Pilot study: Propoor REDD IN Nghe An province Socioeconomic assessment and analysis of drivers for deforestation and forest degradation 2010

List of TablesTable 1: Climatic conditions of Con Cuong and Tan Ky Districts ...7 Table 2: Population, labour and poverty rates in Con Cuong and Tan Ky Districts ...6 Table 3: Topography

Pilot study: Pro-poor REDD IN Nghe An province

Socio-economic assessment and analysis of drivers for deforestation

and forest degradation

2010

This report was commissioned by SNV Vietnam The purpose of this report is to assess two districts (Con Cuong and Tan Ky) in Nghe An Province as potential sites for a Pro-Poor REDD project The

report focuses on the assessment of socio-economic status and the drivers of deforestation and

forest degradation The analysis and opinions expressed in the report belong to the author and do not necessarily reflect SNV’s official positions All correspondence related to this report should be sent to Mr Richard McNally, SNV Vietnam Programme Leader for REDD: rmcnally@snvworld.org

CPC Commune People’s Committee

DARD Department of Agriculture and Rural Development

DPC District People’s Committee

NTFP Non-Timber Forest Products

PFMB Protection Forest Management Board

PPC Provincial People’s Committee

REDD Reduced Emissions from Deforestation and Forest Degradation

SFE State Forest Enterprise

SNV Netherlands Development Organisation

UNFCCC United Nations Framework Convention on Climate Change

Table of Contents

List of Tables iii

List of Figures iii

1 Introduction 4

2 Methodology 5

3 Context of study area 6

3.1 District background 6

3.1.1 Natural conditions 8

3.1.2 Socio-economic conditions 8

3.2 Commune background 8

3.2.1 Natural conditions 9

3.2.2 Socio-economic conditions 10

4 Livelihoods 11

4.1 Current livelihood options 11

4.1.1 On-farm activities 11

4.1.2 Off-farm activities 12

4.2 Primary household income sources 12

4.3 Products for potential value chain analysis 13

4.3.1 Cassava 13

4.3.2 Met 14

4.3.3 Acacia 14

4.4 Cost-benefit analysis of potential alternative livelihood options 14

4.4.1 Cassava 15

4.4.2 Met 15

4.4.3 Acacia 15

5 Deforestation and forest degradation causal analysis 16

5.1 Forest changes in Con Cuong and Tan Ky Districts 16

5.2 Drivers of deforestation and forest degradation 16

5.2.1 Local people’s livelihood activities 16

5.2.2 Impact of industrialisation on forests 20

5.2.3 Gaps in forest management policy implementation 21

6 Potential risks leading to deforestation and forest degradation 21

6.1 Expansion of plantation area for Tan Hong import-export company 21

6.2 Expansion of mining areas 21

6.3 Brick-kilns 21

6.4 Thatched cottage replacement programme for remote areas 21

6.5 Expansion of agricultural land 22

6.6 Natural forest restocking project 22

7 Proposed recommendations 22

Annex 22

List of Tables

Table 1: Climatic conditions of Con Cuong and Tan Ky Districts 7

Table 2: Population, labour and poverty rates in Con Cuong and Tan Ky Districts 6

Table 3: Topography and climate of selected communes in Con Cuong and Tan Ky Districts 9

Table 4: Population, labour and poverty rates in six selected communes 10

Table 5: Ranking and livelihood options in six selected communes 13

Table 6: Changes in forest land in Con Cuong and Tan Ky Districts, 2005-2009 16

Table 7: Household dependency on cutting forest for agriculture 17

Table 8: Households collecting forest products 19

Table 9: Households clearing natural forest for acacia plantations 19

Table 10: Current land use in Con Cuong and Tan Ky Districts 23

Table 11: Economic structure of six selected communes 23

Table 12: Current land use in sixselected communes 24

List of Figures Figure 1: Study process and methodology framework 5

Figure 2: Map of Nghe An Province with selected study districts and communes 6

Figure 3: Current land use in Con Cuong District 7

Figure 4: Current land use in Tan Ky District 8

Figure 5: Current land use in sixselected communes 10

Figure 6: Economic structure of six communes 11

Figure 7: Cassava market chain 13

Figure 8: Met market chain 14

Figure 9: Acacia market chain 14

1 Introduction

Following the United Nations Framework Convention on Climate Change (UNFCCC) Bali negotiations

in 2007, there was renewed interest in the issue of reduced emissions from deforestation and forest degradation (REDD) In the context of global climate change, deforestation and forest degradation

in developing countries contributes significantly to CO2 emissions around the globe REDD is a

mechanism to reduce carbon emissions based on the premise to financially reward those who reduce deforestation and forest degradation Many anticipate that significant carbon emission reductions can

be made if appropriate compensation schemata can be created

The World Bank (WB) and the UN are piloting REDD, with an expectation that operationally it will enable countries to gain ‘carbon credits’ for reducing deforestation and forest degradation Viet Nam is

a pilot country for both WB and UN initiatives Other pilot programmes are being launched to support the implementation of REDD at the national and local levels in Viet Nam SNV has started up one pilot project in the Central Highlands: the SNV Cat Tien Landscape Pro-Poor REDD Project in Lam Dong Province This project has focused on the pro-poor aspect of REDD, by enabling and sharing equitable benefit mechanisms for the local community through REDD payments

Forest resources play an important role in national economic development as well as providing a source of income from forest and non-forest products, sustenance and other customary uses for local people Forests also serve as important biodiversity habitats, providers of ecosystem services and now potentially as generators of revenue via carbon credits Payments for REDD are based on increases

in forest biomass and corresponding accumulated carbon in sinks; this means that forest resources must be maintained or enhanced In reality, though, forests suffer from the competing demands of conservation and consumption Consumer needs, agricultural expansion, biofuel, industrial crops and clear-cutting for paper-pulp plantations are all major forces behind the loss and degradation of forests

If the REDD goal, which is to reduce deforestation and forest degradation, is to be achieved, then these powerful factors need to understood

In summary, REDD offers financial rewards for the avoidance of activities that lead to the destruction and degradation of forests In doing so, it incentivises the sustainable and equitable management

of forests to benefit the people who live in and around these areas SNV, therefore, is now looking

to expand its REDD project activities to the North Central agro-ecological region of Viet Nam In conjunction with local authorities, SNV has assessed two sites in Nghe An Province: Con Cuong and Tan

Ky Districts Assessments include an examination of the drivers of deforestation and degradation, as well as of local people’s livelihoods and socio-economic status

The aim of this study is to report on this investigation of the causes of deforestation and forest

degradation in the abovementioned forest areas These drivers will be assessed in relation to the economic status of the communes, current land use practices and demands, plus local and national policy and external influencing factors An analysis and initial insights about current livelihoods and recommendations for alternative livelihoods at the commune level are also presented herein This study is part of the knowledge base needed to assess the overall potential for a pilot REDD project, where interventions will be implemented to reduce forest deforestation and forest degradation on a larger scale

socio-2 Methodology

The study was conducted in three main steps: (1) preparation; (2) field work; and (3) reporting

This process is illustrated in Figure 1 In order to obtain relevant data for this study, several methods

were employed, such as secondary data review, local resource person interview, focus group discussion,

household survey, and validation workshop

Figure 1: Study process and methodology framework

Step 1: Preparation

Step 2: Field work

Step 3: Report writing

Meet with Nghe An DARD

Meet with Con Cuong and Tan Ky DARDs

 Interview local resource persons

at district and commune levels

 Hold focus group discussions at village level

 Conduct household surveys

 Hold feedback meeting with relevant stakeholders at provincial and district levels

 Local resource person interview conducted in 2 districts and 6 communes

 Focus group discussions conducted in 26 villages (17 in Con Cuong and 9 in Tan Ky)

 520 households surveyed (340 in Con Cuong and 180

in Tan Ky)

3 Study area context

The study was carried out in two districts of Nghe An, Con Cuong and Tan Ky Within each district, communes were selected as suitable study sites; these were Cam Lam, Don Phuc, Mau Duc and Thach Ngan Communes in Con Cuong District and Dong Van and Tan Hop Communes from Tan Ky District

Figure 2: Map of Nghe An Province with selected study districts and communes

Nghe An province Vietnam

Study site (Cam Lam, Don Phuc,

Mau Duc and Thanh Ngan communes) (Dong Van and Tan Hop communes)Study site

Climatic conditions for both districts are presented below in Table 1

Table 1: Climatic conditions of Con Cuong and Tan Ky Districts

Current Land Use

Con Cuong District has twelve communes and one town The total natural area of the district is

173,831.12 ha Of that, just over 7.06% is used for agriculture, 76.41% is forestry land, and 16.53%

is used for other purposes (Figure 3)

Tan Ky District has 21 communes and one town The total natural area of the district is 72,890.23

ha In this district, 35.34% of land is agricultural, 52.95% is forested, and 12.71% is used for other

purposes (Figure 4)

Data for land use in Con Cuong and Tan Ky are shown in Annex 1, Table 10

Figure 3: Current land use in Con Cuong District

Annual average temperature

High temperature

Low temperature

Annual average rainfall

Annual average humidity

Monsoon

230C

420C

120C1,800mm60%

North-easterly &

South-west-erly winds

23.50C41.30C

70C1,700mm86%

Figure 4: Current land use in Tan Ky District

3.1.2 Socio-economic conditions

Population, labour and poverty rate

The population of Con Cuong District is 65,239 people, comprised of 15,820 households, of which approximately 62.1% (40,509 persons) are involved in labour There are 4,853 poor households, representing 30.7% of the population The ethnic minority groups include the Thai, Tay, Nung, Hoa, and Dan Lai, with a combined population is 45,667, representing 70% of the population (Table 2) The population of Tan Ky District is 138,430 people, with 34,607 households, approximately 51.6% of which (71,491 persons) are labourers There are 6,436 poor households, representing 18.6% of the total population The ethnic minority groups include the Thanh, Thai, and Tho, representing 21.4% of the population (Table 2)

Table 2: Population, labour and poverty rates in Con Cuong and Tan Ky Districts

3.2 Commune background

Cam Lam, Don Phuc, Mau Duc and Thach Ngan Communes in Con Cuong District, plus Dong Van and Tan Hop Communes in Tan Ky District were selected as study sites, meeting the following criteria:

• Prior history of loss and degradation of forest land and resources

• New and existing factors that point to potential further risk of forest degradation

• Shifting cultivation still existent

• Possibility of developing interventions for prevention

Land use situation of Tan Ky district

3.2.1 Natural conditions

Geographic conditions in Con Cuong District

Cam Lam Commune borders Tuong Duong District to the north, the Lam River to the south, Don Phuc

and Binh Chuan Communes to the east, and Lang Khe Commune to the west (Figure 2)

Correspondingly, Don Phuc Commune borders Binh Chuan, Bong Khe and Mau Duc, Thach Ngan and

Mau Duc, and Cam Lam Communes to the north, south, east and west, respectively (Figure 2)

Mau Duc Commune shares its borders with Don Phuc, Bong Khe, Thach Ngan, and Don Phuc

Communes, following the same directions (Figure 2)

Finally, Thach Ngan Commune borders Quy Hop District and Anh Son District to the north and south,

and with Don Phuc Commune to the west (Figure 2)

Geographic conditions in Tan Ky District

To the north and south, Dong Van Commune borders with Tan Hop Commune and Huong Son and

Nghia Hanh Communes; the east and west-bordering areas are Tan An Commune and Tien Ky

Commune and Quy Hop District (Figure 2)

Tan Hop Commune borders Quy Hop District, Dong Van Commune, Giai Xuan Commune and Quy Hop

District (Figure 2)

Topography and climate

The topography and climate for the communes are described in detail in Table 3

Table 3: Topography and climate of selected communes in Con Cuong and Tan Ky Districts

Commune Cam Lam Don Phuc Mau Duc Thach Ngan Dong Van Tan Hop

370m693m220m

370m693m220m

370m693m220m

120m340m40m

120m340m40m

230C

420C

120C1,800mm

230C

420C

120C1,800mm

230C

420C

120C1,800mm

23.50C41.30C

70C1,700m

23.50C41.30C

70C1,700m

Land use

The land uses for the six communes are shown in Figure 5, which clearly shows that the predominant use of land in all of the communes is for forestry The data on land use areas and percentages are shown in Table 12, Annex 1

Figure 5: Current land use in the six selected communes

3.2.2 Socio-economic conditions

Population, labour and poverty rates

The six selected communes are remote areas; most of population are ethnic minorities with high poverty rates in comparison with district averages The data for commune population, labour and poverty rates are shown in Table 4

Table 4: Population, labour and poverty rates in the six selected communes

Commune

Population

household rate (%)

Total (people)

Kinh (people)

Economic structure

The economic structure in all selected communes consists of three main sectors: (1) agriculture and

forestry; (2) industry and construction; and (3) commercial service, in which the agricultural and

forestry sector plays a particularly significant role In Figure 6 below, the communes from top to

bottom are Tan Hop and Dong Van (Tan Ky District); and Thach Ngan, Mau Duc, Don Phuc and Cam

Lam (Con Cuong District) The full data about economic structures is listed in Table 11, Annex 1

Figure 6: Economic structure of the six communes

4 Livelihoods

4.1 Current livelihood options

Due to lack of land for cultivation, almost all households surveyed in the villages depend primarily on

natural resource-based activities (on-farm and off-farm) for their subsistence and livelihood

4.1.1 On-farm activities

The on-farm activities of the local people concentrate on activities such as shifting cultivation,

cultivation of wet rice, annual crops, home gardens, and animal husbandry, all of which together

comprise the farming system in the village

Shifting cultivation

The characteristic of shifting cultivation is to cultivate the plants without the use of fertilisers and

depend entirely on rain water Traditional swidden agriculture has low productivity, but due to the

limited availability of good arable land, the people have few other options

In recent times, the swidden land area has been reduced; local people are only allowed to practice

0 20 40 60 80 100(%)

Commercial serviceIndustrial and constructionAgricultural and forestry

Wet rice

Wet rice land area is distributed along the streams and the lowest areas of the village This land is used for sowing and transplanting two rice crops per year, winter-spring and summer-autumn The sowing and transplanting time of winter-spring rice is from November to May, while for the summer-autumn crop it is from June to October Most of the households have very small paddies (the average field area per household is 500m2) and wet rice productivity is accordingly very low Current yields provide the household with enough rice to eat for three to six months per year only, and production is not enough to sustain households with enough rice even for their own food needs; therefore, naturally no rice can be sold to provide an income source Moreover, the wet rice areas in the village are minimally sustainable, as these are dependent on and are located near streams, so during the summer season when the streams are dry, the paddies are also dry Conversely, during the rainy season, these streams are often flooded and the water flow carries away the rice plants

Home gardens

Traditional home gardens are characterized by various species such as banana, orange, lime and others, with bananas being the chief among these Generally, households still lack full understanding of home garden management, thus the income from this avenue is limited

Afforestation

In Con Cuong District, households were found to plant both met (a kind of bamboo) and acacia

Households in Tan Ky plant acacia only Presently, almost all households plant acacia on swidden land areas

Animal husbandry

An increase in animal husbandry is an inevitable activity within all communities, as many households hope to expand their livelihood options and boost their income by raising and breeding livestock, including pigs, buffaloes, cows and poultry such as chickens and ducks Pig farming requires a lot

of firewood and investment in feed and veterinary services, and few households can pay for animal vaccination or medicine for sick animals Although the local people are aware that animal husbandry provides substantial income for the household, their income remains stunted due to a lack of

experience and capital, inadequate investment and lack of access to veterinary services

4.1.2 Off-farm activities

In the surveyed villages, villagers carry out many activities related to the natural forest, such as shifting cultivation, logging, gathering NTFPs, and hunting wildlife Hunting or trapping activities are carried out simultaneously with the shifting cultivation cycle The ethnic minorities use traps around their fields

to protect the plants, setting them up in the forest and emptying them periodically Formerly, local people hunted wildlife for subsistence, to improve their family meals Trapping animals for sale is also increasing as an option to increase household income, but as yet income from this source is still low Local people also collect bamboo shoots, rattan, mushrooms, honey and other forest products These can serve as a significant source of household income, but due to over-exploitation, many of these NTFPs are becoming exhausted Bamboo shoots are the only exception, providing a constant and significant portion

of household livelihoods

Logging activities for timber and firewood are illegal, yet some people in the villages still undertake this task for the sake of the relatively high income it provides Generally, the men are in charge of cutting the timber and firewood, while the women and children cut and collect dry branches and trees for the purpose of providing fuel-wood for household use

4.2 Primary household income sources

Household income in the selected communes mainly comes from the agricultural and forestry sector Households rely on wet rice cultivation; cassava plantation, afforestation (acacia and met); raising pigs, buffalo and cows; collecting bamboo; and cutting firewood Households ranked how important each liveli-hood option was to their household subsistence and for income generation; results are shown in Table 5