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GOVERNMENT         SOCIALIST REPUBLIC OF VIETNAM
No. 02-CP          Indepencence-Freedom-Happiness
                   Hanoi, 15 January 1994

DECREE

Promulgate the regulations for allocating forest land to
organisation, household, individual to use sustainable and
on long terms in forestry.

GOVERNMENT

Based on the institutional law of the government dated 30
September 1992;

Based on the law on forest protection and development dated
19 August 1991;

Based on the land law dated 14 July 1993;

Based on the tax law of using agricultural land dated 10
July 1993;

Under suggestions of Minister of forestry, Minister of
agriculture and food industry, Minister of fisheries, the
chairman of State Department of minority group affairs and
mountainous region, the head of general department of land
use and management.

PROMULGATES:

Article 1: Promulgating combined with this decree the
regulations for allocating forest land to organisation,
household, individual to sustainable and long terms
utilisation in forestry.

Article 2: The Ministers, heads of equal ministerial level
organisations, institutions directly belong to government,
the presidents of provincial and city people's committees
belong to centre level will be responsible to implement this
decree.

Article 3: This decree is available since the signing date.
All previous regulations which is antithetical with this
regulations will be cancelled.

on behalf of GOVERNMENT
pp. Prime Minister
Vice Prime Minister
Phan van Khai (signed)

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GOVERNMENT          SOCIALIST REPUBLIC OF VIETNAM
                    Independence-Freedom-Happiness

REGULATIONS

For allocating forest land to organisation, household,
individual to use sustainable and on long terms in forestry

(along with the resolution No. 02-CP dated 15 Jan. 1994 of
the government)

Article 1: The forest land is allocated by the government to
organisation, household, individual to use sustainable and
on long terms which is referred in this regulation includes:

- Land which is covered with natural forest, plantation;

- Land which is open but planning for conducting plantation,
gazetting for taking care and protecting vegetation cover.

Article 2: The government allocates forest land to
organisation, household, individual to use sustainable and
on long terms following the proper using purpose of each
category of forest:

- Protection forest, the area to gazette for protecting
vegetation cover which is mainly served for protecting water
source, soil, prevent erosion, restrict calamity, regulate
climate, contribute to protect environment and ecosystem;

- Special-use forest is used mainly for nature conservation,
standard model for ecosystem of national park, genetic
source of wild vegetation and animal; scientific research;
preserve historical and cultural relics, and beautiful
landscape, recreation and eco-tourism.

- Production forest is used mainly for production, timber
trading and other forest non-wood products, wild animal and
combined with protection of environment and ecosystem.

Article 3:

1. The government allocates the forest land covered by
natural forest and plantation planted by government
investment to organisation following management plan,
project for managing and developing forest which have been
approved by government authority; to household, individual
within the framework of management and utilisation plan
which has been approved by government authority, aiming at
protection, development and sustainable utilisation and on
long terms according to plan and planning of the government.

2. The government allocates the forest land without forest
cover; land in the region gazetted for protection and forest
restoration and has the appropriate investment and support
policy so that the organisation, household, individual can
use sustainable on long terms in forestry purpose under
government planning;

3. For land with forest cover, without forest which has not
allocated yet to organisation, household, individual, the
ministry of forestry and the local authority in charge of
forestry will assist the government, people's committee at
all levels to organise managing and gradually planning to
put in use.

Article 4: Basis for allocating forest land:

1. Forest land stock of each locality;

2. Planning of forest land, forest of all categories of each
locality which has been approved by the proper authority;

3 Demand, possibility using forest land in forestry of
organisations listed in management plan, project for
managing and developing forest which has been approved by
government authority; application for forest land allocating
to household, individual should be verified by local
people's committee at site.

4. In case the forest land allocation connected with the
implementation of investment and support policy by
government subsidise, the allocation should be under the
investment and support plan of the government.

Article 5: The object of forest land allocation:

1. The organisations include: Management Boards of
protection forest, special-used forest; entrepreneurs in
forestry, agriculture, fishery; forestry farms and
enterprises; units of people's arm force; schools,
vocational schools; social institutions and economic
organisations;

2. Households living at the locality verified by the local
people's committee;

3. individuals.

Article 6:

1. The duration to allocate forest land for sustainable
using and on long terms is stipulated as follows:

a. For government organisations, duration is following state
plan and planning;

b. For other organisations, households, individuals, the
duration is 50 years. While the duration will be terminated,
if the organisations, households, individuals still have
demand and committed to use with correct purpose, then the
government will consider to further allocate. If they
conduct the plantation of forestry species with rotation
over 50 years, then after 50 years using, the government
further allocate until they can harvest the major products.

2. The duration for allocating forest land will be
calculated as follows:

a. For organisations, households, individuals have been
allocated on 14 October 1993 backward, the it is uniquely
referred since 15 October 1993;

b. For organisations, households, individuals have been
allocated since 15 October 1993 onward, it is referred from
the allocating date.

Article 7:

1. Forest land is planned for protection forest includes:

a. Protection forest on watershed;

b. Protection forest against wind and sand movement;

c. Protection forest against waves and for reclamation;

d. Protection forest for environment and ecosystem.

2. Assign to Management Boards of protection forest which
has been established under decision of prime minister (or
president of people's committee of province, cities belong
to central level to manage those forest in protection,
development under approved planning and plan.

3. For the protection forest has been allocated to
organisation (economic organisations in forestry,
agriculture, fishery of government, units of people's arm
force or others), the heads of these organisations, units
have responsibility to organise to manage, protect, develop
those forest under planning and plan which have been approve
by proper authority;

4. For the protection forest of small area within boundary
of commune, village, or hamlet but has not allocated to
concrete user; the president of people's committee of that
commune has responsibility to organise so that the village
or hamlet manage, protect, develop those forest under the
instructions of government forest authority at locality.

5. The government allocates forest land to organisations,
households, individuals to conduct planting protection
forest or gazetting for regeneration, protection of
vegetation cover combined with production and forestry,
agricultural, fishery trading in following areas:

a. Watershed area which is less critical;

b. Protection area against wind, sand movement;

c. Protection area against waves, for reclamation where land
has been stable;

d. Protection area for environment and ecosystem.

Article 8:

1. The forest land planning for special-use forest includes:

a. National parks;

b. Nature reserve

c. Cultural, historical relics, beautiful landscapes,
research and experiment forest.

2. Assign the Management Boards of national parks, nature
reserve (established under the decision of prime minister)
to manage, protect that area. The management, protection of
these areas is stipulated as follows:

a. For core zone, but not in position to move people out
this area, the management board of special-use forest will
assign the certain area to households for protection,
afforestation under the assigning contract;

c. For land of annual plantation in the forest stated in
sub-points a, b, point 2 of this article, the management
board of this forest has the right to reassign to household,
individual to use in agricultural cultivation according to
provision of the law.

3. For cultural, historical relics, beautiful landscapes,
research and experiment forest which has been established by
proper government authority, the management will be
conducted by the management board under the provision of the
law. In case there is area for annual planting and human
settlement in this forest, the land allocation will be
followed the sub-points b, c point 2 of this article.

Article 9: The forest land is planned for production forest:

1. Production forest is allocated by the government to
organisations, households, individuals belonging to economic
sectors stated in point 1 article 3 and point 3 article 4 of
this regulations;

2. The government encourage the organisations, households,
individuals to receive land for forest planting, conducting
agro-forestry-aquaculture on open land and denuded hill. The
government has the support policy in reforestation,
agro-forestry-aquaculture, organising to produce, process,
market products and build infrastructure.

Article 10: The organisations, households, individuals are
managing the forestry land which has been assigned by proper
authorities before, will be considered to use and complete
the document in conformity with the Article 13 of this
regulation.

Article 11: The authority who is entitled to identify the
forest area and assign forestry land for long terms and
sustainable utilisation for forestry purpose will be
implemented under the Article 8, Decree No. 17-HDBT dated 17
January 1992 regarding implementation of the Laws on forest
protection and development.

The authority who has the right to allocate land is also the
organisation to approve management plan, investment plan for
forest protection and development. The authority to allocate
land and approve management plan should not authorise to
organisation at lower level.

Article 12:

1. For forestry land which is bare land and denuded hill,
the organisations, households, individuals who have been
allocated land will be issued licence for land tenure for
long term and sustainable and will be enjoyed the proper
investment and support policy, policy of tax reduction or
exemption under provisions of the laws;

2. For forestry land with natural forest and plantation
cover, or with vegetation cover where need of protection
activities, the households, individuals who have been
allocated land should be responsible to the government under
the notary for forest stock, and assigned forest cover;

3. For households, individuals who live in areas of
protection forest, special used forest and on the areas of
forest enterprise, state farm, state fishing concession, the
state station, farm, enterprise for forestry seedling, the
land assignment will be implemented under the contract with
the management board or with those organisations and
register the contract with local people's committee.

Article 13: The document for forest land allocation
includes:

1. Land allocating application;

2. For the organisations, the investment plan and management
plan are required; For the households or individuals, the
plan for management, utilisation or the notary which is
approved by the proper authority are required;

3.   Maps of scale 1/5,000 to 1/25,000 for forest land which
has been assigned. Where there is no maps with above
mentioned scale, then the maps of scale 1/50,000 can be used
and that should be enlarged and added the details on field.
On the maps, the land marks for boundary of land area should
be pointed:

4. The decision to allocate forest land issued by the proper
authority;

5. The report for land allocation on spot;

6. The document to allocate forest land should be filed at
the office of authority who issued licence for land tenure
and at the people's committee where is the locality of
forest land.

Article 14: The issuance of land tenure licence is as
follows:

1. The condition to issue licence of land tenure:

a. The general administrative land map;

b. The land allocated should have landmarks on field, marked
on map and calculate the area.

2. The state forestry authority coordinate with land
management authority at the equal level will prepare the
procedures to allocate land to organisations, households,
individuals;

3. The budget for land allocation subsidised by the
government.

The licence for land tenure issued by the general department
for land use and management.

Article 15: The user of forest land has following rights and
obligations:

1. Rights:

a. Be issued licence for land utilisation;

b. Be protected the legal right and benefit on the allocated
area;

c. Be enjoyed labour achievement, investment result on
allocated forest land area under the management plan,
investment project or under the notary, assigned contract;

d. Be enjoyed the supported policy of the government in
protection and development activities;

e. Be compensated the labour and investment result based on
the allocated land area and according to market price and
the status of forest and land for forest planting whenever
that area would be withdrew under the provision of the laws;

f. Have the right to inherit, assign, pledge, exchange the
land tenure of the area allocated under the provision of the
laws;

g. Be considered to reduce or exempt tax in case conducting
plantation on bare land and denuded hill under the provision
of the laws.

2. Obligations:

a. Be responsible to the government for implementing the
regulations of management, protection and development of
allocated forest land;

b. Compensate according to market price to owner of forest
and forest planting land which is withdrew to reallocate to
them own under the provision of the laws;

Pay tax as stipulated in the laws.

Article 16: Award and punishment.

Organisations, households, individuals who have achievement
in implementing this regulations will be considered to award
as stipulated of the laws.

Organisation, households, individuals who violate this
regulations, based on the extent of violation will be
withdrew total or a part of allocated forest land area; will
be administrative treated or criminal responsibility
according to the laws.

Article 17: Ministers of forestry, agriculture and food
industry, fisheries, finance; the minister, chairman of
State Planing Committee, General Department for minority
group affairs and mountainous region; the head of land use
and management and the heads of related institutions
according to their own function and right, will instruct and
control the implementation of this regulations.

The minister of forestry coordinates with minister of
justice will promulgate the format of notary, assigned
contract to apply uniquely in nationwide.

The minister of forestry, the head of general department of
land use and management, the president of people's
committees of provinces, cities of central level will be in
charge of implementing this regulations.

Article 18: All previous regulations in antithetical with
this regulation will be cancelled.

On behalf of THE GOVERNMENT
pp. Prime Minister
Phan Van Khai (signed)

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