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Vietnam’s restructuring of State Forest Companies:

Opportunities for local communitiesHanoi, 21/6/2016

Vietnam current forest status and users

• Viet Nam has some 16 million ha forestry land (48% of the country’s total natural land area)

• 13.8 million ha of forested area (forest cover 39%)

• Current 134 State Forestry Companies (SFCs) control more than 1.8 million ha

Vietnam current forest status and users

Recent policies on restructuring of State Forestry Companies

• Resolution 30/NQ-TW dated 12 March 2014 by the Political Bureau on the continued arrangement, renovation, and improved effectiveness of state agriculture and forestry companies

• Decree 118/2014/ND-CP dated 17 December 2014 by the Prime Minister on restructuring, development and improvement of state agriculture and forestry companies

• Circular 02/2015/TT-BNNPTNT dated 27 Jan 2015 by MARD on guidance on development of schemes for restructuring the State agriculture and forestry companies

Results of VNFOREST’s assessment to SFCs

• Total forest land: 1,837,511 ha (134 SFCs: 125 under 28 PPCs, 9 under Ministries) in which:– Self production and management: 1,220,655 ha– Contracting (for forest planting, protection): 420,807 ha– Collaboration with others: 40,218 ha– Areas in disputes and encroachment: 130,223 ha– Overlapped titling: 26,527 ha– Leasing:

191 ha• Dismantled 16 SFCs, reformed others • Planned to keep 1,481,793 ha, handing back to provinces 355,718 ha for the

need (Private companies, Individuals who have resource, Local ethnic communities, etc.)

What opportunities for local ethnic households? • Some 300,000 local ethnic households do not have or have insufficient

production land

Pros ConsResolution 30/NQ-TWResolution 112/2015/QH13 on 11/27/2015 of the National Assembly on strengthening the management of land from state agriculture and forestry enterprises: - Prioritising allocating forest land to local

households, especially ethnic minorities’ who do not have, or have limited land for production

- Ensuring budget (with central support) for allocation (measuring, demarcating, mapping, etc.)

- Preceding policies failed to prioritised poor ethnic minorities

- Those having close relationship with local elites tended to be allocated/contracted more land than others

- Poor quality of released forest land (in disputes, limited benefit (exhausted and far away)

- Good land quality but be (informally) agreed to allocate/contract to private companies/individuals

- Monitoring system of forest allocation/contracting was weak

What opportunities for local ethnic households?

• This is almost last chance for local ethnic minorities to better access to the land!