Đề tài Developing an Agricultural Research and Development Priority Framework for Vietnam Forestry Sub-Sector Workshop

Developing an Agricultural Research and Development Priority Framework for Vietnam Forestry Sub-Sector Workshop Data and Information Sheets: Areas of Research & Development Opportunity (ARDOs) ARDO 1. Large Timber Production ARDO 2. Pulp and Small Log Products ARDO 3. Bamboo and Rattan ARDO 4. Non Timber Forest Products ARDO 5. Bio-diversity and Conservation ARDO 6. Environment and Services ARDO 7. Forest Policy June 2007 ForestryPriority Workshop. Data & Information Sheets 1 ARDO 1. Large Timber Production 1. ARDO DEFINITION 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 increase exports and national use of domestically produced timber, and reduce the import of timber. 1.2. Research scope: Research to improve productivity and quality of timber from natural and plantation forests; selection of species, tree improvement, planning and site- species specification; improvement of silviculture techniques, harvesting, wood treatment and processing techniques and marketing of timber and products of timber; sustainable forest management practices. 1.3. Coverage: -  Natural forests: native tree species commonly harvested with a focus on less known/less used species.  Plantations: Acacia spp. (especially focus on A. auriculiformis); Eucalyptus spp.; Pinus spp. (especially Pinus caribea); indigenous species: Hopea odorata, Dipterocarpus alatus, Parashorea cochinchinensis, Anisoptera spp. , Prumus arborea, Canarium spp., Endospermum chinesis, Cinamomum spp., Quercus wallichiana, Melia azedarach 2. INDUSTRY STATISTICS 2.1 Introduction Forests of Vietnam have high potential but inappropriate use and poor management systems have steadily decreased the forest resource. Because of incorrect recognition of the content and philosophy of forestry management, many mistakes in the past concerning the policies and conception in development, utilization and sector organization have been made. The forestry sector policy has gone from the extreme of harvesting (with the recognition that forest resources are endless) to the other extreme of suspension of the logging (focus only on forest protection and development). The consequences of mistaken in forestry sector are: (i) Yield and productivity of natural forests 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 the demand of processing industries. The growth and contribution of the forestry sector to GDP is relatively low and continues to fall as a percentage of GDP. In recent years the Forestry sector of Vietnam has experienced: ForestryPriority Workshop. Data & Information Sheets 2  Natural forests being restored (e.g. from 1995 to 2005, approximately 2 million ha restored);  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 m³ per year of which 1 million m³ is from plantations and the remainder from home gardens and scattered planting, providing raw materials for industry, and reducing pressure 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 the country. However:  Area, quality and bio-diversity of natural forests is still declining mainly due to conversion 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 in 1990s 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 and exports.  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 social forestry 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 in forestry development and to contribute to social and economic development, environmental conservation; poverty alleviation, and to increase the living standard of communities and people living in and around forests. Projected forest and forest land (million ha) Land type 2004 2010 2020 Total area planned as forest land 16,2 16,2 16,2 1. Permanent state forest area 12,3 14,0 14,3 ForestryPriority Workshop. Data & Information Sheets 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 Forest coverage (%) 36,7 43 43 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-forests and 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 from large timber) and 25-26 million m³ of fuel wood, (meaning 45-46 million m3 in total);  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 wood processing 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 and poor 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 river watershed; (ii) Establishment of material zone for wood and NTFP processing industries, 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 on 1.5 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. Strengthening export, focus on China market. (iii) Establishment and consolidation of systems of protection and special use forests in the sub-zone. (2) Red river delta ForestryPriority Workshop. Data & Information Sheets 4  (Hà Nam, Hà Nội, Hà Tây, Hải Dương, Hải Phòng, Hưng Yên, Nam Định, Ninh Bình, Thái Bình): (i) Establishment and consolidation of protection forest 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, moving sand 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 industrial grove: 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 protection forest in watershed region; (ii) Development of industrial grove Buôn Ma Thuột, 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 intensive forestation 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 scattered trees Growing Areas and Yields Up to now,Vietnam has about 2.2 million ha of planted forests; approximately 59% of which are production forests. Distribution of production “man made forest” by areas is as follows (Pham Dinh Tam, 2005): - Northern mountainous zone: 35,325 ha ForestryPriority Workshop. Data & Information Sheets 5 - North- Central: 257,331 ha - Central Coast: 286,178 ha - Central Highlands: 23,468 ha - South-east: 53,182 ha - Others zone: 216.796 ha The proportion of planted species is: - Pinus spp. : 14,82% - Acacia spp.: 15,50% - Eucalyptus spp.: 23,65% - Styrax tonkinensis: 4,34% - 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 NTFPs - - - 78,4 98,3 108,3 138,6 154,7 198,1 87,9* Source: Phan Sinh., Department of Industry and Trade & Statistic, General Department of customers 7/2005 (* Data of the first 5 months of 2005). Comparative Advantage  High Potential of physical conditions (climate, soils) offer higher growth rates of production forests.  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); ForestryPriority Workshop. Data & Information Sheets 6  Policies on forest and forest land allocation and tenure;  Decision 178 about Rights and duties of households and individuals with forest allocation.  Decision 186/2006/QĐ-TTg dated 14/8/2006 of Prim minister on regulation for forest management. 3. Industry Analysis 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 forest enterprises (SFEs). In the early 1990s there were 413 SFEs, of which 138 reported to district Governments, 199 to provincial Governments, the remaining 76 larger SFEs reported 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 a result, 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 were uneconomical and the Government initiated a nationwide program for all SFEs.  The changes envision forest management increasingly to be taken over by non government managers and much of land held by SFEs is to be allocated to non government 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 Decision 187/1999/QD-TTg from September 1999, and Political Bureau Resolution 28- NQ/TW from 16 June 2003 on the arrangement, renovation and development of State Farm and Forest Enterprises,  SFEs are to be reformed into four types of organizations: 1. Forest service enterprise, that support forestation, management and protection activities 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 this land is supposed to be contracted out for forest protection or reforestation.  At present, only approximately 32% of forests are managed by households; this proportion will be enhanced up to 80% by the year 2020 according to the forestry sector strategy of period: 2006-2020.  Most of large timber used for commercial production comes from natural forest, the contribution of plantations on large timber is very low. The situation should be improved by intensive investments for the research areas. 3.2 Supporting Infrastructure Wood processing industry:  There are approximately 1,200 of wood processing enterprises, of which: ForestryPriority Workshop. Data & Information Sheets 7 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 about the 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); Mekong river delta (88) and North West (11).  Most of wood processing establishments have old, underdeveloped technologies mainly using equipment imported from China, East European or domestic made.  Machinery is focused on sawmill operations creating semi-finished products, the other operations are mainly handicraft.  Some wood processing establishments have had intensive investment to improve technologies 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 products and to be regionally competitive.  The infrastructure development is at a low level and is not yet optimal for suitable flow of raw materials to processing establishments.  3.3. Markets  Value added products have gradually become more and more diversified and abundant and the quality of products is improved, step by step towards satisfying the requirements of domestic and export markets.  Handicraft products are mostly made of natural forest timber and the use of timber for 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 low volumes of exports, model and quality and continuity of supply of products is not consistent. The commercial promotion of Vietnam wood products through exhibitions 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 of Vietnam. 3.4. Future Trends and Key Market Issues 2003 2005 2010 2015 2020 Demand (1000 m3) 4.561 5.378 8.030 10.266 11.993 Domestic supply 3.700 10.000 Import 4.300 2.000 Source: National Forestry development strategy period 2006-2020 (4th draft April, 2006). ForestryPriority Workshop. Data & Information Sheets 8 4. R&D Information 4.1. Main Research Areas  Forest sector analysis and forecast the development trends of forest product processing 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 forest restoration after logging.  Research to develop silvicultural techniques for reclamation of degraded forest in intensive direction.  Research to define the main economic tree species providing large timber in each ecological zone...  Combination of tree improvement with silvicultural measurements to establish intensive 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 4.3. Funding  National budget, Up to now, large timber does not identified as an ARDO in Vietnam, so that no specific figures of total funding for large timber products were available. In general, investment for large timber research and production is still low compared with other forestry ARDOs.  ODA  Bilateral co operations  others ForestryPriority Workshop. Data & Information Sheets 9 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 tree species and site classification as the basis for forest plantation planning  Determination of essential wood properties as the basis for timber classification for end-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 ecological- economic zones (46 tree species).  Creating and impro