Developing a chain of large timber plantations

The enterprises of wood processing survey plantations and logging activities in plantations in Xuan Loc District. Photo by Phan Anh​

Joining the linkage chain, afforestation units will be supported to make FSC certificates to meet export requirements to difficult markets, receive investment capital advances and sign output offtake contracts.

Planting large timber forests for high efficiency

In the past time, most of the planted forest area is mainly Melaleuca trees planted in 4-5 years and harvested. If forest exploitation in the fourth and fifth year, only wood chips can be sold, the value is about VND60-80 million per hectare; average income is from VND10-12 million per hectare per year. In case it is converted into a large timber forest with a planting time of 10-12 years before harvesting, the timber value is about VND250 million per hectare, the average profit is VND20 million per hectare per year. With this movement, the investment cost is lower than that of small timber plantation because in the later stage, the main focus is on forest protection instead of reforestation.

Mr. Le Van Goi, Deputy Director of the Provincial Department of Agriculture and Rural Development, added that the transition to large timber plantations also has many social effects such as: growing large timber for high profits means increasing contributions to the State bank; creating many jobs, increase income, improve living standards for local people living near along the forest, especially ethnic minorities. Regarding the environment, changing farming methods and reducing investment costs help forest owners reduce the number of times of exploitation and reforestation without being soil erosion and washing away. Large wooden forests have the ability to absorb carbon, contributing to protecting the ecological environment and combating climate change. 

With the same opinion, Mr. Hoang Dinh Long, Director of the Management Board of Xuan Loc Protection Forest shared that, in addition to the production value, planted forests also have protection significance. In the current situation, the value of production and harvest on forestry land is still very low. Increasing the value of planted forests is very important. In particular, the sale of forest timber at good prices is very important for sustainable development. In fact, at present, planted forest timber is still mainly sold floating, because there is no forest certificate, no stable output, so the price is still low.

The chain model of large timber plantations is interested in investing in new Melaleuca varieties to increase economic efficiency. Photo by Phan Anh

The business invested in linked list.

Dong Nai Wood and Handicraft Association with the participation of businesses in the wood industry has cooperated with the Department of Agriculture and Rural Development and localities in the province to implement a program to build a chain of large timber plantations following sustainable direction.

In which, the Management Board of Xuan Loc Protection Forest is one of the units selected as a pilot area, from which it can be replicated to small forest owners. Having joined a large timber plantation association linked chain, all parties involved has benefits. In particular, forest growers participating in the linked chain will be able to sell timber at a better price, no longer selling floating timber as at present. Currently, the highest selling price of young trees and timber is only 4 million per a cubic meter, while for large timber, about 6.5 million per a cubic meter, growing large trees in terms of economic problems shows significantly efficiency.

In the linked chain, enterprises will come forward forest certificates, support capital and technical to keep planted trees longer and to sell products. In the short term, we will invest and exploit the existing tree, Melaleuca. In the long term, enterprises invest in selectively adding new varieties or investing in higher quality varieties.

Regarding the survey of production forest models in Xuan Loc District, Mr. Vo Quang Ha, Director of Tan Vinh Cuu Joint Stock Company (Tavico, Bien Hoa City) said that changes in the world are relatively rapid due to many influences such as the Covid-19 pandemic, the war between Russia and Ukraine, this instability affects the input materials of the wood processing industry. As one of the largest wood material suppliers in Vietnam, Tavico is striving to connect the wood industry from raw material suppliers to product manufacturers and distributors. Having joined linked chain, afforestation units and individuals will be supported to have FSC as required by many major export markets today. Enterprises will also investment capital on account for growers to convert from small to large timber forests, and minus investment costs when it completely harvested.

According to Mr. Ha, enterprises look forward to developing timber with legal forest certification in the country. The purpose is to have a stable source of wood in the future for the wood processing industry, especially develop large timber plantations in the province to bring benefits to forest growers and localities and create a stable supply chain. The enterprise has a wood drying workshop and product consumption area in Bien Hoa City. In the long term, enterprises can invest in wood processing workshops in raw material areas to facilitate exploitation and processing. "It is expected that enterprises, in the first time, will develop about 10,000 hectares of planted forests into the chain of FSC and convert into large timber forests," said Mr. Ha.

Phan Anh

From a local perspective, Mr. Nguyen Van Linh, Vice Chairman of the People's Committee of Xuan Loc District commented, the positive participation of enterprises plays a very important role in order to have an effective chain, especially in propaganda for forest growers to understand the effectiveness of the transformation model as well as joining the chain. The locality wants businesses to invest in building a linked chain from production to consumption, and a processing factory there and then.