Principles for forest valuation and price framework in Vietnam as of July 1, 2024

Principles for forest valuation and price framework in Vietnam 

The principles for forest valuation and price framework are as follows:

- Forest valuation and price framework adhere to the following regulations:

+ Forest value is the total value of the ecosystem components and environmental values of the forest at a specific time and in a defined forest area.

+ Forest valuation includes activities aimed at determining the total economic value of the forest.

+ It is in line with the market prices of forest products and environmental services being traded at the time of valuation.

+ It is appropriate for each type of forest, associated with regulations on forest use rights, forest productivity, and income from forests.

+ It ensures transparency, objectivity, and a scientific basis.

+ It ensures reasonable and valid compensation for production and business costs; profits (if any) or accumulation as regulated by law (if applicable), in line with market standards; and in line with supply and demand of goods and services, market conditions at the time of valuation, and the state's economic and social development policies and strategies for each period.

+ It ensures the legitimate rights and interests of the State, organizations, individuals engaged in the business of goods and services, and consumers.

+ It considers and adjusts prices when factors determining prices change. In the case of adjusting prices for public products and services in investment projects implemented through public-private partnerships, it is carried out according to the regulations stipulated in the project contract.

- Forest valuation and price framework ensure compliance with specific forest conditions and forest types as prescribed in Section 2 of Chapter II and Section 2 of Chapter III of Circular 20/2023/TT-BNNPTNT.

- The forest price framework is based on local management needs and forest valuation results; the price framework is calculated based on administrative units at the district level and equivalent, and it is aggregated for the entire province.

More details can be found in Circular 20/2023/TT-BNNPTNT, taking effect on July 1, 2024, replacing Circular 32/2018/TT-BNNPTNT dated November 16, 2018.

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