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There is "unfair competition".
It has been learned that on July 24, 2023, the Provincial People's Committee issued Document No. 6071/UBND-NN regarding "inspection based on the report of the Association of Wood Processing and Non-timber Forest Products". In this document, the Provincial People's Committee informed that it had received Document No. 05/HHCBG&LS dated July 20, 2023, from the Nghe An Provincial Association of Wood Processing and Non-timber Forest Products; and directed that "the Department of Agriculture and Rural Development be responsible for coordinating 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 Nghe An Provincial Association of Wood Processing and Non-timber Forest Products in the aforementioned document, and advise the Provincial People's Committee on implementation."
Access Document No. 05/HHCBG&LS of the Nghe An Province Wood and Non-Timber Forest Products Processing Association, signed by the Association's Standing Vice President, Mr. Nguyen Tien Lam, former Deputy Director of the Department of Agriculture and Rural Development. The full text of Document No. 05/HHCBG&LS is as follows:
"Based on Conclusion No. 02-KL/TU dated May 13, 2011, of the Executive Committee of the Nghe An Provincial Party Committee on the Socio-Economic Development Plan for Western Nghe An Province giai đoạn 2011-2015; which includes the content 'no investment in the construction of new cassava processing, pulp, or wood chipping factories'."
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Based on Document No. 2008/UBND-CN dated April 4, 2016, and Document No. 4031/UBND-CN dated June 9, 2016, of the People's Committee of Nghe An province, regarding the thorough handling of illegal wood chipping in the area.
Through field surveys in the western districts of Nghe An province, the Nghe An Wood Processing and Non-Timber Forest Products Association (the Association) has observed widespread wood chipping, with some units opening chipping workshops combined with weighing stations right at the edge of forests, affecting the management of planted forests and the annual timber production statistics. Illegal and uncontrolled chipping leads to the exploitation of young forests; unfair competition; and a loss of security and order in the mountainous region. The inability to control the annual timber production and processing volume affects state budget revenue. Furthermore, it is difficult to forecast the raw timber production needed for planning the development of wood processing plants in the province.
Some businesses are operating under the guise of wood processing without chipping, but in reality, they only engage in chipping activities, failing to comply with the approved investment documents and procedures, thus affecting environmental protection and fire prevention efforts.
Therefore, the Association proposes that the Provincial People's Committee direct relevant departments, agencies, 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 ensure the stable, efficient, and compliant operation of the Nghe An wood industry; and to guarantee the wood supply for businesses that have legally registered to produce in the province.
More than three months after the Nghe An Provincial Association of Wood and Non-Timber Forest Products Processing submitted its request 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 inter-agency team to inspect wood processing and chipping activities in Nghe An province. The inter-agency team, comprising representatives from various departments and agencies (Planning and Investment, Industry and Trade, Natural Resources and Environment, Agriculture and Rural Development, and the Provincial Police), is responsible for inspecting compliance with laws in their respective areas of state management for wood processing and chipping facilities throughout the province.
Inspection reveals violations.
In mid-June, we learned from the inspection report of the inter-agency team that the Department of Agriculture and Rural Development had submitted a report to the Provincial People's Committee. Accessing Report No. 249/BC-SNN.KL dated June 7, 2024, from the Department of Agriculture and Rural Development on the summary of inspection results of wood processing and chipping activities in the province, it shows that the inter-agency team inspected all 31 wood processing and chipping facilities 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, and Tan Ky. Of these, 19 facilities operate as enterprises; 11 operate as household businesses; and 1 operates as a cooperative.
The report states that all 31 establishments have been granted business establishment registration certificates or business registration certificates by the competent authorities in accordance with the law.
However, some establishments that received investment approval have not implemented their projects correctly or appropriately in some aspects and objectives of the approved projects. These include PTP Investment Co., Ltd. (Nghia My commune, Thai Hoa town), Thang Loi Production, Processing and Trading Co., Ltd. (Dong Hop commune, Quy Hop district), Truong Quyen Nam Phat Co., Ltd. (Chau Quang commune, Quy Hop district), Thinh Ky Co., Ltd. (Chau Thai commune, Quy Hop district), Phu Quy Forestry Products Processing Joint Stock Company (Nghia Long commune, Nghia Dan district), and Bui Thi Thanh Household Business (Nghia Loc commune, Nghia Dan district).
Many establishments have not strictly complied with the requirement to periodically report on project implementation as stipulated in Article 72 of the 2020 Investment Law; they have also failed to provide the required documents on safety management in wood chip processing: safety management system, risk management, emergency response plan, production area safety, etc. In addition, four businesses are operating in violation of land use regulations as stipulated in Article 6 of the 2013 Land Law, including: 2/9 Forestry Products Co., Ltd. (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 district), and Viet Phu Investment, Construction and Trade Service Co., Ltd. (Chau Binh commune, Quy Chau district).
In the specific case of Tuyen Quang Production, Processing, Trade and Investment Joint Stock Company, in September 2022, the Quy Hop District People's Committee issued a decision to impose administrative penalties in the field of land use against the Youth Volunteer Brigade 3 (the unit that leased the land to the company), and simultaneously applied remedial measures: requiring the restoration of the land to its original condition before the violation. However, at the time of inspection, despite repeated requests from the Quy Hop District People's Committee, Youth Volunteer Brigade 3 had still not complied with the remedial measures stipulated in the penalty decision issued by the Chairman of the Quy Hop District People's Committee.
One business has not yet been granted a certificate of land use rights, ownership of houses and other assets attached to the land because it has not fulfilled its obligation to pay land rent: Khanh Thuy General Trading Company Limited (Quynh Chau commune, Quynh Luu district).
There are 11 household businesses and 1 cooperative, all conducting production and business activities that do not comply with the land use purpose as stipulated in Article 6 of the 2013 Land Law. One of these businesses has already been fined by the local authorities for administrative violations and required to remedy the situation, restoring the land to its original condition before the violation. This is the Nguyen Van Tan household business (Nghia Loc commune, Nghia Dan district), however, at the time of inspection, the owner had not yet complied with the remedial measures.
Regarding the environmental sector, Report No. 249/BC-SNN.KL clearly indicates that most businesses have not fully implemented the environmental protection contents according to the approved Environmental Impact Assessment Report/Environmental Permit/Environmental Commitment (17 businesses). Furthermore, they have not strictly and fully complied with regulations on the construction of environmental protection facilities and items such as: constructing waste storage facilities, rainwater runoff collection systems, wastewater treatment systems, as well as contracts for the transfer of industrial waste and hazardous waste as stipulated in the approved Environmental Impact Assessment Report/Environmental Protection Commitment/Environmental Protection Plan; and have not declared and paid the industrial wastewater fee as stipulated in Government Decree 53/2020/ND-CP dated May 5, 2020, regulating environmental protection fees for wastewater. At the time of inspection, all 12 establishments operating under the household business or cooperative model had not yet provided complete environmental documents and procedures as required by Article 39 of the 2020 Law on Environmental Protection. The on-site inspection also revealed that these establishments had not yet constructed environmental protection facilities and structures as required by law…
