Thirty-one out of 38 plantations in the region are State-owned single member limited liability companies (LLC).

Dak Lak province has the most restructured forestry units but still uses the “State-owned single member LLC” model.

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Forest in Dak Lak. Photo: baochinhphu.vn
It has maintained production tasks, providing products, public services and other business activities for six partially State-owned single-member forestry companies – Kroong Bong, Ma D’rak, Ea Kar, Buon Wing, Chu Pha and Ea Wy.

Dak Lak plans to form a LLC of two-member or more for eight single-member forestry LLCs – Chu Ma Lanh, Rung Xanh, Ya Lop, Ea H’Mo, Thuan Man, Ea H’leo, Phuoc An, Buon Ja Wam to connect material areas with the processing industry and the market.

According to the Steering Committee, rearranging forestry companies in the region has been slow and some State-owned single-member forestry LLCs have not been effective.

Deforestation, land occupation and illegal logging were reported to occur at some enterprises while linkages between some units are ineffective.

According to the steering committee, forestry companies in the Central Highlands mainly manage natural forest and buffer forest with a combined area of 651,685 hectares. The planted forest is just 31,783 hectares.

Source: VNA