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

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 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 Acronyms CPC DARD DPC FC Commune People’s Committee Department of Agriculture and Rural Development District People’s Committee Forest Company NTFP Non-Timber Forest Products PFMB Protection Forest Management Board PPC REDD Provincial People’s Committee Reduced Emissions from Deforestation and Forest Degradation SFE State Forest Enterprise SNV Netherlands Development Organisation UNFCCC United Nations Framework Convention on Climate Change Pilot Study: Pro-Poor REDD in Nghe An Province Socio-economic assessment and analysis of deforestation and forest degradation 2010 i Table of Contents List of Tables iii List of Figures iii Introduction Methodology Context of study area 3.1 District background 3.1.1 Natural conditions 3.1.2 Socio-economic conditions 3.2 Commune background 3.2.1 Natural conditions 3.2.2 Socio-economic conditions 10 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 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 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 Proposed recommendations 22 Annex 22 ii Pilot Study: Pro-Poor REDD in Nghe An Province Socio-economic assessment and analysis of deforestation and forest degradation 2010 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 Figure 2: Map of Nghe An Province with selected study districts and communes Figure 3: Current land use in Con Cuong District 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 Pilot Study: Pro-Poor REDD in Nghe An Province Socio-economic assessment and analysis of deforestation and forest degradation 2010 iii 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 socioeconomic 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 Pilot Study: Pro-Poor REDD in Nghe An Province Socio-economic assessment and analysis of deforestation and forest degradation 2010 Methodology The study was conducted in three main steps: (1) preparation; (2) field work; and (3) reporting This process is illustrated in Figure 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 Meet with Nghe An DARD Con Cuong and Tan Ky Districts selected for assessment Step 1: Preparation Meet with Con Cuong and Tan Ky DARDs  I nterview local resource persons at district and commune levels  H  old focus group discussions at village level  C  onduct household surveys  H  old feedback meeting with relevant stakeholders at provincial and district levels  C  omplete report Step 2: Field work Step 3: Report writing Cam Lam, Don Phu, Mau Duc and Thach Ngan Communes of Con Cuong; and Dong Van and Tan Hop Communes of Tan Ky selected for assessment  ocal resource person L interview conducted in districts and communes   Focus group discussions conducted in 26 villages (17 in Con Cuong and in Tan Ky)  20 households surveyed (340 in Con Cuong and 180 in Tan Ky) Pilot Study: Pro-Poor REDD in Nghe An Province Socio-economic assessment and analysis of deforestation and forest degradation 2010 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 3.1 District background 3.1.1 Natural conditions Geographic description Con Cuong and Tan Ky are two mountainous districts in the western region of Nghe An Province Con Cuong lies at a distance of 120km from Vinh City, with Tan Ky 90km away from Vinh Con Cuong District shares its borders with Quy Hop and Quy Chau Districts to the north, Laos PDR to the south, Anh Son District to the east, and both Tuong Duong District and Laos to the west (see Figure 2) Correspondingly, Tan Ky District borders Quy Hop District, Do Luong District, Yen Thanh and Nghia Dan Districts, and Anh Son District (see Figure 2) Figure 2: Map of Nghe An Province with selected study districts and communes Vietnam Nghe An province Study site (Cam Lam, Don Phuc, Mau Duc and Thanh Ngan communes) Study site (Dong Van and Tan Hop communes) Pilot Study: Pro-Poor REDD in Nghe An Province Socio-economic assessment and analysis of deforestation and forest degradation 2010 Climate Climatic conditions for both districts are presented below in Table Table 1: Climatic conditions of Con Cuong and Tan Ky Districts Items Con Cuong Tan Ky Annual average temperature 230C 23.50C High temperature 420C 41.30C Low temperature 120C 70C 1,800mm 1,700mm 60% 86% North-easterly & South-westerly winds North-easterly winds Annual average rainfall Annual average humidity Monsoon Current Land Use Con Cuong District has twelve communes and one town The total natural area of the district is 173,831.12 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 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 Land use situation of Con Cuong district 17% 7% 76% Agricultural land Forestry land Land for other use purpose Pilot Study: Pro-Poor REDD in Nghe An Province Socio-economic assessment and analysis of deforestation and forest degradation 2010 Figure 4: Current land use in Tan Ky District Land use situation of Tan Ky district 12.71% 35.34% 51.95% 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 District Population Labour Poverty rate (% of hhs) Total Kinh Ethnic minority Con Cuong 65,239 19,572 45,667 40,509 30.7 Tan Ky 138,430 108,806 29,624 71,491 18.6 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 Pilot Study: Pro-Poor REDD in Nghe An Province Socio-economic assessment and analysis of deforestation and forest degradation 2010 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 livelihood option was to their household subsistence and for income generation; results are shown in Table 12 Pilot Study: Pro-Poor REDD in Nghe An Province Socio-economic assessment and analysis of deforestation and forest degradation 2010 Table 5: Ranking and livelihood options in the six selected communes Ranking* Con Cuong District Sector Tan Ky District Commune Cam Lam Don Phuc Mau Duc Thach Ngan Dong Van Tan Hop Wet rice cultivation 1 1 1 Planting cassava 2 1 1 Planting acacia 2 3 Planting met 1 3 - - Raising pigs, buffalos and cows 2 2 2 Collecting bamboo 1 1 Cutting firewood 1 1 * Ranking: 1- high priority; 2- average priority; 3- low priority Source: Synthesis from local resource person interview at commune level and FGDs 4.3 Products for potential value chain analysis Households grow a variety of agricultural and forestry products, yet three products – namely cassava, met and acacia – have the greatest potential for development and value chain analysis 4.3.1 Cassava In all surveyed communes, cassava was one of a the main crops planted in their swidden land Cassava is used for domestic use (eating and feeding pigs), but the majority of it is grown for sale at the market The market chain of cassava consists of four main actors: the producer, two levels of middle men, and the manufacturer (Figure 7) The first level middle man is the person within the village or commune who purchases the cassava from the households The second level middle man is found at the district level in Con Cuong, Tan Ky, Thanh Chuong and Do Luong, or at the provincial level When the level one middle man purchases a significant amount of cassava to transport, this is then sold to the middle man at level two, who transports the cassava to be sold to manufacturers in Thanh Chuong District Figure 7: Cassava market chain Middle man Producer (Household) (collector within village or commune) Middle man (businessmen in Con Cuong, Tan Ky, Thanh Chuong and Do Luong) Manufacturer in Thanh Chuong Pilot Study: Pro-Poor REDD in Nghe An Province Socio-economic assessment and analysis of deforestation and forest degradation 2010 13 4.3.2 Met In four selected communes in Con Cuong District, met is often planted in forest gardens, and on forestry land This crop is mainly produced for sale at the market The market chain of met consists of three main actors: the producer, the middle man/collector, and businessmen (Figure 8) The middle men are people from Con Cuong town, they purchase the met product within the district, then transport it to be sold to business owners in Dien Chau, Quynh Luu Districts, in Nghe An Province Figure 8: Met market chain Producer (Household) Middle man (Con Cuong town) Business owner (Dien Chau and Quynh Luu) 4.3.3 Acacia The acacia market chain is composed of three main actors: the producer, the middle man and the processing company (Figure 9) Middle men are persons within or outside commune who purchase the live acacia trees on-site at the household forest, then hire labourers to cut and transport the trees to be sold to Tan Hong processing company Figure 9: Acacia market chain Forest owner (Household) Middle man (within or outside commune) Processing company (Tan Hong) 4.4 Cost-benefit analysis of potential alternative livelihood options Presently, most households concentrate on wet-rice cultivation to ensure food security, although the area and productivity is still limited In order to generate income, households tend to use swidden land to plant cassava, acacia, and met The most common model is to intercrop acacia and cassava However, farmers prefer to plant cassava and met over acacia, for the following reasons: 14 Pilot Study: Pro-Poor REDD in Nghe An Province Socio-economic assessment and analysis of deforestation and forest degradation 2010 • Short turn-around period: cassava is about one year; met is about 4-5 years; acacia is about 5-7 years • Cassava and met are easy to plant and are suitable to the local natural conditions • Households have experience in planting cassava and met • Sources of seeds/seedlings are readily available locally • Long cropping and return period for met: 60-70 years from first time harvesting • Market demand is higher for cassava and met 4.4.1 Cassava (per ha/year) Input costs: Labour used (family labour): 80 days • Fertiliser: 50 kg x 10,000 VND/kg = 500,000 VND • Total input cost: 500,000 VND (excluding labour and seedlings) Total revenue: 1,500 kg x 2,000 VND = 3,000,000 VND Gross revenue: 3,000,000 VND – 500,000 VND = 2,500,000 VND 4.4.2 Met (per in first years) Input cost: • Seedlings: 250 seedlings x 5,000 VND = 1,250,000 VND • Fertiliser: 75 kg x 10,000 VND/kg = 750,000 VND • Labour used (family labour): 186 days (including harvest days) • Total input cost: 2,000,000 VND (excluding labour) Total revenue: 1,000 trees x 8,000 VND = 8,000,000 VND Gross revenue: 8,000,000 VND – 2,000,000 VND = 6,000,000 VND From the 6th year, households invest only labour for tending and harvesting the crop(tending: 20 days; harvesting: 50 days) 4.4.3 Acacia (per in years) Input cost: • Seedlings: 2200 seedlings x 6,000 VND = 1,320,000 VND • Fertilizer: 660 kg x 10,000 VND/kg = 6,600,000 VND • Labour used (family labour): 196 days (including harvest days) • Total input cost: 7,920,000 VND (excluding labour) Total revenue: 18,000,000 VND (price at forest by purchase live trees) Gross revenue: 18,000,000 VND – 7,920,000 VND = 10,800,000 VND Pilot Study: Pro-Poor REDD in Nghe An Province Socio-economic assessment and analysis of deforestation and forest degradation 2010 15 D  eforestation and forest degradation causal analyis 5.1 Forest changes in Con Cuong and Tan Ky Districts The changes in forest area for Con Cuong and Tan Ky districts from 2005 to 2009 are presented in Table This data was collected from the Department of Agriculture and Rural Development (DARD) in Nghe An Province, and shows an increase in forest cover (both natural forest and plantations) during the given time period Table 6: Changes in forest land in Con Cuong and Tan Ky Districts, 2005-2009 Year Plantation Total natural area Land with forest cover Natural forest area (ha) (ha) (ha) Total area