Academics propose land concession regulations

Academics from the Ministry of Agriculture and Forestry will recommend changes to regulations governing agricultural land concessions by the end of this year.

Group head, Dr Linkham Du angsavanh, said the government had assigned the group to conduct a study and produce regulations, particularly for investment in industrial tree plantations. The group has been conducting research for the past two years and expects to finish by the end of 2008.

The government suspended land concessions last year after people living in areas with agricultural investment projects complained their lifestyle had been negatively affected.
The National Assembly has urged the government to increase land concession rates, saying existing rates are too low.

Dr Linkham said research showed land concession rates for industrial tree plantations were not properly regulated.

He said researchers agreed the existing land concession fee was too low, ranging from US$6 to US$9 per hectare per year. The group will propose the government lift it to US$20 to US$30 per hectare per year.

“We do not make the new rate without proper study,” he said.
“We have looked at our neighbouring countries including Vietnam 's land concession fee.”

Dr Linkham said the group studied industrial investment formats including the “two plus three” format. This format creates a partnership between local people and investors because investors supply funding, technical support and a ready market for products, while local people offer their land and labour.

The proposed regulations will encourage these sorts of partnerships and aim to protect villagers from being exploited.

Provincial authorities can grant permission for an investment if its value is less than US$5million. Some provincial authorities consult current investment promotion laws when deciding whether a project should be approved, but Dr Linkham said this law was not specific enough.

The group is also researching land potential to produce information about which kinds of crops would grow best in different areas.

This information will be given to the government to be used as a tool in determining what types of projects are approved.
“We have undertaken land zoning,” Dr Linkham said.
“The government wants us to finish the zoning as soon as possible but I cannot confirm when we will finish the work.”


By Souksakhone Vaenkeo (Latest Update July 2, 2008)