Investment Policy Decision on Conversion of Forest Use Purpose to Another Purpose

The Investment Policy Decision on Conversion of Forest Use Purpose to Another Purpose aims to ensure that converting forest areas for socio-economic development complies with the law. This procedure balances land use needs with forest resource protection, limiting negative impacts on the ecological environment.

The competent authority decides on the policy for changing the purpose of forest land use to other purposes.

Based on Article 41 of Decree 156/2018/ND-CP (amended by Clause 21, Article 1 of Decree 91/2024/ND-CP) and Article 20 of the Law on Forestry (amended by Clause 5, Article 248 of the Law on Land 2024):

• The Provincial People’s Council is the authority competent to decide on the investment policy for converting forest use purposes.
• Note: If the conversion is attached to an investment project under the authority of the National Assembly, Prime Minister, or Provincial People’s Council (according to the Law on Investment, Public Investment Law, etc.), the approval of the investment policy for the project simultaneously serves as the approval for the forest use purpose conversion. No separate procedure is required.

Required Dossier for the procedure to decide on the policy for changing the purpose of forest land use to other purposes.

The dossier requirements are specified in Clauses 2 and 3, Article 41 of Decree 156/2018/ND-CP (amended by Decree 91/2024/ND-CP):

1. Cases Under the Authority of the Provincial People’s Council:

• Written Request: For investment policy decision on forest conversion (Form No. 17 for organizations, Form No. 18 for individuals).
• Investment Approval Copy: Copy of the investment policy approval, investment decision, or project approval decision.
• Environmental Impact Documents: Preliminary environmental impact assessment, EIA report, environmental license, or environmental registration.
• Report on Forest Status: An explanatory report on the current forest status and a current status map (prepared by the project owner within 6 months prior to submission).
  • Map Scale: 1/5,000 (for area < 500 ha), 1/10,000 (for area ≥ 500 ha or linear projects).
• Commitment: Written commitment to fulfill the obligation of planting replacement forests.

2. Cases Under the Authority of the National Assembly/Prime Minister/Provincial People’s Council (Integrated Projects):

• Investment Approval: The written approval or decision on investment policy which simultaneously serves as the forest conversion policy (stating the estimated forest area to be converted).
• Report on Forest Status: The explanatory report and map are integrated into the dossier submitted for investment policy approval.

Procedure for deciding on the policy for changing the purpose of forest land use.

According to Clause 3, Article 41 of Decree 156/2018/ND-CP (amended by Decree 91/2024/ND-CP), the process at the provincial level is as follows:

Step 1: Submission Submit 01 dossier set to the Department of Agriculture and Rural Development (DARD). DARD checks validity within 03 working days.

Step 2: Appraisal Within 15 days from receiving a valid dossier, DARD inspects, verifies the forest status, and appraises the dossier. If ineligible, DARD replies within 05 working days.

Step 3: Reporting to Provincial PC Within 10 days after appraisal, DARD reports the results to the Provincial People’s Committee.

Step 4: Submission to Provincial People’s Council Within 10 days, the Provincial People’s Committee submits the proposal to the Provincial People’s Council.

• Note: If the forest belongs to ministries/sectors, the Provincial PC Chair must consult them (Ministries have 15 days to reply) before submitting to the Council.

Step 5: Decision The Provincial People’s Council reviews and issues a Resolution deciding on the investment policy for converting forest use purpose.

Long Phan Consulting provides consulting services on procedures for deciding on policies to change the purpose of forest land use to other purposes.

Long Phan Consulting Company provides comprehensive solutions for forestry conversion procedures:

• Consulting & Evaluation: Analyzing project conformity with forestry and land use planning; assessing the likelihood of approval; advising on handling issues related to forest origin and types.
• Technical Support: Coordinating measurements and mapping of forest status; drafting the Explanatory Report on Forest Status ensuring accuracy of data (area, reserves, species).
• Dossier Preparation: Preparing the full dossier according to legal regulations.
• Representation: Submitting the dossier and working with DARD/Provincial PC; explaining issues to competent authorities; monitoring progress.

Frequently Asked Questions about the Procedure for Deciding on the Policy to Change the Purpose of Forest Land Use to Other Purposes

Below are some frequently asked questions regarding the policy decisions on converting forest land to other uses; please refer to them:

How long is the decision valid if the project is not implemented?

If the competent authority does not issue a decision to convert the forest use purpose within 24 months from the date of the investment policy decision, the project owner must repeat the procedure from the beginning. (Legal Basis: Clause 7, Article 41, Decree 156/2018/ND-CP, amended by Decree 91/2024/ND-CP).

Are there different criteria for natural forests?

Yes. In addition to standard criteria, projects proposing to convert natural forests must meet strict criteria prescribed in Article 41a of Decree 156/2018/ND-CP (added by Decree 91/2024/ND-CP).

Does the Prime Minister’s investment approval replace the forest conversion decision?

Yes. For projects under the authority of the National Assembly or Prime Minister, the investment policy approval simultaneously serves as the decision on forest conversion policy. (Legal Basis: Point a, Clause 4, Article 41, Decree 156/2018/ND-CP).

What does DARD focus on during appraisal?

DARD appraises the legal basis, necessity of investment, and the accuracy of location, area, origin (natural/planted), forest type (special-use/protection/production), and reserves compared to the report and map. (Legal Basis: Point b, Clause 3, Article 41, Decree 156/2018/ND-CP).

Who is liable for the accuracy of forest status data?

The consulting unit preparing the report and the project owner are directly responsible for the honesty and accuracy of the forest status data in the Explanatory Report and map. (Legal Basis: Point g, Clause 3, Article 41, Decree 156/2018/ND-CP).

Conclusion

Applying for the Investment Policy Decision on Conversion of Forest Use Purpose to Another Purpose is a complex process requiring absolute accuracy in forestry technical data. Understanding land and forestry regulations helps investors minimize risks. Please contact Long Phan Consulting Company via Hotline 1900636389 for timely support.