Restore order to the wood chip industry as soon as possible.
The Provincial People's Committee has recently issued specific directives to re-establish order in wood processing and chipping activities in the area. Also related to the forestry sector, reporters from Nghe An Newspaper have received information that there are currently "suspended" planning projects hindering development…

Nhat Lan • July 26, 2024


On July 19, 2024, the Provincial People's Committee issued Document No. 6089/UBND-NN to relevant departments, agencies, and units, as well as districts and towns with wood chipping activities, including: Nghia Dan, Quynh Luu, Quy Hop, Quy Chau, Yen Thanh, Thanh Chuong, Con Cuong, Nghi Loc, Tan Ky, Thai Hoa, and Hoang Mai.
According to the Provincial People's Committee, wood chipping activities in the province have "brought many positive results such as consuming a large portion of raw timber from planted forests in the province, supplying raw materials to wood processing industries; creating more jobs for people involved in the exploitation, transportation, and processing of planted forest timber; promoting the movement of planting raw material forests, gradually improving the lives and incomes of forest planters, contributing to the stability of socio-economic conditions, security and defense in rural and mountainous areas, maximizing the utilization of wood products; creating significant economic resources contributing to the economic development of the province...".

However, some limitations, shortcomings, and violations still exist. Specifically, the legal awareness of some business owners, especially household businesses, is still limited, and some establishments are built and operating without having completed all the necessary procedures. Some local authorities at the district and commune levels have not strictly fulfilled their responsibilities in state management; they have not promptly inspected, detected, and prevented violations when they first arise; the inspection and handling of violations have not been thorough or decisive enough, leading to a situation where inspected business owners do not comply or only partially comply with the penalty decisions, causing negative public opinion. Therefore, it is necessary to strengthen state management and continue to rectify the wood processing and chipping activities throughout the province.
Regarding the People's Committees of the aforementioned districts and towns, the Provincial People's Committee directs them to strengthen state management in all fields, closely coordinate with departments, agencies, and the Southeast Economic Zone Management Board, and regularly direct the People's Committees of communes, wards, and towns to disseminate information, urge, and remind wood processing and chipping facilities under their management to strictly comply with legal regulations on investment, construction, land, environment, industrial management, forest product management, fire prevention and control, and rescue... Proactively conduct inspections and checks to detect, prevent, correct, and handle violations (if any) of wood processing and chipping facilities within their authority or advise on timely and decisive handling in accordance with the law; absolutely not allow violations to persist, causing difficulties in handling. Specifically for establishments that have been penalized for administrative violations, it is requested that the owners be monitored and urged to comply with the penalty decisions; and that inspections, verifications, and enforcement actions be carried out in cases that meet the criteria for enforcement.

The Provincial People's Committee also requested localities to verify and address the shortcomings and limitations of wood processing and chipping facilities identified by the inter-agency team in accordance with the law; the results should be reported to the Provincial People's Committee before August 15, 2024. The Provincial People's Committee emphasized: "Any locality that fails to implement or implements inadequately, allowing violations to recur, will hold the Chairman of the District/Town People's Committee accountable to the Provincial People's Committee and the Chairman of the Provincial People's Committee."
"If any locality fails to implement or implements the regulations seriously, allowing violations to recur, the Chairman of the People's Committee of the district or town shall be held responsible before the Provincial People's Committee and the Chairman of the Provincial People's Committee."
Excerpt from Document No. 6089/UBND-NN dated July 19, 2024, of the People's Committee of Nghe An Province
For establishments engaged in wood processing and chipping, the Provincial People's Committee requires them to fully and strictly comply with all relevant legal regulations in the areas of state management when conducting wood processing and chipping activities; review their operations to promptly supplement and complete any missing documents and procedures to ensure production and business activities comply with the law; and coordinate with local authorities and competent agencies to handle and remedy the consequences of identified violations.

In addition, the Provincial People's Committee also assigned tasks to the Departments of Planning and Investment, Industry and Trade, Agriculture and Rural Development, the Provincial Police, and the Management Board of the Southeast Economic Zone. Notably, the Department of Planning and Investment, in addition to continuing to strengthen state management in the investment sector, was assigned the following tasks: “To take the lead in coordinating with relevant agencies to advise the Provincial People's Committee on approving/adjusting investment policies, and simultaneously approving investors for projects related to forest product processing activities under the authority of the Provincial People's Committee according to the law on investment; to coordinate with departments, sectors, and the People's Committees of districts, cities, and towns to manage and guide investors in implementing projects in accordance with regulations. Based on the scope, functions, and authority assigned, to handle or advise on handling violations (if any) in accordance with the law.”

Regarding the wood chip and sawdust processing sector, on July 17, 2024, the Department of Agriculture and Rural Development issued a document requesting the People's Committees of districts, cities, and towns to review and clarify the feedback from the Wood and Forest Products Processing Association, stating: "After the inspection team (an inter-agency team established under Decision 3967/QD-UBND dated December 1, 2023, of the Provincial People's Committee) completed its inspection period, in some localities, many new wood chip processing facilities have been established without the approval of the competent authorities."

Following the provincial People's Committee's efforts to rectify wood processing and chipping activities, on July 18, 2024, Nghe An Newspaper also reported on this matter in an article titled "Promptly verify the information regarding the emergence of numerous new wood chip factories."
In discussions with leaders of the People's Committees of several districts, they affirmed that no new illegal wood chip processing facilities have been established in their areas. However, some localities have reported that the planning of raw material areas for forest product processing projects has been "suspended" for many years. This situation is a hindrance in attracting investment in forest product processing projects, affecting the socio-economic development of the localities. One of the "suspended" plans mentioned is the planning of the raw material area for a biomass pellet fuel production plant, invested by Tuan Loc Construction Investment Joint Stock Company. A leader of a district People's Committee said: "The raw material area planning for the project invested by Tuan Loc Construction Investment Joint Stock Company has been in place since 2016, yet the district has never once welcomed the investor. Meanwhile, the people in the area urgently need forest product processing projects to facilitate the consumption of acacia wood raw materials…"

It has been learned that the raw material zoning plan for the biomass pellet fuel production plant, invested by Tuan Loc Construction Investment Joint Stock Company, was approved by the Provincial People's Committee in Decision No. 1413/QD-UBND dated April 5, 2016. Decision No. 1413/QD-UBND clearly states that the zoning plan covers 67 communes in 4 districts: Con Cuong, Thanh Chuong, Do Luong, and Tan Ky, with a total area of 35,754 hectares; and Tuan Loc Construction Investment Joint Stock Company is responsible for coordinating with the authorities of the 4 districts to effectively implement the plan, ensuring the set economic, social, and environmental objectives are achieved. However, 8 years and 3 months have passed, and within the zoned area, there has been no impact whatsoever from Tuan Loc Construction Investment Joint Stock Company!


