state agency or having objects on the list of inventoried relics as prescribed by the law on culture; having scientific, educational, eco-tourism, resort and recreational values;

b/ Belief forests satisfying the following criteria: having unique natural landscapes or beauty; being linked with beliefs, customs and practices of a forest-dependent population community;

c/ Forests protecting the environment of urban centers, industrial parks, export processing zones, economic zones or hi-tech parks satisfying the following criteria: having the function of protecting landscapes and environment; being planned to be linked to urban centers, industrial parks, export processing zones, economic zones or hi-tech parks.

5. A scientific research and experimentation forest must satisfy the following criteria:

a/ Accommodating ecosystems meeting scientific research and experimentation requirements of science and technology, training or vocational education institutions having the forestry-related scientific research and experimentation function and task;

b/ Having an area suitable to long-term forestry-related scientific research and experimentation, technology development and training objectives and requirements.

6. National botanic gardens

Forests serving the storage and collection of Vietnamese and world flora species to serve research, sightseeing and education, having 500 or more species of timber trees and a minimum area of 50 hectares.

7. A national seedling forest must satisfy the following criteria:

a/ Being a converted or planted seedling forest of tree species on the list of major forest tree species;

b/  Meeting the national criteria of seedling forests and having a minimum area of 30 hectares.

Article 7.Criteria of protection forests

1. Watershed protection forest is a forest located in the basin of a river or reservoir satisfying the following criteria:

a/ Having a hill or mountain terrain with a slope of 15^oor more;

b/  Having an average annual rainfall of 2,000 mm or more or of 1,000 mm or more in 2-3 months;

c/ Having the thickness of sandy soil or sand-mixed soil layer of under 70 cm; or the thickness of light or rich soil layer of under 30 cm.

2. Forests protecting water sources of residential communities

Forests directly supplying water sources to serve daily life and production of local residential communities; linked to fine customs, practices and traditions of the communities and protected and used by the communities.

3. Border protection forests

Protection forests located in border belt areas, linked with important national defense and security points, and established at the proposal of border management agencies.

4. Wind- and sand-shielding protection forests satisfying the following criteria:

a/ Coastal wind- and sand-shielding protection forest belts: For eroded coastal areas, the width of the forest belt must be at least 300 meters measured from the waterline corresponding to the annual highest tide to the shore; for non-eroded coastal areas, the width of the forest belt must be at least 200 meters measured from the waterline corresponding to the annual highest tide to the shore;

b/ Wind- and sand-shielding protection forest belts behind the forest belts defined at Point a of this Clause: The width of the forest belt must be at least 40 meters in case the sand area is 100 hectares large or larger or the sand area is mobile or the sand area has a slope of 25^oor more. The width of the forest belt must be at least 30 meters in case the sand area is less than 100 hectares large or the sand area is stable or the sand area has a slope of under 25^o.

5. Tidal wave-shielding and sea encroachment-preventing protection forests must satisfy the following criteria:

a/ For deposited or stable coastal areas, the width of the belt of these forests must be between 300 meters and 1,000 meters, depending on each ecological area;

b/ For eroded coastal areas, the minimum width of the belt of these forests must be 150 meters;

c/ For estuary areas, the minimum width of the belt of these forests must be 20 meters measured from the dyke foot and each forest belt must have at least 3 tree rows;

d/ For coastal lagoon areas, the minimum width of the belt of these forests must be 100 meters, if these areas have a dyke, or 250 meters, if these areas have no dyke.

Article 8.Criteria of production forests

Forests satisfy the criteria of natural forests or planted forests prescribed in Article 4 or 5 of this Decree, but do not satisfy the criteria of special-use forests or protection forests prescribed in Article 6 or 7 of this Decree.

Section 2

MANAGEMENT OF SPECIAL-USE FORESTS

Article 9.Establishment of special-use forests

1. Principles of establishment of special-use forests

a/ Having a special-use forest establishment project conformable with the national forestry master plan, other than those specified at Point c, Clause 1, Article 8 of the Government’s Decree No. 65/2010/ND-CP of June 11, 2010, detailing and guiding the implementation of a number of articles of the Law on Biodiversity;

b/ Meeting the criteria of each type of special-use forest prescribed in Article 6 of this Decree.

2. Contents of a special-use forest establishment project

a/ Assessment of the natural conditions and status of the forest, and natural ecosystems; values of biodiversity and gene sources of living creatures; historical, cultural, landscape, eco-tourism, resort and recreational values; science and experimentation, environmental education and provision of forest environment services;

b/ Assessment of the management and use of forests, land and water surface in the project-covered area;

c/ Assessment of people’s livelihoods and socio-economic conditions;

d/ Identification of objectives for the establishment of the special-use forest satisfying the criteria of this type of forest;

dd/ Identification of the boundary and area of the special-use forest, its sub-zones and buffer zone on the map;

e/ Activity programs, plan for stabilization of livelihoods of people living in the buffer zone, implementation and management measures;

g/ General estimation of investment funds; construction phases of the special-use forest; regular funds for forest protection and conservation, improvement of people’s life; investment efficiency;

h/ Organization of project implementation.

3. A dossier for establishment of a special-use forest must comprise:

a/ A report (original) on the establishment of the special-use forest;

b/ The special-use forest establishment project document (original);

c/ A map (original) on the status of the special-use forest of a 1:5,000 or 1:10,000 or 1:25,000 scale according to the VN2000 reference system, depending on the area of the forest;

d/ Summarized opinions of related agencies, organizations and individuals;

dd/ Appraisal results.

4. Procedures for establishing a special-use forest to be located in 2 or more provinces and centrally run cities

The Ministry of Agriculture and Rural Development shall assume the prime responsibility for organizing the formulation of the project and report the establishment of the special-use forest to the Prime Minister for decision according to the following procedures:

a/ Organizing the formulation of a special-use forest establishment project according to Clause 2 of this Article;

b/ Collecting opinions from related ministries, ministerial-level agencies, provincial-level People’s Committees, organizations and individuals. Within 20 working days after receiving a written request for opinion, related agencies, organizations and individuals shall send written replies to the Ministry of Agriculture and Rural Development;

c/ Within 30 working days, the Ministry of Agriculture and Rural Development shall complete the appraisal of the project dossier;

d/ Within 30 working days after receiving a complete dossier as prescribed in Clause 3 of this Article, the Prime Minister shall consider and decide on the establishment of the special-use forest.

5. Procedures for establishing a special-use forest other than that prescribed in Clause 4 of this Article

The provincial-level Department of Agriculture and Rural Development shall assume the prime responsibility for formulating a project on and report the establishment of a special-use forest to the provincial-level People’s Committee for decision according to the following procedures:

a/ Organizing the formulation of a special-use forest establishment project according to Clause 2 of this Article;

b/ Collecting opinions from the Ministry of Agriculture and Rural Development and related agencies, organizations and individuals. Within 20 working days after receiving a written request for opinion, related agencies, organizations and individuals shall send written replies to the provincial-level People’s Committee;

c/ Within 30 working days, the provincial-level Department of Agriculture and Rural Development shall complete the appraisal of the project dossier;

d/ Within 30 working days after receiving a complete dossier as prescribed in Clause 3 of this Article, the provincial-level People’s Committee chairperson shall consider and decide on the establishment of the special-use forest.

Article 10.Responsibility for managing special-use forests

1. The Ministry of Agriculture and Rural Department shall take responsibility to the Government for performing the state management of the special-use forest system nationwide; and directly organize the management of special-use forests each located in 2 or more provinces and centrally run cites.

2. Provincial-level People’s Committees shall perform the state management of the special-use forest systems in their respective localities.

Article 11.Protection of special-use forests

1. Protection of forest ecosystems

a/ The protection of forest ecosystems must comply with Article 37 of the Law on Forestry;

b/ The following activities are prohibited in a special-use forest: activities that change the natural landscape of the forest; illegally harvesting living resources and other natural resources; polluting the environment; illegally bringing hazardous chemicals, explosives and flammables into the forest; grazing or raising cattle, poultry and domestic animals in the strictly protected sub-zone of the forest.

2. Protection of forest plants and animals

a/ The protection of forest plants and animals must comply with Article 38 of the Law on Forestry; the Government’s regulations on management of endangered, precious and rare forest plants and animals and implementation of the Convention on International Trade in Endangered Species of Wild Fauna and Flora;

b/ All forest animal species in a special-use forest shall be protected and activities that negatively affect natural habitats and feed sources of forest animals are prohibited;

c/ Healthy, disease-free indigenous animals which have lived in a special-use forest may be released into the forest; the quantity of animals of each species released into a special-use forest must be suitable to their living area and feed sources and ensure the eco-balance of the forest;

d/ Animal and plant species that do not naturally live in a special-use forest may not be released into or raised and planted in the forest.

3. To comply with the provisions on forest fire prevention and fighting in Chapter IV of this Decree.

4. To comply with the provisions on prevention and elimination of forest pests in Article 40 of the Law on Forestry.

Article 12.Harvest of forest products in special-use forests

1. For national parks, nature reserves and species and habitat conservation zones

a/ Harvested objects and collected specimens must comply with Points b, c and d, Clause 1, Article 52 of the Law on Forestry;

b/ Conditions: having a plan on timber salvage logging as required by the Ministry of Agriculture and Rural Development for the objects specified at Point b, Clause 1, Article 52 of the Law on Forestry; a decision on forest conversion, for the objects specified at Point c, Clause 1, Article 52 of the Law on Forestry; or an approved scientific research program or project, for the objects specified at Point d, Clause 1, Article 52 of the Law on Forestry.

2. For landscape protection forests

a/ Harvested objects and collected specimens must comply with Clause 2, Article 52 of the Law on Forestry;

b/ Conditions: having a silvicultural project in case of salvage logging in the course of implementation of silvicultural measures, for the objects specified at Point a, Clause 2, Article 52 of the Law on Forestry; a decision on forest conversion in case of salvage logging within the ground clearance area specified at Point a, Clause 2, Article 52 of the Law on Forestry; an approved scientific research program or project, for the objects specified at Point b, Clause 2, Article 52 of the Law on Forestry; or a plan on timber salvage logging as required by the Ministry of Agriculture and Rural Development, for objects specified at Point c, Clause 2, Article 52 of the Law on Forestry.

3. For scientific research and experimentation forests

a/ Harvested objects and collected specimens must comply with Clause 3, Article 52 of the Law on Forestry;

b/ Conditions: having an approved scientific research program or project, for the objects specified at Points a and c, Clause 3, Article 52 of the Law on Forestry; a silvicultural project in case of salvage logging in the course of implementation of silvicultural measures, for the objects specified at Point b, Clause 3, Article 52 of the Law on Forestry; or a decision on forest conversion in case of salvage logging within the ground clearance area specified at Point b, Clause 3, Article 52 of the Law on Forestry.

4. For national botanic gardens and national seedling forests

a/ Harvested objects must comply with Clause 4, Article 52 of the Law on Forestry;

b/ Conditions: having a silviculture project in case of salvage logging in the course of implementation of silvicultural measures, for the objects specified at Point b, Clause 4, Article 52 of the Law on Forestry; a plan on timber salvage logging as required by the Ministry of Agriculture and Rural Development, for the objects specified at Point b, Clause 4, Article 52 of the Law on Forestry; or a decision on forest conversion in case of salvage logging within the ground clearance area specified at Point b, Clause 4, Article 52 of the Law on Forestry.

Article 13.Scientific research, teaching and practice in special-use forests

1. Scientific research, teaching and practice organized by forest owners themselves must comply with approved subjects, projects or plans.

2. For scientific research institutions, training institutions, scientists, pupils and students carrying out scientific research, teaching or practice, except the case specified in Clause 1 of this Article, the following requirements shall be met:

a/  Having a plan (original) on scientific research, teaching or practice in the special-use forest;

b/ Scientific research, teaching, practice, collection of specimens, gene sources, transportation, storage and publicization of specimens and gene sources must comply with provisions of law amd management regulations and be subject to the forest owner’s instruction and supervision;

c/ Notifying the forest owner of results of scientific research, teaching and practice, and documents published domestically or internationally (if any).

Article 14.Order and procedures for formulation, appraisal, approval and organization of implementation of schemes on eco-tourism, resort and recreation in special-use forests

1. Forest owners shall prepare eco-tourism, resort and recreation schemes conformable with approved sustainable forest management plans. Such a scheme must include the following principal contents:

a/ Current status of natural resources; tourist resources and products of eco-tourism, resort and recreation;

b/ Detailed explanation of the plan on development of routes and sites for eco-tourism, resort and recreation, including locations, areas, current status, purposes, time and methods of implementation;

c/ Locations and sizes of to be-constructed works to serve eco-tourism, resort and recreation;

d/ Solutions for forest protection and development, nature and biodiversity conservation, and environmental protection;

dd/ Organization of supervision of eco-tourism, resort and recreation activities;

e/ Maps of a 1:5,000 or 1:10,000 or 1:25,000 scale according to the VN2000 reference system, including a map of status of natural resources and tourist resources of the special-use forest; a planning map of tourist, recreation and entertainment routes and sites, organization of architectural space and tourist infrastructure of the special-use forest.

2. A dossier of an eco-tourism, resort and recreation scheme must comprise:

a/ A report (original) prepared by the forest owner;

b/ The eco-tourism, resort and recreation scheme (original) referred to in Clause 1 of this Article.

3. Procedures for appraisal and approval of an eco-tourism, resort and recreation scheme

a/ The forest owner shall send directly or by post 2 sets of the dossier specified in Clause 2 of this Article to the provincial-level Department of Agriculture and Rural Development, for locally managed special-use forests; or to the Vietnam Administration of Forestry, for special-use forests managed by the Ministry of Agriculture and Rural Development.

If finding a dossier invalid, within 3 working days after receiving it, the dossier-receiving agency shall issue a written notice to the forest owner for completing the dossier.

b/ Within 15 working days, the dossier-receiving agency referred to at Point a of this Clause shall consult related agencies, organizations and individuals;

c/ Within 20 working days, the dossier-receiving agency referred to at Point a of this Clause shall complete the appraisal of the dossier;

d/ Within 15 working days after receiving a complete dossier from the dossier-receiving agency referred to at Point a of this Clause,  the provincial-level People’s Committee or Ministry of Agriculture and Rural Development shall approve the scheme.

4. Contents of appraisal of an eco-tourism, resort and recreation scheme include:

a/ Status of natural resources, and tourist resources and products;

b/ Locations and sizes of to be-constructed works to serve eco-tourism, resort and recreation;

c/ Time and method of organization of implementation;

d/ Solutions for forest protection and development, nature and biodiversity conservation, and environmental protection;

dd/ Organization of supervision of eco-tourism, resort and recreation activities.

5. Organization of implementation of an eco-tourism, resort and recreation scheme

a/ After an eco-tourism, resort and recreation scheme is approved, the forest owner shall assume the prime responsibility for, and coordinate with organizations and individuals in, formulating an eco-tourism, resort and recreation project according to the method of self-organization, partnership or lease of forest environment in conformity with the approved scheme. The formulation of eco-tourism, resort and recreation projects must comply with the Law on Forestry and relevant laws;

b/ The forest owner shall guide, inspect and supervise forest environment lessees in implementing their projects in accordance with law;

c/ Funds for formulating eco-tourism, resort and recreation schemes shall be incorporated in annual financial plans according to current regulations of the State. In case of partnership with other organizations and individuals, funds for formulating eco-tourism projects shall be agreed upon by two parties. Funds for formulating eco-tourism, resort and recreation projects shall be covered by forest environment lessees.

6. Lease of forest environment for provision of eco-tourism, resort and recreation services

a/ Forest owners may lease the special-use forest environment to organizations and individuals for provision of eco-tourism, resort and recreation services. Such lease shall be announced publicly. The rates of forest environment rental may be agreed upon by related parties but must not be lower than 1% of total revenue generated in a year by the forest environment lessee from the leased area of forest environment. If two or more organizations and individuals wish to lease the forest environment, an auction shall be held with a reserve price not lower than 1% of total revenue generated in a year by the forest environment lessee from the leased area of forest environment. The lease period must not exceed 30 years and the lease contract performance shall be evaluated once every 5 years. At the expiry of the lease period, if the lessee has properly performed the contract and wishes to continue the lease, the forest owner may consider and extend the lease period;

b/ Before signing a forest environment lease contract, the forest owner shall investigate forest resources in the to-be-leased area for use as a basis for the lease and supervision and evaluation of the contract performance.

Article 15.Management of construction of works serving eco-tourism, resort and recreation in special-use forests

1. Works constructed to serve eco-tourism, resort and recreation must not affect biodiversity and natural landscape of special-use forests; and must conform with eco-tourism, resort and recreation schemes approved by competent agencies under Point d, Clause 3, Article 14 of this Decree.

2. In strictly protected sub-zones, only footpaths, overhead cable lines, underground cable lines, landscape observatories, shelter tents and forest protection and eco-tourism instruction signboards may be established or erected.

3. In ecological recovery sub-zones, only appropriate roads which must not exceed the sizes of grade-IV mountainous roads, landscape observatories, shelter tents, signboards, overhead cable lines, underground cable lines and pedestrian bridges in submerged areas may be established or erected.

4. In service and administrative sub-zones of national parks, nature reserves and species and habitat conservation zones; protected landscape zones; and scientific research and experimentation forests, works serving eco-tourism, resort and recreation and promoting the values of historical-cultural relics and scenic places may be constructed but must:

a/ Neither affect the conservation objective, nor undermine landscapes nor damage forests; be based on the nature and in harmony with the environment and landscape. Recreational works must not be higher than 12 meters;

b/ Not give away the state ownership of forests and natural resources on and under the ground;

c/ Be built only in barren areas, grass plots and bush areas which cannot be self-recovered;

d/ Help protect, conserve and develop forest resources in areas where eco-tourism, resort and recreation activities are organized; and be subject to the instruction, inspection and supervision by forest owners;

dd/ Not affect national defense, security, scenic places and historical-cultural relics.

Article 16.Stabilization of livelihoods of people living in special-use forests and their buffer zones

1. Identification of buffer zones

a/  Buffer zone within a special-use forest: an area where a residential community or cluster has stably lived since before the establishment of the special-use forest and there is no condition for relocating residents out of the forest; there is a long-term plan on stabilization of the population in the area in line with the master plan of the forest; the buffer zone inside the forest is determined on the basis of the status of land and water surface actually used by the residential community for stable cultivation since before the establishment of the special-use forest;

b/ Buffer zone outside a special-use forest: an area where a residential community lives and undertakes production and business activities according to traditions; an area of villages situated adjacent to the outer boundary of a special-use forest;

c/ For a special-use forest adjacent to the national boundary, a protection forest or another conservation zone or a national defense zone, no external buffer zone shall be determined for such adjacent area.

2. Contents of a buffer zone development investment program or project

a/ Assessment of natural conditions, people’s livelihoods, socio-economic conditions, status of forest resources and land and water surface use;

b/ Organization of measures to protect forests and conserve natural ecosystems and biodiversity;

c/  Support for the residential community living in the buffer zone in carrying out forestry, agriculture and fishery activities with economic, social and environmental benefits and in conformity with local practices;

d/ Communication and education to raise awareness about the law on forest protection and ecosystem and biodiversity conservation;

dd/ Support for investment in infrastructure facilities serving socio-economic development in order to reduce pressure on conservation work in special-use forests according to investment policies and the financial mechanism applicable to the special-use forest system;

e/ Identification of the investment fund demand, funding sources and investment phases;

g/ Organization of buffer zone management, specifying obligations, responsibilities and powers of commune-level People’s Committees, villages and residential communities in the buffer zone and of the special-use forest management boards in the implementation of buffer zone investment projects.

3. Special-use forest management boards shall assume the prime responsibility for, and coordinate with local administrations and residential communities in, formulating buffer zone development investment programs and projects. Dossiers submitted for appraisal and approval of buffer zone investment programs and projects must comply with the Law on Public Investment.

Section 3

MANAGEMENT OF PROTECTION FORESTS

Article 17.Establishment of protection forests

1. Principles of establishment of protection forests

a/ Having a protection forest establishment project conformable with the national forestry master plan;

b/ Satisfying the criteria for each type of protection forest prescribed in Article 7 of this Decree.

2. Contents of a protection forest establishment project

a/ Assessment of natural conditions and status of the forest, and natural ecosystems; values of protection, eco-tourism, resort and recreation; supply of timber and non-timber products, provision of forest environment services and biodiversity;

b/ Assessment of the management and use of forest, land and water surface in the project-covered area;

c/ Assessment of the people’s livelihoods and socio-economic conditions;

d/ Identification of objectives for the establishment of a protection forest satisfying the criteria of this type of forest;

dd/ Identification of the boundary and area of the protection forest on the map;

e/ Activity programs and implementation and management measures;

g/ General estimation of investment funds; construction phases of the protection forest; regular funds for protection activities, improvement of people’s life; investment efficiency;

h/ Organization of project implementation.

3. A dossier for establishment of a protection forest must comprise:

a/ A report (original) prepared by the protection forest management agency;

b/ The protection forest establishment project document (original);

c/ A map (original) on the status of the protection forest of a 1:5,000 or 1:10,000 or 1:25,000 scale according to the VN2000 reference system, depending on the area of the forest;

d/ Summarized opinions of related agencies, organizations and individuals;

dd/ Appraisal results.

4. Procedures for establishing a protection forest to be located in 2 or more provinces and centrally run cities

The Ministry of Agriculture and Rural Development shall assume the prime responsibility for organizing the formulation of a project on and report the establishment of a protection forest to the Prime Minister for decision according to the following procedures:

a/ Organizing the formulation of the protection forest establishment project according to Clause 2 of this Article;

b/ Collecting opinions from related ministries, ministerial-level agencies, provincial-level People’s Committees, organizations and individuals.

Within 20 working days after receiving a written request for opinion, related agencies, organizations and individuals shall send written replies to the Ministry of Agriculture and Rural Department;

c/ Within 30 working days, the Ministry of Agriculture and Rural Development shall complete the appraisal of the project dossier;

d/ Within 30 working days after receiving a complete dossier as prescribed in Clause 3 of this Article, the Prime Minister shall consider and decide on the establishment of the protection forest.

5. Procedures for establishing a protection forest other than that prescribed in Clause 4 of this Article

The provincial-level Department of Agriculture and Rural Development shall assume the prime responsibility for formulating a project on and report the establishment of a protection forest to the provincial-level People’s Committee for decision according to the following procedures:

a/ Organizing the formulation of a protection forest establishment project according to Clause 2 of this Article;

b/ Collecting opinions from related agencies, organizations and individuals. Within 20 working days after receiving a written request for opinion, related agencies, organizations and individuals shall send written replies to the provincial-level People’s Committee;

c/ Within 30 working days, the provincial-level Department of Agriculture and Rural Development shall complete the appraisal of the project dossier;

d/ Within 30 working days after receiving a complete dossier as prescribed in Clause 3 of this Article, the provincial-level People’s Committee chairperson shall consider and decide on the establishment of the protection forest.

Article 18.Responsibility for managing protection forests

1. The Ministry of Agriculture and Rural Department shall take responsibility to the Government for performing the state management of the protection forest system nationwide; and directly organize the management of protection forests each located in 2 or more provinces and centrally run cites.

2. Provincial-level People’s Committees shall perform the state management of the protection forest systems in their respective localities.

Article 19.Protection of protection forests

1. Protection of forest ecosystems

a/ The protection of forest ecosystems must comply with Article 37 of the Law on Forestry;

b/ The following activities are prohibited in a protection forest: activities that change the natural landscape of the forest; illegally harvesting living resources and other natural resources; polluting the environment; illegally bringing hazardous chemicals, explosives and flammables into the forest; grazing or raising cattle, poultry and domestic animals on newly planted forest areas currently under care.

2. Protection of forest plants and animals

a/ The protection of forest plants and animals must comply with Article 38 of the Law on Forestry; the Government’s regulations on management of endangered, precious and rare forest plants and animals and implementation of the Convention on International Trade in Endangered Species of Wild Fauna and Flora;

b/ All forest animal species in a protection forest shall be protected and activities that negatively affect natural habitats and feed sources of forest animals are prohibited;

3. To comply with the provisions on forest fire prevention and fighting in Chapter IV of this Decree.

4. To comply with the provisions on prevention and elimination of forest pests in Article 40 of the Law on Forestry.

Article 20.Harvest of forest products in protection forests

1. Harvest of natural forest timber

a/ Harvested objects must comply with Clause 1, Article 55 of the Law on Forestry;

b/ Conditions: having a plan on salvage logging of timber according to regulations of the Ministry of Agriculture and Rural Development; logging of standing trees in areas with a density higher than the prescribed density may be carried out only in the time of forest re-opening;

c/ Harvesting method: For standing trees, selective logging may be conducted with an intensity not exceeding 20% of the forest deposits, ensuring that the forest canopy rate must be higher than 0.6 after the logging.

2. Harvest of non-timber forest products in natural forests

a/ Harvested objects must comply with Clause 2, Article 55 of the Law on Forestry;

b/ Conditions: maintaining the sustainable development of the forest; the logged volume must not exceed the growth rate of logged species; the logging must not affect the protection function of the forest;

c/ Harvesting methods may be decided by forest owners themselves.

3. Harvest of planted forest timber

a/ Harvested objects must comply with Clause 3, Article 55 of the Law on Forestry;

b/ Condition: Forest owners shall prepare a timber logging plan according to regulations of the Ministry of Agriculture and Rural Development;

c/ Harvest methods: Thin pruning of major trees must ensure that the remaining density is at least 600 trees/hectare and even distribution in the lot. Selective logging of major trees must be at an intensity not exceeding 20% of the forest deposits. Band-based clearcutting must ensure that the width of each band must not exceed 30 meters; strip-based clearcutting must ensure that the clear-cut area must not exceed 3 hectares and the total area clear-cut annually must not exceed 20% of the total forest area having satisfied the protection standards.

4. Utilization harvest of natural forest and planted forest timber

a/ Objects: Timber trees in the converted forest area, when implementing silvicultural technical measures, serving training and scientific research tasks;

b/ Condition: Having a competent agency’s decision approving forest conversion; a silvicutural project; and a scientific research program or subject.

Article 21.Enjoyment of forest products harvested from protection forests

1. Enjoyment of harvested forest products prescribed in Article 55 of the Law on Forestry

a/ Protection forest owners may enjoy all forest products harvested from natural protection forests after fulfilling financial obligations prescribed by the State;

b/ Protection forest owners may enjoy all forest products harvested from protection forests planted with state budget funds or support from state budget-funded programs or projects after fulfilling financial obligations prescribed by the State;

c/ Persons who are assigned or contracted with protection forests for investment with their own funds may enjoy all forest products harvested from protection forests after fulfilling financial obligations prescribed by the State.

2. Protection forest management boards may enjoy the proceeds earned from non-forest product services; shall make payments to persons to whom protection forests are contracted; and share benefits to households, individuals and residential communities that participate in forest protection according to the State’s regulations.

3. Protection forest management boards; and persons who are assigned or contracted with protection forests on a stable basis may enjoy all products from combined agriculture and fishery activities and non-timber products after fulfilling financial obligations prescribed by the State.

Article 22.Scientific research, teaching and practice in protection forests

1. Scientific research, teaching and practice organized by forest owners themselves must comply with approved subjects, projects or plans.

2. For scientific research institutions, training institutions, scientists, pupils and students carrying out scientific research, teaching or practice, except the case specified in Clause 1 of this Article, the following requirements shall be met:

a/  Having a plan (original) on scientific research, teaching or practice in the protection forest;

b/ Scientific research, teaching, practice, collection of specimens, gene sources, transportation, storage and publicization of specimens and gene sources must comply with provisions of law, management regulations and be subject to the forest owner’s instruction and supervision;

c/ Notifying the forest owner of results of scientific research, teaching and practice, and documents published domestically or internationally (if any).

Article 23.Order and procedures for formulation, appraisal, approval and organization of implementation of schemes on eco-tourism, resort and recreation in protection forests

1. Forest owners shall prepare eco-tourism, resort and recreation schemes conformable with approved sustainable forest management plans. Such a scheme must include the following principal contents:

a/ Current status of natural resources; tourist resources and products of eco-tourism, resort and recreation;

b/ Detailed explanation of a plan on development of routes and sites for eco-tourism, resort and recreation, specifying locations, areas, status, purposes, time and methods of implementation;

c/ Locations and sizes of to be-constructed works serving eco-tourism, resort and recreation;

d/ Solutions for forest protection and development, nature and biodiversity conservation, environmental protection, and maintenance of the protection function of the forest;

dd/ Organization of supervision of eco-tourism, resort and recreation activities;

e/ Eco-tourism maps of a 1:5,000 or 1:10,000 or 1:25,000 scale according to the VN2000 reference system, including a map of status of natural resources and tourist resources of the protection forest; a planning map of tourist routes and sites, organization of architectural space and tourist infrastructure of the protection forest.

2. A dossier of an eco-tourism, resort and recreation scheme must comprise:

a/ A report (original) prepared by the forest owner;

b/ The eco-tourism, resort and recreation scheme (original) referred to in Clause 1 of this Article.

3. Procedures for appraisal and approval of an eco-tourism, resort and recreation scheme

a/ The forest owner shall send directly or by post 2 sets of the dossier prescribed in Clause 2 of this Article to the provincial-level Department of Agriculture and Rural Development, for locally managed protection forests; or to the Vietnam Administration of Forestry, for protection forests management by the Ministry of Agriculture and Rural Development.

If finding a dossier invalid, within 3 working days after receiving it, the dossier-receiving agency shall issue a written notice to the forest owner for completing the dossier.

b/ Within 15 working days, the dossier-receiving agency referred to at Point a of this Clause shall consult related agencies, organizations and individuals;

c/ Within 20 working days, the dossier-receiving agency referred to at Point a of this Clause shall complete the appraisal of the dossier;

d/ Within 15 working days after receiving a complete dossier from the dossier-receiving agency referred to at Point a of this Clause,  the provincial-level People’s Committee or Ministry of Agriculture and Rural Development shall approve the scheme.

4. Contents of appraisal of an eco-tourism, resort and recreation scheme include:

a/ Status of natural resources, and tourist resources and products;

b/ Locations and sizes of to-be-constructed works serving eco-tourism, resort and recreation;

c/ Time and method of organization of implementation;

d/ Solutions for forest protection and development, nature and biodiversity conservation, environmental protection, and maintenance of the protection function of the forest;

dd/ Organization of supervision of eco-tourism, resort and recreation activities.

5. Organization of implementation of an eco-tourism, resort and recreation scheme

a/ After an eco-tourism, resort and recreation scheme is approved, the forest owner shall assume the prime responsibility for, and coordinate with organizations and individuals in, formulating an eco-tourism, resort and recreation project according to the method of self-organization, partnership methods or lease of forest environment in conformity with the approved scheme. The formulation of eco-tourism, resort and recreation projects must comply with the Law on Forestry and relevant laws;

b/ The forest owner shall guide, inspect and supervise forest environment lessees in implementing their projects in accordance with law;

c/ Funds for formulating eco-tourism, resort and recreation schemes shall be incorporated in annual financial plans according to the State’s current regulations. In case of partnership with other organizations and individuals, funds for formulation of eco-tourism investment projects shall be agreed upon by two parties. Funds for formulating eco-tourism, resort and recreation projects shall be covered by forest environment lessees.

6. Lease of forest environment for provision of eco-tourism, resort and recreation services

a/ Forest owners may lease the protection forest environment to organizations and individuals for provision of eco-tourism, resort and recreation services. Such lease shall be announced publicly. The rates of forest environment rental may be agreed upon by related parties but must not be lower than 1% of total revenue generated in a year by the forest environment lessee from the leased area of forest environment. If two or more organizations and individuals wish to lease the forest environment, an auction shall be held with a reserve price not lower than 1% of total revenue generated in a year by the forest environment lessee from the leased area of forest environment. The lease period must not exceed 30 years and the lease contract performance shall be evaluated once every 5 years. At the expiry of the lease period, if the lessee has properly performed the contract and wishes to continue the lease, the forest owner may consider and extend the lease period;

b/ Before signing a forest environment lease contract,  the forest owner shall investigate forest resources in the leased area for use as a basis for the lease and supervision and evaluation of the contract performance.

Article 24.Management of construction of works serving eco-tourism, resort and recreation in protection forests

1. Works constructed to serve eco-tourism, resort and recreation must not affect the protection function and natural landscapes of the forests; and must conform with eco-tourism, resort and recreation schemes approved by competent agencies under Point d, Clause 3, Article 23 of this Decree.

2. The construction of works serving eco-tourism, resort and recreation activities must:

a/ Not damage landscapes and forests; be based on the nature and in harmony with the environment landscapes, and compliant with law;

b/ Not give away the state ownership of forests and natural resources on and under the ground;

c/ Be built only in barren areas, grass plots and bush areas which cannot be self-recovered;

d/ Help protect, conserve and develop forest resources in areas where eco-tourism, resort and recreation activities are organized; be subject to the forest owners’ instruction, inspection and supervision;

dd/ Not affect national defense, security, scenic places and historical-cultural relics.

Article 25.Combined forestry, agriculture and fishery in protection forests

1. Principles

a/ Combined forestry, agriculture and fishery may not be carried out in watershed protection forests with a slope of over 30^o; eroded coastal areas in wind- and sand-shielding, tidal wave-shielding and sea encroachment-preventing protection forests;

b/ Efficiently using forest space and environment for combined forestry, agriculture and fishery;

c/ Harmonizing the interests of the State and forest owners and organizations, individuals, households and residential communities engaged in forestry activities.

2. For existing protection forests

Forest owners and stably contracted parties being households, individuals and residential communities may plant agricultural crops, non-timber forest trees, and raise domestic and aquatic animals under the canopy of protection forests without reducing the forest area and quality and affecting forest regeneration and protection function.

3. For unforested land areas

a/ Forest owners and stably contracted parties being households, individuals and residential communities may use unforested areas for combined agriculture and fishery but shall plant forests in assigned or contracted land areas to ensure that forests cover at least 80% of the forest lot, for watershed protection forests and wind- and sand-shielding forests; or at least 60% of the forest lot, for submerged forests used for aquaculture. Silvicutural technical measures to develop protection forests must comply with regulations of the Ministry of Agriculture and Rural Development;

b/ Agricultural crops, industrial plants and fruit trees may be planted intermingledly with forest trees in assigned or contracted land areas. No cattle, poultry and other domestic animals may be raised in newly planted forests currently under care;

c/ Land areas located between planted forest tree bands may be used for combined agriculture and fishery which must not exceed 20% of the land area of the assigned or contracted forest lot in watershed or wind- and sand-shielding protection forests, or must not exceed 40% of the water surface area in submerged forests used for aquaculture.

4. Forest owners and stably contracted parties may enjoy all products obtained from combined agriculture and fishery activities prescribed in Clauses 2 and 3 of this Article.

5. State management agencies in charge of forestry at all levels shall guide forest owners and stably contracted parties how to carry out combined forestry, agriculture and fishery activities in accordance with law.

Section 4

MANAGEMENT OF PRODUCTION FORESTS

Article 26.Protection of production forests

1. Protection of forest ecosystems

a/ The protection of forest ecosystems must comply with Article 37 of the Law on Forestry;

b/ Activities directly affecting forest ecosystems shall be carried out in accordance with the law on environmental protection and only with the permission of a competent state agency.

2. Protection of forest plants and animals

a/ The protection of forest plants and animals must comply with Article 38 of the Law on Forestry, the Government’s regulations on management of endangered, precious and rare forest flora and fauna species, and the Convention on International Trade in Endangered Species of Wild Fauna and Flora;

b/ All forest animal species in production forests shall be protected with their natural habitats and food sources ensured.

3. To comply with the provisions on forest fire prevention and fighting in Chapter IV of this Decree.

4. To comply with the provisions on prevention and control of forest pests in Article 40 of the Law on Forestry and the laws on plant protection and quarantine and animal health.

Article 27.Development of production forests

1. Activities to develop production forests are specified in Article 48 of the Law on Forestry.

2. Organization of the development of production forests

a/ Forest owners shall develop production forests under their sustainable forest management plans;

b/ Forest owners may invest on their own or enter into joint ventures or associations with others for implementing forest development projects and organizing production in forest areas or land areas for production forest planting allocated or leased by the State in accordance with law.

3. Silvicultural measures to develop forests shall be applied in accordance with the regulations of the Ministry of Agriculture and Rural Development.

Article 28.Harvest of forest products in natural production forests

1. Main harvest of natural forest timber

a/ Objects to be harvested: Timber trees in rich or average forest areas;

b/ Conditions for harvest: Those prescribed in Clause 1, Article 58 of the Law on Forestry, and the harvest is carried out not during forest closure periods;

c/ Harvest method: Selective harvest with the intensity not exceeding  35% of the timber reserve of each forest plot.

2. Utilization harvest of natural forest timber

a/ Objects to be harvested: Timber trees in converted forest areas or when silvicultural measures are applied or to serve training and scientific research activities;

b/ Conditions for harvest: There must be a competent agency’s decision approving the forest conversion, a silvicultural project or a scientific research program or subject.

3. Savage logging of natural forest timber

a/ Objects to be logged: Timber trees, branches and stumps which are withered, rotten, fallen, burned or dead due to natural disasters in forests;

b/ Conditions for logging: Forest owners shall make timber salvage logging plans under the regulations of the Ministry of Agriculture and Rural Development.

4. Harvest of common non-timber forest plants and common forest plant derivatives

a/ Objects to be harvested: Common non-timber forest plants and common forest plant derivatives;

b/ Conditions for harvest: Harvest must ensure maintenance of the sustainable development of forests and the harvested quantity of a species must not be larger than the growth rate of such species;

c/ Harvest method: To be decided by forest owners.

5. Harvest of common forest animals

a/ Objects to be harvested: Common forest animal species;

b/ Conditions for harvest: Forest owners must have plans on harvest of common forest animals.

6. Harvest of endangered, precious and rare species must comply with the Government’s regulations on management of endangered, precious and rare forest flora and fauna species and implementation of the Convention on International Trade in Endangered Species of Wild Fauna and Flora.

7. Enjoyment of benefits from the harvest of forest products

Forest owners may enjoy the whole value of harvested forest products after fulfilling their financial obligations prescribed by the State.

Article 29.Harvest of forest products in planted production forests

1. Harvest of planted forest timber

a/ Conditions for harvest: After the clearcutting, forest owners shall replant forests right in the immediate subsequent afforestation season or ensure forest regeneration. For forests planted with state budget funds, there must be timber harvest plans under the regulations of the Ministry of Agriculture and Rural Development;

b/ Harvest method: Band- or strip-based clear cutting or full harvest in whole forest areas as decided by forest owners.

2. Utilization harvest of planted forest timber

a/ Objects to be harvested: Timber trees in converted forest areas or when silvicultural measures are applied or to serve training and scientific research activities;

b/ Conditions for harvest: For forests planted with state budget funds, there must be a competent agency’s decision approving the forest conversion, a silvicultural project or scientific research program or subject.

3. Savage logging of planted forest timber

a/ Objects to be logged: Timber trees which are withered, rotten, fallen, burned or dead due to natural disasters in forests;

b/ Conditions for logging: Forests have been planted with state budget funds for which there must be reports on timber harvest volumes and locations under the regulations of the Ministry of Agriculture and Rural Development.

4. Harvest of endangered, precious and rare species must comply with the Government’s regulations on management of endangered, precious and rare forest flora and fauna species and implementation of the Convention on International Trade in Endangered Species of Wild Fauna and Flora.

5. Enjoyment of benefits from the harvest of forest products

a/ Forest owners that have invested in planting forests may enjoy the whole value of harvested forest products in such forests;

b/ Forest owners may enjoy the value of forest products in forests planted with the whole or part of state budget funds after fulfilling their financial obligations prescribed by the State.

Article 30.Combined agro-forestry-fishery production activities in production forests

1. Principles

a/ Efficiently utilizing forest space and environment for combined agro-forestry-fishery production activities;

b/ Harmonizing interests of the State and interests of forest owners in agro-forestry-fishery production activities.

2. For forest land areas

Forest owners may grow agricultural crops and non-timber forest plants, keep animals and rear aquatic animals under the forest canopy without reducing forest areas and quality and affecting the forest regeneration.

3. For unforested land areas

a/ Forest owners may use unforested land areas for combined agro-forestry-fishery production activities but shall plant forests in allocated areas, and may rent forest land plots where forest coverage is at least 60%, for mangrove forests where aquaculture is carried out; or at least 70%, for other forests;

b/ Forest owners may grow agricultural or industrial crops or fruit trees in allocated or leased land areas, and may not graze cattle, keep poultry or other livestock in land areas under newly planted forests or in planted forests in the tending period;

c/ Forest owners may use land areas between forest planting bands for combined agro-fishery production activities, ensuring such land areas do not exceed 40% of the total area of allocated or leased forest land plots, for mangrove forests where aquaculture is carried out; or 30%, of the total allocated or leased forest plot area, for other forests.

4. Forest owners may enjoy all products obtained from combined agro-fishery production activities specified in Clauses 2 and 3 of this Article.

Article 31.Scientific research, teaching and practicing activities in production forests

1. Forest owners may organize by themselves scientific research and scientific research service activities.

2. Scientific research institutions, training institutions, scientists, pupils and students carrying out scientific research, teaching and practicing activities in forests shall:

a/ Strictly comply with the regulations on forestry, scientific research, and education and training, and relevant regulations;

b/ Have their plans on scientific research, education and training activities in forests approved by forest owners;

c/ Collect specimens and genetic sources of organism species in quantities determined in their approved plans on scientific research, education and training activities accepted by forest owners.

Article 32.Eco-tourism, resort and recreation activities in production forests

1. Forest owners may organize by themselves or cooperate with other organizations or individuals in providing eco-tourism, resort or recreation services or lease forest environment to other organizations or individuals for doing business in tourism, resort or recreation.

2. Eco-tourism, resort and recreation activities shall be carried out under sustainable forest management plans approved by competent state agencies.

3. Rent rates for forest environment leased by forest owners for doing business in eco-tourism, resort or recreation, including travel, tourist transportation and accommodations, catering, shopping, sports, leisure, healthcare, sightseeing, advertising services and other related services for tourists within forests, shall be agreed upon by the parties themselves but must not be lower than 1% of the total turnover annually earned by forest environment lessees.

Section 5

CLOSURE AND RE-OPENING OF NATURAL FORESTS; GRANT OF SUSTAINABLE FOREST MANAGEMENT CERTIFICATES

Article 33.Order and procedures for closure and re-opening of natural forests

1. Principal contents of a scheme on closure or re-opening of a natural forest include:

a/ Necessity of the closure or re-opening of the natural forest;

b/ Assessment of practical socio-economic conditions, national defense and security in the locality;

c/ Assessment of existing forest resources in terms of reserve and quality; assessment of forest ecosystems and biodiversity;

d/ Identification of measures to manage and organize the closure or re-opening during the period of closure of re-opening of the natural forest; determination of lawful rights and interests of stakeholders upon the closure or re-opening of the natural forest;

dd/ Determination and allocation of funds for the closure or re-opening of the natural forest.

2. Order and procedures for closure or re-opening of a natural forest falling within the competence of the Prime Minister

a/ A dossier of request for closure or re-opening of a natural forest must comprise a written request of the Ministry of Agriculture and Rural Development and a scheme on closure or re-opening of the natural forest;

b/ The Ministry of Agriculture and Rural Development shall submit to the Prime Minister a dossier of request for closure or re-opening of the natural forest mentioned at Point a of this Clause;

c/ Within 30 working days after receiving a valid dossier, the Prime Minister shall consider and decide on closure or re-opening of the natural forest.

3. Order and procedures for closure or re-opening of a natural forest falling within the competence of a provincial-level People’s Committee chairperson

a/ A dossier of request for closure or re-opening of a natural forest must comprise a written request of the provincial-level Department of Agriculture and Rural Development and a scheme on closure or re-opening of the natural forest;

b/ The provincial-level Department of Agriculture and Rural Development shall submit to the provincial-level People’s Committee chairperson a dossier of request for closure or re-opening of the natural forest mentioned at Point a of this Clause. The provincial-level People’s Committee chairperson shall submit the scheme on closure or re-opening of the natural forest to the same-level People’s Council for approval;

c/ Within 10 working days after the same-level People’s Council approves the scheme on closure or re-opening of the natural forest, the provincial-level People’s Committee chairperson shall consider and decide on closure or re-opening of the natural forest in the locality.

4. Public notification of a decision on closure or re-opening of a natural forest

A decision on closure or re-opening of a natural forest shall be publicly notified in the mass media nationwide and portals of the Ministry of Agriculture and Rural Development and provincial-level People’s Committee.

Article 34.Grant of sustainable forest management certificates

1. Grant of sustainable forest management certificates is the provision of conformity assessment service on the list of conditional investment and business lines prescribed by the investment law.

2. The recognition and operation registration of organizations assessing conformity and granting sustainable forest management certificates must comply with the Government’s regulations on conditions for the provision of conformity assessment services.

3. Sustainable forest management certificates shall be granted in conformity with the internationally recognized sustainable forest management standards or the set of sustainable forest management criteria promulgated by the Ministry of Agriculture and Rural Development under Clause 4, Article 28 of the Law on Forestry.

Chapter III

FOREST ALLOCATION, LEASE, RECATEGORIZATION, CONVERSION AND RECOVERY

Section 1

FOREST ALLOCATION AND LEASE

Article 35.Forest allocation or lease plans

1. Formulation of a forest allocation or lease plan

a/ Annually, a district-level People’s Committee shall formulate a forest allocation or lease plan; and notify in writing commune-level People’s Committees of the request for registration of needs for forest allocation or lease. The notification of formulation, appraisal and approval of a forest allocation or lease plan shall be carried out at the same time with the formulation, appraisal and approval of a district-level annual land use plan;

b/ Within 20 working days after receiving a written request for registration of needs for forest allocation or lease, a commune-level People’s Committee shall sum up and report needs for forest allocation or lease of the locality to the district-level People’s Committee. Needs for forest allocation or lease at the commune level shall be summed up according to Form No. 01 in Appendix II to this Decree;

c/ The district-level People’s Committee shall base itself on commune-level needs for forest allocation or lease to sum up forest areas not yet allocated or leased, determine forest allocation or lease quota for each commune-level administrative unit; and sum up needs and project the allocation of district-level forest allocation or lease quota to each commune-level administrative unit.

2. Contents of a forest allocation or lease plan

a/ Areas of forest of all types in all communes of the district, including total forest area; allocated and leased forest areas; forest area neither allocated nor leased yet;

b/ Forest areas requested to be allocated and leased in each commune; locations requested for forest allocation or lease;

c/ Limits of forest area to be allocated to households, individuals and residential communities in conformity with the land allocation limits;

d/ Assessment of effects of the forest allocation or lease plan on the socio-economic development, environment, national defense and security; revenues from the forest allocation or lease; creation of jobs, hunger eradication and poverty alleviation; possibility of reasonable exploitation of forest resources; requirements for preservation and development of forest areas and forest coverage associated with the conservation of scenic places, cultural identities of ethnic minority groups, and other factors with impacts on national defense and security;

dd/ Identification of (financial, labor and technical) resources, solutions and schedule of implementation of the forest allocation or lease plan.

3. Approval of a forest allocation or lease plan

a/ In the third quarter every year, the district-level People’s Committee shall send a dossier of the forest allocation or lease plan to the provincial-level Department of Agriculture and Rural Development, which must comprise a report; the forest allocation or lease plan; sum-up explanatory report; and maps of the forest allocation or lease plan;

b/ Within 15 working days after receiving a complete and valid dossier of the forest allocation or lease plan, the provincial-level Department of Agriculture and Rural Development shall appraise it and submit it to the provincial-level People’s Committee for approval. In case the dossier is invalid, this Department shall notify such to the district-level People’s Committee for completing the dossier;

c/ The provincial-level People’s Committee shall approve district-level annual forest allocation or lease plans before December 31 every year.

4. A district-level People’s Committee shall post up an approved forest allocation or lease plan at its office and offices of commune-level People’s Committees of localities where forests are to be allocated or leased for 30 days after it is approved.

Article 36.Order and procedures for forest allocation or lease in synchrony with land allocation or lease

The order and procedures for forest allocation or lease in synchrony with land allocation or lease must comply with the land law and the following regulations:

1. The request for land or forest allocation, or land or forest lease shall be made according to Form No. 02 for organizations, or Form No. 03 for households, individuals and residential communities, provided in Appendix II to this Decree.

2. Within 2 working days after receiving a valid dossier, the dossier-receiving agency shall transfer the dossier to the specialized management agency in charge of forestry for its opinions on the forest allocation or lease request. Within 5 working days after receiving the dossier, the specialized management agency in charge of forestry shall send its written opinions to the same-level natural resources and environment agency.

3. A decision on land or forest allocation, or land or forest lease is specified below:

a/ A decision on land or forest allocation to an organization shall be made according to Form No. 04 provided in Appendix II to this Decree;

b/ A decision on land or forest lease to an organization shall be made according to Form No. 05 provided in Appendix II to this Decree;

c/ A decision on land or forest allocation to a household, an individual or a residential community shall be made according to Form No. 06 provided in Appendix II to this Decree;

d/ A decision on land or forest lease to a household, an individual or a residential community shall be made according to Form No. 07 provided in Appendix II to this Decree.

4. Within 3 working days after a decision on land or forest lease is issued, the director of a provincial-level Department of Agriculture and Rural Development shall sign a forest lease contract, in case of forest lease to an organization, or the chairperson of a district-level People’s Committee shall sign a forest lease contract, in case of forest lease to a household or an individual, made according to Form No. 08 provided in Appendix II to this Decree.

Article 37.Completion of forest allocation or lease dossiers for entities that have been allocated or leased forest land areas or have had their forest land use rights recognized but not yet made forest allocation or lease dossiers

1. Organizations, households, individuals and residential communities that have been allocated or leased forest land areas or have had their forest land use rights recognized shall coordinate with specialized management agencies in charge of forestry at all levels in completing their forest allocation or lease dossiers.

2. Natural resources and environment agencies shall provide information in cadastral dossiers about allocated or leased land areas or those with recognized land use rights for specialized management agencies in charge of forestry at all levels to complete forest allocation or lease dossiers.

3. Specialized management agencies in charge of forestry at all levels shall check and review information about forests in cadastral dossiers and on field, including forest use purposes, forest areas, origins, locations, boundaries, actual conditions and reserves, then complete forest allocation or lease dossiers.

Article 38.Completion of land allocation or lease dossiers for entities that have been allocated or leased forests

1. Organizations, households, individuals and residential communities that have been allocated or leased forests but neither yet allocated or leased land nor have had their land use rights recognized shall provide information to natural resources and environment agencies at all levels for completing their land allocation or lease dossiers.

2. Specialized management agencies in charge of forestry at all levels shall provide information in forest allocation or lease dossiers to same-level natural resources and environment agencies for completing land allocation or lease dossiers and granting land use rights certificates.

3. Natural resources and environment agencies shall assume the prime responsibility for, and coordinate with specialized management agencies in charge of forestry at all levels in, examining dossiers of request for land allocation or lease and conduct field inspection, then submit such dossiers to same-level People’s Committees for decision on land allocation and grant of certificates in accordance with the land law.

Section 2

FOREST RECATEGORIZATION, FOREST CONVERSION

Article 39.Forest recategorization plans

1. Forest owners shall make forest recategorization plans.

2. Principal contents of a forest recategorization plan include:

a/ Legal grounds, scientific grounds and practical conditions;

b/ Characteristics of the forest, including natural conditions; socio-economic conditions; current state of forest resources and biodiversity; assessment of the management, protection and use of the forest;

c/ Determination of the area, scope and boundaries of the forest on maps;

d/ Identification of reason(s) for forest recategorization, forest management jobs, solutions and organization of the forest management;

dd/ Advance accounting of funds for the plan implementation.

Article 40.Order and procedures for forest recategorization

1. For a forest established under the Prime Minister’s decision

a/ The forest owner shall send directly or by post 2 dossier sets to the Ministry of Agriculture and Rural Development, in case the forest is managed by the Ministry of Agriculture and Rural Development. Such a dossier must comprise a written request for forest recategorization made by the forest owner and a forest recategorization plan;

b/ The forest owner shall send directly or by post 2 dossier sets to the provincial-level of Department of Agriculture and Rural Development, in case the forest is managed by the provincial-level People’s Committee. Such a dossier must comprise a written request for forest recategorization made by the forest owner and a forest recategorization plan;

c/ Within 15 working days after receiving a complete and valid dossier, the provincial-level Department of Agriculture and Rural Development shall assume the prime responsibility for examining the dossier and report it to the provincial-level People’s Committee for the latter to request in writing the Ministry of Agriculture and Rural Development to propose the Prime Minister to decide on forest recategorization;

d/ Within 30 working days after receiving a complete and valid dossier, the Ministry of Agriculture and Rural Development shall examine it and propose the Prime Minister to decide on forest recategorization;

dd/ Within 30 working days after receiving a complete and valid dossier, the Prime Minister shall consider and decide on forest recategorization.

2. For a forest established under a People’s Committee’s decision:

a/ The forest owner shall send directly or by post 2 dossier sets to the provincial-level Department of Agriculture and Rural Development. Such a dossier must comprise a written request for forest recategorization made by the forest owner and a forest recategorization plan;

b/ Within 15 working days after receiving a complete and valid dossier, the provincial-level Department of Agriculture and Rural Development shall submit it to the provincial-level People’s Committee for consideration;

c/ At least 15 days before a meeting of the provincial-level People’s Council, the provincial-level People’s Committee shall submit the dossier to the provincial-level People’s Council for consideration and decision on forest recategorization. Within 15 days after the end of the meeting, the provincial-level People’s Council shall adopt a resolution on forest recategorization policy;

d/ Within 15 working days after the resolution on forest recategorization policy is adopted, the provincial-level People’s Committee shall decide on forest recategorization.

Article 41.Order and procedures for deciding on forest conversion

1. For cases falling within the competence of the National Assembly: For a project involving the forest conversion on which the investment policy has been decided by the National Assembly, the order and procedures for deciding on forest conversion policy are not required to be carried out.

2. For cases falling within the competence of the Prime Minister

a/ The project owner shall send directly or by post 2 dossier sets to the Ministry of Agriculture and Rural Development in case the forest is managed by the Ministry of Agriculture and Rural Development. Such a dossier must comprise a written request for forest conversion made by the project owner; a report proposing the investment project; and a written appraisal of the report proposing the investment project by related agencies;

b/ Within 30 working days after receiving a complete and valid dossier, the Ministry of Agriculture and Rural Development shall examine and submit it to the Prime Minister for decision on forest conversion;

c/ The project owner shall send directly or by post 2 dossier sets to the provincial-level Department of Agriculture and Rural Development in case the forest is managed by the province. Such a dossier must comprise a written request for forest conversion made by the project owner; a report proposing the investment project; and a written appraisal of the report proposing the investment project by related agencies;

d/ Within 15 working days after receiving a complete and valid dossier, the provincial-level Department of Agriculture and Rural Development shall examine and report it to the provincial-level People’s Committee for the latter to propose the Prime Minister to decide on forest conversion policy;

dd/ Within 30 working days after receiving a complete and valid dossier, the Prime Minister shall consider and decide on forest conversion policy;

e/ For cases on which the investment policy has been decided by the Prime Minister, project owners are not required to comply with this Clause.

3. For cases falling within the competence of a provincial-level People’s Council

a/ The project owner shall send directly or by post 2 dossier sets to the provincial-level Department of Agriculture and Rural Development, for the forest area requested for conversion owned by an organization. Such a dossier must comprise a written request for forest conversion made by the investor; a report proposing the investment project; and a written appraisal of the report proposing the investment project by related agencies;

b/ Within 15 working days after receiving a complete and valid dossier, the provincial-level Department of Agriculture and Rural Development shall submit it to the provincial-level People’s Committee for consideration;

c/ The project owner shall send directly or by post 2 dossier sets to the district-level People’s Committee, for the forest area requested for conversion owned by a household, an individual or a residential community. Such a dossier must comprise a written request for forest conversion made by the project owner; a report proposing the investment project; and a written appraisal of the report proposing the investment project by related agencies;

d/ Within 15 working days after receiving a complete and valid dossier, the district-level People’s Committee shall submit it to the provincial-level People’s Committee for consideration;

dd/ At least 15 days before a meeting of the provincial-level People’s Council, the provincial-level People’s Committee shall propose the provincial-level People’s Council to consider and decide on forest conversion policy. Within 15 days after the end of the meeting, the provincial-level People’s Council shall adopt a resolution on forest conversion policy;

e/ For cases on which the investment policy has been decided by the provincial-level People’s Council, projects owners are not required to comply with this Clause.

Article 42.Order and procedures for forest conversion

1. The order and procedures for forest conversion are the same as those for change of land use purposes.

2. Natural resources and environment agencies shall coordinate with specialized management agencies in charge of forestry in examining dossiers on conditions for forest conversion prescribed in Article 19 of the Law on Forestry, and reviewing and determining locations, areas and actual state of forests before approving the forest conversion.

3. A competent authority’s decision on forest conversion must show the forest location and area approved for forest conversion.

4. Written requests for forest conversion in dossiers of forest conversion shall be made according to Form No. 09 for organizations, or Form No. 10 for households, individuals and residential communities, provided in Appendix II to this Decree.

Section 3

FOREST RECOVERY

Article 43.Order and procedures for forest recovery and recategorization

1. The order and procedures for forest recovery and recategorization are the same as those for land recovery and recategorization and must comply with the land law.

2. In case of forest recovery under Points a, b and dd, Clause 1, Article 22 of the Law on Forestry, in addition to Clause 1 of this Article, the recovery shall be based on results of examination, inspection, and handling of violations by competent state agencies.

3. District-level People’s Committees shall direct commune-level People’s Committees in managing recovered forests for allocation or lease.

Article 44.Compensations for forest damage in case of recovery of forests allocated or leasedultra viresor to ineligible subjects

1. A People’s Committee at the level competent to recover a forest shall set up a valuation council to:

a/ Determine the forest rental for the remaining lease term of the forest owner in the total forest rental amount which the forest owner has paid to the State without using state budget funds;

b/ Determine the added value of forest products and value of the planted production forest and other assets lawfully invested by the forest owner in the allocated or leased forest area without using state budget funds.

2. The forest rental for the remaining lease term and added value of forest products and value of the planted production forests and other assets lawfully invested by the forest owner mentioned in Clause 1 of this Article shall be compensated by the State in accordance with the law on state compensation liability.

3. In case of recovery of a planted production forest over which the ownership has been transferred, compensation shall be paid under Clause 2 of this Article.

4. In case of recovery of a planted production forest of which the owner has put in mortgage, provided guarantee or made capital contribution with the forest value, the benefits of the organization, household or individual receiving the mortgage, guarantee or capital contribution shall be compensated in accordance with the civil law.

Chapter IV

FOREST FIRE PREVENTION AND FIGHTING

Section 1

FOREST FIRE PREVENTION

Article 45.Forest fire prevention and fighting plans

1. Responsibility to make forest fire prevention and fighting plans

a/ Forest owners being households, individuals or residential communities shall make forest fire prevention and fighting plans according to Form No. 01 provided in Appendix III to this Decree;

b/ Forest owners being organizations shall make forest fire prevention and fighting plans according to Form No. 02 provided in Appendix III to this Decree;

c/ Commune-level People’s Committees assigned to manage forest areas neither yet allocated nor leased shall make forest fire prevention and fighting plans according to Form No. 03 provided in Appendix III to this Decree.

2. Forest fire prevention and fighting plans made by organizations or commune-level People’s Committees under Point b or c, Clause 1 of this Article shall be sent to district-level forest ranger offices and fire prevention and fighting, rescue and salvage police divisions for opinion.

3. Forest fire prevention and fighting plans shall be promptly modified upon any change in fire danger nature and characteristics and forest fire fighting conditions.

4. Forest owners shall organize drills for forest fire prevention and fighting plans in accordance with the law on fire prevention and fighting.

5. Forest ranger offices and fire prevention and fighting, rescue and salvage police divisions shall guide and examine the formulation and implementation of forest fire prevention and fighting plans.

Article 46.Forest fire danger rating

1. There are 5 classes (I to V) in the forest fire danger rating system; the forest fire class sign is a semicircle with a red perimeter on a white background having an outer diameter of 2.5 meters and an inner diameter of 1.8 meters and a pivoting arrow indicating the forest fire danger class. Detailed regulations on forest fire danger classes are provided in Form No. 04 in Appendix III to this Decree.

2. Provincial-level People’s Committees of localities having forests shall prescribe forest fire danger classes and rating system.

3. Forest ranger offices at all levels shall base themselves on weather and hydrometeorological conditions to make forest fire forecasts and provide rating class information in the mass media on a daily basis when the forecast forest fire danger reaches class IV or V.

Article 47.Safety conditions for forest fire prevention

1. Safety conditions for fire prevention for a forest

a/ Having regulations and internal rules on forest fire prevention and fighting; having notice and no-fire signs put up at prescribed places suitable to fire characteristics and determinants of each type of forest;

b/ Having a forest fire prevention and fighting plan prescribed in Article 45 of this Decree;

c/ Having forest fire prevention and fighting facilities suitable to nature and characteristics of each type of forest;

d/ Equipping forest fire prevention and fighting means and tools suitable to fire characteristics and determinants of each type of forest as required by the forest fire prevention and fighting plan;

dd/ Having a fire prevention and fighting force trained in forest fire prevention and fighting skills which are organized into standby fire guards to meet on-site firefighting requirements;

e/ Having dossiers for management and monitoring of forest fire prevention and fighting activities in accordance with the law on fire prevention and fighting.

2. For a forest through which a railway, high-voltage power line, fuel gas pipeline, petroleum and petroleum product conduit stretches or in which fire-prone construction works are built, there must be a firebreak or fire safety line suitable to each type of construction work in accordance with law, and regular checks shall be carried out to remove flammable materials from such firebreak.

3. When preparing slash-and-burn milpas or burning shrub vegetation to prepare soil for forest planting and clear flammable materials in forests, fire users shall:

a/ Take fire prevention and fighting measures;

b/ Refrain from burning things on days when the forecast forest fire danger reaches class IV or V; during a day, carry out shrub burning before 9:00 hours and after 16:00 hours when the wind is light;

c/ Before carrying out the burning, notify such to the local village chief and forest fire prevention and fighting brigade; during the burning, assign guards and prepare sufficient tools for stopping fire from spreading into the forest; after the burning, put out all fire sparks.

4. Users of fire in buildings, works, construction sites and houses allowed to be located in forests shall ensure that fire does not spread into forests and put out all fire sparks after using fire.

Article 48.Fire prevention requirements for forest development projects

When a forest development project is formulated, there must be fire prevention and fighting measures to ensure that:

1. Measures to prevent and stop fire from spreading between forest plots, sub-compartments and compartments are suitable to fire characteristics of each type of forest; and from spreading to railways, high-voltage power lines, fuel gas pipelines, petroleum and petroleum product conduits, houses and other construction works.

2. Forest fire prevention and fighting facilities are suitable to characteristics of each type of forest.

3. Design cost estimates include sufficient funds for the construction of all forest fire prevention and fighting facilities.

Article 49.Organization and management of forest fire prevention and fighting forces

1. Forest owners being organizations shall set up, and manage activities of, forest fire prevention and fighting brigades; and equip tools and ensure funds and other conditions for activities of forest fire prevention and fighting brigades.

2. Forest ranger offices shall set up, and manage activities of, forest fire prevention and fighting units under their management; direct and inspect, and provide professional training in forest fire prevention and fighting skills to, these units and full-time forest protection forces of forest owners and grassroots forest protection forces.

3. Fire prevention and fighting, rescue and salvage police offices shall guide and coordinate with forest ranger offices in complying with Clause 2 of this Article.

4. The professional training in forest fire prevention and fighting skills shall be provided to forest fire prevention and fighting forces in accordance with the law on fire prevention and fighting.

Article 50.Safety inspection of forest fire prevention and fighting

1. Safety inspection of forest fire prevention and fighting shall be carried out with regard to the following contents:

a/ Satisfaction of the safety conditions on forest fire prevention and fighting prescribed in Article 47 of this Decree and other relevant regulations on fire prevention and fighting;

b/ Fulfillment of the forest fire prevention and fighting responsibility by each subject specified in Article 53 and other relevant articles of this Decree and the law on fire prevention and fighting;

c/ Compliance of the standards and regulations on forest fire prevention and fighting and forest fire prevention and fighting requirements of competent persons or agencies.

2. Safety inspection of forest fire prevention and fighting may be carried out periodically or extraordinarily.

3. Responsibility to carry out safety inspection of forest fire prevention and fighting before and during the dry season is as follows:

a/ Chairpersons of commune-level People’s Committees and forest owners shall, within the scope of their management, organize safety inspection of forest fire prevention and fighting under Clause 2 of this Article;

b/ Heads of agencies and organizations and chairpersons of People’s Committees at district or higher level shall, within the scope of their management, organize periodical or extraordinary safety inspection of forest fire prevention and fighting;

c/ Forest ranger offices shall carry out periodical safety inspection of forest fire prevention and fighting for forests prone to fire, or extraordinary safety inspection of forest fire prevention and fighting when detecting a sign of forest fire danger or violation of the regulations on safety conditions for forest fire prevention and fighting or upon special protection request;

d/ Fire prevention and fighting, rescue and salvage police offices shall carry out the safety inspection of forest fire prevention and fighting once every 6 months or a year for forests prone to fire, or extraordinary safety inspection of forest fire prevention and fighting when detecting a sign of forest fire danger or violation of the regulations on safety conditions for forest fire prevention and fighting or upon special protection request.

Section 2

FOREST FIRE FIGHTING

Article 51.Responsibility to report, fight and participate in fighting forest fires, command forest fire fighting

1. A person detecting a forest fire shall report it by all means to surrounding persons and one of the following:

a/ Forest owner;

b/ Nearest forest fire prevention and fighting brigade;

c/ Nearest forest ranger office or fire prevention and fighting, rescue and salvage police office;

d/ Local administration or the nearest public security or army unit.

2. When receiving a report on a forest fire occurring in the locality under its management, an agency or a unit specified in Clause 1 of this Article shall promptly mobilize forces and means to fight fire and concurrently report the fire to other relevant agencies and units for their assistance in firefighting. In case a forest fire occurs outside the locality under its management, upon receiving a fire report, it shall by all means notify such to agencies and units managing the locality where the fire occurs for the latter to participate in firefighting.

3. Persons present at the place where a forest fire occurs shall seek all means to stop the fire from spreading and extinguish it; persons participating in fighting a forest fire shall obey commands of the firefighting commander.

4. Forest owners and public security, forest ranger, army, and militia and self-defense forces and other concerned agencies shall fight or participate in fighting forest fires in accordance with the law on fire prevention and fighting.

5. The mobilization of forces, means and assets to fight forest fire and command the forest fire fighting and the exercise of the right to decide on dismantlement of houses, works, barriers and remove assets for fighting forest fires in emergency cases must comply with the law on fire prevention and fighting.

Article 52.Remediation of consequences and handling of aftermath of forest fires

1. After a forest fire, forest owners shall determine the extent of forest damage, make and report on damage statistics to forest ranger offices, fire prevention and fighting, rescue and salvage police offices and local administrations.

2. Based on the damage extent, forest owners shall devise and implement solutions to restore their forests after the fire, including zoning off damaged forest areas for natural regeneration or additional or new planting of forests.

3. Local forest ranger offices shall coordinate with commune-level People’s Committees in summing up and reporting to competent authorities on the extent of damage and solutions to remediate consequences and compensate for damage.

4. Forest ranger offices, fire prevention and fighting, rescue and salvage police offices, and investigating bodies shall identify causes of, extent of damage caused by, and persons causing, forest fires, and handle these persons in accordance with law.

Section 3

RESPONSIBILITIES TO PREVENT AND FIGHT FOREST FIRES

Article 53.Responsibilities of forest owners to prevent and fight forest fires

1. Responsibilities of forest owners being organizations

a/ To organize the implementation of the forest fire prevention and fighting regulations, internal rules, safety conditions and measures in accordance with law;

b/ To formulate and issue forest fire prevention and fighting regulations, internal rules and measures for forests under their management;

c/ To work out and implement fire prevention and fighting plans for forests under their management;

d/ To disseminate and popularize forest fire prevention and fighting regulations and knowledge; provide training in forest fire prevention and fighting skills; to set up, manage and maintain activities of forest fire prevention and fighting brigades and teams;

dd/ To carry out safety inspection of forest fire prevention and fighting; to propose handling of violations of the regulations and internal rules on forest fire prevention and fighting and organize prompt handling of violations of the regulations on forest fire prevention and fighting according to their competence;

e/ To build facilities and equip means and tools for forest fire prevention and fighting;

g/ To ensure funds for forest fire prevention and fighting activities under the State’s current regulations;

h/ To periodically or extraordinarily report on forest fire prevention and fighting and promptly notify local forest ranger offices, fire prevention and fighting, rescue and salvage police offices, and their managing agencies of changes related to the assurance of safety conditions for forest fire prevention and fighting under their management;

i/ To coordinate with other forest owners, local administrations and neighboring agencies and organizations in ensuring safety conditions for forest fire prevention and fighting; to pose no fire risk for adjacent forests, agencies, organizations and households;

k/ To carry out forest fire prevention and fighting activities when so requested by competent agencies;

l/ To coordinate with, and create conditions for, competent agencies in investigating and tracing forest fire causers.

2. Responsibilities of forest owners being households, individuals or residential communities:

a/ To organize the implementation of the forest fire prevention and fighting regulations, internal rules, safety conditions and measures in accordance with law;

b/ To carry out safety inspection of forest fire prevention and fighting; to propose handling of violations of the regulations and internal rules on forest fire prevention and fighting and organize prompt handling of violations of the regulations on forest fire prevention and fighting;

c/ To equip means and tools for forest fire prevention and fighting under regulations;

d/ To ensure funds for forest fire prevention and fighting activities under the State’s current regulations;

dd/ To coordinate with other forest owners, local administrations and neighboring agencies and organizations in ensuring safety conditions for forest fire prevention and fighting; to pose no fire risk for adjacent forests, agencies, organizations and households;

e/ To carry out forest fire prevention and fighting activities when so requested by competent agencies;

g/ To coordinate with, and create conditions for, competent agencies in investigating and tracing forest fire causers.

Article 54.Responsibilities of heads of agencies and organizations engaged in activities in or near forests

1. To implement the forest fire prevention and fighting regulations, internal rules, safety conditions and measures in accordance with law.

2. To urge employees or members of their agencies or organizations to implement the forest fire prevention and fighting regulations, internal rules and safety conditions.

3. To detect, report on, and participate in fighting, forest fires.

4. To coordinate with forest owners and neighboring agencies and organizations in ensuring the safety conditions for forest fire prevention and fighting; to pose no fire risk for forests.

5. To participate in forest fire prevention and fighting activities when so requested by competent agencies, and actively participate in fighting forest fires upon their occurrence.

Article 55.Responsibilities of households, individuals and residential communities living or engaged in activities in or near forests

1. To implement the forest fire prevention and fighting regulations, internal rules, safety conditions and measures in accordance with law.

2. To urge their members to implement the forest fire prevention and fighting regulations, internal rules and safety conditions.

3. To coordinate with forest owners, households, agencies and organizations in their localities in ensuring the safety conditions for forest fire prevention and fighting; to pose no fire risk for forests.

4. To participate in forest fire prevention and fighting activities when so requested by competent agencies.

5. To ensure safety conditions for forest fire prevention and fighting when permitted to use fire sources, heat sources, and equipment and tools that can make fire or generate heat, and preserve and use flammable materials in or near forests.

6. To prevent and promptly report dangers of forest fires and violations of the regulations on forest fire prevention and fighting upon detecting them; to report and promptly fight forest fires upon detecting them and strictly obey orders of mobilizing their participation in forest fire fighting.

Article 56.Responsibilities of agencies and units for fire prevention and fighting for forest development projects

1. Agencies formulating forest development projects have the following responsibilities:

a/ To meet forest fire prevention and fighting requirements when formulating forest development projects;

b/ To supervise the implementation of forest development projects and the construction of forest fire prevention and fighting facilities;

c/ To participate in the pre-acceptance testing of forest development projects and forest fire prevention and fighting facilities.

2. Project owners have the following responsibilities:

a/ To organize the implementation of forest development projects and the construction of forest fire prevention and fighting facilities according to approved projects and designs;

b/ To inspect and supervise the construction and pre-acceptance testing of forest development projects and forest fire prevention and fighting facilities.

3. Units implementing forest development projects and constructing forest fire prevention and fighting facilities have the following responsibilities:

a/ To implement forest development projects and construct forest fire prevention and fighting facilities according to approved designs;

b/ To ensure the safety conditions for fire prevention and fighting during the implementation of forest development projects and construction of forest fire prevention and fighting facilities.

4. Forest ranger offices and fire prevention and fighting, rescue and salvage police offices have, within the ambit of their functions and tasks, the following responsibilities:

a/ To consider and give answers about fire prevention and fighting solutions for forest development projects and projects on construction or renovation of forest fire prevention and fighting facilities;

b/ To inspect the fulfillment of requirements and observance of regulations on fire prevention and fighting and handle violations of the regulations on forest fire prevention and fighting;

c/ Forest ranger offices shall participate in the fire prevention and fighting pre-acceptance testing of forest development projects and forest fire prevention and fighting facilities.

Chapter V

FOREST ENVIRONMENT SERVICES AND FOREST PROTECTION AND DEVELOPMENT FUNDS

Section 1

FOREST ENVIRONMENT SERVICE CHARGE PAYERS, FORMS AND LEVELS

Article 57.Forest environment service charge payers

1. Hydropower generation establishments specified at Point a, Clause 2, Article 63 of the Law on Forestry.

2. Clean water production and supply establishments specified at Point b, Clause 2, Article 63 of the Law on Forestry.

3. Industrial production establishments specified at Point c, Clause 2, Article 63 of the Law on Forestry that use water from water sources serving industrial production, including those in sectors prescribed by current regulations.

4. Eco-tourism, resort and recreation service providers specified at Point d, Clause 2, Article 63 of the Law on Forestry that directly pay forest environment service charge under Clause 1, Article 58 of this Decree and provide services of travel, tourist transportation, tourist accommodations, catering, shopping, sports, recreation, healthcare, sightseeing, advertising and other related services to tourists within forests where forest environment services are provided by forest owners.

5. For organizations and individuals engaged in production or business activities that generate large greenhouse gas emissions specified at Point dd, Clause 2, Article 63 of the Law on Forestry, the Ministry of Agriculture and Rural Development shall organize the pilot application of forest carbon sequestration and storage service charge through 2020, then review it and propose the Government to prescribe in detail payers, payment forms and rates, management and use of this charge.

6. Aquaculture establishments specified at Point e, Clause 2, Article 63 of the Law on Forestry that are aquaculture enterprises or enterprises cooperating with households or individuals in aquaculture and directly pay forest environment service charge under Clause 1, Article 58 of this Decree.

Article 58.Forms of payment of forest environment service charge

1. Forest environment service users may directly pay service charge to service providers under Points a and c, Clause 3, Article 63 of the Law on Forestry under contracts entered into on a take-it-or-leave-it basis.

2. Forest environment service users may pay service charge to service providers through an authorized forest protection and development fund under Point b, Clause 3, Article 63 of the Law on Forestry, which is applicable to cases where forest environment service providers and users cannot agree to enter into contracts on direct payment of forest environment service charge.

Article 59.Forest environment service charge rates and determination of payable charge amounts

1. The forest environment service charge rate applicable to hydropower generation establishments is VND 36/kwh of commercial electricity. An electricity output used for calculation of a payable forest environment service charge amount is that sold by a hydropower generation establishment to an electricity purchaser under an electricity purchase and sale contract.

The forest environment service charge amount payable during a payment period shall be determined by the commercial electricity output in such period (in kwh) multiplied by the forest environment service charge rate per kwh (VND 36).

2. The forest environment service charge rate applicable to clean water production and supply establishments is VND 52/m³of commercial water. A water volume used for calculation of a payable forest environment service charge amount is that sold by a clean water production and supply establishment to a consumer.

The forest environment service charge amount payable during a payment period shall be determined by the commercial water volume (in m³) used in such period  multiplied by the forest environment service charge rate per cubic meter of water (VND 52).

3. The forest environment service charge rate applicable to industrial production establishments using water sources is VND 50/m³of water. A water volume used for calculation of a payable forest environment service charge amount is that used by an industrial production establishment, which is measured by the water meter or based on the water volume permitted for use by a competent agency or stated in a water purchase and sale document between the establishment and the water supplier.

The forest environment service charge amount payable during a payment period shall be determined by the water volume (in m³) used by an industrial production establishment in such period multiplied by the forest environment service charge rate per cubic meter of water (VND 50).

4. The forest environment service charge rate applicable to eco-tourism, resort and recreation service providers specified at Point d, Clause 2, Article 63 of the Law on Forestry is at least equal to 1% of their total turnover in a period. Specific payable service charge amounts shall be calculated based on practical conditions and agreement between forest environment service providers and users.

5. The forest environment service charge rate applicable to aquaculture enterprises or enterprises cooperating with households or individuals in aquaculture specified at Point e, Clause 2, Article 63 of the Law on Forestry is at least equal to 1% of their total turnover in a period. Specific payable service charge amounts shall be calculated based on practical conditions and agreement between forest environment service providers and users.

6. When the average electricity or water retail price specified in Clause 1, 2 or 3 of this Article increases or decreases by 20%, the Ministry of Agriculture and Rural Development shall propose the Government to correspondingly adjust forest environment service charge rate.

Section 2

DETERMINATION OF FOREST AREAS WHERE FOREST ENVIRONMENT SERVICES ARE PROVIDED THROUGH FOREST PROTECTION AND DEVELOPMENT FUNDS

Article 60.Bases for determination of forest areas

1. Results of periodical inventory and update of statistics of forests.

2. Results of annual monitoring of forest resource changes.

3. Maps of basins where forest environment services are provided.

4. Results of payment of forest environment service charge in the preceding year.

Article 61.Making of maps of forest environment service charge payment

1. Annually, provincial-level forest protection and development funds shall assume the prime responsibility for, and coordinate with commune-level forest ranger offices and People’s Committees in, making commune-level maps of forest environment service charge payment for use by forest owners being households, individuals, residential communities, commune-level People’s Committee and other organizations assigned by the State to manage forests on the basis of overlaying commune-level maps of results of updating forest statistics and monitoring forest resource changes and maps of basins where forest environment services are provided. Contents of making maps of basins where forest environment services are provided are prescribed in Appendix IV
to this Decree.

2. Annually, provincial-level forest protection and development funds shall assume the prime responsibility for, and coordinate with forest ranger branches and forest owners being organizations in, making maps of forest environment service charge payment on the basis of overlaying maps of results of updating forest statistics and monitoring forest resource changes by forest owners and maps of basins where forest environment services are provided.

3. Expenses for making maps of forest environment service charge payment and maps of basins where forest environment services are provided shall be paid by provincial-level forest protection and development funds or forest owners being organizations as management expenditures or by other lawful sources.

Article 62.Determination of forest areas for which forest environment service charge is paid of forest owners being households, individuals, residential communities, commune-level People’s Committees or other organizations assigned by the State to manage forests

1. Before February 15 every year, provincial-level forest protection and development funds shall assume the prime responsibility for, and coordinate with district-level forest ranger offices in, determining forest areas for which forest environment service charge is paid for the last year of forest owners being households, individuals, residential communities, commune-level People’s Committees or other organizations assigned by the State to manage forests on the basis of updating maps of forest environment service charge payment from results of monitoring forest resource changes in the last year.

Before March 1 every year, provincial-level forest protection and development funds shall assume the prime responsibility for, and coordinate with district-level forest ranger offices in, verifying forest areas for which forest environment service charge is paid for the last year in case of a petition.

2. Before March 15 every year, provincial-level forest protection and development funds shall coordinate with district-level forest ranger offices in summing up forest areas for which forest environment service charge is paid for the last year in a table made according to Form No. 01 in Appendix V to this Decree for use as a basis for forest environment service charge payment.

3. Expenses for determining forest areas for which forest environment service charge is paid shall be paid by provincial-level forest protection and development funds as management expenditures or by other lawful sources.

Article 63.Determination of forest areas for which forest environment service charge is paid of forest owners being organizations

1. Before February 15 every year, provincial-level forest protection and development funds shall assume the prime responsibility for, and coordinate with  forest ranger branches and forest owners being organizations in, determining forest areas for which forest environment service charge is paid for the last year on the basis of updating maps of forest environment service charge payment from results of monitoring forest resource changes in the last year.

2. Before February 28 every year, provincial-level forest protection and development funds shall coordinate with forest ranger branches and forest owners being organizations in, checking and verifying forest areas for which forest environment service charge is paid in case of a petition.

3. Before March 15 every year, provincial-level forest protection and development funds shall sum up forest areas for which forest environment service charge is paid of forest owners being organizations made according to Form No. 02 in Appendix V to this Decree for use as a basis for forest environment service charge payment.

4. Expenses for determining forest areas for which forest environment service charge is paid shall be paid by provincial-level forest protection and development funds or forest owners being organizations as management expenditures or by other lawful sources.

Section 3

MANAGEMENT AND USE OF FOREST ENVIRONMENT SERVICE CHARGE PAID BY DIRECT METHOD

Article 64.Signing and performance of contracts on payment for forest environment services

1. The forest environment service provider shall sign a contract with the service user, specifying the type of services, service charge rate, and time and method of charge payment. The service charge rate must not be lower than the rate specified in Article 59 of this Decree. A contract on payment for forest environment services shall be made in four copies to be kept by the service provider, service user, provincial-level forest protection and development fund, and provincial-level Department of Agriculture and Rural Development.

2. The forest environment service user shall make payment to the service provider from the date it/he/she uses the services under the contract on payment for forest environment services.

Article 65.Use of collected forest environment service charge

1. The forest environment service provider may decide on the use of collected forest environment service charge after fulfilling the financial obligation toward the State in accordance with law.

2.  The forest environment service provider being an organization may account as its revenue the collected forest environment service charge after deducting reasonable expenses related to the implementation of the policy on payment for forest environment services, including the amount paid to the party contracted to protect forests, and may use such collected charge under the financial regulations applicable to such organization.

Section 4

MANAGEMENT AND USE OF FOREST ENVIRONMENT SERVICE CHARGE PAID THROUGH FOREST PROTECTION AND DEVELOPMENT FUNDS

Article 66.Signing of contracts on payment for forest environment services

1. The forest environment service user shall sign a contract on authorized payment for forest environment services with the Vietnam Forest Protection and Development Fund for the forest area where forest environment services are provided within the administrative boundaries of two or more provinces.

2. The forest environment service user shall sign a contract on authorized payment for forest environment services with a provincial-level forest protection and development fund for the forest area where forest environment services are provided within the administrative boundaries of one province.

3. A contract on authorized payment for forest environment services shall be made according to Form No. 01 in Appendix VI to this Decree.

Article 67.Performance of contracts on payment for forest environment services

1. The forest environment service user shall pay for forest environment services from the date it/he/she uses the services.

2. Before October 15 every year, the forest environment service user shall send the subsequent year’s plan on payment for forest environment services to the forest protection and development fund, made according to Form No. 02 in Appendix VI to this Decree.

3. Within 15 days after the end of a quarter, the forest environment service user shall make a list of amounts paid for forest environment services according to Form No. 03 in Appendix VI to this Decree and send it to the forest protection and development fund.

4. The forest environment service user shall make payment on a quarterly basis; the time limit for payment is 20 days from the end of a quarter, for the first, second and third quarters, or 45 days from the end of a quarter, for the fourth quarter.

5. Within 50 days from the end of a year, the forest environment service user shall make a list of amounts paid for forest environment services according to Form No. 04 in Appendix VI to this Decree and send it to the forest protection and development fund.

Article 68.Formulation of collection and payment plans and estimation of management expenses

1. The Vietnam Forest Protection and Development Fund shall:

a/ Review and identify the forest area where forest environment services are provided within the administrative boundaries of two or more provinces and submit such to the Ministry of Agriculture and Rural Development for announcement;

b/ Summarize payment plans of forest environment service users in the administrative boundaries of two or more provinces and send before October 31 every year to the provincial-level forest protection and development fund a notice of the to-be-distributed amount, made according to Form No. 05 in Appendix VI to this Decree;

c/ Formulate in the fourth quarter every year a plan on collection and payment of forest environment service charge according to Form No. 06 in Appendix VI to this Decree, and make an estimation of management expenses according to Form No. 07 in Appendix VI to this Decree, and report them to its Management Council for approval and submission to the Ministry of Agriculture and Rural Development for decision.

2. A provincial-level forest protection and development fund shall:

a/ Review and identify the forest area where forest environment services are provided and make a list of forest environment service providers;

b/ Summarize plans on payment for forest environment services of service users;

c/ Formulate in the fourth quarter every year a plan on collection and payment of forest environment service charge according to Form No. 08 in Appendix VI to this Decree, and make an estimation of management expenses according to Form No. 09 in Appendix VI to this Decree, and report them to its management council for approval and submission to the provincial-level People’s Committee for decision;

d/ Notify the collection and payment plan to forest owners being organizations, commune-level People’s Committee, and other organizations assigned by the State to manage forests in accordance with law; and send the provincial-level People’s Committee’s decision approving such plan to the Vietnam Forest Protection and Development Fund.

Article 69.Determination of payable forest environment service charge amounts

1. The Vietnam Forest Protection and Development Fund

Before December 31 every year, based on forest environment service charge amount actually collected in the year and forest area within the basin as announced by the Ministry of Agriculture and Rural Development, the Director of the Vietnam Forest Protection and Development Fund shall determine the amount to be distributed to a provincial-level forest protection and development fund.

2. Provincial-level forest protection and development funds

a/ Before March 31 every year, based on forest environment service charge amount actually collected in the previous year and results of the identification of the forest area where forest environment services are provided, the director of a provincial-level forest protection and development fund shall determine the amount to be paid to the service provider for the previous year in order to make payment to such provider;

b/ Before April 15 every year, the provincial-level forest protection and development fund shall send a notice on the amount paid for forest environment services to the service provider, made according to Form No. 10 or No. 11 in Appendix VI to this Decree.

3. Forest owners being organizations that enter into forest protection contracts

Before June 1 every year, based on the amount actually received from a provincial-level forest protection and development fund, a forest owner being an organization that enters into a forest protection contract shall determine the amount to be paid to the party contracted to protect forests.

4. The determination of the amount to be paid for forest environment services must comply with Appendix VII to this Decree.

Article 70.Use of collected forest environment service charge

1. For the Vietnam Forest Protection and Development Fund

a/ No more than 0.5% of the total forest environment service charge amount actually collected in a year may be retained to cover management expenses for operation of its apparatus. The specific retention level shall be stated in its collection and payment plan and submitted to the Ministry of Agriculture and Rural Development for decision. Expenses for the operation of its apparatus include:

Regular expenses: salary, salary-based allowances and contributions for members of its Executive Board; responsibility-based allowances for members of its Management Council and Control Board; remuneration; payments for public services, stationery, and information and communication work; expenses for meetings and conferences; expenses for work-trip allowances and hired services; expenses for repair and maintenance of assets serving professional operations and infrastructure facilities; expenses for appraisal of programs and projects and appraisal in bidding activities; expenses for money receipt and payment; expenses for inspection and supervision activities; and other expenses (if any);

Irregular expenses: expenses for the formulation of sustainable forest management plans and grant of forest certificates; expenses for the review and identification of forest areas where forest environment services are provided; expenses for conferences and professional training courses; expenses for procurement and overhaul of assets serving the operation of its apparatus, procurement of special-use equipment serving payment work; expenses for communication; expenses for audit services; expenses for outbound and inbound delegations; and other expenses (if any).

b/ Items and levels of expenses for the operation of its apparatus must comply with current regulations. If expense items and levels are not yet prescribed by law, the Fund shall, based on its financial capacity, formulate specific expense items and levels to be included in its internal spending regulation;

c/ Management expenses specified at Point a, Clause 1 of this Article constitute a revenue of the Fund and are eligible for the financial autonomy mechanism applicable to public non-business units;

d/ After subtracting management expenses, it may transfer the remainder to a provincial-level forest protection and development fund under Clause 1, Article 69 of this Decree;

dd/ For the charge amount collected from the forest environment service user while its recipient cannot be or has not been identified yet, it shall distribute such amount to the province that pays for forest environment services per hectare at the lowest rate.

2. A provincial-level forest protection and development fund

a/ No more than 10% of the total forest environment service charge amount actually collected in a year may be retained to cover management expenses for the operation of its apparatus. The specific retention level shall be stated in its collection and payment plan and submitted to the provincial-level People’s Committee for decision. Expenses for the operation of its apparatus include:

Regular expenses: salary, salary-based allowances and contributions for members of its executive board; responsibility-based allowances for members of its management council and control board; remuneration; payment for public services, stationery, and information and communication work; expenses for meetings and conferences; expenses for work-trip allowances and hired services; expenses for repair and maintenance of assets serving professional operations and infrastructure facilities; expenses for the appraisal of programs and projects and appraisal in bidding activities; expenses for money receipt and payment; expenses for inspection and supervision activities; and other expenses (if any);

Irregular expenses: expenses for the formulation of sustainable forest management plans and grant of forest certificates; expenses for the review and identification of forest areas where forest environment services are provided and for technical activities serving the monitoring and quality evaluation of forest environment services; expenses for activities related to the payment for forest environment services at district and commune levels; conferences and professional training courses; expenses for the procurement and overhaul of assets serving the operation of its apparatus, and procurement of special-use equipment serving payment work; expenses for communication; expenses for audit services; expenses for outbound and inbound delegations; and other expenses
(if any).

b/ Items and levels of expenses for operation of its apparatus, expenses for dual responsibility-based allowances, expenses to cover management expenses for units and organizations assigned by the provincial-level People’s Committee to assist it in performing the payment task must comply with current regulations. If expense items and levels are not yet prescribed by law, it shall, based on its financial capacity, formulate specific expense items and levels to be included in its internal spending regulation;

c/ Management expenses specified at Point a, Clause 2 of this Article constitute a revenue of the fund and are eligible for the financial autonomy mechanism applicable to public non-business units;

d/ No more than 5% of the total forest environment service charge amount actually collected in a year may be retained to cover contingency expenses in support of households, individuals and residential communities contracted to protect forests for a long term in case a natural disaster or drought occurs or the level of payment per the same unit of forest area where forest environment services are provided in the locality is lower than that applied in the preceding year; its director shall formulate a plan on support for such households, individuals and residential communities, and submit it to the provincial-level People’s Committee for decision. Contingency expenses approved in the year but not used or used up shall be refunded to the service provider;

dd/ After subtracting management expenses retained and contingency expenses used under Points a and d, Clause 2 of this Article, it shall pay the remainder to the service provider under Clause 2, Article 69 of this Decree;

e/ For the amount collected from the forest environment service user while its recipient cannot be or has not been identified yet, it shall propose the provincial-level People’s Committee to decide on distribution of such amount to the service provider that pays for forest environment services per hectare at the lowest rate; support forest protection and development activities, planting of scattered trees and planting of landscape forests in the area where forest environment services are provided; and dissemination of the policies on building capacity to implement the policy on payment for forest environment services.

3. Forest owners

a/ Forest owners being households, individuals or residential communities may use the whole collected forest environment service charge amount for forest management, protection and development activities and improvement of their living standards;

b/ For forest owners being enterprises: The whole collected forest environment service charge amount constitutes a revenue of these enterprises and shall be managed and used under the financial regulations applicable to enterprises;

c/ For forest owners being organizations, except those referred to at Point b, Clause 3 of this Article, that do not enter into forest protection contracts or enter into contracts assigning others to protect part of their forest areas, the whole  charge amount corresponding to the forest area protected by themselves may be used for activities serving the forest management and protection, including: formulation and implementation of sustainable forest management plans and grant of forest certificates; silvicultural work items and technical infrastructure facilities serving the forest protection and development; patrol activities, elimination of black spots, and handling of violations of the law on forest protection and development; procurement of assets, instruments and tools, maintenance and repair of assets and equipment serving the forest protection; making of dossiers and drawing of maps relating to the payment for forest environment services; examination, supervision, assessment, pre-acceptance test, communication, training, conferences, and other activities serving the payment of forest environment service charge; payment of salary and amounts of salary nature to persons not salaried by the state budget, and other activities serving the forest management, protection and development.

The received forest environment service charge amount for the area protected by the forest owner itself/himself/herself constitutes a revenue of the forest owner and shall be managed by the forest owner under financial regulations applicable to the organizational type of the forest owner;

d/ The forest owner being an organization defined at Point c, Clause 3 of this Article that enters into a forest protection contract with an organization, individual, household or residential community may retain 10% of the total forest environment service charge amount paid for the forest area under the contract to cover expenses for management of such forest area, including silvicultural work items and technical infrastructure facilities serving the forest protection and development; patrol activities, elimination of black spots and handling of violations of the law on forest protection and development; procurement of assets, tools and instruments, maintenance and repair of assets and equipment serving the forest protection and development; making of dossiers and drawing of maps relating to the payment for forest environment services, examination, supervision, evaluation, pre-acceptance test, communication, training, conferences, and other activities serving the payment for forest environment services; payment of salaries and amounts of salary nature to persons not salaried by the state budget; and other activities serving the forest protection and development.

The amount retained to pay for the management by the forest owner is regarded a revenue of the forest owner and shall be managed under financial regulations applicable to the organizational type of the forest owner.

After retaining the amount for the management, the forest owner shall pay the remainder to the party contracted to protect forests under Clause 3, Article 69 of this Decree.

4. Commune-level People’s Committees and other organizations assigned by the State to protect forests shall formulate plans on the use of collected forest environment service charge to cover expenses for the forest management and protection and submit them to district-level People’s Committees for approval and send them to provincial-level forest protection and development funds. These expenses include:

a/ Expense for persons engaged in the forest protection;

b/ Expense for petrol and oil for vehicles used for the forest patrol and inspection;

c/ Expense for persons mobilized to prevent and fight forest destruction and fight forest fires who encounter accidents or are injured;

d/ Expense for nighttime and overtime work and dual responsibility performance;

dd/ Expense for law dissemination and education and training in forest management and protection skills;

e/ Expense for workshops and conferences to review the emulation and commendation work;

g/ Other expenses.

Article 71.Advance payment, payment and finalization of forest environment service charge

1. Advance payment of forest environment service charge

Based on the approved collection and payment plan, a provincial-level forest protection and development fund shall make advance payment of forest environment service charge to the forest environment service provider and units and organizations assigned to assist the fund in performing the payment task. The provincial-level People’s Committee shall prescribe the number and percentage of advance payment of forest environment service charge.

2. Payment of forest environment service charge

a/ Based on the charge amount actually collected in a year and results of the determination of the forest area for which forest environment service charge is paid, a provincial-level forest protection and development fund or the unit or organization assigned to assist the fund in the payment shall make payment to the forest environment service provider before June 1 of the subsequent year;

b/ After completing the payment, the unit or organization assigned to assist the fund in payment shall make a report according to Form No. 12 or No. 13 in Appendix VI to this Decree and send it to the provincial-level forest protection and development fund, enclosed with supporting documents, before June 15 of the subsequent year;

c/ Based on management expenses used, expense items and levels approved by the provincial-level People’s Committee, and lawful payment documents, the provincial-level forest protection and development fund shall make payment to the unit or organization assigned to assist the fund in the payment.

3. Forms of advance payment or payment of forest environment service charge

a/ For forest environment service providers being organizations, the advance payment or payment shall be made via their bank accounts;

b/ For households, individuals and residential communities that make advance payment or payment via their bank accounts or in cash, the State shall encourage advance payment or payment via bank accounts in localities where conditions permit.

4. Finalization of forest environment service charge

a/ A forest protection and development fund shall close account books on December 31 every year and make a finalization report according to Form No. 14 in Appendix VI to this Decree. The deadline for making or adjusting a finalization report of a year is June 30 of the subsequent year or for submitting it to the managing agency is July 15 of the subsequent year;

b/ Forest owners being organizations that enter into forest protection contracts shall make a report on finalization of forest environment service charge according to Form No. 15 in Appendix VI to this Decree, and submit it to the managing agency and provincial-level forest protection and development fund before June 30 of the subsequent year;

c/ Commune-level People’s Committees and other organizations assigned by the State to manage forests shall close account books, and make and submit reports under the regulations on financial management applicable to each type of organizations;

d/ The Ministry of Agriculture and Rural Development shall approve reports on finalization of forest environment service charge made by the Vietnam Forest Protection and Development Fund;

dd/ Provincial-level Departments of Agriculture and Rural Development (in case provincial-level forest protection and development funds are attached to these Departments) or provincial-level Departments of Finance (in case provincial-level forest protection and development funds are attached to provincial-level People’s Committees) shall approve these funds’ reports on finalization of forest environment service charge;

e/ Agencies managing forest owners being organizations shall approve reports on finalization of forest environment service charge made by such forest owners;

g/ District-level finance agencies shall approve reports on finalization of forest environment service charge made by commune-level People’s Committees and other organizations assigned by the State to manage forests;

h/ The time limit for approving reports on finalization of forest environment service charge must comply with the current regulations on financial regime applicable to each type of organizations.

Article 72.Inspection, supervision and financial publicity

1. Inspection and supervision of the management and use of collected forest environment service charge

a/ The Ministry of Agriculture and Rural Development shall assume the prime responsibility for, and coordinate with the Ministry of Finance in, organizing the inspection in localities and at the Vietnam Forest Protection and Development Fund;

b/ Provincial-level Departments of Agriculture and Rural Development (in case provincial-level forest protection and development funds are attached to these Departments) or provincial-level Departments of Finance (in case provincial-level forest protection and development funds are attached to provincial-level People’s Committees) shall organize the inspection at provincial-level forest protection and development funds;

c/ The Vietnam Forest Protection and Development Fund shall inspect the management and use of collected forest environment service charge by provincial-level forest protection and development funds; and inspect the charge payment by forest environment service users;

d/ Provincial-level forest protection and development funds shall inspect the management and use of forest environment service charge by related parties in localities; and inspect the payment by forest environment service users;

dd/ Forest owners being organizations shall inspect the management and use of collected forest environment service charge by parties contracted to protect forests;

e/ Agencies, organizations and local people shall join in supervising state agencies, organizations, households, individuals and residential communities involved in the management and use of collected forest environment service charge.

2. Financial publicity

a/ Forest protection and development funds, forest owners being organizations, commune-level People’s Committees, and other organizations assigned by the State to manage forests shall implement the regulations on financial publicity;

b/ Lists of beneficiaries of forest environment service charge, charge amounts to be paid, and quarterly and annual charge payment plans shall be publicized under the Regulation on exercise of grassroots democracy by publicly displaying information at offices of commune-level People’s Committees and places where residential communities meet, in villages or public places most convenient for local people; or by reading notices via public-addressing systems of communes and villages or disclosing information at people’s conferences of communes or villages.

Section 5

FOREST ENVIRONMENT SERVICE CHARGE EXEMPTION OR REDUCTION

Article 73.Cases of forest environment service charge exemption or reduction

1. Organizations and individuals engaged in production and business activities that suffer direct damage in capital or assets due to natural disasters, fires, earthquakes, storms, inundation or floods, whirlwinds, tsunamis or landslides, which render them unable to carry out or force them to suspend production and business activities, and are not subject to compulsory asset insurance as prescribed by law.

2. Individuals engaged in production and business activities who have lost their civil act capacity, die or are declared dead or missing and have no assets for payment of their debts, or whose guardians or heirs are actually unable to pay their debts.

3. Organizations engaged in production and business activities that are dissolved or fall bankrupt under decisions of competent agencies in accordance with law and no longer have capital or assets for payment of their debts to forest environment service providers.

Article 74.Exemption or reduction levels

1. Exemption from forest environment service charge: Organizations and individuals are entitled to full exemption from payable forest environment service charge in case they suffer damage in capital or assets accounting for between 70% and 100% of their total asset value or the value stated in their production and business plans, or in the cases specified in Clauses 2 and 3, Article 73 of this Decree.

2. Reduction of forest environment service charge: Organizations and individuals are entitled to up to 50% reduction of payable forest environment service charge in case they suffer damage in capital or assets accounting for between 40% and under 70% of their total asset value or of the value stated in their production and business plans.

Article 75.Dossiers and procedures for exemption or reduction

1. Dossiers for exemption or reduction

Upon the occurrence of aforce majeurerisk prescribed in Article 73 of this Decree, the forest environment service user shall make 1 set of dossier of request for exemption from or reduction of forest environment service charge and send it to the provincial-level Department of Agriculture and Rural Development (for forest environment service users within the administrative boundaries of one province) or to the Vietnam Administration of Forestry (for forest environment service users within the administrative boundaries of two or more provinces). Such a dossier must comprise:

a/ A written request for exemption from or reduction of forest environment service charge, made by the forest environment service user or its/his/her guardian or heir, stating the cause and content of the risk; level of damage in capital and assets; contents of the request; and exemption or reduction period;

b/ A list enumerating losses and damage in capital and assets; and a copy of the dissolution or bankruptcy decision (if any) issued by a competent agency in accordance with law, for a forest environment service user being an organization;

c/ Particularly for exemption from forest environment service charge for a forest environment service user being an individual, in addition to the request mentioned at Point a, Clause 1 of this Article, the user’s guardian shall send a copy of the court ruling in case the user has lost his/her civil act capacity; or the user’s heir shall send a copy of the user’s death or missing certificate in case the user is dead or missing.

2. Order for exemption or reduction

a/ For a dossier submitted directly, within a half working day after receiving it, the dossier recipient shall notify in writing the dossier submitter of the dossier validity;

b/ For a dossier sent by post or online, within 2 working days after receiving it, the dossier recipient shall notify in writing the dossier submitter of the dossier validity;

c/ Within 5 working days after receiving a valid dossier of request for exemption or reduction, the dossier recipient shall decide to form an inspection team to verify the dossier;

d/ Within 5 working days after the issuance of a decision on formation of the inspection team, this team shall verify the dossier;

dd/ Within 5 working days after completing the verification, the inspection team shall complete a report on verification, and send it to the provincial-level People’s Committee for deciding on exemption or reduction for the forest environment service user within the administrative boundaries of one province, or to the Ministry of Agriculture and Rural Development for deciding on exemption or reduction, for the forest environment service user within the administrative boundaries of two or more provinces;

e/ A decision on exemption or reduction shall be sent to the forest protection and development fund and forest environment service user for execution.

Section 6

TASKS AND ORGANIZATIONAL STRUCTURE OF FOREST PROTECTION AND DEVELOPMENT FUNDS

Article 76.Tasks of forest protection and development funds

1. Tasks of the Vietnam Forest Protection and Development Fund:

a/ To review and enter into contracts, receive and manage money amounts transferred to it for payment of forest environment service charge;

b/ To mobilize, receive and manage the transferred funding sources; aid, donations, voluntary contributions and amounts transferred by domestic and foreign organizations and individuals; and other off-state budget financial sources;

c/ To receive and manage money amounts for planting of replacement forests;

d/ To appraise and submit to competent authorities for approval of programs and projects and non-project activities supported by the Fund;

dd/ To act as the focal point in assisting the Vietnam Administration of Forestry in inspecting and supervising the collection and payment of forest environment service charge amounts transferred by the Fund to provincial-level forest protection and development funds;

e/ To direct, guide, inspect and supervise eligible beneficiaries of financial support from the Fund;

g/ To implement the regulations on finance, statistics, accounting and audit; to report on the management and use of the Fund to competent authorities;

h/ To propose competent state management agencies to issue, supplement or amend the regulations on beneficiaries of and activities eligible for support from the Fund;

i/ To summarize and report to the Ministry of Agriculture and Rural Development on annual collection and payment of forest environment service charge nationwide;

k/ To disseminate policies on payment for forest environment services at central and local levels;

l/ To perform other tasks assigned or prescribed by competent state agencies.

2. Tasks of a provincial-level forest protection and development fund

a/ To review and enter into contracts, receive and manage amounts transferred to it for payment for forest environment services;

b/ To mobilize, receive and manage other transferred funding sources; aid, financial donations, voluntary contributions of domestic and foreign organizations and individuals; and other lawful off-state budget financial sources;

c/ To receive and manage funds for planting of replacement forests;

d/ To represent the forest environment service provider in entering into a contract with the forest environment service user that has to pay the transferred amount to the fund;

dd/ To act as the focal point to assist competent state agencies in inspecting and supervising the management and use of management expenses and the payment by forest owners to households contracted to protect forests;

e/ To appraise and submit programs, projects and non-project activities eligible for its support to competent authorities for approval;

g/ To direct, guide, inspect and supervise eligible beneficiaries of its financial support;

h/ To implement the regulations on finance, statistics, accounting and audit; to report on its management and use to competent authorities;

i/ To propose competent state management agencies to issue, supplement or amend the regulations on beneficiaries of and activities eligible for its support;

k/ To send to the concerned provincial-level People’s Committee and Vietnam Forest Protection and Development Fund reports on annual collection and payment of forest environment service charge in the locality, made according to Form No. 16 in Appendix VI to this Decree;

l/ To disseminate relevant policies and laws;

m/ For a province or centrally run city where a forest protection and development fund has not yet been established, the agency or organization performing the fund’s tasks shall perform the tasks specified in this Clause.

Article 77.Organizational structures

1. Organizational structure of the Central Fund

a/ The Vietnam Forest Protection and Development Fund (below referred to as the Central Fund) shall be established under a decision of and managed by the Ministry of Agriculture and Rural Development. The Central Fund has the legal person status, its own seal, bank accounts and state treasury accounts in accordance with law; and shall be organized and operate as a public non-business unit;

b/ The Central Fund’s management and administration apparatus consists of its Management Council, Control Board, Executive Board, and specialized divisions;

c/ The Central Fund’s Management Council, Control Board and Executive Board shall be prescribed in its organization and operation charter promulgated by the Minister of Agriculture and Rural Development.

2. Organizational structures of provincial-level forest protection and development funds

a/ A provincial-level forest protection and development fund (below referred to as provincial-level fund) shall be established under a decision of the chairperson of a provincial-level People’s Committee based on the demand for and capacity of raising financial resources for the forest protection and development. The fund is attached to the provincial-level People’s Committee or Department of Agriculture and Rural Development. The fund has the legal person status, its own seal, bank accounts and state treasury accounts in accordance with law; and shall be organized and operate as a public non-business unit;

b/ The fund’s management and administration apparatus consists of its Management Council, Control Board, Executive Board, and specialized divisions;

c/ The fund’s Management Council, Control Board, and Executive Board shall be prescribed in its organization and operation charter promulgated by the chairperson of the provincial-level People’s Committee.

Article 78.Relationship between the Central Fund and provincial-level funds

1. Responsibilities of the Central Fund

a/ To distribute collected forest environment service charge and other transferred funding sources to provincial-level funds;

b/ To provide financial and technical assistance to provincial-level funds;

c/ To provide professional training for personnel of provincial-level funds;

d/ To organize exchange of management experiences among provincial-level funds;

dd/ To inspect and supervise the management and use of funding sources by provincial-level funds.

2. Responsibilities of a provincial-level fund

a/ To receive, manage and use financial sources and technical assistance from the Central Fund;

b/ To submit to the Central Fund’s inspection and supervision of the management and use of its funding sources;

c/ To report on its management and use to the Central Fund for summarization and reporting to the Ministry of Agriculture and Rural Development.

Section 7

FINANCIAL SOURCES AND MANAGEMENT AND USE OF FINANCIAL SOURCES OF FOREST PROTECTION AND DEVELOPMENT FUNDS

Article 79.Financial sources

1. Financial sources of the Central Fund

a/ Collected forest environment service charge amounts; and amounts transferred by domestic and foreign organizations and individuals under authorization contracts related to the forest protection and development;

b/ Funds for planting of replacement forests as a result of forest conversion;

c/ Aid, financial donations and voluntary contributions of domestic and foreign organizations and individuals;

d/ Interests on deposits at credit institutions;

dd/ Other off-state budget lawful financial sources.

2. Financial sources of a provincial-level fund

a/ Collected forest environment service charge amounts; and amounts transferred by domestic and foreign organizations and individuals under authorization contracts related to the forest protection and development;

b/ Funds for planting of replacement forests as a result of forest conversion;

c/ Aid, financial donations and voluntary contributions of domestic and foreign organizations and individuals;

d/ Financial sources from the Central Fund;

dd/ Interests on deposits at credit institutions;

e/ Other off-state budget lawful financial sources.

Article 80.Expenses of forest protection and development funds

1. The Central Fund

a/ Distribution of collected forest environment service charge to provincial-level funds; expense for the performance of authorized tasks under authorization contracts from the financial source specified at Point a, Clause 1, Article 79 of this Decree;

b/ Funds for planting of replacement forests as a result of forest conversion from the financial source specified at Point b, Clause 1, Article 79 of this Decree;

c/ Support for programs, projects and non-project activities from the financial sources specified at Points c, d and dd, Clause 1, Article 79 of this Decree, including expenses as support for the prevention of forest destruction and illegal production, trading and transportation of forest products; dissemination and implementation of policies and laws on forest protection and development; experimentation and propagation of forest protection, development and sustainable management models; experimentation and application of new forest tree seedlings; planting of scattered trees; development of non-timber forest products on forest land; training of human resources for provincial-level forest protection and development activities, and support for other activities related to the forest protection and development;

d/ Support for provincial-level funds from the financial sources specified at Points c, d and dd, Clause 1, Article 79 of this Decree;

dd/ Expense for the operation of its apparatus from the financial source for the management of forest environment services specified at Point a, Clause 1, Article 70 of this Decree, and from the financial source for management activities under authorization contracts, deposit interests, and other lawful financial sources as prescribed by law. Contents and levels of expenses for the operation of its apparatus must comply with current regulations. In case expense contents and levels are not yet prescribed by law, it shall, based on its financial capacity, include expense contents and levels in its internal spending regulations, and decide on spending and take responsibility before law.

2. A provincial-level fund

a/ Payment for forest environment services; expense for the performance of authorized tasks under authorization contracts from the financial source specified at Point a, Clause 2, Article 79 of this Decree;

b/ Funds for planting of replacement forests as a result of forest conversion from the financial source specified at Point b, Clause 2, Article 79 of this Decree;

c/ Support for programs, projects and non-project activities from the financial sources specified at Points c, d and e, Clause 2, Article 79 of this Decree, including expenses as support for the prevention of forest destruction and illegal trading and transportation of forest products; dissemination and implementation of policies and laws on forest protection and development; experimentation and propagation of forest protection and development and sustainable management models; experimentation and application of new forest tree seedlings; planting of scattered trees; development of non-timber forest products on forest land; training of human resources for grassroots-level forest protection and development activities, and support for other activities related to the forest protection and development;

d/ Expense for the operation of its apparatus from the financial source for the management of forest environment services specified at Point a, Clause 2, Article 70 of this Decree, and from the financial source for management activities under authorization contracts, deposit interests, and other lawful financial sources as prescribed by law. Contents and levels of expenses for the operation of its apparatus must comply with current regulations. In case expense contents and levels are not yet prescribed by law, it shall, based on its financial capacity, include expense contents and levels in its internal spending regulations, and decide on spending and take responsibility before law.

Article 81.Formulation of financial plans, financial statements and finalization reports

1. The Central Fund

a/ Annually, it shall formulate financial plans, including a plan on collection and payment of forest environment service charge and other financial sources; and make estimates of expenses for its operation through its Management Council, and submit them to the Ministry of Agriculture and Rural Development for decision;

b/ Annually, it shall formulate its financial statements and finalization reports under the current regulations on finance and accounting and send them to the Ministry of Agriculture and Rural Development for approval.

2. A provincial-level fund

a/ Annually, it shall formulate financial plans, including a plan on collection and payment of forest environment service charge and other financial sources; and make estimates of expenses for its operation through its Management Council, and submit them to the provincial-level People’s Committee for decision;

b/ Annually, it shall formulate its financial statements and finalization reports under the current regulations on finance and accounting. The provincial-level Department of Agriculture and Rural Development shall approve finalization reports of its attached fund, and the provincial-level Department of Finance shall approve finalization reports of the fund attached to the provincial-level People’s Committee.

3. The assignment of financial autonomy to the Central Fund or a provincial-level fund must comply with the Government’s regulations on autonomy mechanism applicable to non-public business units in economic non-business activities and other non-business activities and guiding documents.

Article 82.Accounting, audit, asset management and financial publicity

Forest protection and development funds at all levels shall implement the accounting, audit, asset management and financial publicity regulations as follows:

1. To perform accounting activities under the accounting regime applicable to non-business administrative units.

2. To manage and use assets in accordance with the Law on Management and Use of Public Assets and guiding documents.

3. To be encouraged to have their financial statements independently audited.

4. To practice financial publicity under the current regulations on finance; to be encouraged to have results of the implementation of policies on forest environment services independently evaluated.

Section 8

MANAGEMENT OF PROGRAMS, PROJECTS OR NON-PROJECT ACTIVITIES ELIGIBLE FOR FINANCIAL SUPPORT FROM FUNDS

Article 83.Methods of provision of and activities eligible for financial support

1. Non-refundable whole or partial financial support shall be provided to organizations, households, individuals and residential communities for implementation of programs, projects and non-project activities specified in Clause 2 of this Article.

2. Support-eligible activities

a/ The Central Fund shall provide support for the activities specified at Point c, Clause 1, Article 80 of this Decree;

b/ Provincial-level funds shall provide support for the activities specified at Point c, Clause 2, Article 80 of this Decree.

Article 84.Approval of programs, projects or non-project activities

1. The Central Fund

a/ Before December 31 every year, organizations, households, individuals and residential communities that need support shall send directly or by post a request for support, enclosed with documents on programs, projects or non-project activities, to the Central Fund’s Executive Board;

b/ Before February 25 every year, the Central Fund’s Executive Board shall assume the prime responsibility for, and coordinate with competent agencies in, appraising the request, and report it to the Central Fund’s Management Council for opinion, then submit it to the Ministry of Agriculture and Rural Development for approval;

c/ Within 3 working days after obtaining the Ministry of Agriculture and Rural Development’s approval, the Central Fund’s Director shall notify such by post to support-eligible organizations, households, individuals and residential communities for implementation.

2. A provincial-level fund

a/ Before December 31 every year, organizations, households, individuals and residential communities that need support shall send directly or by post a request for support, enclosed with documents on programs, projects or non-project activities, to the fund’s Executive Board;

b/ Before February 25 every year, the fund’s Executive Board shall assume the prime responsibility for, and coordinate with competent agencies in, appraising the request, and report it to the fund’s Management Council for opinion, then submit it to the provincial-level People’s Committee for approval;

c/ Within 3 working days after obtaining the provincial-level People’s Committee’s approval, the fund’s Director shall notify such by post to support-eligible organizations, households, individuals and residential communities for implementation.

Article 85.Implementation of programs, projects or non-project activities

1. Organizations, households, individuals and residential communities shall implement programs, projects or non-project activities under approving decisions of competent agencies.

2. A management board for organizing the implementation of programs, projects or non-project activities shall be established at the request of a competent agency.

Article 86.Inspection and assessment of implementation of programs, projects or non-project activities

1. The Central Fund

a/ The Central Fund’s Executive Board shall direct and inspect on a periodical or unscheduled basis the implementation of programs, projects or non-project activities receiving the Central Fund’s support;

b/ When necessary, the Central Fund’s Executive Board may hire consultants to inspect and assess the implementation of programs, projects or non-project activities receiving the Central Fund’s support.

2. A provincial-level fund

a/ The fund’s Executive Board shall direct and inspect on a periodical or unscheduled basis the implementation of programs, projects or non-project activities receiving the fund’s support;

b/ When necessary, the fund’s Executive Board may hire consultants to inspect and assess the implementation of programs, projects or non-project activities receiving the fund’s support.

Chapter VI

FOREST PROTECTION AND DEVELOPMENT INVESTMENT POLICIES

Article 87.Investment policies

The State shall ensure state budget funds for investment in:

1. Protection and development of special-use forests and protection forests:

a/ Management activities of forest management boards;

b/ Planting, tending, protection and zoning for regeneration of forests;

c/ Updating forest statistics, and monitoring and supervising forest resource changes and biodiversity; inventorying forests, updating forest statistics and disclosing information about actual status of forests;

d/ Managing information about forestry and database on forests;

dd/ Collecting specimens of forest plants and animals;

e/ Conducting scientific research, training and development of human resources, and forestry extension;

g/ Disseminating and educating the law on forest protection and development;

h/ Inspecting, stopping, combating, preventing and handling violations of the law on forest protection and development;

i/ Formulating and implementing sustainable forest management plans;

k/ Allocating forests and planting forest boundary markers.

2. Protection and rescue of endangered, precious and rare species of forest plants and animals

a/ Monitoring, supervising and rescuing endangered, precious and rare species of forest plants and animals;

b/ Procuring equipment for supervising, rescuing and protecting endangered, precious and rare species of forest plants and animals;

c/ Caring for and nurturing endangered, precious and rare species of forest plants and animals.

3. Research and application of outcomes of scientific research, technology development and human resource training to serve the state management of forestry

a/ Applying high, advanced and new technologies in inventorying forests, updating forest statistics and monitoring forest resource changes; forest fire prevention and fighting; prevention and elimination of forest pests; selection, creation and propagation of seedlings of timber trees and non-timber forest trees; restoration of forests and improvement of the quality of natural forests;

b/ Researching and conserving forest ecosystems, valuating forests, and determining the value of forest environment services;

c/ Studying solutions to biodiversity conservation for forest ecosystems and response to climate change;

d/ Formulating and improving standards, technical regulations and instructions on forestry.

4. Building research and development zones and hi-tech parks

a/ Propagating tree seedlings with the tissue and embryo culture technology; and creating new tree seedlings with the gene transformation technology, gene mutation technology, cell technology or molecular genetics technology;

b/ Researching, developing and applying mechanization, automation and biotechnology, and using new and energy-saving materials in the production of tree seedlings on an industrial scale and planting and tending of forests;

c/ Researching and applying remote sensing technology, information technology and biotechnology in the management and protection of forest resources;

d/ Researching and applying high technologies in the exploitation of timber and forest products;

dd/ Researching, applying and demonstrating high technologies in the processing and preservation of timber and forest products.

5. Procurement of vehicles and equipment for forest protection; monitoring and warning of forest fire dangers; and prevention and elimination of forest pests.

6. Construction, maintenance, upgrading and renovation of infrastructure facilities to serve the protection and development of special-use forests and protection forests

a/ Paths from existing roads to offices of forest management boards; roads for forestry purpose; roads for transportation purpose within the forest areas managed by forest management boards; and roads for forest protection patrol;

b/ Working offices and official-duty houses for officers on temporary residence, and forest protection stations; centers for rescue and raising of wild animals; environmental education centers concurrently used as guesthouses; museums of forest plants and animals; and works serving scientific research;

c/ Fire belts, forest fire watch towers, forest fire observation and forecast stations; canals, ditches, bridges, sluices, and water tanks, dams, reservoirs and pipelines for forest fire prevention and fighting;

d/ Signboards, warning signs and boundary markers of forests;

dd/ Warehouses and storing yards for gathering materials, fuels, tools and instruments for the forest protection and development; and piers, for riverside or seaside offices and forest protection stations;

e/ Independent power systems (solar power, wind power or small hydropower stations, etc.) in case no national grid power system or communication system is available at places where offices of forest management boards or forest protection management stations are located;

g/ Other works serving the forest protection and development.

7. Formulation of the national master plan on forestry, baseline survey on forestry, programs and schemes on forestry development.

8. Inventory of forests, update of forest statistics, monitoring of forest resource changes, and database on forests.

9. Protection and development of production natural forests during the period of forest closure.

10. Maintenance and development of national seedling forests and botanic gardens under approved plans.

11. The Government shall provide detailed regulations on the objects eligible for and levels and order of investment in each period on the basis of state budget capacity and national socio-economic development.

Article 88.Investment support policies

The state budget shall provide investment support for the following activities:

1. Transfer of high, advanced and new technologies, forestry extension, and grant of sustainable forest management certificates

a/ Applying high, advanced and new technologies in intensive planting of forests to supply large timber, plant indigenous trees and plant mixed forests; modernizing the process of production of forest tree seedlings and planting, tending, protecting and harvesting forests; harvesting, transporting, processing and preserving forest products; and applying supporting industrial products in the forest product processing;

b/ Studying and renewing organizational models of value chain-based forestry production in association with sustainable forest development; developing models of combined agro-forestry and fishery;

c/ Transferring forestry-related technologies and research outcomes to forestry production, trading and management;

d/ Providing training in, experimenting, transferring and operating high, advanced and new technologies, and carrying out forestry extension activities;

dd/ Formulating plans on and organizing the sustainable forest management and granting production forest certificates.

2. Development of infrastructure facilities in association with investment in development and trading of production forests based on value chains

a/ Building centers for producing high-quality forest tree seedlings and forest tree seedling nurseries;

b/ Building roads for forestry purpose in production forests with an area of 500 hectares or larger;

c/ Building forest protection works (forest fire watch towers, signboards and fire belts) in production forests with an area of 500 hectares or larger;

d/ Providing support for construction and transportation activities for plants processing planted forest timber in areas with socio-economic difficulties.

3. Cooperation and association for forest protection and development activities of ethnic minority people and residential communities combined with programs on socio-economic development and new countryside building

a/ Planting production forests and developing non-timer forest products for farmer households in mountainous, border and island areas and areas with extreme socio-economic difficulties;

b/ Protecting forests and zoning for forest regeneration with additional planting of production natural forests for farmer households in mountainous, border and island areas and areas with extreme socio-economic difficulties;

c/ Supporting livelihood development and improvement of living standards of people in buffer zones of special-use forests and protection forests;

d/ Providing loans from the Vietnam Bank for Social Policies for ethnic minority households and poor households in areas with extreme socio-economic difficulties that are engaged in planting of production forests under current regulations;

dd/ Supplying rice for ethnic minority households and poor households in areas with extreme socio-economic difficulties in order to change their nomadic farming practices and plant replacement forests.

4. Human resources training and development for forest owners

a/ Forest seedling production and trading;

b/ Forest planting, tending and protection;

c/ Harvesting, processing and trading of forest products;

d/ Application of remote sensing technology and information technology to the management and protection of forests and monitoring of forest resource changes;

dd/ Forest fire prevention and fighting; prevention and elimination of forest pests.

5. Investment promotion, market development and trading in forestry activities; expansion and intensification of international cooperation on forestry

a/ Carrying out investment promotion, market development and product trading activities;

b/ Expanding and intensifying international cooperation on forestry.

6. The Government shall provide detailed regulations on beneficiaries and levels of and procedures for investment support in each period.

Article 89.Investment incentive policies

1. The State provides investment incentives for the activities specified in Clause 3, Article 94 of the Law on Forestry.

2. Other investment activities are eligible for the incentives provided by the Law on Investment and Law on Public Investment.

3. Beneficiaries, contents, principles and procedures for investment incentives must comply with the regulations on investment and investment incentives.

Chapter VII

IMPLEMENTATION PROVISIONS

Article 90.Effect

1. This Decree takes effect on January 1, 2019.

2. To annul the legal documents referred to in Appendix I to this Decree.

Article 91.Transitional provisions

1. Programs, projects and activities on forest protection and development and forest product processing and trading which are eligible for the State’s investment, investment support or investment incentives under the current policies below may continue to be implemented until the Government or Prime Minister promulgates new policies:

a/ Policies toward forest-dependent ethnic minority people and residential communities shall be implemented under the Government’s Decree No. 75/2015/ND-CP of September 9, 2015, on forest protection and development policies associated with policies on sustainable poverty reduction and support for ethnic minority people;

b/ Contracts on forest protection and development shall be entered into with households, individuals and residential communities under the Government’s Decree No. 168/2016/ND-CP of December 27, 2016, on allocation of forests, tree gardens and water surface areas to special-use forest or protection forest management boards and state-run agriculture or forestry single-member limited liability companies;

c/ Policies on development of forest product processing and forest product market shall be implemented under the Government’s Decree No. 55/2015/ND-CP of June 9, 2015, on credit policies for agriculture and rural development; and the Government’s Decree No. 57/2018/ND-CP of April 17, 2018, on policies to encourage enterprises to invest in agriculture and rural areas;

d/ Investment policies on development of special-use forests during 2011-2020 shall be implemented under the Prime Minister’s Decision No. 24/2012/QD-TTg of June 1, 2012, on investment policies on development of special-use forests during 2011-2020;

dd/ Policies to intensify forest protection activities shall be implemented under the Prime Minister’s Decision No. 07/2012/QD-TTg of February 8, 2012, except Clauses 2 thru 5, Article 3 of this Decision;

e/ Policies on forest protection and development and infrastructure investment and assignment of public tasks to agriculture and forestry companies shall be implemented under the Prime Minister’s Decision No. 38/2016/QD-TTg of September 14, 2016;

g/ Policies on management, protection and sustainable development of coastal forests in response to climate change shall be implemented under the Government’s Decree No. 119/2016/ND-CP of August 23, 2016;

h/ State budget funds shall be provided as support for the protection of closed natural forest areas of forestry companies. Support levels must comply with Clause 3, Article 6 of the Prime Minister’s Decision No. 38/2016/QD-TTg of September 14, 2016, on a number of policies on forest protection and development and infrastructure investment and assignment of public tasks to agriculture and forestry companies;

i/ When the State adopts new policies in replacement of the policies specified in this Clause, the new policies shall apply.

2. For special-use forests established under decisions of competent agencies, which have components on conservation of sea areas and submerged land areas in the inland, their management boards shall continue managing such components without having to form new management boards of marine conservation zones or management boards of submerged land conservation zones.

3. Commune-level funds established under the Government’s Decree No. 05/2008/ND-CP of January 14, 2008, on forest protection and development funds, may continue operating and complete payment, finalization and dissolution procedures in 2019.

Article 92.Implementation responsibility

Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People’s Committees, and related agencies, organizations and individuals shall implement this Decree.-

On behalf of the Government
Prime Minister
NGUYEN XUAN PHUC

* The appendices to this Decree are not translated.