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There is “unfair competition”
It is known that on July 24, 2023, the Provincial People's Committee issued Document No. 6071/UBND-NN on "inspection according to the report of the Association of Wood and Non-Timber Forest Products Processing". Here, the Provincial People's Committee informed about receiving Document No. 05/HHCBG&LS dated July 20, 2023 of the Association of Wood and Non-Timber Forest Products Processing of Nghe An province; and gave instructions "Assign the Department of Agriculture and Rural Development to preside over and coordinate with the Department of Industry and Trade and the People's Committees of districts, cities and towns to review the information and proposals of the Association of Wood and Non-Timber Forest Products Processing of Nghe An province in the above Document, advise the Provincial People's Committee to implement".
Access to Document No. 05/HHCBG&LS of the Association of Wood Processing and Non-Timber Forest Products of Nghe An province, signed by the Permanent Vice President of the Association, Mr. Nguyen Tien Lam, former Deputy Director of the Department of Agriculture and Rural Development. The full content of Document No. 05/HHCBG&LS is as follows:
“Based on Conclusion No. 02-KL/TU dated May 13, 2011 of the Nghe An Provincial Party Committee on the Project for socio-economic development in Western Nghe An for the period 2011-2015; which includes the content of “not investing in building new cassava, pulp, and wood-chip processing factories”.
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Pursuant to Document No. 2008/UBND-CN dated April 4, 2016 of Nghe An Provincial People's Committee and Document No. 4031/UBND-CN dated June 9, 2016 of Nghe An Provincial People's Committee, on thoroughly handling the situation of illegal wood chipping in the area.
Through a field survey in the western districts of Nghe An; the Nghe An Province Wood and Non-Timber Forest Products Processing Association (the Association) found that the situation of wood chipping is widespread, in which some units opened wood chipping workshops combined with weighing stations right at the edge of the forest, affecting the management of planted forests and the annual statistics of wood output. Illegal, uncontrolled wood chipping leads to the exploitation of young forests; unfair competition, loss of security and order in mountainous areas. Unable to control the annual wood output, affecting the State Budget revenue. Unable to forecast the output of raw wood to serve the planning of deep processing factories in the wood industry in the province.
Some businesses hide under the guise of wood processing without chipping, but in reality only chipping, not following the granted investment documents and procedures, affecting environmental protection and fire prevention.
Therefore, the Association respectfully requests: The Provincial People's Committee directs the Departments, branches and localities to strictly implement Conclusion 02-KL/TU dated May 13, 2011 of the Nghe An Provincial Party Committee and Document No. 4031/UBND-CN dated June 9, 2016 of the Nghe An Provincial People's Committee to put the Nghe An wood industry into stable, effective and proper operation; ensuring the source of wood for businesses that have registered for legal production in the province.
After more than 3 months since the Nghe An Province Wood and Non-Timber Forest Products Processing Association made a recommendation in Document No. 05/HHCBG&LS, on December 1, 2023, the Provincial People's Committee issued Decision No. 3967/QD-UBND, directing the establishment of an interdisciplinary team to inspect wood chip processing and chopping activities in Nghe An province. The interdisciplinary team consists of members representing departments and branches (Planning and Investment, Industry and Trade, Natural Resources and Environment, Agriculture and Rural Development, Provincial Police), responsible for inspecting law enforcement in the fields of state management of wood chip processing and chopping establishments in the whole province.
Check, find out the violations
In mid-June, we learned from the inspection results report of the Interdisciplinary Team that the Department of Agriculture and Rural Development had reported to the Provincial People's Committee. Accessing Report No. 249/BC-SNN.KL dated June 7, 2024 of the Department of Agriculture and Rural Development on the summary of inspection results of wood chip processing and chopping activities in the province showed that the Interdisciplinary Team had inspected all 31 wood chip processing and chopping establishments in 11 districts and towns including: Nghia Dan, Thai Hoa, Quynh Luu, Hoang Mai, Quy Hop, Quy Chau, Yen Thanh, Thanh Chuong, Con Cuong, Nghi Loc, Tan Ky. Of which, 19 establishments operated under the enterprise model; 11 establishments operated under the household business model and 1 establishment operated under the cooperative model.
The report stated that all 31 establishments were granted Business Registration Certificates or Business Registration Certificates by competent authorities in accordance with the law.
However, some establishments have been approved for investment but have not implemented properly or have not complied with some contents and objectives of the approved project. These are PTP Investment Company Limited (Nghia My Commune, Thai Hoa Town), Thang Loi Production, Processing and Trading Company Limited (Dong Hop Commune, Quy Hop), Truong Quyen Nam Phat Company Limited (Chau Quang Commune, Quy Hop), Thinh Ky Company Limited (Chau Thai Commune, Quy Hop), Phu Quy Forestry Processing Joint Stock Company (Nghia Long Commune, Nghia Dan District), and Bui Thi Thanh Business Household (Nghia Loc Commune, Nghia Dan District).
Many establishments have not yet strictly complied with the periodic reporting of project implementation status as prescribed in Article 72 of the 2020 Investment Law; have not yet provided documents on safety management in wood chip processing: Safety management system, risk management, emergency response plan, production area safety... as prescribed. In addition, there are 4 enterprises operating production and business activities that are not in accordance with the land use purpose as prescribed in Article 6 of the 2013 Land Law, including: 2/9 Forest Products Company Limited (Dong Hieu Commune, Thai Hoa Town), Duc Hai Private Enterprise (Quang Phong Ward, Thai Hoa Town), Tuyen Quang Production, Processing, Trade and Investment Joint Stock Company (Chau Dinh Commune, Quy Hop), Viet Phu Construction Investment and Trade Services Company Limited (Chau Binh Commune, Quy Chau).
In the case of Tuyen Quang Investment, Trade and Production Joint Stock Company, in September 2022, the People's Committee of Quy Hop district issued a decision to sanction administrative violations in the field of land against the Youth Volunteer Team 3 (the unit leasing land to the Company), and at the same time applied remedial measures: forcing the restoration of the land to its pre-violation condition. However, at the time of inspection, although the People's Committee of Quy Hop district had requested many times, the Youth Volunteer Team 3 had not yet complied with the remedial measures in the sanction decision of the Chairman of the People's Committee of Quy Hop district.
There is one enterprise that has not been granted a certificate of land use rights, house ownership rights and other assets attached to land because it has not fulfilled its obligation to pay land rent, which is Khanh Thuy General Trading Company Limited (Quynh Chau commune, Quynh Luu district).
And there are 11 household businesses and 1 cooperative, all of which are conducting production and business activities that are not in accordance with the purpose of land use as prescribed in Article 6 of the 2013 Land Law. Among them, one business has been administratively sanctioned by the local government and has been forced to restore the land to its original condition before the violation. That is Nguyen Van Tan Business Household (Nghia Loc Commune, Nghia Dan), however, at the time of inspection, the owner of the business has not yet complied with the remedial measures.
Regarding the environmental sector, Report No. 249/BC-SNN.KL clearly stated that most enterprises have not fully implemented the contents of environmental protection according to the approved Environmental Impact Assessment Report/Environmental License/Environmental Commitment (17 enterprises). At the same time, they have not strictly and fully complied with the regulations on construction of environmental protection works and items such as: Construction of waste storage warehouses, overflow rainwater collection systems, wastewater treatment systems, as well as contracts for transferring industrial waste and hazardous waste according to regulations and according to the approved Environmental Impact Assessment Report/Environmental Protection Commitment/Environmental Protection Plan; have not declared and paid the industrial wastewater fee prescribed in Decree 53/2020/ND-CP dated May 5, 2020 of the Government regulating environmental protection fees for wastewater. At the time of inspection, all 12 establishments operating under the business household and cooperative models had not yet provided complete environmental records and procedures as prescribed in Article 39 of the Law on Environmental Protection 2020. The results of the actual inspection noted that these establishments had not yet built environmental protection works and items as prescribed by law...
