From July 1, 2024, what are the principles for evaluating the forest price and determining the forest price range in Vietnam?

From July 1, 2024, what are the principles for evaluating the forest price and determining the forest price range in Vietnam? (Internet image) 

Regarding this issue, LawNet would like to answer as follows:

1. From July 1, 2024, what are the principles for evaluating the forest price and determining the forest price range in Vietnam?

According to Article 4 of Circular 20/2023/TT-BNNPTNT, the principles of evaluating forest prices and determining forest price ranges are as follows:

- Evaluating forest prices and determining forest price ranges comply with the following regulations:

+ Forest value is the total value of elements constituting the forest ecosystem and forest environmental values at a time in a determined forest area.

+ Evaluating forest price includes activities to determine the total economic value of the forest.

+ Consistent with the value of forest products and the value of forest environmental services being traded on the market at the time of valuation;

+ Suitable for each type of forest associated with regulations on forest use rights, profitability, and income from forests;

+ Ensuring openness, transparency, objectivity, and science.

+ Ensuring reasonable and valid compensation for production and business costs; profits (if any) or accumulated according to the provisions of law (if any) in accordance with the market level; ensuring compliance with supply and demand of goods and services, market conditions at the time of valuation, and the State's socio-economic development policies and guidelines in each period;

+ Ensure the legitimate rights and interests of the State, organizations and individuals trading in goods and services, and consumers;

+ Review and adjust prices when factors affecting prices change. In the case of adjusting prices of public products and services in investment projects using the public-private partnership method, it is carried out according to each period specified in the project contract.

- Evaluating forest price and determining forest price range to ensure suitability for each forest status and type of forest for specific cases specified in Section 2 Chapter II and Section 2 Chapter III Circular 20/2023/TT-BNNPTNT.

- Determining the forest price range based on local needs in forest management and the results of evaluating the forest price; the forest price range is calculated by district-level administrative units and, equivalently, aggregated for the entire province.

2. Data and documents for evaluating forest prices and determining forest price ranges in Vietnam

According to Article 5 of Circular 20/2023/TT-BNNPTNT, regulations on data and documents for evaluating forest prices and determining forest price ranges are as follows:

- Results of investigation, inventory, and declaration of forest status at the time closest to the time of valuation approved by the competent authority.

- Results of payments for forest environmental services in the last 3 years.

- Financial statements of forest owners are audited or approved by competent authorities.

- Price list for calculating natural resources tax on natural forest products and selling prices of forest products in cases of liquidation approved by competent authorities.

- National standards for wood classification; classify and evaluate planted forests after basic construction and natural forests after regeneration; regulations on investigation, inventory, and monitoring of forest developments; dossiers approving designs, estimates for afforestation, and silvicultural works; forest allocation and lease documents; sustainable forest management plan; other related documents.

3. Who has the authority to issue forest price ranges in Vietnam?

Pursuant to Article 24 of Circular 20/2023/TT-BNNPTNT, the Provincial People's Committee shall determine the forest price range within the management area and promptly adjust the forest price range according to regulations.

Thus, the authority to issue forest price ranges is the Provincial People's Committee.

Nguyen Ngoc Que Anh

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