Foreigners Allowed to LeaseForest in Vietnam

The Vietnamese Government has already issued a decree on forest protection and development to allow Viet Kieu (overseas Vietnamese) and foreigners to lease forest in the country.

 

Accordingly, the government permits overseas Vietnamese, foreign individuals and organizations to hire planted forest serving their production purposes. Prime Minister Phan Van Khai will also consider permitting businesses to lease natural forest for eco-tourism and production.

 

The decree states that forest leasing must be conducted through auction of the forest use rights and forest ownership. In the case where only one individual or one organization wants to lease land, an auction is unnecessary. Local officials must define specifically the characteristics of the forest for lease and those characteristics must be noted in the contract.

 

The limit for the leases is 50 years. For those with a business cycle exceeding 50 years and forests in poor regions, contracts must not exceed 70 years.

 

The government has asked the Ministry of Agriculture and Rural Development (MARD) to work with the Ministry of Natural Resources and Environment and the People’s Committees at all levels to implement the measure.

 

Last year, cities and provinces nationwide planted 249.6 million ha of forests, bringing the country’s green rate to 37.5 per cent in 2005 from 23.6 per cent in 1983, 28 per cent in 1992, 33.2 per cent in 1999 and 36.1 per cent in 2003, according to the MARD.