Thematic Expert Group on Plantation Present by: Mr. Khamkhoun - PDF document

18/12/2015 Thematic Expert Group on Plantation Present by: Mr. Khamkhoun Phinsavanh, Plantation Promotion and Investment Division, Department of Forestry Joint Expert Meeting 15 th – 17 th December 2015 1 15/12/2015 Thematic Expert Group on Plantation To Topics 1. Overview on plantation management in Laos 2. Problems on Plantation Management 3. Solution 4. The work of Thematic Expert Group on plantation 2 15/12/2015 Thematic Expert Group on Plantation 1

18/12/2015 1. Overview on plantation management in Laos In 1989 , Lao government had set up a policy on forest restoration, • protection and plantation Decree No. 117 on forest management and utilizations mentions that: • state allocates forest and land to each household in the area of 2-3 hectares and for each village 100 - 500 hectares for protection, restoration and plantation. In 1994 , government issued the decree No. 186 /PM on forest and land • demarcations for forest protection and plantation. In 1996 the order No. 03/ PM regarding land management and land- • forest allocation and the guideline No. 0822/MAF on land-forest allocation for management and utilization were issued. 3 15/12/2015 Thematic Expert Group on Plantation 1. Overview on plantation management in Laos • In 2000, regulation No. 0196/MAF concerning the development and promotion of long-term plantations and the directive No 1849/MAF concerning the registration of plantation, the directive No. 0115/MAF and notification No. 1374/MCAF were issued. In 2005 , government had approved the forest strategies until 2020 • and it aims to achieve 500.000 hectares of plantation areas. In 2007 , National Assembly had approved the amended forest law • which is the fundamental legislation for forest work as well as promotion tool for plantation investment. 4 15/12/2015 Thematic Expert Group on Plantation 2

18/12/2015 2 . Problems on Plantation Management Plantation Registration • Lack of knowledge/understanding on registration • Registration procedures contain many steps • Borrowing other ’ s registration certificate to harvest and sell timbers from plantations • Currently the payment for plantation registration fee is not yet unified nationwide due to the lack of legislation on this issue • The plantation registration fee is now still depending on the potentials of individual province. However the fee is not more than 200,000 kip per a plantation and a batch ( especially in Khammuan and Sayabouly Province) 5 15/12/2015 Thematic Expert Group on Plantation 2 . Problems on Plantation Management Land tax for plantation • Previously, land tax was implemented based on the decree of Prime Minister No. 50 /PM concerning Land tax. There are 3 types of land to be paid for tax: – Construction land; Agriculture land ( paddy fields, gardens and farms ) – others . – • According to the decree 03/PM concerning land tax payment specified that if plantation area is more than 1 Rai with 80% survival rate, it exempts for tax collection. • Currently, some provinces are still collecting tax from plantation owners 6 15/12/2015 Thematic Expert Group on Plantation 3

18/12/2015 2 . Problems on Plantation Management Timber Movement • Timber from plantation is directly transported from log landing 1 to timber processing factory. • In some provinces, selling timber from plantation is supposed to pay loyalty fee as similar to selling timber from natural forest. 7 15/12/2015 Thematic Expert Group on Plantation 3. Solution • Simplify the plantation registration procedure • Provide tools and equipment for efficient registration and lower cost • It is necessary to improve the decree No. 096/PM in order to promote plantation in Laos • Strong efforts must be put together by Thematic Expert Group on Plantation in order to develop Timber Legality Definition for plantation 8 15/12/2015 Thematic Expert Group on Plantation 4

18/12/2015 4. The work of Thematic Expert Group on plantation • Thematic Expert Group on Plantation is established. The members are consisting of DOF, various divisions from Sayabouly Province, CSO, ​plantation owners and wood processing sector. • Timber legality Definition on Plantation from the points of harvest to export is being developed from December 2015 to June 2016 9 15/12/2015 Thematic Expert Group on Plantation 4. The work of Thematic Expert Group on plantation Flow chart of plantation • legislation on plantation is compiled to be the basis for development of Timber Legality Definition on Plantation. For example: Harvesting and transport procedure 10 15/12/2015 5

18/12/2015 4. The work of Thematic Expert Group on plantation Work plan No No Project ct activi vities Loca cations Resp sponsible Outputs Jan Feb Mar Apr May Jun Dec DoF/ Plantation Luang 1 Establish ishment nt of a themati tic c expert t Promotion and TEG established x Prabang Investment Division group wi with relevant nt stake kehol olders Ident ntif ify laws ws and regulati tions ns inclusive ive DoF/ Plantation Vientiane Laws and the respon onsib sible bodie ies s relate ted to 2 Promotion and x x Capital regulations identified Investment Division plant ntati tion on Asse sess ssment t of practi ctice ce in the field of Reports of actual Plantation Promotion application of plant ntati tion on in the pilot ot provinc vince 3 Sayaboury and Investment Unit x x legislation is SAY Saya yabou oury available DoF/ Plantation Laws and 4 Analyse se laws ws and regulati tion ons s relate ted to Vientiane Promotion and regulations x x plant ntati tion on Capital/ Investment Division reviewed 5 Dr Draft ft the TLD plant ntati tion on base sed on the Vientiane DoF/ Plantation Draft of TLD is Capital/ Promotion and x x x x laws ws and regulati tions ns analyze zed available Sayaboury Investment Division Sayaboury/ Plantation Promotion 6 Testi sting ng the draft ft of TLD Vientiane and Investment Unit TDL tested x x Capital SAY 11 15/12/2015 Thematic Expert Group on Plantation Commercial thinning 1. 2. Export of round logs (illegal) 3. 4. 6. 5. 8. 10 . 7. 11. 9. Steps: 1. 1. Land nd Alloca ocati tion on, Plant ntati tion on Establish ishment nt & Re Regis istrati tion 2. 2. Pre Pre-harve vest t Inve vent ntor ory 3. 3. Ha Harve vesti ting ng 4. 4. Log Land nding ing 1 (For orest t side) 5. 5. Trans nspor ort t to Log Landing ng 2 6. 6. Log Land nding ing 2 (Log Gr Grading ing & Marking king) 7. 7. Trans nspor ort t to Log Landing ng 3 8. 8. Log Land nding ing 3 (Wood od proce cessing sing & Tradin ing) Secondary 9. 9. Trans nspor ort t for Expor ort t or Do Domestic ic Marke ket processing 10 10. Expor ort 11. 11. Domesti Do stic Us Use 16 15/12/2015 Thematic Expert Group on Plantation 6

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