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FGM Workshop Background Paper - REDD - VietNam

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• The provincial fund for forest protection and development (FFPD) is not<br />

established there is no guidance from MARD how to get resources for the<br />

fund. Many provincial DARDs have submitted proposals to PPCs requesting<br />

for establishment of the fund, but so far almost is still unsolved.<br />

What is monitored/ measured already?<br />

• Amount of money invested in forestry.<br />

What needs to monitored/measured in the future?<br />

• Size of the National Forest Protection and Development Fund.<br />

• Number of organizations, individuals providing contributions to the National<br />

Forest Protection and Development Fund.<br />

• Amount that organizations and individuals contributed to the National Forest<br />

Protection and Development Fund.<br />

• Number of provinces established provincial forest protection and development<br />

fund and set up the fund management system.<br />

Law on natural resources tax 2009:<br />

• Tax rate of timber class I and II is higher than all metal mineral and non metal<br />

ones, coal, and natural gas, and from 4 to 7 times higher than tax rate of<br />

natural sea products. Timber is a natural renewable resource, therefore<br />

charge it at a tax rate higher than that of non renewable resources is not<br />

accurate/fair.<br />

• Too high tax rate promotes illegal logging, especially illegal logging of highvalue<br />

timber from natural forest.<br />

What is monitored/ measured already?<br />

What needs to monitored/measured in the future?<br />

• Total amount of natural-resource tax paid by forest companies.<br />

• Total amount of natural-resource tax paid by households.<br />

3.4. Program “Forest Products Processing and Trade”<br />

Box 22: Tasks of Program “Forest Products Processing and Trade”<br />

a) Reorganize the wood and NTFP processing industries in order to match<br />

the production capability with the sustainable raw material supply sources.<br />

b) Strengthen the production capacity of forest product processing industry to meet<br />

the basic demands for domestic consumption and for export, which are:<br />

• Total capacity of sawn timber: 6 million m3/year<br />

• Particle board: 320,000 m3 of products/year<br />

• MDF board: 220,000 m3 of products/year<br />

• Value of exported wood products: 7.0 billion USD (3.5 million m3 of<br />

products)<br />

• NTFPs for export: 0.8 billion USD<br />

c) By 2020, NTFPs will become one of the main production commodities,<br />

45

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