State Forest Enterprise Reform in Vietnam: Review of Policy and Implementation Framework for Decree 200

As an important step forward, the Government of Vietnam issued Decree 200 in December 2004 to accelerate the reform of state forest enterprises. The government aims to develop provincial SFE reform plans by mid-2005 and to have them implemented over two to three years. However, the Government also recognizes that several implementation and policy issues remain. This review examines the overall policy framework of SFE reform in light of the promulgation of new regulations and existing implementation capacity. It highlights gaps to be bridged, with a view to maximizing positive impacts of the reform on growth, poverty reduction, and the environment. Decree 200 has the following objectives: (a) use land and forest resources more efficiently and sustainably; (b) enhance the business and production efficiency of state forest enterprises; and (c) improve economic and social opportunities in the locality of state forest enterprises. It is based on the principle of separating public interest from business activities.

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