Hanoi-Vietnam: Financing norms for investment projects on forest protection and development

Circular 02/2018/TT-BKHDT has been issued by the Vietnam Ministry of Planning and Investment, replacing Joint Circular 04/2013/TTLT-BKHDT-BNNPTNT-BTC guiding the implementation of certain contents of Decision 38/2016/QD-TTg on promulgating some policies on forest protection, development, and financing for investment in infrastructure, and assigning public utility tasks to agricultural and forestry companies.

According to Circular 02, the financing norms for investment projects on forest protection and development, and infrastructure construction in Vietnam are specified as follows:

No.

Assistance

Unit

Financing norms

1

Afforestation, survey, design

   

1.1

Border communes

   

a

Large timber, multipurpose, Indigenous

   

b

In the border communes and provinces of Son La, Dien Bien, Lai Chau, Central Highlands

thousand VND/ha

10,000

c

Small timber, scattered

thousand VND/ha

7,000

d

Forestry extension costs over 4 years (1 year of planting and 3 years of care)

thousand VND/ha

500

e

Surveying, designing, and contracting costs

thousand VND/ha

300

1.2

Outside border communes

   

a

Large timber, multipurpose, Indigenous

thousand VND/ha

8,000

b

Small timber, scattered

thousand VND/ha

5,000

c

Forestry extension costs over 4 years (1 year of planting and 3 years of care)

thousand VND/ha

500

d

Surveying, designing, and contracting costs

thousand VND/ha

300

1.3

Support for digitizing maps and creating production forest projects

   

a

Costs for establishing and appraising production forest projects

thousand VND/ha

100

b

As-built maps and map digitization

thousand VND/ha

50

2

Issuance of Forest land use rights certificates

   

a

One-time land allocation support costs, issuing land use rights certificates, contracting forest land (individuals, households)

thousand VND/ha

300

b

One-time land allocation support costs; issuing land use rights certificates, contracting forest land (organizations, communities)

thousand VND/ha

150

3

Issuance of sustainable forest management certificates (minimum of 100 ha or more for natural forests, planted forests)

thousand VND/ha

300

4

Firebreaks, forestry roads

   

a

Firebreaks

thousand VND/km

30,000

b

Forestry roads

thousand VND/km

450,000

5

Forestry seed infrastructure, forest management stations, wood processing

   

a

Support for Medium Density Fiberboard factories (> 30,000m^3^)

million VND/factory

20,000

b

Support for particle board, plywood, industrial bamboo factories (< 30,000m^3^)

million VND/factory

10,000

c

Upgrading nurseries

thousand VND/nursery

75,000

d

New nursery construction

thousand VND/nursery

300,000

đ

New seed forest

thousand VND/nursery

55,000

e

Newly planted seed forests

thousand VND/ha

40,000

g

Transformed seed forests

thousand VND/ha

15,000

h

Seed center

million VND/center

5,000

6

Conversion Rates

   

a

01 m^3^ Medium Density Fiberboard

equivalent to 750kg

b

01 m^3^ High Density Fiberboard

equivalent to 1,000kg

c

01 m^3^ particle board, plywood

equivalent to 700kg

d

01 m^3^ bamboo: laminated board, block panel, laminated stick

equivalent to 1,000kg

More details may be found in Circular 02/2018/TT-BKHDT effective from June 29, 2018.

- Thanh Lam -

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