Báo cáo nghiên cứu khoa học " Developing an Agricultural Research and Development Priority Framework for Vietnam Forestry Sub-Sector Workshop" potx

Research scope: Research to improve productivity and quality of timber from natural and plantation forests; selection of species, tree improvement, planning and species specification; im

and Development Priority

Framework for Vietnam

Forestry Sub-Sector Workshop

Data and Information Sheets:

Areas of Research & Development

Opportunity (ARDOs)

June 2007

ARDO 1 Large Timber Production

1.1 National Goal: Enhance the provision of large timber from natural forests and

plantations to meet the needs of the wood processing and furniture industries to increaseexports and national use of domestically produced timber, and reduce the import oftimber

1.2 Research scope: Research to improve productivity and quality of timber from

natural and plantation forests; selection of species, tree improvement, planning and species specification; improvement of silviculture techniques, harvesting, woodtreatment and processing techniques and marketing of timber and products of timber;sustainable forest management practices

2.1 Introduction

Forests of Vietnam have high potential but inappropriate use and poor managementsystems have steadily decreased the forest resource Because of incorrect recognition ofthe content and philosophy of forestry management, many mistakes in the pastconcerning the policies and conception in development, utilization and sectororganization have been made The forestry sector policy has gone from the extreme ofharvesting (with the recognition that forest resources are endless) to the other extreme

of suspension of the logging (focus only on forest protection and development) Theconsequences of mistaken in forestry sector are: (i) Yield and productivity of naturalforests have decreased gradually and do not correlate with their natural potential; (ii)Productivity of plantation forests is low and ineffective; (iii) Forests do not meet thedemand of processing industries

The growth and contribution of the forestry sector to GDP is relatively low andcontinues to fall as a percentage of GDP

In recent years the Forestry sector of Vietnam has experienced:

 Natural forests being restored (e.g from 1995 to 2005, approximately 2 million harestored);

 Area of plantations has gradually increased increasing the forest cover from

27.2% in 1990 to 36.7% in 2004

 Harvest yield of wood from plantations increased by an estimated 2.5 million m³per year of which 1 million m³ is from plantations and the remainder from homegardens and scattered planting, providing raw materials for industry, and reducingpressure on natural forests

 Wood processing industries and forest products to export are rapidly developing

in the recent years, giving an important contribution to export turn over of thecountry

However:

 Area, quality and bio-diversity of natural forests is still declining mainly due toconversion of forest to other land uses and unsustainable harvesting practices

 Productivity, profit and competition ability is weak

 Timber yields from natural forests has decreased from 2 million m³ per year in1990s to 700,000 m³ per year in 2000s and 300,000 m³ in year 2003 and at present

is only 200,000 m³ per year

 Plantation forestry does not yet provide the raw material needs of industries andexports

 80-90% of wood for production of export products is imported

 Wood processing industry although rapidly developing, lacks a long term strategy,

is not competitive and suffers from a lack of material resource

2.2 Industry Characteristics and Prospects

 Forestry activities have been transferring from mainly state forestry into socialforestry with increasingly participation of non governmental stakeholders

 Forestry sector has created a lot of employment and enhanced income for millions

of people living in and around the forests

2.3 Development Targets

General Goal to 2020 is to establish, protect, manage and sustainably develop 14.3

million ha of forest land through participation and mobilization of stakeholders inforestry development and to contribute to social and economic development,environmental conservation; poverty alleviation, and to increase the living standard ofcommunities and people living in and around forests

Projected forest and forest land (million ha)

Total area planned as forest land 16,2 16,2 16,2

1 Permanent state forest area 12,3 14,0 14,3

a Protection forest 5,9 5,7 5,7

b Special used forest 1,9 2,3 2,3

c Production forest 4,5 6,0 6,3

2 Other production forest - - 1,9

3 Non forested forest land 3,9 2,2 0

Specific Development Objectives:

 4-5% growth of forestry production per year;

 Maintain permanent production forest of 2.3-2.4 million ha of man-made-forestsand 4 million ha of natural forests;

 Plant 200 million scatted trees per year

 Produce about 20 million m³ of timber per year (of which 10 million m³ is fromlarge timber) and 25-26 million m³ of fuel wood, (meaning 45-46 million m3 intotal);

 Increase export of forest products to 4 billion US$;

 Other forest services reach to 2 billion US$ in the year 2020

 More than 30% of production forest areas have been certificated

 Create employment for more than 2 million people (including labour in woodprocessing industries and handicraft);

 Increase of income, contribution to poverty alleviation of 70% of poor households

in forestry region;

 Completion of forest and forest land allocation and tenure to owners before 2010;

 Enhancing the knowledge and skills of labour especially for upland farmers andpoor groups

On an ecological zone basis the development strategy is:

(1) Northern mountainous zone:

 Sub-zone: North-west (Hoà Bình, Sơn La, Điện Biên, Lai Châu): (i) Establishment and consolidation of protection forest system in Da riverwatershed; (ii) Establishment of material zone for wood and NTFP processingindustries, focus on China market

 Sub-zone: North-east (Bắc Cạn, Bắc Giang, Bắc Ninh, Cao Bằng, Hà Giang, Lạng Sơn, Lao Cai, Quảng Ninh, Thái Nguyên, Tuyên Quang, Vĩnh Phú, Yên Bái): (i) Establishment of material zone link to processing industries based on1.5 million ha of intensive forest plantation; (ii) Establishing a industrial-commercial zone of forest products in triangle of Hà Nội-Hải Phòng-Quảng Ninh; developing traditional villages of wood based handicraft Strengtheningexport, focus on China market (iii) Establishment and consolidation ofsystems of protection and special use forests in the sub-zone

(2) Red river delta

 (Hà Nam, Hà Nội, Hà Tây, Hải Dương, Hải Phòng, Hưng Yên, Nam Định, Ninh Bình, Thái Bình): (i) Establishment and consolidation of protectionforest along the sea and around the big cities, planting of scattered trees; (ii)Development of traditional villages with wood based handicraft; (iii)Consolidation and protection the existing national parks, such as Cúc Phương,

Ba Vì, Cát Bà, Xuân Thuỷ

(3) North- Central

 (Thanh Hoá, Nghệ An, Hà Tỉnh, Quảng Bình, Quảng Trị, Thừa Thiên-Huế): (i) Establishment and consolidation of protection forest along the sea, movingsand areas and in watershed; (ii) Consolidation, protection and development

of existing national parks like: Pù Mát, Vụ Quang, Bến Én, Bạch Mã, Phong Nha-Kẻ Bàng; (iii) Development of wood and NTFP material zone link to local processing industries

(4) Central Coast

 (Đà Nẵng, Quảng Nam, Quảng Ngãi, Bình Định, Phú Yên, Khánh Hòa, Bình Thuận, Ninh Thuận): (i) Concentration on protection forest in watershed and along the sea; (ii) Development of material zone to link with the industrialgrove: Chu Lai-Qui Nhơn Đà Nẵng; (iii) Development of arid forest system in Ninh Thuận và Bình Thuận

(5) Central Highlands

 (Kon Tum, Gia Lai, Đak Lak, Đak Nông, Lâm Đồng): (i) Establishment of production zone for proving large timber and consolidation of protectionforest in watershed region; (ii) Development of industrial grove Buôn MaThuột, Buôn Hồ, Pleiku, An Khê

(6) South-east

 (Bad Raving Tao, Bin Phước, Bình Dương, Đồng Nai, Hồ Chí Minh city, Tây Ninh): (i) Strengthening forest product processing in the zone and intensiveforestation to provide materials for industrial-commercial zone: Hồ Chí Minh city-Biên Hoà-Bình Dương-Vũng Tàu and pulp material industry Tân Mai, Đồng Nai; (ii) Consolidation of protection forest in watershed of important hydroelectric plants like: Trị An, Dầu Tiếng, Thác Mơ; conservation of biodiversity in national parks

(7) Mekong river delta

 (Long An, Vĩnh Long, Tiền Giang, Bến Tre, Cần Thơ, Hậu Giang, Sóc Trăng, Trà Vinh, An Giang, Bạc Liêu, Đồng Tháp, Cà Mau): (i) Protection, rehabilitation and development of mangrove forest; (ii) planting scatteredtrees

Growing Areas and Yields

Up to now,Vietnam has about 2.2 million ha of planted forests; approximately 59% ofwhich are production forests

Distribution of production “man made forest” by areas is as follows (Pham Dinh Tam,2005):

- Northern mountainous zone: 35,325 ha

- Others (lesser than 4%): 41,69%

All most production plantations were established for materials and small wood purpose,the percentage of large trees was very low and mostly planted for protection forests

Production

Average yield of some eatablished plantation:

- Acacia plantation: 18-25 m3/ha/a

- Eucalyptus camadulensis: 18-20 m3/ha/a

- E europhylla: 20-30 m3/ha/a

- Pinus merkusii: 15 m3/ha/a

- Pinus kesya: 15 m3/ha/a

- Styrax tonkinensis: 13,5 m3/ha/a

- Manglietia conifera: 11 m3/ha/a

Value and Markets

Value of wood products and NTFP exports (million US$)

Products 1996 1997 19989 1999 2000 2001 2002 2003 2004 2005 Timber 61,0 - 108,0 - 219,0 334,0 435,0 567,0 1034,0 1500,0

 Low labour costs have competitive advantages over other countries.

 Capacity of research and technology transfer institutions is big offering possibilities for Vietnam’s sawmills and wood processing enterprises to improve their competitive abilities

 Production establishments and households have capacity and willingness to apply new technologies to enhance forest productivity.

Government Policies

The policies which are mostly related to large timber production are:

 Land law (review in 2003);

 Forest protection and development law (review in 2004);

 Policies on forest and forest land allocation and tenure;

 Decision 178 about Rights and duties of households and individuals with forestallocation

 Decision 186/2006/QĐ-TTg dated 14/8/2006 of Prim minister on regulation for forest management

3.1 Structure

Households and Size of Holdings

Forest enterprises (wood production):

 In the 1960s, almost forests of Vietnam were under the management of state forestenterprises (SFEs) In the early 1990s there were 413 SFEs, of which 138 reported todistrict Governments, 199 to provincial Governments, the remaining 76 larger SFEsreported directly to central Government These SFEs together controlled 6.3 million

ha of forest land and conducted logging operations on 150,000 ha each year As aresult, they have contributed substantially to the degradation of forest resource By

1996 about half of SFEs had run out of forests to exploit and most wereuneconomical and the Government initiated a nationwide program for all SFEs

 The changes envision forest management increasingly to be taken over by nongovernment managers and much of land held by SFEs is to be allocated to nongovernment landholders or the rights to use will be contracted out to other users In

1997, commercial logging was suspended in 300 SFEs, according to the Decision187/1999/QD-TTg from September 1999, and Political Bureau Resolution 28-NQ/TW from 16 June 2003 on the arrangement, renovation and development of StateFarm and Forest Enterprises,

 SFEs are to be reformed into four types of organizations:

1 Forest service enterprise, that support forestation, management and protectionactivities undertaken by households;

2 Forest exploitation and processing enterprise that are economically profitable;

3 Forest industry groups;

4 Environmental protection enterprises

 SFEs continue to manage important stretches of forest land in Vietnam Much of thisland is supposed to be contracted out for forest protection or reforestation

 At present, only approximately 32% of forests are managed by households; thisproportion will be enhanced up to 80% by the year 2020 according to the forestrysector strategy of period: 2006-2020

 Most of large timber used for commercial production comes from natural forest, thecontribution of plantations on large timber is very low The situation should beimproved by intensive investments for the research areas

3.2 Supporting Infrastructure

Wood processing industry:

a State enterprises under MARD occupy10,3%

b Joint-venture and 100% foreign funded enterprises, occupy 3, 3%

c Enterprises belonging to provinces, occupy 20, 8%

d Non state enterprises, occupied 65.6% (No information is available aboutthe contribution of each in terms of volumes produced)

 Most enterprises are in the south-east (367); with others being in Red river delta(189); North central (170); Coast central (161); Central highlands (153); Mekongriver delta (88) and North West (11)

 Most of wood processing establishments have old, underdeveloped technologiesmainly using equipment imported from China, East European or domestic made

 Machinery is focused on sawmill operations creating semi-finished products, theother operations are mainly handicraft

 Some wood processing establishments have had intensive investment to improvetechnologies and equipment to enhance the quality of products, but as yet this is only

on small scale and has little impact on the ability produce a large number of productsand to be regionally competitive

 The infrastructure development is at a low level and is not yet optimal for suitableflow of raw materials to processing establishments

 3.3 Markets

 Value added products have gradually become more and more diversified andabundant and the quality of products is improved, step by step towards satisfying therequirements of domestic and export markets

 Handicraft products are mostly made of natural forest timber and the use of timberfor handicrafts from plantation is still limited

 Main markets for wood based products made in Vietnam China, Taiwan, Korea,Japan, European, America, Canada, but these markets are not yet stablised due to lowvolumes of exports, model and quality and continuity of supply of products is notconsistent The commercial promotion of Vietnam wood products throughexhibitions and trade fairs and advertisement is limited

 Competition for Vietnam’s wood products is likely to increase due to economic

globalization especially after WTO membership and this will create constraints,

challenges and opportunities for the forestry sector and wood processing industries ofVietnam

3.4 Future Trends and Key Market Issues

2003 2005 2010 2015 2020Demand (1000 m3) 4.561 5.378 8.030 10.266 11.993

Source: National Forestry development strategy period 2006-2020 (4th draft April,2006)

4 R&D Information

4.1 Main Research Areas

 Forest sector analysis and forecast the development trends of forest productprocessing industries and the supply/ demand gaps in the world and in Vietnam

 Planning and selection priority areas for intensive production of large timber

 Research to improve policies on forest land allocation/tenure, benefit sharing,financial incentives and other supports to land owners

 Research to develop system of sustainable harvesting techniques and forestrestoration after logging

 Research to develop silvicultural techniques for reclamation of degraded forest inintensive direction

 Research to define the main economic tree species providing large timber in eachecological zone

 Combination of tree improvement with silvicultural measurements to establishintensive large timber plantations

 Pest/insect and forest fire control

 Research to enhancing competitive advantages of products made of wood

4.2 Major Research Providers

Ministry of Agriculture and Rural Development

 Forest Science Institute of Vietnam

 Forest Inventory and Planning Institute

 Agriculture Forestry Techniques Research Institute of Tay Nguyen

 Agriculture Forestry Techniques Research Institute of Northern Mountain

 Institute of Economic and strategy in Agriculture and Forestry

Universities

 Forest University of Xuan Mai

 Agriculture Forestry University of Ho Chi Minh City

 Central Highland University

 Agriculture Forestry University of Hue

 Agriculture Forestry University of Thai nguyen

Others

Departments of Agriculture and rural development, extension centres…

Major donors/International Collaborators:

 CIFOR, CSIRO, ACIAR, AusAID, SIDA, IUCN, JICA, TBI, FAO, UNDP,

APAFRI, FORESPA

 National budget, Up to now, large timber does not identified as an ARDO inVietnam, so that no specific figures of total funding for large timber products wereavailable In general, investment for large timber research and production is still lowcompared with other forestry ARDOs

 ODA

 Bilateral co operations

 others

4.4 Major Achievements to Date

Research achievements gained up to present that relevant to large timber production are:

 Classification of forest land, evaluation of soil potential and the adaptation of treespecies and site classification as the basis for forest plantation planning

 Determination of essential wood properties as the basis for timber classification forend-use purposes and processing technologies

 Scientific background of forest harvesting and forest restoration after logging

 Definition of a list of tree species for production forests in different economic zones (46 tree species)

ecological- Creating and improving tree breeds with high productivity and high resistance(Eucalyptus spp and Acacia spp.)

 Silvicultural techniques for intensive forest management

 Processing technologies of wood from plantations

 Wood treatment technologies

 Many technical guidelines, regulations, standards have been delivered from theresearch results and applied effectively in practice

4.5 Impacts of research on the sector and national economy

 Around 70% of production forest areas are poor forests and new restored forest withproduction stock of 30-90m3/ha; Productivity of natural forest (annual increment) isestimated to be 3-5 m3/ha/year and productivity of man-made-forest 9-12

m3/ha/year

 Research could contribute to improve at least 3-4 million ha of production forest up

to the average production stock of 300 m3/ha with a productivity of 10-15 m3/ha/year

in 2020 and to enhance the supply capacity of the production forest towards 30-45million m3 of wood (at least 50% of which are large timber, meaning ca.15-20million m3/year) meeting the demand at that time

 Research could also contribute to increase the productivity of man-made-forest up tothe average of 18-20 m3/ha/year; 40% of which could be large timber

 The replacement and improvement of forest productivity will improve thesustainability of supply of materials for wood processing industries as well as toimprove the environmental and social services of the forests It will also encouragethe development of forest product processing industries for domestic use and export,increasing the contribution of forestry sector to GDP, creating job opportunities forupland people and communities

- Expected time to achieve research results: 15-20 years

- Scope of application of research results is large

 Physical conditions (climate, soils),

biodiversity offer a high development

potential

 Improved policies create a good legal

 Production rotations are long (especially to produce large timber) and there is a long time

to wait between initial investment and income.

 Areas of forestry are topographically diverse

environment for forest producers.

 There are many investment programs to build

infrastructure with industrial groves linked to

raw material zones.

 Market potential is big.

 Large number of wood processing enterprises

 Labor price is low and production cost has

competitive advantages over other countries.

 Capacity of research and technology transfer

institutions is big.

 Production establishments and households

have capacity and willingness to apply new

technologies to enhance forest productivity.

 Good international reputation for furniture

and wood products

with many difficulties, low infrastructure and education level…may be not attractive investors.

 80-90% of timber used for value adding is from imported timber

 Area and bio-diversity of natural forests continues to decline

 High wastage rates in wood processing industries and equipment is out-of-date and often uses low technology

 Over-exploitation of forest lands by SFEs

 Natural forest yield and productivity is low

 Plantation forest yields well below their potential

 Timber demand does not meet the demand from wood processing industries

 Markets for wood product is small and as yet not sustainable nor is supply consistent

 Many research institutions, but relatively poor coordination of function and research projects leading to in inefficient use of research resources.

 Little participation of the research result users

in the process of research planning and implementing.

 Lack of focus in research activities and research results application in practice.

 Inability to attract skilled forestry field officers

in remote areas.

 Research and production activities are separated; there is no closed link between them, so that the research results could very slowly be applied in production.

 Equipment and methodologies of processing industries is out of date and poor linkages to raw material regions leads to high production cost and limited competitive advantage.

 Producers and trade companies do not have commercial mark for their products.

 Limited forest enterprises have been certified.

 Improve restoration of natural forests

through increased productivity from

plantation forests by improvement in species

and silvicultural techniques

 Improved social recognition of forest and

forestry in employment creation and in the

role of forests to improve economic, social,

environmental and sustainable land use

practices.

 Improvement of productivity of natural

forests from 3-5m³/ha/yr to 10-15m³/ha/yr.

 Improvement of plantation forestry

productivity from 9-12m³/ha/yr to

18- Fire and other natural disasters and attacks from pests and diseases is particularly important for large timber forests with long rotations

 Lack of government and private sector investment, both in expansion of plantation forests and in modernization of processing systems

 Limited resources to improve the capacity of researchers and timber producers

 Increasing globalization and membership of WTO may reduce the competitive ability of the Vietnam forestry sector

20m³/ha/yr of which 40% could be achieved

by large timber species

 Creation of employment through increased

areas of plantation forestry and improved

productivity and value adding

 Largest returns likely to result from

improved species and silvicultural research

 Private sector investment in plantation

forestry and partnerships between research

and the private sector may drive change in

the high value timber industries

 International integration enables research

institutions and scientists to communicate and

to implement new, modern research

methodologies and high technologies.

 Inability to meet strict international requirements for product quality and the certification of the product chain.

ARDO 2 Pulp and Small Log Products

1.1 National Goal:

To improve productivity and quality of forest plantations for pulp and small logssupply, increasing the rate of wood utilization in production of wood based panel,particle board, pulp paper and pit-wood

1.2 Research scope:

Research into:

 Technology for seed selection and propagation for pulp and small log plantationswith high productivity

 Suitable tree species in different ecological zones, especially small niche conditions

 Intensive technical systems for establishment and management of forest plantations

 Forest protection including from forest insects and disease

 Wood processing techniques and markets of small wood-based products

 Development of research to assist policy formulation for plantation development forpulp and small log supply

1.3 Coverage:

Small logs with diameter at breast height < 25-30 cm

2.1 Introduction

Over the last years the area of forest plantation in Vietnam has continually increased

At present there are 2.2 million ha of forest plantation, most of which is fast growingtree species for paper and chip Major species include: Acacia hybrids, Acacia

mangium, Acacia auriculiformis, Manglietia conifera, Dendrocalamus membranaceus, Eucalyptus camaldulensis, and Eucalyptus urophylla Research with these species on

planting and cultural techniques has resulted in development of an large woodprocessing industry, resulting in improved income for producers and the nation and thecreation of work opportunities for local people The demand for raw material andpaper, chip products is increasing with good domestic and export demand

2.2 Industry Characteristics and Prospects

Growing Areas and Yields

 State-based forest enterprises, companies have areas from 1000 ha to some thousands

ha to establish forest plantations;

 For individual households the area varies from 0.5 ha to a number of ha

 Accumulation of land area, and development of community households to plant

 Planning area for major forest tree species are as follows:

- Acacia tree species group: 375,000 ha

- Eucalyptus tree species group: 350,000 ha

 Production has increased from about 10m³/ha/yr to 15-20m³/ha/yr in North Vietnamand 20-25m³/ha/yr in South Vietnam due to introduction of new technology Insome cases production is as high as 30-35m³/ha/yr

 Small plantations are normally established using extensive techniques, largerplantations are more intensive using improved tree seeds and fertilisers Largerplantations are generally more productive

Value and Markets

 The demand for paper and artificial boards is expected to continue to increasesharply, thus forest plantation for raw material supply should be promoted

Paper:

 Total paper consumption: Year 2003: 967,000 ton; Year 2005: 1,232,331 ton

 Imported rate for consumption: Year 2003: 44%; Year 2005: 45%

 Fibre demand: Year 2003: 668,750 ton; Year 2005: 808,333 ton

Pulp:

 Pulp import: Year 2003: 668,750 ton; Year 2005: 808,333 ton (about 20% of totaldomestic demand)

 Wooden residue use: Year 2003: 17%; Year 2005: 21%

 Bamboo: Year 2003: 113,688 ton; Year 2005: 166,333 ton

 Pulp and fibre demand: Year 2003-2005: 2,568,000 m3/year;

Chip board:

 Consumption of chip board: Year 2003: 80,000 m3; Year 2005: 95,500 m3

 Imported rate for consumption: Year 2003: 25%; Year 2004: 33%

 Production of chip board: Year 2003: 60,000 m3; Year 2005: 64,000 m3

 Demand of small-sized wood: Year 2003: 139,535 m3; Year 2005: 148,837 m3

Fibre board:

 Consumption of fibre boards: Year 2003: 40,100 m3; Year 2005: 49,100 m3.

 Imported rate for consumption: Year 2003-2005: 27%/year;

 Production of fibre board: Year 2003: 30,000 m3; Year 2005: 35,754 m3

 Demand of small-sized wood: Year 2003: 69,767 m3; Year 2005: 83,148 m3

 Instruction No 19/CT-TTg dated 16/July/1999 of Prime Minister on implementation

of strengthening measures of consumption of plantation timbers

 Instruction No 18/1999/CT-TTg dated 01/July/1999 of prime Minister on a number

of strenthening measures to complete agricultural, forest land use right issue in theyear 2000

 Decree No 163/1999/NĐ-CP dated 16/December/1999 of government on forest land allocation, lease to organization, households and individuals to use long-term, stablywith forest purposes

 Decision No 538/QĐ/KL dated 13/July/1993 of Ministry of Forestry on supplementary, modification of industrial forest plantations management, protectionregulations

 Resolution No 09/2000/NQ- CP dated 15/June/2000 of government on a number ofguidelines and policies about structure change of economy and agricultural productsconsumption

 Decision No 145/1998/QĐ – TTg dated 15/August/1998 of Prime Minister on management and utilization of forest plantation supported by FAO

 Decision of 162/1999/QĐ-TTg dated 7/August/1999 of Prime Minister on sharing of households, individuals participated in the projects supported by Germangovernment

benefit- Decision No 187/1999/QĐ-TTg dated 16/Sep/1999 of Prime Minister on renovation

of State-based forest enterprise organization and mechanism

 Decree No 22-CP dated 9/March/1995 of Government promulgated regulation onforest fire prevention and fighting

 Instruction No 286/TTg dated 2/May/1997 of Prime Minister on strenthening urgentmeasures to protect and develop forests.

 Decision no 202/TTg dated 2/May/1994 of Prime Minister promulgated regulation offorest protection, assisted natural regeneration and plantation contraction

 Decree No 08/1997/QH 10 of the second meeting of National Assembly X on 5million ha reforestation project

 Decision No 661/QĐ-TTg dated 29/July/1998 of Prime Minister on objectives, tasks, policy and implementation of 5 million ha reforestation project

 Joint Circular no 28/1999/TT-LT dated 3/Feb/1999 of MARD, MPI, Ministry offinance guiding implementation of decision No 661/QĐ-TTg dated 29/7/1998 of prime minister on objectives, tasks, policy and implementation of 5 million hareforestation project

 Decision No 65/1998/QĐ-TTg dated 24/March/1998 of Prime Minister on export of timber-based products, forest products and import wooded raw material, forestproducts

 Decision No 136/1998/QĐ-TTg dated 31/July/1998 on modification of some regulation on timber-based products, forest products export

 Decision no 02/1999/QĐ-BNN-PTLN dated 5/Jan/1998 of MARD promulgated timber and forest product exploitation

 Decree No 43/1999/NĐ-CP dated 29/June/1999 of Government on state development credit

 Decision No 264/CT dated 22/July/1992 of chairman of minister council on forestdevelopment investment and encoragement policy

 Decision 1999/QĐ-BNN – PTLN dated 22/Jan/2002 of MARD approved “forest development strategy period 2001 – 2010

3.1 Structure

Households and Size of Holdings

 No data available of size of holdings, but the average is 3-5 ha, with some holdings

up to 30 ha

3.2 Supporting Infrastructure

In concentrated raw material zones large scale processing mills/units exist:

Infrastructure including wood processing mills, factories and roads are well developed

 There are about 100 pulp and paper processing units of varying scales; 8 artificialboard processing mills

 In these areas the scale of production and wood processing infrastructure is large andoften based on state-based forest enterprises and forest companies,

 A number of effective forestry farms have recently appeared

Processing Capacity

The plantation regions for raw material were planned and each region has woodprocessing facilities Capacity of paper or wood based panel factories in the North-East generally exceed the supply of raw materials, but in other areas supply of rawmaterial exceeds the processing capacity There are some big processing facilitieswith high capacities as follows:

For pulp and paper

 Bai Bang Paper Company (Phu Tho province): Capacity of 61,000 tons ofpulp and 100,000 tons of paper/year

 Viet Tri Paper Company (Phu Tho Province): Capacity of 100 tons of pulpand 35,000 tons of paper/year

 Hoang Van Thu Paper Company (Thai Nguyen Province): Capacity of 20,000tons of paper/year

 Dong Nai Paper Company (Dong Nai Province): Capacity of 20,000 tons ofpaper/year

 Tan Mai Paper Company (Dong Nai province): Capacity of 40,000 tons ofpulp and 68,500 tons of paper/year

 Cau Duong Wood Processing Factory (Ha Noi city): 100,000 tons of fiberpaper/year

 Van Diem Paper Joint Stock Company (Ha Tay): Capacity of 1,500 pulp and19,000 tons of paper/year

 Xuan Duc Paper Joint Stock Company (Ho Chi Minh city): Capacity of 2,000tons of pulp and 20,000 tons of paper/year

 Sai Gon Liability Limited Company (Ho Chi Minh city): Capacity of 40,000tons of paper/year

For wood based panel:

 Viet Tri Wood Based Panel Factory (Phu Tho province): Capacity of 4,000 m3

of and 2,000 tons of fiber board/year

 Gia Lai MDF Factory (Gia Lai province): Capacity of 54,00m3/year

 Thai Nguyen Particle Board Company (Thai Nguyen province): Capacity of60,000 m3/year

 Quang Tri MDF Factory (Quang Tri province): 60,000m3/year

 Nghe An MDF Factory (Nghe An province): 30,000m3/year

In areas without big wood processing mills/units: Generally, in these areas

infrastructure is less developed, transportation of timber is difficult; Processing unitshave not been established, thus forest plantation is small and dispersed

3.3 Markets

Domestic market:

 The markets of paper and wood based panel industry in Vietnam have beendeveloped Domestic demand exceeds supply of raw materials with increasingimportation of paper, pulp, particle board, MDF and fibre board.

 In general, the supply of materials for the market is stable In some areas the balancebetween supply and demand was out of balance e.g supply of raw material in BaiBang raw material zone a few years ago was critically low Small wood processingfacilities were satisfied with material supply, but medium wood processing facilitiesdid not enough material

Import and exports

The main export markets are Japan, Taiwan, EU and China

Vietnam imports large high quality logs from other countries but does not generallyimport small logs for processing

3.4 Future Trends and Key Market Issues

 Vietnam has a good potential for industries of paper, chip and wood based panel bothfor domestic and export markets

 It is expected that export markets will develop further especially when Vietnambecomes a member of World Trade Organization (WTO)

 Processing capacity is adequate with small-scale facilities able to process rawmaterials in mountain areas and larger processing facilities close to cities

 Increased production will be required to fully satisfy processing and exportopportunities

4 R&D Information

4.1 Main Research Areas

 Species selection and tree breeding techniques for small log species

 Planning large scale plantation, site classification and suitable species to sites

 Improved techniques for establishment and management of intensive plantations

 Policy in order to encourage the investment in plantation establishment and forestland utilization, consumption of products from plantations

 Techniques of processing and preservation forest products

4.2 Major Research Providers

Ministry of Agriculture and Rural Development

 Forest Science Institute of Vietnam (FSIV): Almost all forestry research in Vietnamare conducted by FSIV Established in 1961, it has six research divisions onfollowing subjects: silviculture, policy-economics, wood processing, woodpreservation, forest plant resources and forest protection; three specialized researchcenters on forest tree improvement, forest ecology and environment, NTFP; 8regional centers located in Son La, Vinh Phuc, Phu Tho, Quang Tri, Gia Lai, LamDong, Dong Nai, Ca Mau and one sub-institute in Ho Chi Minh city

 Forest Inventory and Planning Institute (FIPI): The main function and mission ofFIPI are planning the forest land and assessment of forestry resource in Vietnam.Besides, FIPI also has carried out some researches concerning watershedmanagement, forest structure and growth and none-timber forest products

Universities

 The main contributor to research is the Vietnam Forestry University

 Others include: Thu Duc Agriculture and Forestry University, Tay NguyenUniversity, Thai Nguyen Agriculture and Forestry University and Hue Agricultureand Forestry University

Others

 National parks and nature reserves; Forest protection centers which are undermanagement of forest protection department; Quang Ninh Forest college,… Thenumber of research projects and subjects undertake is low compared with researchinstitutions and universities

 Research institute for paper raw material species

 Paper and cellulose research institute

 In general, research staff in this ARDO have a lot of experience and have beentrained in Vietnam and overseas, the number of MSc and PhD is high;

 Field experimental sites have been established in different ecological zones;

 Research equipment and other facilities have been improved in the last few years

 International cooperation is strengthened; relationship between scientists andproducers is closer

 International Cooperation Projects: The forestry sector is supported by manyinternational organizations and has The Forestry Sector Support & PartnershipProgram with participation from many donors A Trust fund has been established inthat program in order to invest in development of forestry The main sponsors wereFAO; World Bank, ADB, Germany; Japan,

 The total of investment finances for forestry sector was sixty billions VND in 2006

4.4 Major Achievements to Date

 A number of species, seeds, clones, provenances with high productivity wereselected and created for industrial plantations e.g Some clones of Acacia hybridhave productivity 20-30% higher than normal clones

 Productivity of Acacia plantations increased from 5-7 m3/ha/year to 12-15 m3 /hayear with the best at 30-35m3/ha/year

 Some planning outlines and procedures in forest tree improvement were publishedand applied

 The species and clones with high productivity were tested such as Acacia hybrid, A.

mangium, A auriculiformis, Eucalyptus urophylla, Eucalystus hybrid, Casuarina equisetifolia, shoot Bamboo About 67 clones of forestry plant species were

considered as technical advances such as BV10, BV16, BV32, TB3, TB5, TB6,TB12, KL2 in Acacia hybrid and U6, PN2, PN10, PN14, PN46 and PN47 in

Eucalyptus and clone of Casuarina equisetifolia were 601, 701 Those clones have

been planted widely in the whole country

 In recent years the use of heterosis was successful in the creation of hybrid clones.e.g Eucalyptus hybrids such as UC, UT, UM SM and GM improved productivity by20-30% higher compared to their parents In good sites productivity increases of 70-80% have been observed The clones of Acacia hybrid AM1, AM2, MA1, MA2 giveincrement 20-30% higher than current A hybrid and a combination of Melaleuca LCcan give increment 25-30% higher than normal clones

 Two clones of Eucalyptus named SM16 and SM23 were recognized as fast growingand resistant to disease

 Improvements in propagation techniques have expanded the production of seedlingsfrom seeds and roots to cutting, tissue culture and grafting Many large-scalenurseries were established in every province and the seedlings supply is sufficient tomeet planting demands

 Tree selections for each ecology zone have been identified, but site selection not yetdetailed

 Intensive seedling and plantation establishment and management techniquesincluding publication of manuals

 Development of investment policies policy for plantation development

5 SWOT Analysis

 Natural conditions in Vietnam are suitable for

development of many forest tree species.

 Bare land and denuded hill area for plantation

establishment is abundant.

 Government policies for increased plantation areas

and development of extensive processing industries

encourages expansion of this forestry sector

 Many projects and programs for reforestation

supported by government and international

agencies.

 A system of forestry management policy was

promulgated and it has been improved year by year.

 Labor is cheap, infrastructure has been improved.

 Tree species as well as planting techniques for raw

material supply plantation were defined Many

clones with high productivity were found.

 The major raw material zones with processing

facilities have been established.

 Income is between 25 and 32m VND/ha/5 years

rotation About 5mVND is required for

re-establishment.

 The export of wooden products increased in the last

few years with amount of about 2 billions USA

year (from small and large logs

 Shorter rotation lengths for fast growing small log

production compared with larger logs reduces risk

for producers

 Increased forest cover, satisfying the raw material

demand of the market, environmental protection,

formulation of raw material supply areas linked

with wood processing

 Relatively long time from planting to income generation

 Difficult to attract investment funding for plantation establishment

 Many farmers in mountainous areas are still poor and they can not invest capital for plantation establishment as well as processing facilities of forest products.

 Processing technology and tools are old and out of date.

 The efficiency of wood material utilization is still low.

 Land area of households after allocation is too small and it is difficult to develop concentrated raw material production areas.

 Infrastructure is not good well developed in some areas, especially in remote areas.

 Lack of market information often leads to lower prices for individual households.

 Deficit of raw materials which have to be imported.

 Lack of modern equipment for research.

 Technological transfer is weak and slow

 The development between regions isn’t equal and often the land set aside for plantations is in areas where the climate is harsh, the soil is severely eroded or areas are subject to droughts

or floods.

 Lower value per m³ than large logs

Opportunities Threats

 Good market growth opportunities, with the

domestic market not yet fully supplied and good

potential for expansion of export markets

 Further development of investment vehicles for

establishment of larger plantations

 Many international projects were invested

including technical cooperation and direct

investment projects.

 Further opportunities to improve productivity

through genetic improvement programs,

improvement of establishment and management

techniques and interspecific combinations to

produce productive hybrid clones

 More specific identification of suitability of species

to sites

 The market will be expanded when Vietnam

becomes a member of WTO.

 Upgrading of equipments and adoption of new

technology imported from overseas.

 Achievement obtained during last 20 years of

“renovation” has created new opportunities for

future development.

 Risk of single species plantations resulting in increase in epiphytotic disease, and fire.

 Market and price are not stable.

 The competition, especially the importation of paper and fibreboard products will increase when Vietnam becomes a member of WTO

 Risk of unstable world prices for pulp and paper and fibre board products

ARDO 3 Bamboo and Rattan

Economically valuable bamboo species providing raw material of high quality:highly productive bamboo shoot species; economic valuable rattan species

2.1 Summary of the industry as a whole

Most bamboo is harvested from natural forest Limited information on sustainableharvesting practices has resulted in denegation of the natural bamboo resources and thissource of bamboo cannot match the demands of the processing industries Manybamboo species have become rare and endangered There is little planting ofeconomical bamboo species and this is limited to a few species

Previously rattan sources came mainly from natural forests However this source hasbeen exhausted, while the demand is increasing because of rapid expansion oftraditional villages and non-state enterprises

Bamboo

 The bamboo resource of Vietnam is rich and diversified Research from FSIVidentified 133 species belong to 25 genus within 216 collected samples (Table 1) It

is estimated that there are more than 200 bamboo species in Vietnam

Table 1: Genera and Species of Bamboo

species Vietnamese names Scientific names

5 Le Bac Bo Bonia 2

 According to results of the Steering committee on central forest inventory in 2001the total bamboo area is 1,489,068 ha with a total of 8,400,767,000 bamboo stems

 Of this 1,415,552 ha is natural forest (poor stands and mixed stands) with8,304,693,000 stems and about 73,516 ha bamboo plantations (mainly poorplantation) with 96,074,000 stems

 Over the last 20 years the bamboo areas have changed (Table 2)

Table 2: Bamboo Areas

Area (ha) Capacity

(millions trees) Poor forest Mixed

forest

 Bamboo is widely distributed,, but main zones are North-West zone, North-East zone,North Central zone, East South-Vietnam.

 In the past only a few bamboo species such as Luong (Dendrocalamus barbatus), Tre gai (Bambusa blumeana), Truc sao (Phyllostachys edulis) were planted, but in recent

years there has been an increase in planted bamboo, particular the exotic species forshoot production

Utilization:

 In daily life: There are hundreds of products made from bamboo used for daily

life, particularly in rural and mountainous areas These include many bambooutensils

 For building and traffic and transport: For many rural people, about 50% of

house building material is made from bamboo Only large sized species with thickwalls, such as Mai, Dien, Luong, Buong, Loc ngoc, La nga, Tre gai, Tam vong areused, In the future bamboo will still be important for building and construction,especially scaffolding In the traffic and transport many bamboo species are usedfor bridges and boats

 Material for handicraft and fine arts: To produce traditional, unique handicrafts

and arts, for local use and for export Recently many traditional trade villageshave been restored and investments in re-organization to produce valuable objectsmade Usually bamboo is used in combination with rattan to make bamboo andrattan wares such as: tables, flower vases, tray, decorative things, pictures, beds,cabinets

 In paper and pulp industry: Many South-East Asian countries use bamboo to

produce paper and pulp and some bamboo species with high fibre content provide

a valuable raw material resource for high quality pulp and paper

 Food: Some bamboo species provide edible young shoots, and are used as fresh,

nourishing vegetable sources in South-East Asia Most edible bamboo shoots can

be made into products such as dried sliced bamboo shoots, sour bamboo shoots,scanned bamboo shoots, frozen shoots, etc Bamboo shoots are an importantsource for export Now in Vietnam some exotic bamboo species such as Diem truc

(Dendrocalamus latiflorus), Luc truc (Bambusa oldhamii), Manh tong

(Dendrocalamus asper) are selected and planted by local people The nutrient

analysis of bamboo shoot of 18 monopodial and 10 other sympodial bamboospecies showed that it contains about 90% water, 2.4% protein, 17 amino acids,and some amino acids containing Lysene, Glutamine and Arginine which arehigher than in some vegetables such as cabbage, carrot, onion, pumpkin There are

8 kinds of amines in bamboo shoots that can not synthesized by human body.Number of other amine acids have been fund only in bamboo shoots such asLuecine., Isoleucine, Methionine., Phenylalanine and Valine

 Raw material for man-made board.: Bamboos are being used for producing

laminated bamboo boards, particle bamboo boards, bamboo panels for flooring,furniture, decorative purposes These have been export to Taiwan, Korea, WesternEurope, USA

 Charcoal: Bamboo charcoal is used like active charcoal for filtering of water and

air, and is now an important export to some countries such as China, Vietnam

Rattan

 Rattan like bamboos is an important NTFP source in Vietnam There are 30 rattanspecies belong to 6 genuses: e.g.

Genus Number of species

May nep Calamus 19 species and 1

subspecies

Heo Daemonorops 4 species

Phuon Korthasia 2 species

May rup Miriapis 1 species

Song la bac Plectocomia 2 species

Song voi Plecomomiopsis 1 species

 Among rattan species only 5 species have been used widely: May nep (Calamus

tetradatylus), May dang (C tonkinensis), Song mat (C plattyacanthus), Song da (C rudentrum), Song bot (C poilanei).

May nep Calamus tetradatylus widely over whole country

May dang C tonkinensis widely

Song mat C plattyacanthus Mainly in Northern

Song da (Song den) C.

rudentrum

widely

Song bot C poilanei from Thanh Hoa to Southern

 About 20,000 tons/year of rattan is exploited from natural forest Planted rattanspecies provide 2,500 - 3,000 tons May nep can be obtained by rural people in someprovinces

 Natural rattan is distributed mainly in Ha Giang, Tuyen Quang, Yen Bai, Bac Thai,Nghe An, Ha Tinh, Quang Binh, Quang Tri, Thua Thien Hue, Quang Nam, NghiaBinh, Dak Lac, Binh Thuan, Dong Nai, Binh Phuoc

 May nep is planted widely in Thai Binh, Nam Đinh, Ha Nam, Hung Yen, Ninh Binh, Nghe An, Ha Tinh Besides May nep, Song mat has been studied as planting speciesunder forest canopies in Bac Kan, Hoa Binh May nep usually is planted in gardenand is numerous in some lowland provinces such as Thai Binh, Nam Ha, Nam Dinh,Ninh Binh, Hai Duong, Hung Yen

 The labour force in NTFP activities is cheap and abundant The products are madewith high quality and low price.

 The restoration of traditional villages is promoted strongly and the appearance ofartisans is increasing Many handicraft wares are well known in Japan, Taiwan, EU -countries, USA

 In the local markets there is not strong competition, because most bamboo and rattanproducts are made for export In the export there is strong competition betweenVietnamese companies and besides very big competition from other countries such

as China, Thailand, India

 There is increasing emphasis on the use of bamboo for higher value products such asfurniture and items like toothpicks

 In 2004, the law of forest protection and development

 In 2007, the degree for approving of the strategy of Vietnamese forest development

in the period 2006-2020, in which the target is to plant 4.15 Million ha industrial rawmaterial forests and NTFP forests, to improve the export value of NTFP of US$ 0.8Billion and to create more work opportunities in the NFTP processing and handicraftareas

 Each province has his own policies to develop bamboo or rattan and planning forexpanding and investment for traditional handicraft activities in order to use localadvantages

Households and Size of Holdings

 Only some high economic valuable bamboo and rattan species are studied and

selected to develop plantation

 A part of bamboo and rattan raw materials are from natural forests That means thosespecies are very difficult or not able to be planted in poor or mixed plantationsbecause of difficulty in propagation or in growth The exploitation of those species isdepended on annual harvesting volumes planed by local governmental forestryagencies Applied silviculture techniques to care for the forest after harvesting inorder to promote and to ensure the natural regeneration and suitable production havenot been applied

Supporting Infrastructure

 About 400 million bamboo stems per year have been exploited and consumed most

of it in the pulp and paper industries which require about 180,000 tons

 About 88 factories are processing or using bamboos There are 6 pulp and paperfactories such as Bai Bang (Phu Tho), Việt Tri (Phu Tho), Tan Mai (Ho Chi Minh City), Đong Nai, Kon Tum, Thanh Hoa with capacities of 15,000 - 130,000 tons of product per year and a total capacity is 340,000 tons of product per year Thosefactories consume about 20-30% annual exploited volume of bamboo.

 Processing factories include:

o 4 large joint venture bamboo board manufacturers making floor boards,laminated board, and pressed boards) mainly in Luong (Hoa Binh), Lang Son, HaNoi and Thanh Hoa with maximum output of 1,000 m3of product per year

o Pulp and paper factories Bai Bang (Phu Tho), Việt Tri (Phu Tho), Tan Mai (Ho Chi Minh City), Đong Nai, Kon Tum, Thanh Hoa with output capacity of 15,000

- 130,000 tons of products per year The total capacity is 340,000 tons of productper year

o Many small processing co-operatives are making bamboo mat, toothpick,chopsticks, handicrafts, arts

o Many locations have small co-operatives are making bamboo and rattan productsfor export (no statistics available)

 Some rattan processing enterprises maintain stable capacity of 200-500 tones peryear such as The Enterprise Thanh Nam (Quang Ngai Province), PISICO Company,Binh Minh Enterprise (Quy Nhon Province) There are about 1,400 trade villagesproducing bamboo and rattan weaving products, employing millions of labourers

 There has been a rapid growth in export values since 1995 when the Finland

-Vietnam (1995) project showed that the value of export of bamboo and rattan

products was not more than US$36 million per year

 From 2000 – 2004 exports are now worth about US$100 million per year

(Million US$)

2004 (first 6

months )

Bamboo

Export Markets include:

 Bamboo products: EU Countries, USA, Japan are biggest and future demand isstrong

 Some kind of bamboo products such as bamboo shoots, bamboo leaf, chopsticks areexported to Taiwan, South Korea, Japan

Domestic Markets include:

 The biggest market is raw material for paper and pulp industries and man-madeboard manufacture In 2010 the total pulp production capacity will reach to 2.5million tones per year Bamboo provides about 30% of the raw material which isequivalent to about 3.5 - 4 million tones of bamboo and about 6 billion of bamboostems will be consumed

 The building material market needs about 50% of the annually harvested bamboostems

 Bamboo shoots are mainly consumed domestically and only a limited volume isexported to Taiwan, Japan

 By 2010, some bamboo shoot processing factories will be established in theprovinces such as Quang Ninh, Lang Son, Binh Duong and those will need thousands

of bamboo shoots annually

Rattan:

 Annual requirement is about 20,000 tones rattan to produce bamboo and rattanproducts for export to some countries such as Germany, Italy, Japan, China,Singapore and Cuba Of this about 15,000 tones of small sized rattan and 5,000tones of big sized rattan

 Rattan collection is carried out mainly by small enterprises and families

 From 1988 to 1993, Vietnam was the 3rd rattan product exporter in the world In

2003, the export turn-over reached US$ 106.43 million

 Vietnam exports about 2 million of weaving products, 500,000 - 600,000 m2 rattanweaving wares and many other products from rattan annually

3.3 Future Trends and Key Market Issues:

 It is projected (Forestry development strategy in period 2001-2010) that the demand

of bamboo raw material will be very strong The bamboo planting area will beincreased from 200 ha to 2000 ha So the bamboo area will be enlarged and willprovide raw materials in production zones close to paper and pulp industries, forman-made boards, for bamboo and rattan weaving and handicraft

 Main export markets to western countries, Japan, Taiwan, South Korea andespecially USA are expected to increase after Vietnam becomes a member of theWTO Then the biggest limiting factor will be the quality and variety of bamboo andrattan products

 The competition from other counties with large production sources of bamboo andrattan such as China, Thailand, Malaysia is expected to increase

4 R&D INFORMATION

4.1 Major R&D Areas:

 Classification of bamboo and rattan

 Study on production and harvesting of some valuable bamboo and rattan species

 The main outputs have been publications on production processes, technical

standards for commercial production of bamboo products

4.2 Major R & D achievements to date

 In general studies are limited and in practice only few species have been studied Thelack of raw material and limited form of raw materials has limited development ofdiversified products This together with the quality and quantity of product availablehas made penetration of world markets difficult and as a consequence there is less

investment for studies on bamboo and rattan in Vietnam

 There has been little work published since 1995 but knowledge and information

includes:

o Identification of suitable species, their distribution and morphological

characteristics of main bamboo species

o Propagation, establishment and planting techniques for bamboo species

o Harvesting techniques and recovery of populations after harvesting

o Intensive cultivation techniques for bamboo shoot production

o Planting, cultivation, harvesting and preservation techniques for rattan as an

under canopy crop

o Evaluation of economically valuable rattan species for export

4.3 Future Research Intentions

a) North-East Zone:

production

For shoot production

1 Den da Dendrocalamus longivaginus sp.nov. x

9 Dien trung Dendrocalamus pavivigemmiferus x

b) Northern Central Zone:

Species For stem

production

For shoot production

c) Eastern South Vietnam

production

For shoot production

For rattan, concentrate on 2 species:

- May nep Calamus tetradatylus

- Song mat Calamus plattyacanthus

4.4 Major Research Providers

Ministry of Agriculture & Rural Development

1 Forest Science Institute of Vietnam: Skills in seeding, silviculture, preservation,

processing, economic and policy, environmental impact, plant protection, etc Theinstitute has a system of research centers distributing in different forest ecological zones

in whole country, and three special research centers on forest seeding, on Forestenvironment and ecology and on forest industry The institute has more than 400 staff,among them there is a lot of experts At this institute there is a researcher team of 10persons who are experts of bamboo and rattan The big bamboo and rattan collectiongarden with more than 100 species is located in Cau Hai (Province Phu Tho) managed

by the Silviculture experiment research center of FSIV Most researches on bamboo andrattan are carried out by FSIV

2 The Forest Inventory and Planning Institute: This organization has potential and

experience in inventory and planning of forest production zones The institute activitiesare more or less related to bamboo and rattan, special on classification and speciesidentification

3 The Economy, Policy and Mechanism of Agriculture and Rural development

Institute: This has potential and experiences in research on policy, regulation and

marketing No activity relates direct to bamboo and rattan studies

4 The Ecology and plant resources Institute: has function to study on flora and fauna

systematic in Vietnam including bamboo and rattan species

Universities and colleges

1 Forestry college Xuan Mai: the assistants have ability to cooperate in research on all

forest sectors Specialist staff at the Siviculture faculty has experience on research ofbamboo and rattan

2 The National University Hanoi: It has Biology Faculty with assistants having

ability to research on plant resources including bamboo and rattan

3 Forestry faculties of other college:

 The Forest and Agriculture College Thai Nguyen

 The Forest and Agriculture College in Ho Chi Minh City

 The Forest and Agriculture College Hue

 The University Tay Nguyen

Others

 CIFOR, IUCN, INBAR, FRIM, IPGRI, Some Institutes in China, India

However the number of researchers working on bamboos is limited and their access tointernational collaboration and knowledge is also low

The summary of funds for research are:

- Funds supplied by the Vietnamese government (about 75%)

- Fund source from provincial agencies (about 10%)

- Fund from international organizations (INBAR, IPGRI,…) (about 10%)

- Fund from other source (about 5%)

5 SWOT Analysis

 The natural environment for bamboos production

is favourable throughout Vietnam

 Valuable natural resources of rattan readily

exploited from natural forests

 The bamboo and rattan resources are diversified

with many species of high economic value that

could be utilised in raw material plantations.

 Some high producing and economically valuable

species suitable for expansion have been

identified

 From bamboo and rattan hundreds of products

could be made, among them many wares are

export objects with high value, which are

acceptable by international markets.

 Development of local handicraft industries has

provided significant employment at the village

level

 Bamboo is fast growing and provides a

significant proportion of the raw material for the

pulp, paper and fibre board industries

 Bamboo is an important construction material at

the village level to provide raw material for other

industrial branches with long term strategy and

priority to develop.

 There are small, but established markets for

bamboo and rattan products and future market

prospects are good.

 Many international organizations, foreign

countries have interest on bamboo and rattan

 Awareness of people of importance of bamboo and rattan source is low

 The role of bamboo and rattan as valuable natural resource related to forest activities and

economical, cultural, social development and the protection of environment, landscape is low.

 Denigration of natural forests reduces diversity including rattan and bamboo

bio- Most harvesting of bamboo and rattan is from natural and unmanaged resources

 Little planning of bamboo and rattan on an intensive scale and poor linkages with industrial processing zones

 Productivity of bamboo plantations is low and their returns per ha and per labour unit are low compared with other production alternatives

 Little research resources for bamboo and rattan

 Lack of strategy of bamboo development

 The limit of international co-operation in research.

 Risks of high post-harvest losses from fungi and insects

 Improved technologies for intensive management

of bamboo and its potential for high returns per

ha

 Expansion and intensification of edible bamboo

shoot production

 Enhancement of the understory in natural forests

and development of sustainable harvesting

systems

 Development of small scale, profitable bamboo

shoot production systems suitable for land close

to large domestic markets.

 Expansion of local community industries to

develop and diversify bamboo and rattan

ARDO 4 Non Timber Forest Products

1.1 National Goal

Restructuring and reorganising the development and exploitation of NTFP to maintainand increase income and generate employment for poor people in far and remoteregions and to contribute to national GDP after integration into the WTO

Targets:

 Mean annual production value growth 10%; export value in the year 2010 of overUSD 300 million

 Additional employment opportunities for about a million labourers

 Establish Technical base for gene conservation of a number of high value, highyielding NTFP plant and animal species and control illegal exploitation of NTFP

1.2 R & D Scope

Research into conservation, biodiversity and sustainable management of NTFPs,including in-situ and ex-situ conservation, enhancement of natural ecosystemsand development of cultivation, planting, management, harvest, post-harvest andprocessing technologies

1.3 Research coverage.

NTFP with high economic value, including food stuffs (bamboo shoot, wildfruits, mushrooms, honey, yams, nuts, bushmeat,etc), and spices (cinnamon,amomum, anise, ginger, etc.), medicinal plants, resins, and essential oils

2 Industry statistics

2.1 Introduction

Non-timber forest products (NTFP) are a very important natural resource that has beenutilized for a long time in the economy and culture of the Vietnamese Exploitation andutilization of the NTFP has been a traditional habit of the people NTFP, excludingforest animals, are largely the products of plant species under the forest canopy and areconsidered only as forest minor products Anyone may enter the forest to harvest theNTFP and many plant species of high economic value have been exhaustivelyexploited NTFP have many uses with many sectors with an interest in theirmanagement (e.g Health, Industry, Forestry, Handicraft and Fine Handicraft) There is

no coordinated management There is some large-scale production which is stillmanaged and invested by the state for some high demand species for industrial use andfor export (e.g Pinus merkusii, Cinnamomum spp., Illicium verum, Vernica montana,Camellia sasanqua, some medicinal plant species) Some plant and animal species havebeen planted and raised thus the production of NTFP although basically a part of forestproduction is now combined with agriculture to give rise to agro-forestry systems inmany regions, not only on forest land but also on agricultural land

NTFP yielding plant and trees species are concentrated in the ecosystems of tropical

moist evergreen closed forest, montane tropical forest belt, Rhizophora apiculata andMelaleuca leucadendron forests Most of primary forests are demarcated as special - useforest, National parks or Nature reserves NTFP sources are depleted together withforest loss and degradation Many tree and plant species have become ones and arethreatened to extinction The area of forest plantation is increasing with introduction ofpure forest plantations with exotic species and in these plantations few NTFP yieldingplant species are present

The main interest groups are:

 Plants as raw material for industry including: Pinus merkusii; Vernica montana andVenica fordii, Camellia sasanqua; Aquilaria Crassna, A.banaensae and A.baillonii;essential oil yielding plants

 Plants and trees yielding food-stuffs and spices including: Cinnamomum spp.,Illicium verum, Castanea mollisima, Canarium spp, fungi, Litsea sebifera

 Medicinal plants including: Amomum costatum, Amomum echinosphaera

2.1 Industry Characteristics and Prospects

 30 out of 64 provinces have natural and man-made forests yielding NTFP

 Total area up to 1,630,896ha, representing 13% total forest area in the whole country.with 469,744ha of forest plantation yielding NTFP

 Flora of Vietnam consists of 11,373 higher plant species belonging to 3,798 genera,2,524 families The number of commonly planted species is 750 belonging to 79families, mainly those yielding pharmaceutical material and fruit

 Medicinal plant diversity under forest canopy is high The Pharmaceutical materialInstitute confirms there are 3,200 higher and lower plant species that are used asmedicinal plants Many provinces have great number of medicinal plants with highstocking such as: Gia lai - Kontum: (921); Phu Yen - Khanh Hoa: (782); QuangNam - Da Nang: (735); Nghia Binh: (866); Dac Lac: (777) and Lam Dong: (715)species

 There are at present 128 special - use forest areas with total area of 2,157,563ha,representing 6.1% total area of the country of which there are 28 Nation parks,966,127 ha in area; 62 Nature reserves, 1,114,128 ha in area; landscape forest,147,894 ha

2.2 Value and Markets

 NTFP contributes about 1% to the GDP, although the contribution of forestry toGDP is grossly under-estimated as the value of the supply of raw material for woodand wood products is included in the GDP contribution of the industrial sector

Value of forest products (Million US$)

Unit: USD a million

* Value of exported NTFP, first 5 months, 2005

 The value of exported forest products in 2004 was nearly USD 200 million of whichrattan and bamboo attained USD 50,0 million, other NTFP attained USD 50,0million This increase shows the potentiality of NTFP

 (bee honey at present is classified as agrarian product because the most part of it isoriginated from agricultural sector).The northern provinces produce only a fewhundred tons of honey, which is mainly sold in local markets

2.3. Areas area and yields 1 Pinus merkusii

 Pinus merkusii is used for turpentine production and is found in natural forest inNorth and Central Vietnam In the past it has been selected as main forest plantationspecies on bare hill, poor soil, degraded coastal land for resin tapping In the CentralHighland P.merkusii has been planted in concentration in Lam Dong, Gia Lai, KonTum

 The area under P.merkusii is 200,000 - 255,000 ha, representing 15.6% total forestarea yielding NTFP The largest regions are the North-East (77,000ha): CentralCoast (72,000ha); South East (24,000ha) and Central Highlands (10,000ha)

 The yield of turpentine has increased at high rate in Vietnam as the area ofP.merkusii forest is subjected to more intensive resin exploitation

Yield of P.merkusii resin (1995-2003)

 The area of C.cassia plantation in 2005 was 80,991ha representing 4.9% the totalarea of forest yielding NTFP

Yield of C.cassia bark (1995 – 2002)

C.cassia bark tonne 2,790 3,658 3,954 2,100 3,116 3,550 3,880 5,067

Source: Statistics Department Ministry of Agriculture and Rural Development

 World consumption of C.cassia bark is about 20,000 - 30,000 tonnes/year Largestmarkets are USA, Japan, Mexico and Germany (1000t/yr) Vietnam exports to HongKong, Singapore, Japan, France, Canada, USA, Taiwan and USA

 The price of C.cassia bark in Europe is EU1,800/tonne In Vietnam the price ofC.cassia bark is from VND 10,000 to VND 15,000 /kg and the export price averagesUS$4000/tonne

 Indonesia has 60% of the market share with other exporters being China, Vietnam,Sri Lanca, Ceylon

 Madagascar also exports Cinnamomum sp bark but of different species, about 6,000tonnes/year

Export of Cinnamomum bark in 1995 - 2000 period.

 I.verum is only found in the Vietnam - China border region and Northern Laos, 5,000

km2in area of which 3/5 lies in the Vietnamese territory

I.verum area in North Vietnam, up to 2004

Localities Total area Concentrated plantation Scattered plantings