This document discusses Vietnam's restructuring of state forest companies and the opportunities it provides for local communities. It notes that Vietnam has 16 million hectares of forestry land controlled by 134 state forest companies. Recent policies aim to restructure these companies and hand back 355,718 hectares of land to local provinces. This presents opportunities for Vietnam's 300,000 local ethnic households that lack sufficient land, by prioritizing the allocation of forest land to them. However, past policies have failed to prioritize poor ethnic minorities adequately, and monitoring of land allocation has been weak, presenting challenges to ensuring local communities benefit fully.

1. Funded by: Implemented by: Supported by:
Vietnam’s restructuring of
State Forest Companies:
Opportunities for local communities
Hanoi, 21/6/2016

2. 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

3. Vietnam current forest status and users

4. 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

5. 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.)

6. What opportunities for local ethnic households?
• Some 300,000 local ethnic households do not have or have insufficient
production land
Pros Cons
Resolution 30/NQ-TW
Resolution 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

7. What opportunities for local ethnic households?
• This is almost last chance for local ethnic minorities to better
access to the land!