Project: Improving policies for forest plantations to balance smallholder, industry and environmental needs in Lao PDR and Vietnam

Lao PDR and Vietnam have policies to support the expansion of tree plantations to meet economic development, poverty alleviation and landscape restoration goals

Lao PDR: 130,000 ha of timber plantations. Yet, concerns about adverse impacts on local land rights, rural livelihoods and other social and environmental values. 

Slow establishment of new plantations; moratorium on the granting of new concession areas; and future investment in plantations is uncertain

Vietnam:  1.7 M ha of plantations; managed by small holders ‐major livelihood contribution; environmental and social benefits. 

Future direction: greater benefits to small holders and industry, supply to an internationally‐significant furniture industry and improved environmental sustainability

2

Growing global demand for wood Significant international investment funds to invest in forest plantations

3

4

• New products from wood• Biomaterials• Biofuels• Biorefinery outputs• Engineered wood products

Source: Newforests

Forestry can contribute to poverty alleviation –potentially more than many other sectors ‐ but often does not

Industrial scale commercial forestry jobs and income have at best avoided exacerbating poverty 

Where the policy framework is favourable, evidence is growing that small and medium forestry enterprises can reduce poverty through:

improved economy‐wide impacts and for large and small‐scale commercial forestry to broaden livelihood opportunities 

poor people to influence decisions that affect policy

Needs: good information, strong local democracy, fair enforcement of simple rules, creative ideas and models, and a range of highly committed partnerships.

5

How to link large‐scale capital investment with smallholder plantation timber producers to provide social, economic and environmental benefits?

6

Australian project partners have been actively involved in research and education in both countries for more than 7 years (maybe longer?)

Considerable research collaboration on different aspects of plantation policy and management

Formal consultations in November and December 2014 identified key issues and research needs

7

Australia: 

Support small and large scale private sector development through innovative models for private sector partnerships and to engage local producers with global markets

Lao PDR 

Efficient and sustainable forestry industries, improved food security, technical and agribusiness research collaboration, improved institutional, training and communication frameworks that enhance capacity development 

Improved natural resource management that benefits livelihoods and food security, through delivering land‐use options to smallholders 

Vietnam 

human resource development, improved economic integration within the forest sector and environmental sustainability 

and addresses the 2014‐15 Operational Plan priority, of “advancement towards higher‐value plantation forestry products.”

8

FST/2010/012 Enhancing key elements of value chains for plantation‐grown wood

FST/2011/003 Effective implementation of payments for environmental services, 

FST/2012/041 Teak‐based agroforestry systems to enhance and diversify smallholder livelihoods in Luang Prabang province

FST/2004/057 Enhancing on‐farm incomes through improved silvicultural management of teak in Luang Prabang Province 

9

FST/2010/012 Enhancing key elements of value chains for plantation‐grown wood

FST/2008/039 Enhancement of production of acacia and eucalypt peeled and sliced veneer products in Vietnam and Australia

‘Acacia Economy in Vietnam’ by Prof. Neil Byron 10

To develop policy and institutional options for plantation development

To understand the positive and negative social, economic and environmental impacts associated with different tree plantation development approaches

To create a network for policy learning that builds capacity in plantation sector policy analysis, development and implementation

11

Evaluation of current policies

Research on policy options and their likely impact on policy goals

Evaluation of the potential impacts of different policy options. 

Three‐year project with activities are designed to facilitate policy learning across the two countries and with neighbours in the region

12

13

20 researchers• 7 from Australia• 7 from Lao PDR• 6 from Vietnam• 4 new 

appointments (2 in Lao, 2 in VN)

14

Lao PDRNUoL, 

NAFRI, StoraEnso

AustraliaUniversity of Melbourne, ANU, USQ

VietnamVAFS, 

VNForests, IPSARD, HUAF

Other plantation companies

GovernmentDepartments

NGOs

Communities

International organisations Other ACIAR projects

Consultants

GovtDepartments

Plantationcompanies

SawmillersFurniture cos

15

• Economic, social and environmental investigation

• Linking across scales 

• Analysis and synthesis

• Co‐production of research results

16

Websites in English,Lao and Vietnamese

Meetings and exchanges (formal and informal) with in‐country policy makers/other researchers.

Online collaboration tool; regular video‐conferencing

Project team meetings in both partner countries and Australia.

17

Principles:

Co‐design

Co‐production

Co‐implementation

18

Policy Recommendations

Presentations to policy makers

Reports Journal articles

Forum for dialogue 

Conference presentations

19

Improved national policy and institutions

Industry development 

and smallholder benefits

Environmental sustainability

Provincial government International investment

Efficient provincialgovernance

Profitable businesses

Villages and households

Sustainable livelihoods

Reduced poverty

Increased income diversity

Reduced vulnerability

Increased plantation investment Greater involvement in plantations from 

smallholder growers Reduced conflict Greater community benefit from plantation 

investment Increased wood production and value adding  Increased value along the supply chain, 

especially to smallholders and the associated rural communities

Wider participation in plantation policy development 

Increased capacity for policy research

20

21

More than 60% to country partners

Other Australian Partners

22

ACIAR fundsCommissioned OrganisationUniversity of Melbourne 428,151Collaborating InstitutionsAustralian National University 87,800University of Southern Queensland 49,905 Lao PDRNUoL 140,070 NAFRI 77,333 VietnamVAFS (inc.VNForests) 144,533 IPSARD 54,075 HUAF 18,000 TOTAL $999,866IN‐KIND $470,088

ACIAR Fund: $999,866More than 60% to country partners

Funded researchers at NUoLNAFRIVAFSIPSARD 

Other resourcesPhD student ANUAYAD at NUoL

Forest Plantation in Vietnam: Context, Opportunities, and ChallengesLe Van BachVNForest

Outlines

Overview of Forest in Vietnam

Policy on Forest Plantation Development

Opportunities

Challenges

Conclusions2

Overview of forest in Vietnam

Cove

r, %

Fore

st a

reas

. M

illio

n ha

Cover, % Plantation, million ha

Total areas, million ha

Plantation areas (ha) according to eco-region (2014)

South West

South East

Highlands

South Central

North Central

Red river delta

North East

North West

Plantation areas by functions and owners in 2013

• Large production forest area (50%)•Plantation areas of households and individuals: 1,7 million ha (of which, 50% are production forests); • Plantation areas of each household are of 1-3 ha

Special forestsProtection forestsProduction forests

Forest Management Board

State Enterprises

Other Sectors

Millitary

Households

Communities

Others

The export value of wood products from 2006-2015Ex

port

val

ues,

bill

ion

USD

The policies on plantation development

Afforestation is investment incentives, largely in the areas of investment incentives.

Production forest plantation is supported apart from state fund.

Applying export tax incentives for different kind of exported wooden furniture.

7

Opportunities

Policy on encouraging plantation development continue tobe confirmed.

Wooden furniture and forest products ‘s market is increasingly extended.

8

Challenges

Low productivity, plantation quality; and low ability of competition with other crops.

Scattered and small production scale, unconection.

Fine processing industry development is not commensurable

Difficult to access the credit investment.9

Conclussions

Research, propose and promulgate policies to mitigate the existing challenges, take advantage of opportunities, and promote the development of production forests, especially for small-scale forest owners linked to processing and marketing is the central task of restructuring the forest sector in Vietnam

10

Thank you

Forest Production, Country Context, Opportunities and Challenges 

Workshop on: Improving policies for forest plantations to balance smallholder, industry and environmental needs in Lao PDR and Vietnam (ADP-2014-047 )

Vientiane, 22 March 2016Prepared by:

Vongvilay Vongkhamsao (FRC/NAFRI/MAF)

Country Information• Country area of 23.68 million ha • Population of 6.8 million (22 p/Sq.km)• GDP per capita = US$ 1,628; Services 

37.4%; Industry 33.2%, Agriculture‐Forestry 23.5% (2014)

• 49 ethnic group• 76% of work force in agriculture and 

forestry sector.• Nearly 80% live in rural areas and

depend heavily on forest resource forsubsistence, especially NTFPs

Land areas

40.34%

34.75%

24.91%

Land types

Forest land

Potential forreforestaionOther landtypes

1. Forest land = 40.34 % ( 9,553,000 ha)

2. Potential area for rehabilitation = 34.75 % ( 8,229,000 ha)

3. Other land types: 24.91 % (5,889,000 ha) 

4. Total area: 23,680,000 ha

Land types

Forestry PolicyForest Policy:Increase forest cover to 70% in 2020 (in which 

plantation only 0.5M); 65% in 2015. 

Strategic approaches: – Protect and sustainably manage the 

remaining forests – Restore/rehabilitate the degraded forest 

lands 6.5 Mha (in which plantation only 0.5M).

– Recognize economic value of ecosystem services of forests

– Socialize forest management (by all and for all)

– Integrate SFM with other developments (land, agriculture, livelihood, etc)

Forest Types in Laos by 2020

I. Production Forest (3.1 M ha) 51 areas

II. Conservation Forest/NationalProtected Areas  (4.5 M ha)24 NBCAs + 2 corridors

III. (iii) Protection Forest  47 areas(7.9 M ha)

‐ Plantation 0.5 M ha‐ Village forest and community forest 

about 1 M ha

Total: 16.6 M ha (70% cover by year2020)

Forest cover in 2010 & 2015

0

10

20

30

40

50

60

North Middle South Total

33.9

42.747.2

40.339.9

49.555.5

47

20102015

Source: Dept. of Forestry, 2015

Tree Plantations 

• 1932‐1975 plantation with Teak: Xayyabouly, Luangprabang, Vientiane, Khammouan, Savanhnakhet, Saravan, Champasack, Sekong. Heave at Bachiang District Champasack.

• 1970 Lao‐Australia Forest Plantation with Eucalytusspp. (Nongteng, Dongdok, Nammo, Nonglom trials), …

1,041  1,384  1,973 

17,705 

54,650 

85,055 

171,670 

95,201 

72,362 

 ‐

 20,000

 40,000

 60,000

 80,000

 100,000

 120,000

 140,000

 160,000

 180,000

 200,000

1975‐80 1981‐85 1986‐90 1991‐95 1996‐00 2001‐05 2006‐10 2011‐15 2016‐20

Plantation in Laos 1975‐2015 & plan 2016‐2020 (Source: DoF, 2015)

Rubber, 271,079, 54%

Euc. & Acacia, 66,692, 13%

Teak, 50,000, 10%

Agar wood, 12,000, 3%

Other species, 45,938, 9%

New 2016‐20, 54,291, 11%

Plantation porpotion 2015 (ha) (Source: DoF, 2015)

Rubber Euc. & Acacia Teak Agar wood Other species New 2016‐20

Tree seed and seed sources for short rotation species

1. Eucalyptus camaldulensis: 5 ha in Namsouang, Forest Research Centre, Vientiane Capital, established 1996 by Lao‐ADB Forest plantation Project.

2. Eucalyptus camaldulensis: 5 ha in Savanhnakhet, Provincial Forest Office, established 1996 by Lao‐ADB Forest plantation Project.

3. Seed import from original Australia: Eucalyptus and Acacia

4. Cunninghamia lancelolata plantation in Phongsaly Province by Chinese company

5. Other sources from clones Vietnam, Thailand, China, … used by 5 majors companies FDI: (Oji, Birla, Sun Paper, StoraEnso, Boualapha)

• 50 000 ha teak plantations in Lao PDR 

• 98% smallholder managed• 26 500 ha in LPB Province

Now,

Challenges of Forest production

• Challenges:– Large scale conversion into cash crop

– Hydropower and mining– Shifting cultivation (Northern part)

– Forest fire

Challenges face in Forest production• Lack of strategy to promote on tree plantaion,  lack of 

detail plan for tree planting such as area, species requirements, information on environmental conditions  

• Lack of incentives for promoting on tree planting, especially land fee/tax collection from investors

• Lack of M&E for plantation establishment, some companies change concessional land to other purposes.

• Government suspended land concession for tree planting ( fast growing tree species and rubber trees)

• Insufficient budget to support

Plan 2016‐2020  Maintain existing forest in order to increase forest cover at 70%

by 2020 through forest rehabilitation in production forest at 650,000 ha and set up plantation at 100,000 ha (20,000 ha/yr). ( currently 440,000 ha tree planted or about 90% completed)

issue certified forest at 20% of total production forest. Develop village sustainable forest management plan at 1500

villages. Mobilise funding support from both local international donors. Forest law enforcement and governance. Capacity building on forest restoration and plant conservation. Participatory land use planning at the village level with focus on

agro-ecological zoning. Policy reforms and strengthening of interagency cooperation .

Thank you for attention

20-Jun-17

1

Tree plantations:policy successes & challenges

Peter KanowskiThe Australian National Universitye: peter.kanowski@anu.edu.au

SummaryTree plantations are: part of landscapes, enterprises & value chains

- so other policies matter too…

diverse (different forms, scales, purposes)- so policies need to accommodate diversity

relatively long-term investments- so policies need to be stable & robust

Planted forests: a continuum of forms

Source: http://www.fao.org/forestry/plantedforests/67504/enSee: Carle & Holmgren. 2008. Forest Products J 58(12): 6-18, Figure 1

20-Jun-17

2

Tree plantations: a diversity of forms

Luang Prabang, Lao PDR Prachinburi, Thailand - csr.doubleapaper.com/en/khanna_paper.asp

Veracel, Brazil Balsa smallholder, PNG

Tree plantations at different scales

Clockwise from bottom left: Zambia (CIFOR); Da Nang, Vietnam (x3)

Value chains of different character

20-Jun-17

3

Most tree plantation expansion = “fastwood”

McDermott 2012 for FSC, Figure 1 CIFOR 2003

(Intensively-managed) tree plantations

Photo Source: FAO 2010 Planted forests in sustainable forest management

Tree plantations for restoration (too)

Photo: Tony Bartlett

20-Jun-17

4

Tree planations: a history of contest

Photo credits: Philip Adlard; stopgetrees.org/; EJOLT - Vanessa Vilarinho

Tree plantations: continuing debate

www.foei.org/wp-content/uploads/2014/01/plantaciones-final-ingles.pdf

Tree plantations: principles for the future

theforestsdialogue.org/initiatives/IMPF www.fao.org/forestry/plantedforests/en/

20-Jun-17

5

Tree plantation policy: building blocks

Tree plantations: learning good practice

http://newgenerationplantations.org/en/what/

Tree plantations: principles for the future

Good governance Corporate responsibility

Enabling investment & market-driven Equitable sharing of benefits & costs

A landscape approach Sustainability across scales

20-Jun-17

6

Tree plantations – SME successes

Java - Photo: Tony Bartlett; CIFOR Annual Report 2013

Veracel, Brazil Visy paper mill, Australia

Tree plantations – corporate successes

Policy context 3:

Processing & markets

Industry policiesTrade policies

…

Policy context 2:

Field to processor

Plantation registrationHarvesting permitTransport permit

…

Policy context 1:

Tree growing

Land allocationSmallholder support

R&D …

Policy contexts & policies across the value chain …

20-Jun-17

7

Some examples of policy success (or not) …Country& ‘success’ score’ (1-5)

Farmers’ tree plantation status

Main reasons Comments

Thailand(3)

Eucalypts for paper mills

Demand/ land/ supply balance

Successful ‘agroforestry’

Lao PDR(1)

Teak in some provinces

Low-input crop for land tenure

Non-marketmotivation

Vietnam(5)

Acacia for many purposes

Best crop for poor lands

Doi moi favouredtree growing

New Zealand(4)

Pine for domestic& export markets

Market demand & competition

Flux between ag. & forestry

Australia(1)

Mostly marginal to markets

Poor policy design

Boom then bust

SummarySuccessful policies: encourage (or don’t discourage) tree growing

- trees are just like another agricultural crop

foster markets, minimise transaction costs- just as for other agricultural crops

are smart about processing & exporting- play to strengths and opportunities

20-Jun-17

1

Tree plantations:policy successes & challenges

Peter KanowskiThe Australian National Universitye: peter.kanowski@anu.edu.au

SummaryTree plantations are: part of landscapes, enterprises & value chains

- so other policies matter too…

diverse (different forms, scales, purposes)- so policies need to accommodate diversity

relatively long-term investments- so policies need to be stable & robust

Planted forests: a continuum of forms

Source: http://www.fao.org/forestry/plantedforests/67504/enSee: Carle & Holmgren. 2008. Forest Products J 58(12): 6-18, Figure 1

20-Jun-17

2

Tree plantations: a diversity of forms

Luang Prabang, Lao PDR Prachinburi, Thailand - csr.doubleapaper.com/en/khanna_paper.asp

Veracel, Brazil Balsa smallholder, PNG

Tree plantations at different scales

Clockwise from bottom left: Zambia (CIFOR); Da Nang, Vietnam (x3)

Value chains of different character

20-Jun-17

3

Most tree plantation expansion = “fastwood”

McDermott 2012 for FSC, Figure 1 CIFOR 2003

(Intensively-managed) tree plantations

Photo Source: FAO 2010 Planted forests in sustainable forest management

Tree plantations for restoration (too)

Photo: Tony Bartlett

20-Jun-17

4

Tree planations: a history of contest

Photo credits: Philip Adlard; stopgetrees.org/; EJOLT - Vanessa Vilarinho

Tree plantations: continuing debate

www.foei.org/wp-content/uploads/2014/01/plantaciones-final-ingles.pdf

Tree plantations: principles for the future

theforestsdialogue.org/initiatives/IMPF www.fao.org/forestry/plantedforests/en/

20-Jun-17

5

Tree plantation policy: building blocks

Tree plantations: learning good practice

http://newgenerationplantations.org/en/what/

Tree plantations: principles for the future

Good governance Corporate responsibility

Enabling investment & market-driven Equitable sharing of benefits & costs

A landscape approach Sustainability across scales

20-Jun-17

6

Tree plantations – SME successes

Java - Photo: Tony Bartlett; CIFOR Annual Report 2013

Veracel, Brazil Visy paper mill, Australia

Tree plantations – corporate successes

Policy context 3:

Processing & markets

Industry policiesTrade policies

…

Policy context 2:

Field to processor

Plantation registrationHarvesting permitTransport permit

…

Policy context 1:

Tree growing

Land allocationSmallholder support

R&D …

Policy contexts & policies across the value chain …

20-Jun-17

7

Some examples of policy success (or not) …Country& ‘success’ score’ (1-5)

Farmers’ tree plantation status

Main reasons Comments

Thailand(3)

Eucalypts for paper mills

Demand/ land/ supply balance

Successful ‘agroforestry’

Lao PDR(1)

Teak in some provinces

Low-input crop for land tenure

Non-marketmotivation

Vietnam(5)

Acacia for many purposes

Best crop for poor lands

Doi moi favouredtree growing

New Zealand(4)

Pine for domestic& export markets

Market demand & competition

Flux between ag. & forestry

Australia(1)

Mostly marginal to markets

Poor policy design

Boom then bust

SummarySuccessful policies: encourage (or don’t discourage) tree growing

- trees are just like another agricultural crop

foster markets, minimise transaction costs- just as for other agricultural crops

are smart about processing & exporting- play to strengths and opportunities

Project:

Module

Improving policies for forestplantations to balance smallholder,industry and environmental needsin Lao PDR andVietnam

The supply chain framework as anorganizing framework for policy analysis

Concept of supply chain and value chain 

Value chain framework

Forces of collaborative VC thinking 

Basic steps in VC analysis 

Approaches to VC Analysis

VC related projects for planted wood in Lao PDR

2

3

First figure: Traditional supply chain ―supply push; Second figure: Sustainable value chain ―consumer demand pull (Fearne, 2009).

4

Supply chain strategy                                                             Value chain strategy(Collins et al. 2015)

5

VC analysis/management involves four factors (Collins et al. 2015)

VCA can identify opportunities to improve the chain performance.  

VCA dimensions:  Consumer value;  Material flow; Information flow; and  Relationships/governance (Collins et al. 2015). 

We also use VCA as an organising framework for research

6

7(Dunne and Collins, 2004; Collins, 2009)

Identify knowledge networks  Map the chain (inputs, actors/arena/institution, and their roles)

Sampling design Conduct consumer surveys   Conduct semi‐structured interview (all chain actors)  Organise focus group discussion (or expert workshop) and conduct SWOT analysis 

Present key findings to the key stakeholders

8

9

10Causal‐loop diagram of teak furniture business in Indonesia (Purnomo et al., 2009)

Simple (coarse‐scale) approach

Average (medium‐scale) approach

Detailed (fine‐scale) approach

11

Literature review approach: ACIAR project in Laos, Midgley et al. (2012) 

SWOT Analysis using “SWOT assistance matrix”:  Forest fuel supply chains study in South East Europe, Rouch et al. (2015)

Participatory Action Research (PAR) approach: ACIAR Project in Indonesia, Purnomo (2013)

Systems Thinking (using STELLA Software): Indonesian Teak, Purnomo et al. (2009)

12

A financial analysis of Premium vs productivity: ACIAR project in Vietnam byAidan et.al.

Participatory Action Research (PAR) approach: ACIAR Project in Indonesia byPurnomo (2013)

Systems Thinking (using STELLA Software, Indonesian Teak paper): Teak paperby Purnomo et al. (2009)

13

14

ACIAR (VALTIP2) 

ACIAR teak agrof

VC related projects forplanted wood in Lao PDR(adapted from Midgley etal. 2012)

Divide into groups based on the value chain arenas of Establishment andmanagement Harvesting and transport Processing Markets

For each of these identify the Interests; Motivations; Barriers; and Issues

15

16

Interests Rank Motivations Barriers Issues