Resolution 84/NQ-CP 2021 the investment policy for Program on sustainable forestry development 2021-2025

RESOLUTION 

Approving the investment policy for the Program on sustainable forestry development for the 2021-2025 period^[1]

THE GOVERNMENT

Pursuant to the June 19, 2015 Law on Organization of the Government, and the November 22, 2019 Law Amending and Supplementing a Number of Articles of the Law on Organization of the Government and the Law on Organization of Local Administration;

Pursuant to the June 13, 2019 on Public Investment;

Pursuant to the June 25, 2015 Law on the State Budget;

Pursuant to the November 16, 2017 Law on Forestry;

Pursuant to the XIV^th National Assembly’s Resolution No. 124/2020/QH14 of November 11, 2020, on the 2021 socio-economic development plan;

Pursuant to the Government’s Decree No. 40/2020/ND-CP of April 8, 2020, detailing a number of articles of the Law on Public Investment;

At the proposal of the Minister of Planning and Investment and the Minister of Agriculture and Rural Development,

 RESOLVES:

Article 1. To approve the investment policy for the Program on sustainable forestry development for the 2021-2025 period (below referred to as the Program) with the following principal contents:

I. OBJECTIVES

1. General objectives

To develop forestry to actually become a techno-economic sector toward modernity, efficacy, effectiveness and high competitiveness with chains for linking forest development, protection and use to forest product processing and trade; to manage, protect, and sustainably develop and use forests and land areas planned for forestry development; to promote the potential, role and effects of forests so as to contribute to creating jobs and incomes for people in combination with eco-environmental protection, biodiversity conservation, mitigation of negative impacts of natural disasters, and increase of adaptability to climate change; to contribute to national defense and security maintenance.

2. Specific objectives

a/ To protect and sustainably develop the whole areas of existing forests and forests planted during 2021-2025; to closely manage the repurposing of forests, stably maintain the national forest coverage at around 42%; to continue improving forest productivity and quality to meet the demand for materials for production and consumption and requirements for environmental protection, biodiversity conservation, mitigation of negative impacts of natural disasters, and increase of adaptability to climate change;

b/ The forestry production value will grow at the rate of 5-5.5%/year. The export value of timber and non-timber products will reach around USD 20 billion by 2025, in which non-timber products will contribute over USD 1.5 billion, and the proportion of deeply processed and exported timber and non-timber products of high added value will increase;

c/ To contribute to creating jobs and incomes for those who work in the forestry industry. By 2025, the income from planted forests classified as production forests will increase by around 1.5 times per area unit on average compared to the 2020’s figure.

II. MAJOR TASKS

1. Forest protection and conservation of biodiversity of forest ecosystems

a/ To well protect the existing forest areas, especially natural forests; to ensure a reasonable structure of forests of 3 types (special-use forest, protection forest and production forest); to ensure the effectiveness of forest fire prevention and fighting work.

All forest areas assigned to special-use forest management units, protection forest management units and forest owners which are organizations of different economic sectors shall be managed in an effective and sustainable manner.

b/ To effectively carry out biodiversity conservation work in special-use forests (national parks, nature reserves, species-habitat conservation areas, etc.), and forests of high biodiversity.

2. Forest development and improvement of forest productivity and quality

a/ For planted forests

To plant concentrated forests: 230,000ha/year, including 4,000-6,000ha of protection forests, special-use forests and coastal forests and 225,000ha of production forests (10,000ha of new forests and 215,000ha of re-planted forests), of which 30% are intensive large-timber forests.

To improve the productivity and quality of planted forests; by 2025, the average productivity of planted forests will reach 20m³/ha/year; the output of timber exploited from domestically planted forests (timber from concentratedly planted forests, scattered trees, etc.) will meet around 80% of the demand for production and processing materials.

b/ For natural forests

To zone forest areas for natural regeneration and for natural regeneration in combination with planting: around 100,000ha/year, mostly transitional zoning-off. To apply silvicultural measures in an effective manner in order to nurse and enrich natural forests.

c/ To develop non-timber forest products: By 2025, the area of non-timber trees will reach 700,000-800,000ha.

3. Sustainable forest management and forest certification with regard to production forests being planted forests

To organize the effective and sustainable management and exploitation of the whole areas of production forests being planted forests, of which the area of forests having sustainable forest management certificates will increase by at least 500,000ha compared to the 2020’s figure.

III. PRIORITY CONTENTS

1. Protecting forests, preventing and fighting forest fires and developing special-use forests, protection forests and coastal forests

a/ To invest in protection and sustainable development of the existing areas of special-use forests, protection forests and production forests being natural forests, and effectively implement programs and projects on conservation of biodiversity of forest ecosystems;

b/ To invest in restoration and development of the system of protection forests, especially watershed protection forests and coastal protection forests, with the investment unit cost determined according to techno-economic norms and specific conditions of the areas where forests are planted;

c/ To invest in forest protection and forest fire prevention and fighting equipment; to build forest protection and forest conservation and development infrastructure facilities at forest management units, ensuring full satisfaction of conditions for their regular operations and forest patrol and protection activities. To support the building of forestry roads for units and localities with centralized material zones and localities with difficult socio-economic conditions;

d/ To prioritize the allocation of resources for implementation of national forest resource survey, evaluation and surveillance; to build, complete and operate automatic fire-detecting forest surveillance systems; to apply advanced and modern technologies in forest resource survey and surveillance.

2. Developing forest tree cultivars and planting large-timber forests

a/ To invest in and support investment in development of forest tree cultivars and non-timber forest products, including selection, creation, transfer, production and supply of cultivars on an industrial scale toward modernity, creating a breakthrough in productivity and product quality;

b/ To support the planting of large-timber forests and conversion of small-timber forests into large-timber forests.

3. Developing non-timber forest products

To support the development of non-timber forest products on the basis of advantages of each locality, area and region; to develop centralized non-timber forest tree material zones in combination with development of the processing industry to create particular products for each area and meet market demands.

4. Developing the forest product processing industry   

To support the investment in and development of the timber and forest product processing industry according to mechanisms and policies on encouraging enterprises to invest in rural areas in accordance with law.

IV. TOTAL FUNDS FOR IMPLEMENTATION OF THE PROGRAM

The total funds for implementation of the Program are estimated at VND 78,850 billion, in which:

1. Funds from the state budget: VND 13,720 billion, accounting for 17.4%, including:

a/ The central budget: VND 7,500 billion, accounting for 9.5%, including VND 3,100 billion of investment development funds and VND 4,400 billion of economic non-business funds;

b/ Local budgets: VND 6,220 billion, accounting for 7.9%.

2. Fund from other lawful sources: VND 65,130 billion, accounting for 82.6%.

V. PROGRAM OWNER: Ministry of Agriculture and Rural Development.

VI. DURATION OF IMPLEMENTATION OF THE PROGRAM: 5 years, from 2021 through 2025.

VII. VENUE AND SCOPE OF IMPLEMENTATION OF THE PROGRAM

1. Implementation venue: nationwide

2. Scope of implementation of the Program

The Program will be implemented nationwide, not covering:

- Activities falling within the scope of national target programs during 2021-2025;

- Forest tree cultivar development activities under the Prime Minister’s Decision No. 703/QD-TTg of May 28, 2020, approving the Program on development of research and production of varieties serving the restructuring of the agriculture sector during 2021-2030.

Forest protection and development activities in communes with difficult socio-economic conditions (regions II and III) in ethnic minority and mountainous areas, which are funded by the national target program on socio-economic development in ethnic minority and mountainous areas during 2021-2030 according to the XIV^th National Assembly’s Resolution No. 120/2020/QH14 of June 29, 2020, so as to attain the objectives of the Program.

VIII. IMPLEMENTATION SOLUTIONS     

1. Improvement of mechanisms and policies

To continue effectively implementing current investment mechanisms and policies in accordance with law;

To review, evaluate, adjust, and supplement existing mechanisms and policies or formulate new policies to implement the Program.

2. Propaganda and dissemination of policies and laws

To increase communication about the role and economic, social and environmental value, and natural defense and security protection effects of forests; to effectively implement programs on education and dissemination of the forestry law to people, raise public awareness about forest management and protection and forest fire and illegal logging prevention and fighting; to raise awareness about sustainable development of forests and large-timber forests of high productivity and quality, and use of forest products of legal origin.

3. Management of forest and forest land planning

a/ To formulate and implement the National Forestry Master Plan for the 2021-2030 period, with a vision toward 2050, ensuring conformity with overall national master plans, the national land-use master plan, forestry development strategy, and national strategy on biodiversity; to ensure sustainable forest management; to exploit and use forests in combination with natural resource conservation and improvement of economic value of forests and cultural and historical values; to protect the environment, adapt to climate change and improve people’s livelihood;

b/ To closely control the repurposing of forests, and resolvedly handle violations in illegal trade and transfer of forests and forest land;

c/ To continue allocating and leasing forests to households, individuals, communities and economic sectors in accordance with law so as to ensure that there are forest owners to actually take charge of all forest areas and, at the same time, improve the effectiveness of forest management and development;

d/ To encourage the forms of joint venture and cooperation in forest planting and development, and form centralized material zones serving timber and forest product production and processing.

4. Consolidation and renewal of production organization

a/ To continue reorganizing, renewing, and improving the operational effectiveness of, state-owned forestry companies; to encourage the formation of forestry joint-stock companies and cooperatives and forms of cooperation among forest owners in development of production forests in order to form centralized material zones in conformity with the national forestry master plan and socio-economic development plan of each locality, area and region;

b/ To organize chain-based production, from forest planting and exploitation and product processing and consumption in order to improve production effectiveness and competitiveness in product consumption; to encourage the formation of large-sized  enterprises that have prestige and brands in production and processing of timber and forest products linked with material zones;

c/ To encourage the formation of associations to support the development of production forests and non-timber forest products, etc.; to improve forest owners’ and enterprises’ capacity for organization of production and trading activities at home and abroad;

d/ To continue studying and expanding models of cooperation in forestry; to boost and ensure institutional facilitation for farmers and households to cooperate with enterprises in organizing commodity forestry production; to exploit and take advantage of tropical forestry, and build and develop large-scale production areas.

5. Science, technology and forestry extension

To formulate and implement scientific and technological programs, projects and schemes on research, selection, creation and improvement of forest tree cultivars and non-timber forest products (native plants and imported plants of high productivity and quality) and on intensive planting techniques serving development of production forests. To attach importance to implementation of programs on research and development of timber and forest product processing technologies; to develop supporting industries; to formulate sectoral technical regulations and standards. To adopt mechanisms to associate scientific research institutions with enterprises and forest planters. To combine research with training, technology transfer and forestry extension.

To invest in improving management, coordination and surveillance capacity of the forestry sector. To maintain, develop and effectively use the system of databases for monitoring, supervising and evaluating implementation of the Program in association with statistics work of the forestry sector; to effectively conduct survey and evaluation of national forest resources; to enhance reporting capacity, ensuring non-interruption, timeliness, and effectiveness, serving management, direction and administration work. To conduct digital transformation and use artificial intelligence in monitoring, surveillance and management of forest resources and forest fire prevention and fighting.

6. Human resource development

To encourage and create favorable conditions for enterprises and training institutions to carry out cooperation programs in training and skill improvement for enterprises’ workers. To expand forms of vocational training in association with transfer of new technologies and advanced and eco-friendly techniques and production processes.

7. International cooperation and trade promotion

a/ To take advantage of funding sources of bilateral and multilateral international cooperation programs and projects for forestry development, prioritizing programs and projects on provision of support for development of coastal forests in combination with response to climate change and sea level rise; sustainable forest management and forest certification; greenhouse gas emission reduction, forest environmental services; and programs and projects to raise the quality of human resources in the forestry sector;

b/ To proactively expand international cooperation, enhance trade promotion and market expansion; to proactively adapt to technical barriers and legal regulations of importing markets;

c/ To create a healthy competition market in forest product consumption and trade; to ensure the harmony of interests between producers and consumers; to create market momentum and boost the development of domestic forestry production.

8. Mobilization of funding sources

To diversify funding sources for implementation of the Program, increase the mobilization of funds from lawful contributions of enterprises and donations of organizations and individuals at home and abroad; counterpart funds, and contributions of people and beneficiaries. The mobilization, management and use of ODA loans and foreign concessional loans to perform tasks of the Program must comply with current regulations.

9. Organization of implementation of the Program

a/ At the central level

To consolidate the State Steering Committee for the Program on the basis of the State Steering Committee for the Target Program on Sustainable Forestry Development for the 2016-2020 period under the Prime Minister’s Decision No. 1857/QD-TTg of November 23, 2017, in order to continue directing close coordination of ministries, sectors and administrations at all levels, ensuring effective and smooth direction, administration and organization of implementation of the Program.

To consolidate the Office of the State Steering Committee for the Program on the basis of the Office of the State Steering Committee for the Target Program on Sustainable Forestry Development for the 2016-2020 period and Implementation of REDD+, so as to assist the State Steering Committee for Sustainable Forestry Development Program and, at the same time, assist the Minister of Agriculture and Rural Development in managing, and organizing, inspecting and supervising the implementation of, the Program.

b/ At the local level

To consolidate provincial-level Steering Committees for the Program on the basis of provincial-level Steering Committees for the Target Program on Sustainable Forestry Development for the 2016-2020 period so as to continue directing and organizing the implementation of the Program in localities, ensuring effectiveness. The standing bodies of provincial-level Steering Committees for the Program shall be placed at provincial-level Departments of Agriculture and Rural Development to assist provincial-level Steering Committees in organizing the implementation of the Program and management of projects on sustainable forestry development during 2021-2025 in localities.

Article 2. Organization of implementation

1. The Ministry of Agriculture and Rural Development shall:

a/ Assume the prime responsibility for, and coordinate with ministries, sectors, localities, and related agencies in, formulating a feasibility study report for the Program and submit it before December 31, 2021, to the Ministry of Planning and Investment for appraisal and submission to the Prime Minister for consideration and approval in accordance with the Law on Public Investment; approve and organize the implementation of component projects directly managed by the Ministry right after the Prime Minister approves the feasibility study report for the Program;

b/ Urgently formulate and submit to the Government for promulgation a decree on policies on investment in forest protection and development and forest product processing and trade; complete the formulation of, and submit to the Prime Minister for consideration and approval the national forestry master plan for the 2021-2030 period, with a vision toward 2050;

c/ Assume the prime responsibility for, and coordinate with the Ministry of Planning and Investment, the Ministry of Finance and other related agencies in, administering, directing, and guiding the implementation of the Program, ensuring compliance with law;

d/ Assume the prime responsibility for organizing inspection and supervision of the implementation of the Program; organize preliminary reviews on an annual or unscheduled basis or final reviews of the 5-year implementation of the Program;

dd/  Assume the prime responsibility for, and coordinate with ministries, sectors, localities and related agencies in, summarizing, evaluating and recommending solutions for managing and protecting natural forests classified as production forests during the forest closing period according to Article 32 of the Law on Forestry, and report the result to the Prime Minister before December 31, 2021;

e/ Assume the prime responsibility for, and coordinate with related ministries and sectors in, amending and supplementing existing policies or formulating new ones and submit them to competent authorities for promulgation in order to ensure the implementation of the Program;

g/ Coordinate with the Ministry of Planning and Investment and the Ministry of Finance in summing up funding sources for implementation of the Program.

2. The Ministry of Planning and Investment shall:

a/ Assume the prime responsibility for, and coordinate with the Ministry of Finance and related ministries and sectors in, appraising the feasibility study report for the Program in accordance with the law on public investment;

b/ Assume the prime responsibility for, and coordinate with the Ministry of Finance and the Ministry of Agriculture and Rural Development in, balancing and allocating development investment funds for implementation of the Program;

c/ Coordinate with the Ministry of Agriculture and Rural Development and the Ministry of Finance in guiding the inspection and supervision of organizations and individuals engaged in the implementation of the Program.

3. The Ministry of Finance shall:

a/ Assume the prime responsibility for, and coordinate with the Ministry of Planning and Investment and the Ministry of Agriculture and Rural Development in, balancing and allocating non-business funds in accordance with the Law on the State Budget and relevant laws;

b/ Coordinate with the Ministry of Planning and Investment in appraising the feasibility study report for the Program in accordance with the law on public investment;

c/ Assume the prime responsibility for, and coordinate with the Ministry of Agriculture and Rural Development in, guiding the management and use of non-business funds reserved for implementation of the Program.

4. The Ministry of Natural Resources and Environment shall specify the location and boundaries of land areas planned for forestry up to 2025 for use for forest development; and coordinate with the Ministry of Agriculture and Rural Development in directing the allocation of land combined with allocation of forests to organizations, individuals and households according to approved master plans.

5. The Committee for Ethnic Minority Affairs shall coordinate with the Ministry of Agriculture and Rural Development in organizing forest protection and development activities in regions II and III according to decisions of the Prime Minister.

6. Provincial-level People’s Committees shall:

a/ Assume the prime responsibility for organizing the implementation of the Program in localities; review and propose investment projects to implement the Program; formulate plans and estimate annual and 5-year capital demands and send them to the Ministry of Agriculture and Rural Development, the Ministry of Planning and Investment and the Ministry of Finance for sum-up and submission to the Prime Minister;

b/ Allocate funds from their local budgets and mobilize other lawful funding sources for implementation of the Program in their localities;

c/ Direct the formulation of plans on implementation of the Program in their localities; sum up and propose norms and tasks for implementation of the Program and submit them to the Ministry of Agriculture and Rural Development for sum-up and formulation of the feasibility study report for the Program;

d/ Manage, evaluate, and conduct acceptance test of, the projects under their management; submit periodical reports on implementation of the Program to the Prime Minister and related ministries and sectors and organize preliminary and final reviews of the Program in their localities.

7. Related ministries and sectors shall coordinate with the Ministry of Agriculture and Rural Development in organizing the implementation of the Program; and jointly inspect, supervise and urge the implementation of the Program.

Article 3. Implementation provisions

1. The Ministry of Agriculture and Rural Development and related agencies shall implement this Resolution.

2. The Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate with the Ministry of Finance and related ministries and sectors in, inspecting and supervising the implementation of this Resolution in accordance with law.-

On behalf of the Government
For the Prime Minister
Deputy Prime Minister
LE VAN THANH