Nghị định 118/2014/ND-CP

DECREE

ON RESTRUCTURING, DEVELOPMENT AND IMPROVEMENT OF AGRICULTURE AND FORESTRY COMPANIES

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to the Law on Enterprises dated November 29, 2005;

Pursuant to the Law on Land dated November 29, 2013;

Pursuant to the Law on Forest Protection and Development dated December 03, 2004;

At the request of Minister of Agriculture and Rural Development;

The Government promulgates Decree on the restructuring, the development, and the improvement of agriculture and forestry companies.

Chapter I

GENERAL PROVISIONS

Article 1. Scope and regulated entities

1. Scope

This Decree stipulates the restructuring in organization, management mechanism and policies for agriculture and forestry companies.

2. Regulated entities

a) One-member limited liability companies specialized in agriculture and forestry which are wholly state-owned companies (hereinafter referred to as agriculture and forestry companies) that have been transformed as prescribed in Decree 170/2004/NĐ-CP dated September 22, 2004 by Government on the restructuring and the development of State-owned plantations; Decree 200/2004/NĐ-CP dated December 03, 2004 by Government on the restructuring and the development of State-owned forestry plantations; Decree 25/2010/NĐ-CP dated March 19, 2010 by Government on transforming State-owned companies into one-member limited liability companies and the management organization of State-owned one-member limited liability companies .

b) Organizations and individuals involved in the restructuring, the development and the improvement of agriculture and forestry companies.

Article 2. Interpretation of terms

In this Decree, these terms below shall be construed as follows:

1. Empty land allocation is an act that a agriculture company or a forestry company allocating land to households or individuals without investment or implementation of the signed contracts as prescribed in laws on land allocation, and the land recipients have to make investment, organize the production, sell the products themselves, and have to submit products or money to such companies.

2. Sustainable forest management is the process of keeping the forest under control in order to meet the target, ensure the continuity of manufacturing without reducing the future value and productivity, to avoid bad effects on the environment and society.

3. International forest certificate is a confirmation in paper confirmed that the forest management company has met the sustainable forest management standards regulated by international forest certification organization or by authorized organizations.

Ariticle 3. Rules for the restructuring, development and improvement of agriculture and forestry companies

1. The restructuring of agriculture and forestry companies must be in accordance with the policy and the orientation on developing and improving state-owned enterprises cooperated with the restructuring of the agriculture sector and the whole economy as well as associated with assurance of national defense and security.

2. The restructuring of agriculture and forestry companies is for identifying the land users and forest owners so as to closely control and increase the effectiveness of land usage, protect and develop forest resources.

3. Agriculture and forestry companies whose duties are producing and trading shall switch over to operating under market mechanism and be equitized; agriculture and forestry companies doing public duties as main function shall switch over to operating according to the orders and targets given by the State.

4. A basic evolution in management and business administration shall be created associated with processing and market according to the product value chain.

5. Employments for local residents shall be increased to ensure the balance among the benefits of the State, companies and employees.

Chapter II

RESTRUCTURING OF AGRICULTURE COMPANIES

Article 4. Maintenance, consolidation and development of wholly state-owned agriculture companies

Wholly state-owned agriculture companies in strategic areas, border areas and remote areas associated with assurance of national defense and security will be maintained, consolidated, developed and restructured.

Article 5. Transformation of wholly state-owned agriculture companies into joint-stock companies

1. The State shall hold the controlling interest of the wholly state-owned agriculture companies specialized in planting rubbers and processing rubber latexes in strategic areas and remote areas associated with assurance of national defense and security. When approving plans of Ministries, regulatory bodies, People’s Committees of province and state-owned corporations, the Prime Minister will decide the state holdings in each company.

2. The State shall not hold the controlling interest of the wholly state-owned agriculture companies other than those mentioned in Clause 1 of this Article.

Article 6. Foundation of multi-member limited liability companies

Multi-member limited liability company is founded based on the restructuring of wholly state-owned agriculture companies in order to make a connection between the development of materials areas and local residents with the development of processing and market; corresponding to local planning, strategies and socio-economic development plans and to ensure employees’ interests as well.

Article 7. Dissolution of agriculture companies

An agriculture company shall be dissolved in one of the following cases:

1. It suffers a loss for three consecutive years because of subjective reasons with cumulative loss equal or more than ¾ of the state investment in the company.

2. The company allocates empty land or forests without being able to manage land and products on ¾ of the total area leased by or given to the company.

3. The company’s total area is smaller than 500 hectares and dispersive, and the business operation is ineffective. In case the company’s area is smaller than 500 hectares but concentrated and the business operation is effective, thus the company should be retained and its owner shall request a competent authority to consider.

Chapter III

RESTRUCTURING OF FORESTRY COMPANIES

Article 8. Maintenance, consolidation and development of wholly state-owned forestry companies

1. If 70% or above of total area of allocated or leased land of a forestry company is production forest area being rich and medium natural forest, and the sustainable forest management project of the company has been approved by the competent authority; beside, the company has been issued with international forest certificate of sustainable forest management; then the company will be maintained, consolidated, developed and restructured for business operation mission after being approved by the Prime Minister.

2. If 70% or above of total area of allocated or leased land of a forestry company is protective forest, special-use forest or production forest being natural forest and the sustainable forest management project of which has not been approved by a competent authority and has not been issued with international forest certificate of sustainable forest management, then the company will be maintained, consolidated, developed and restructured for the mission of manufacturing and supplying public products and services.

3. If 70% or above of total area of allocated or leased land of a wholly state-owned forestry company is protective forest, then the company shall be transformed into protective forest management board operating as a profitable public service provider. The management, protection and development of protective forest are according to protective forest management Regulations.

Article 9. Transformation of wholly state-owned forestry companies into joint-stock companies

1. The State shall hold controlling interest of forestry companies whose production forests are planted forests and at least 70% of land area, which is allocated or leased, is used for planting production forests in strategic areas, remote areas associated with assurance of national defense and security. When approving restructuring plans of Ministries, regulatory bodies, People’s Committees of provinces and state-owned corporations, the Prime Minister will decide the state holdings in each company.

2. The State shall not hold controlling interest or shall not hold any shares at all of the forestry companies other than those mentioned in Clause 1 of this Article.

Article 10. Foundation of multi-member limited liability companies

A multi-member limited liability company is founded based on the restructuring of wholly state-owned forestry companies in order to make a connection between the development of materials areas and local residents with the development of processing and market; corresponding to local planning, strategies and socio-economic development plans as well as to ensure employees’ interests.

Article 11. Dissolution of forestry companies

A forestry company shall be dissolved in one of the following cases:

1. It suffers a loss for three consecutive years because of subjective reasons with cumulative loss equal or more than ¾ of the state investment in the company.

2. The company allocates empty land or forests without being able to manage land and products on ¾ of the total area leased by or given to the company.

3. The company’s total area is smaller than 1000 hectares and dispersive, and the business operation is ineffective. In case the company’s area is smaller than 1000 hectares but concentrated and the business operation is effective, thus the company should be retained, its owner shall request a competent authority to consider.

Chapter IV

POLICIES ON RESTRUCTURING AND DEVELOPMENT OF AGRICULTURE AND FORESTRY COMPANIES

Article 12. Reviewing functions and missions of agriculture and forestry companies

1. Agriculture and forestry companies shall have their functions and duties reviewed and adjusted in order to determine their main business lines, additional business lines and business lines supporting the main ones. A plan shall be formulated to reorganize the companies towards focusing on main business lines that connect the development of farming areas with the manufacturing, processing and sales, establish a business model that combines agriculture, forestry and industry, increase the value of product per production area unit so as to improve the living standard of the people.

2. If an organization has forestry companies that have both production forests being natural forests, production forests being planted forests, protective forests and special-use forests, and the area of each types is less than 70% of the allotted or rented land, then the organization shall consider deciding the main business lines, or engaging in manufacturing and supplying and public services, then request a competent authority to decide.

Article 13. Surveying, drawing maps; formulating, adjusting, and approving land use project

1. Agriculture and forestry companies shall make a survey on the use of land in terms of location and boundary of land; area of land being used for proper purpose, not being used for proper purpose, not being used; land being allotted, rented, lent, transgressed, land under business cooperation contracts, and land in dispute.

2. Pursuant to the project on the restructuring and the development of agriculture and forestry companies approved by competent authorities; local land use plannings and the use of land, each company shall propose their own land use plan. The content of land use plan must include land use location and boundary; land area that should be kept sorted by types, mode and duration for land use and area of land allotted.

Agriculture companies who plant short-term industrial crops, yearly crops, breed animals, do aquaculture; companies specialized in plant varieties, animal breeds, aquatic varieties shall retain a reasonable amount of land for variety/breed production, build a demonstration model, carry out technology transfers, and build processing facilities.

Agriculture and forestry companies that have carried out land survey and leased land shall continue to review and adjust the land use plan in accordance with the local land use plannings.

3. Agriculture and forestry companies shall request Resources and Environment offices to assess the land using plans before submitting them to provincial People’s Committee.

4. Provincial’s People’s committee shall consider and approve the land use plans of local agriculture and forestry companies; direct the determination of boundary and set up landmark according to the approved plan.

Article 14. Land allocation and leasing

1. The State shall allocate protective forest, special-use forest and land having production forest being natural forest to agriculture and forestry companies without collection of land levies.

2. The State shall lease out production agriculture and forestry land other than those mentioned in Clause 1 of this Article to agriculture and forestry companies.

3. Land rent exemption and reduction shall be granted as prescribed in the law on land and the law on investment.

Article 15. Withdrawing and transferring land to local authorities

1. Land to be withdrawn from agriculture and forestry companies and transfer to local authorities includes: Land of dissolved companies; land that is no longer used because of the contraction of scale; empty land allocated by companies and land used for improper purposes; area of transferred land; area of land whose trees has been sold ; land for infrastructure not serving production; residential land according to approved local plannings and other types of land that must be withdrawn as prescribed in laws on land. Agriculture and forestry companies having withdrawn land must transfer all documents about the area of withdrawn land to the People’s Committee of the province where such land is located.

2. Withdrawn land prescribed in Clause 1 of this Article shall be handled in the following order of priority:

a) Land shall be allocated to local ethnic minorities who do not have land or do not have enough land for production, people who receive or lease land for production.

b) Households and individuals using land are allowed to continue using land in no-levy form.

c) Area of land allocated to households and individuals without collection of land levies as prescribed in Point a, Point b Clause 2 of this Article shall not exceed the average land area of the local households. The area exceeding the average area must be leased.

d) Property on land is valued according to market prices and laws on valuation at the time of allocation or lease to recover the capital of the State or the investors. Land receivers (organizations, households, individuals) must pay for the transfer within 1 year as from the date of transfer. Grant of exemption and reduction of transfer prices to poor households shall be considered depending on the remaining state capital.

Article 16. Land that company lend or lease out to others; land under dispute; land under business cooperation agreements

1. Any piece of land lent or leased by the company to another entity must be withdrawn as follows:

a) The company shall withdrawn the land under the company’s land use plan that is lent or leased out to another organization and reimburse the former investor for the value of the plantation, planted forest, or other property on such piece of land.

b) The pieces of land are used by the borrowers or lessees for proper purposes, proper objects, according to company’s land use plan shall be allocated. In case the allocation is impossible, company shall withdraw land and reimburse the households and individuals for the value of property on land.

c) The pieces of land that are used by the borrowers or lessees against the company’s land use plan shall be transferred to the local authority as prescribed in Clause 2, Article 15 of this Decree.

2. Regarding the company’s land being trespassed upon by households or individuals:

a) If such land is farmed by the households or individuals and is part of the company’s land use plan, the company shall consider allocating it or withdrawing it in accordance with laws on land.

b) If such land is farmed by the households or individuals when the company no longer use and does not affect the company’s land use plan, then the company shall transfer land to local authority as prescribed in Clause 2, Article 15 of this Decree.

c) Trespassed land that is illegally transferred shall be withdrawn and given to local authority to settle as prescribed in Clause 2, Article 15 of this Decree.

3. Regarding company’s land being in dispute:

a) If a piece of land is in dispute between the company and a household/individual who have been living stably by farming and is not part of the company’s land use plan, such piece of land shall be given to the local authority as prescribed in Clause 2 Article 15 of this Decree.

b) If a piece of land is in dispute between the company and a household/individual who have been living stably by farming and is part of the company’s land use plan, the company shall consider signing a land allocation contract with such household/individual or withdraw the piece of land in accordance with regulations of law on land.

c) If a piece of land is in dispute between the company and other organizations, provincial People’s Committee is responsible for settling the dispute; based on company’s land use plan and function and mission of the company making the withdrawal for business operation or transfer to local authority to consider allowing the organization to allocate or lease out land according to laws on land.

4. If a piece of land is contributed as capital under a business cooperation contract and the new enterprise established uses such piece of land properly and effectively, such piece of land shall be removed from the company’s land and leased out. If land is not used for proper purpose, land shall be withdrawn and transferred to local authority for management and use as prescribed in laws on land.

Article 17. Residential land, household farming land

1. In case the agriculture and forestry companies have provide land for households and individuals who are the company’s employees, retired staff members having resigned legitimately for house building or farming associated with housing in residential area before July 1, 2004 and these pieces of land were confirmed by People’s Committee of the town where land is located for being use stably, not being in dispute and appropriated land use plannings of local authority, thus households and individuals will be issued with certificates of land use right, house and other property going with land as prescribed in Clause 5, Clause 6 Article 103 of the Law on Land.

2. In case an agriculture/forestry company is dissolved, People’s Committee of the district shall draw up a plan to rearrange land into residential area and request the People’s Committee of the province to approve.

Article 18. Forest management and use mechanism

1. Production forest being natural forest with high or medium reserves shall be managed and farmed according to sustainable forest management project that was issued with the international forest certificate of sustainable forest management after being approved by Prime Minister.

2. If production forest being natural forest has not had the sustainable forest management project approved and has not been issued with the international forest certificate of sustainable forest management, production forest is poor natural forest and is possible to recover when logging has not been carried out, then the company shall use the forest for public benefit mission by placing orders and setting targets or account it for company’s expenditure.

3. If production forest being natural forest is exhausted and unrecoverable, then the forest shall be the subject of a renovation project for planting forest or more effective industrial crops. The forest renovation project must be approved by a competent authority and based on the criteria for identification of depleted natural forests.

4. Protective forest and special-use forest within the company’s boundaries shall receive funding from the State for forest protection and development by placing orders, setting targets, or be included in the company’s business operation expenditure.

5. Productive forest being planted forest within the company's boundaries shall be protected and developed according to production forest management regulation, producing and trading activities in accordance with market mechanism.

6. The State will invest in the development of the planted forests on the land that are planned to be protected forest and special-use forest, valuate production forests being planted forests to serve capital provision, equitization, business cooperation , or mortgaging.

Article 19. Finance

1. The State will provide sufficient charter capital for wholly state-owned agriculture and forestry companies that are allowed to sustain, consolidate and develop. The amount of adjusted charter capital shall be equal to the charter capital approved plus up to 50% of demanded investment and liquid capital for the business operation according to the 5-year plan or sector development planning approved by a competent authority. The adjusted charter capital shall be determined for at least 03 years from the year in which charter capital is adjusted.

The supplementation of the charter capital after the approval of competent authorities shall comply with regulations of Government on the investment of state capital in enterprises and financial management of wholly state-owned enterprises.

2. State shall provide sufficient capital for joint-stock companies whose controlling shares are kept by the state according to plan approved by competent authorities. The investment to increase the state capital is carried out as prescribed in Government regulations on investment of the state capital in enterprises and financial management of wholly state-owned enterprises.

The transformation of agriculture and forestry companies from one-member limited liability companies into multi-member limited liability companies shall comply with Government regulations on state capital transferring.

3. Funding for reviewing, measuring, marking, mapping and issuing certificate of land use right for agriculture and forestry companies shall be provided by local budget; central budget shall provide partial support for the locality having trouble with budget.

The advanced payments for land survey, issuance of land use right certificates made by agriculture and forestry companies shall be reimbursed by state budget, such payments are approved by competent authorities; in case agriculture and forestry companies are transformed into joint-stock companies, the advanced payments shall be offset against the revenue from equitization.

4. Infrastructure (including roads, electric system, irrigation works and other welfare system) of agriculture and forestry companies shall be continued transferring to local authorities. For special facilities (kindergartens, nursery schools, medical centers) that are necessary to be retained to serve the companies’ operation, the difference between the receipts and the expense of these facilities (including fixed asset depreciation) shall be included in the company’s operating costs and shall be deducted when calculating taxable income (deductible expenses).

5. The capital, the property and the outstanding debts of each units shall be reviewed and reckoned up; debts, bad debts and the liabilities due to objective reasons, including defaulted debts that arised because of carrying out ineffectively the projects of the Government in the past which are now inherited by agriculture and forestry companies and property invested by state capital on land shall be completely settled when transferring land to local authorities. If insurance indemnity or the company’s provision against bad debts is not sufficient to cover the bad debts, state capital may be reduced.

6. Revenues from the sale of wood from natural forest, planted forest, revenues from the payments for forest environment services and revenues from other sources of income from business operation are used to defray the reasonable expenses, forest development investment, for fulfilling financial obligation to the State, and for establishing and developing funds of the companies in accordance with law.

7. If the production forest is a planted forest, provisions against natural disasters, fires and epidemics shall be made. These provisions are included in yearly business expense report of agriculture and forestry companies and is enclosed with the financial report so as to ensure that companies have financial resources to make up for possible loss.

Article 20. Investment

1. State budget shall provide investment for management, protection contained cultivation serving restoration of special-use forests, protective forest; production forest being natural forest which has not had the sustainable forest management project approved and has not been issued with the international forest certificate of sustainable forest management by placing orders and setting targets.

2. State budget shall provide sufficient investment for planting special-use forests and protective forests according to the economic and technical standards approved by competent authorities.

3. State budget shall provide investment for purchasing specialized equipment attending to fire prevention activity and in construct ring forestry roads in concentrated farming areas according to plan approved by a competent authority.

Article 21. Employment issues

The agriculture and forestry companies shall draw up employment plans in accordance with the business plans after the restructuring and transformation.

2. Provision of benefits for redundant employees

a) Officials and employees of agriculture and forestry companies who are made redundant during the restructuring process and cannot be trained for reassignment shall be provided with redundancy benefits.

b) Funding for provision of redundancy benefits

Funding for agriculture and forestry companies performing equitization shall be provided by initial offering of shares; in case the money is not enough, there will be support provided by Business Arrangement and Development Support Fund.

Funding for agriculture and forestry companies that must be dissolved shall be provided by liquidation of assets of the dissolved companies; in case the money is not enough, there will be support provided by Business Arrangement and Development Support Fund.

Funding for other types of agriculture and forestry companies shall be provided by Business Arrangement and Development Support Fund.

3. Agriculture and forestry companies are responsible for implementing correctly and completely policies and regulations on employment, social insurance and unemployment insurance for officers, workers and employees.

4. State budget shall provide a lump sum support for provision of vocational training for employees of agriculture and forestry companies that are located in extremely disadvantaged areas, border areas, remote areas and ethnic minority areas and who have made commitments to continue working for companies after their jobs are changed because of the restructuring.

5. Employees having stable allocation contract may buy preferred shares as regular workers in the company when the company is transformed into joint-stock company.

Article 22. Science and technology

The State shall provide 30% of the total investment in pilot production projects; provide 30% for the plan of the agriculture and forestry companies applying new technologies to farming, breeding, planting forest that provides wood as industrial raw materials, provides large wood and processing agriculture and forest product; building variety areas, carrying out the high quality and productivity variety of plants for business. Support is provided by Science and Technology Development Fund of ministries, provinces, and from state budget.

2. Companies may participate in variety changing programs; technology transfer programs at mountainous region; agriculture encouragement and forestry encouragement programs. Companies perform an important role in forming and carrying out the production cooperation model between households, groups, co-operatives, enterprises, branch associations and science and technology agencies.

3. Agriculture and forestry companies applying high technology to agriculture, forestry, and processing of products thereof shall be provided with incentives as prescribed in Law on high technology 2008.

Chapter V

ORGANIZATION OF IMPLEMENTATION

Article 23. Responsibilities of Central Ministries and branches

1. Ministry of Agriculture and Rural Development shall:

a) Take lead and cooperate with the Ministry of Resources & Environment and permanent related Ministries and regulatory bodies in helping Government inspect, supervise and speed up the implementation of this Decree; yearly collect and report the result to Government.

b) Provide guidance to the agriculture and forestry companies on setting up plan for restructuring; provide guidance to local authorities and Ministries regulatory bodies on setting up overall project on restructuring of agriculture and forestry companies; preside over the appraisal of the overall projects of Ministries, regulatory and local authorities.

c) Set up and request competent authorities to issue competently regulations and guideline on sustainable forest management standard and forest certificates, exhausted forest improvement criterion; innovate and perfect the policy on forest and forestry land allocation, the policy on forest benefits.

d) Take lead and cooperate with Ministry of Finance in providing guidance on valuation of orchards, planted forests and animals of agriculture and forestry companies; determining unit prices for manufacturing and supply of products/services as foundation of placing orders and setting targets.

dd) Provide training courses to improve organization and manufacture level, science, technique, business administration and market approach knowledge for staff members and officials in agriculture and forestry companies.

2. Ministry of Resources and Environment shall:

Preside over guiding management and use of land when restructuring, developing and improving the forestry companies:

a) Provide guidance on measuring, mapping, allocating and leasing land and on issuing certificates of land use right to agriculture and forestry companies according to Laws on land.

b) Provide guidance on dealing with cases breaking the law on land use management

c) Adjust and complete rent price definition method of land for agriculture and forestry manufacture.

3. Ministry of Finance shall:

Set up, issue or request the competent authorities to issue:

a) Mechanism, financial policy particular about restructuring, development and agriculture and forestry companies’ improvement as prescribed in Article 19 of this Decree.

b) State budget provides funding for protecting and developing of protective forests and special-use forests that the State allocate to companies, natural forests have not had sustainable management project and have not had international certificates of sustainable forest management; funding for the surveying, measuring, mapping land and issuing certificates of land use right to agriculture and forestry companies.

c) Cooperate with the State Bank of Vietnam in solving old loans of agriculture and forestry companies; propose adjustments to mechanism for settling the old loans, including principals and interests with regard to agriculture and forestry companies during their restructuring process.

4. Ministry of Planning and Investment shall:

a) Provide guidance on the policy on investment, support the infrastructure investment; attract and encourage the investment; order, commission the agriculture and forestry companies on public interest plans.

b) Cooperate with Ministry of Finance in using the state budget for protecting and developing planted forests and special-use forests allocated by the State, production forest being natural forest that has not had sustainable forest management plan and has not been issued international forest certificate on sustainable forest management; for supporting the inspecting, measuring, marking, mapping land and issuing the certificates on land use right to agriculture and forestry companies.

5. Ministry of Labor, War Invalids and Social Welfare shall:

Provide guidance on redundancy benefits when restructuring the agriculture and forestry companies; policies, employment regulations, social insurance and unemployment insurance for employees who do not get paid from companies because of the allocation contracts.

6. For State Bank of Vietnam: take lead and cooperate with the Ministry of Finance in providing guidance on settling the old loans of the agriculture and forestry companies; propose adjustments to mechanism of solving old loans, including principals and liabilities, with regard to agriculture and forestry companies when doing the restructuring.

Article 24. Responsibilities of provincial People’s Committee

1. Direct agriculture and forestry companies to restructure and draw up the overall project on restructuring of under agriculture and forestry companies, request Ministry of Agriculture and Rural Development to appraise then request the Prime Minister to approve and take lead in the implementation.

2. Direct the handling land which is leased, borrowed, transgressed, in dispute or illegal transferred; give decision for land allocation, lease, withdrawal and land use certificating for local agriculture and forestry companies according to the approved land use project.

3. Provide guidance and inspection for the construction and request of competent approval for land use project of agriculture and forestry companies and supervise the effectuation.

Article 25. Responsibilities of agriculture and forestry corporations, parent companies and companies

1. Corporations, parent companies shall:

a) Direct the subsidiary agriculture and forestry companies to draw up plan on restructuring and make overall plans on restructuring of subsidiary agriculture and forestry companies, then request the Ministries in charge and Ministry of Agriculture and Rural Development to approve, then request the Prime Minister to approve and direct the implementation.

b) Take lead and cooperate with competent local authorities in directing the subsidiary agriculture and forestry companies to inspect land then make documents and submit them to provincial People’s Committee. The People’s Committee of the provinces will allocate and lease out land then issue the certificate on land use right to the subsidiary units.

c) Take lead and cooperate with competent local authorities having agriculture and forestry companies in guiding the companies to draw up land use plans and request the provincial People’s Committee to approve.

2. Agriculture and forestry companies

a) Draw up plan of restructuring to request the provincial People’s Committee (with regard to companies directly under province); corporations and parent companies (with regard to companies directly under corporations and parent companies) to approve.

b) Cooperate with competent local authorities in surveying land and request the provincial People's Committee to allocate and lease out land then issue the certificate of land use right.

c) Cooperate with competent local authorities in drawing up land use plan and request the provincial People's Committee to approve.

Article 26. Solving potential problems

1. State-owned farm and forestry plantations that have not been transformed into state-owned agriculture and forestry one-member limited liability companies shall receive the restructuring, the development and the improvement as prescribed in this Decree.

2. Agriculture and forestry companies that have plan of business restructuring and transforming approved by Prime Minister and associated with the ones prescribed in this Decree can continue applying the approved plan.

Chapter VI

IMPLEMENTATION

Article 27. Effect

1. This Decree takes effect since February 1, 2015

2. This Decree replaces Decree 170/2004/NĐ-CP dated September 22, 2004 by Government on restructuring and development of state-owned plantations; Decree 200/2004/NĐ-CP dated December 03, 2004 by Government on restructuring and development of state-owned forestry plantations.

Article 28. Responsibilities

The Ministers, the Heads of the Ministry-level bodies, the Heads of Governmental authorities, Chairman of People’s Committees of Provinces shall implement this Decree./.