A study to assess the potential impact of voluntary partnership agreement vpa to the livelihood of local people in dong xa commune na ri district bac kan province

THAI NGUYEN UNIVERSITY UNIVERSITY OF AGRICULTURE AND FORESTRY DUONG THI NHUNG ASSESSING THE POTENTIAL IMPACT OF VOLUNTARY PARTNERSHIP AGREEMENT (VPA) TO THE LIVELIHOOD OF LOCAL PEOPLE IN DONG XA COMMUNE, NA RI DISTRICT, BAC KAN PROVINCE BACHELOR THESIS Study Mode : Full-time Major : Environmental Science and Management Faculty : International Training and Development Center Batch : 2011 – 2015 Thai Nguyen, September 2015 Thai Nguyen University of Agriculture and Forest Degree Program Bachelor of Environmental Science and Management Student name DUONG THI NHUNG Student ID DTN1153120010 Thesis Title A study to assess the potential impact of Voluntary Partnership Agreement (VPA) to the livelihood of local people in Dong Xa commune, Na Ri district, Bac Kan province Supervisor (s) Assoc Prof Tran Thi Thu Ha Abstract: VPA / FLEGT are bilateral trade agreement signed by the EU with partner countries exporting wood and wood products Accordingly, national partners committed only exports to the EU wood and wood products illegal National partners establish an assurance system to verify the legality of timber and FLEGT licenses for wood and wood products will export to the EU For a mountainous commune like Dong Xa Commune, Na Ri District, the economic life of people is more difficult, low educational levels, infrastructure such as roads, schools, electricity from the national grid, and commune health stations, although the State has done investment interest, but it remains difficult The application of regulations on forest and wood of the VPA will affect greatly to the life of people in here So, the main objective of the study was to assess the impacts of VPA the livelihood of two groups of vulnerable communes in Dong Xa, which is : (1) smallscale woodworking households; (2) households having life dependent on the forest, forest plantations in forest area due to the commune People's Committee of Management but no legal papers, no forest land, or have very little forest land and forest Using interviewing people in ten villages of Dong Xa commune, surveys, collect data on their income, the afforestation of households, analysis of interviewing data, secondary data of Dong Xa, Na Ri district, found that: The vulnerability that small-scale woodworking households encountered, such as: increased production costs ii from the price increase legal timber; increased transaction costs to achieve the legal requirements for business registration and operation of enterprises; and vulnerable because of changes in the market lead to changes in hiring (especially, the households hire labor in outside) For households having life dependent on the forest, forest plantations in forest area due to the commune People's Committee of Management but no legal papers, no forest land, or have very little forest land and forest, they are minorities and has a long tradition of sticking with their forests and livelihood depend on forests So, they are very vulnerable to changes in forestry regulations and access to forest resources (including wood and non-wood products) Their source of income will be reduced, due to difficulty selling timber to the outside with many regulations and procedures Key words: VPA, FLEGT, livelihood, forest, EU, illegal logging, Number of pages: 56 Date of Submission: September 30th, 2015 Supervisor (Sign) iii ACKNOWLEDGEMET I would like to express my sincere gratitude to my research supervisor, Assoc Prof Tran Thi Thu Ha, Director of Institute of Research and Development of Forestry, Thai Nguyen University of Agriculture and Forestry, for supporting me all the way through this thesis Her invaluable encouragement interesting viewpoints and constructive comments on this thesis have been highly appreciated Therefore, I have completed the project on time Further, I would like to sincerely thank the school administrator, ITC along with teachers, the Department of Natural Resources and Environment, Department of Agriculture and Rural Development of Bac Kan province, Forestry Department in Bac Kan province, the relevant authorities of Na Ri and Dong Xa Commune People's Committee with the enthusiastic help, were enthusiastically supported and created favorable conditions, provided with full and correct data for me to finish my duties Finally, I would like to thank all my friends, my classmates, especially my family for their great support During the internship, I tried very hard, but due to lack of experience and knowledge, my thesis has unavoidably flawed I would like to receive the heartfelt comments of teachers and friends for my thesis were more complete I sincerely thank you! Thai Nguyen, September 30th, 2015 The implementation Duong Thi Nhung iv TABLE OF CONTENT LIST OF FIGURES LIST OF TABLES LIST OF ABBREVIATIONS PART I INTRODUCTION 1.1 Rationale 1.2 Research objectives 1.3 Research question and hypotheses 1.4 The limitations 1.5 Research significance PART II LITERATURE REVIEW 2.1 The Voluntary Partnership Agreement 2.1.1 Definition of voluntary partnership agreement 2.1.2 The Voluntary Partnership Agreement includes 2.1.3 Construction Voluntary Partnership Agreement 11 2.2.1 Definition of illegal wood 18 2.2.2 Implementation the definition of legality of timber 19 2.3 Forest status in Vietnam 20 2.3.1 Fluctuations in Vietnam forests 20 2.3.2 The status and changes of forest in Bac Kan .22 PART III METHODS 30 3.1 Subject 30 3.2 Research design 30 3.3 Research contents 30 3.4 Research Methodology 31 3.4.1 Data collection methods 31 3.4.2 Fieldwork Methods 31 3.4.3 Data processing methods 32 3.4.4 Experts Consultation 32 v PART IV RESULTS 33 4.1 Current status of forest land allocation in Dong Xa Commune 33 4.2 Small-scale woodworking households 35 4.2.1 The main characteristic of small-scale woodworking households 35 4.2.2 Some impacts of VPA to small-scale woodworking households 41 4.3 Households having life dependent on the forest and forest plantations in forest area due to the commune’s People's Committee of Management but no legal papers 43 4.3.1 The main characteristics of the study group 43 4.3.2 The issues that research target group encountered and the impact of the VPA 46 PART V DISCUSSION AND CONCLUSION 51 5.1 Discussion 51 5.2 Conclusion 52 REFERENCES 54 vi LIST OF FIGURES Figure 2.1 Organizational structure of FLEGT/VPA 4negotiation of Vietnam .15 Figure 2.2 Forest coverage rate over the years of Bac Kan Province 24 Figure 4.1 Bac Kan province map - Na Ri location purple blue 33 LIST OF TABLES Table 2.1: The variation in forest area Vietnam during 1943-2012 (million hectares) 20 Table 2.2 Structure of forest types 21 Table 2.3 The area of forest land according three forest types through the years 2011 – 2014 23 Table 2.4 Afforestation area through the years 2011-2014 24 Table 2.5 The percentage of forest cover over the years 2011-2014 24 Table 2.6 The percentage of forest cover in the districts, towns 25 Table 4.1 Data consolidation: Planning of forest land in the district in 20102013 .34 Table 4.2 Current status of forestland allocation in Dong Xa Commune .35 Table 4.3 Interviewing information of small-scale woodworking households .36 Table 4.4 Production method, income of small-scale woodworking households 37 Table 4.5 The procedure of the production process wood and wood products .38 Table 4.6 Interviewing information of households having life dependent on the forest 44 Table 4.7 The income of households having life dependent on the forest and forest plantations in forest area 45 LIST OF ABBREVIATIONS Abbreviations The meaning CPC Commune people’s committee CSOs Civil society organizations DPC District people’s committee EU The European Union EUTR 995 EU Timber Regulation FLEGT Forest law enforcement, Government and Trade IFAD International foundation agriculture development LD Legality definition MARD Ministry of Agriculture and rural development SRD Sustainable rural development TLAS Timber legality assurance system TWG Team working group VNGO-FLEGT The Vietnamese Non-government organization’s network on forest law enforcement, government and trade VNTLAS Vietnam Timber legality assurance system VPA Voluntary partnership agreement PART I INTRODUCTION 1.1 Rationale The topography of the country in majority area of hills, but mainly low hills and mountainous terrains accounts for three quarters of the territory The terrain with elevations below 1000m up 85% of the area is mainly distributed in the North and West territory, on the 2000m high terrain only accounts for 1% The area of forest land in our country in 2005 was 14.43 million hectares, accounting for 43.6% of the natural land With varied terrain, tropical climate has changed from North to South, it has created a diversity of natural ecosystems and the abundance of the species These ecosystems include many forest types such as many broad-leaved evergreen forests, semi-deciduous forest, deciduous forest, limestone forest, mixed forest of coniferous and broadleaved, coniferous forest, bamboo forest, mangroves, mangrove forests, and freshwater wetland forest However, in recent years due to overexploitation of human, natural disasters and forest fires, resources of Vietnam were severely reduced in both quantity and quality of forests (Thuong, 2005) From 11/2010, Vietnam and the European Union (EU) have announced negotiations Voluntary Partnership Agreement (VPA) on strengthening forest law enforcement, governance of forests and forest products trade (FLEGT) Currently, both sides are in the final stages of the negotiation process Research project:“Assessing the potential impact of Voluntary partnership agreement (VPA) to the livelihood of local people in Dong Xa commune, Na Ri district, Bac Kan province” to provide a portion of the results and put forecasting situations of two groups of vulnerable: small-scale woodworking households and households having life dependent on the forest, forest plantations in forest area due to the commune People's scale change under the new situation, could make it difficult for households and small processing continue, leading to closures - Ethnic households having life dependent on forests not participate much in providing wood and woodworking for export markets, due to they join multiple in the activities of small consumed in the locality However, the minority communities have a long tradition of sticking with their forests and livelihood often depend on access to forest resources So they are very vulnerable to changes in the regulation of forestry and forest resources approach (including wood and non-wood products) The impact of the VPA of this group is indirect but also important with negative consequences to their livelihood 53 REFERENCES Centre for sustainable rural development & Sustainable forest management institutes and forest certification (2013) Report on the results of public consultation on the legality of timber and timber products in Na Ri district, Bac Kan Province FLEGT proposal for an EU Action Plan (2003) Communication from the Commission to the Council and the European Parliament Hoang, M.H, Van, N.W and Pham, T.T (2008) How to experience and apply the lessons of Environmental Services payment for the project "The poor partner in the development of agriculture and forestry in Bac Kan province.", ICRAF Vietnam Journal of Wood Vietnam No.59 August (2014) Implementation of the agreement VPA / FLEGT: Awareness and Action timber business community in Vietnam Nang, D.V (2009) Vietnamese agricultural provinces 61 Agriculture Publisher, 2001 Pham, T.T., Moeliono, M., Nguyen, T.H., Vũ, T.H (2012) The context of REED+ in Vietnam: Drivers, agents and institutions Occasional Paper 75 CIFOR, Bogor, Indonesia Tran, M.T (2005) Vietnam culture and tourism Thong Tan Publisher: HCM Vietnam Ministry of Agriculture and Rural Development (2009) Science Technology Agriculture and Rural Development 20 years, Episode VNGO-FLEGT (2014) Report the livelihood impact assessment of the VPA Sustainable Rural Development Center, Pages 5-6 54 Andy, R.b, DFID Senior Forestry Adviser Jakarta (2013) Voluntary Partnership Agreements and the Mekong Asia-Pacific Action Group (1991).“The Barnett Report: A Summary of the Commission of Inquiry into Aspects of the Timber Industry in Papua New Guinea” Asia-Pacific Action Group Hobart Australia Barbier, E, Burgess, J, Bishop, J, Aylward, B (1994).“The Economics of the Tropical Timber Trade”, Earthscan, London Callister, DJ (1992) “Illegal Tropical Timber Trade: Asia-Pacific” TRAFFIC International Cambridge Cervigni, R (1993).“Biodiversity, Incentives to Deforest and Tradeable Development Rights” Centre for Social and Economic Research on the Global Environment (CSERGE) Working Paper GEC 93-07 University College London Dauvergne, P (1997).“Shadows in the Forest: Japan and the Politics of Timber in Southeast Asia” MIT Press Cambridge & London EU FLEGT Facility (2009) The European Union Approach, EFI Policy Brief 3: What Is a Voluntary Partnership Agreement? Pearce, DW (1995), “Global Environmental Value and the Tropical Forests: Demonstration and Capture”, in V.Adamowicz et al (Eds), Forests, Economics and Sustainable Development CAB International Wallingford Rights and Resources Initiative (2014) What Future for Reform? Progress and slowdown in forest tenure reform since 2002 Washington DC: Rights and Resources Initiative 55 The Vietnamese Non-Governmental Organizations Network for Forest Law Enforcement, Governance and Trade (VNGO & FLEGT) (2013) Comments on the 5th Draft of Legality Definitions on Timber and Timber Products for the Voluntary Partnership Agreement (VPA/FLEGT) negotiation between the Vietnamese Government and the European Union Department for Science, Technology and International Cooperation (2014) Dam phan VPA / Flegt voi EU Retrieved from: http://tongcuclamnghiep.gov.vn/dam-phan-vpa-flegt-voi-eu/viet-nam-valien-minh-chau-au-tien-hanh-phien-dam-phan-cap-cao-lan-thu-4-ve-hiepdinh-doi-tac-tu-nguyen-vpa-flegt-a2052 (assessed on 05/04/2015) Department of Agriculture and Rural Development in Bac Kan Province (2010) Bao ve rung o Bac Kan Retrieved from: http://dangcongsan.vn/cpv/Modules/Preview/PrintPreview.aspx?co_id=100 45&cn_id=391559 (assessed on 01/20/2015) Viet Nam Administration of forestry (2013) Bao cao qua trinh xay dung va tham van ve dinh nghia go hop phap Retrieved from: http://tongcuclamnghiep.gov.vn/dam-phan-vpa-flegt-voi-eu/bao-cao-quatrinh-xay-dung-va-tham-van-ve-dinh-nghia-go-hop-phap-phu-luc-2-cuahiep-dinh-vpa-flegt-giua-viet-nam-va-eu-a1287(assessed on 28/03/2015) Web portal in Bac Kan province, Na Ri district (2012) Dieu Kien Tu Nhien Retrieved from: http://nari.backan.gov.vn/Pages/gioi-thieu-chung-285/dieukien-tu-nhien-291/C490iE1BB81u20kiE1-caf4ae0a4d47ca6c.aspx (assessed on 01/20/2015) 56 APPENDICES 1A INTERVIEW QUESTIONS HOUSEHOLD (For small-scale woodworking household) Number of interview: (Circle the options) I General Information: Province: Commune: Hamlet: Date of interview: Name of interviewer: Name of person interviewed: Phone number (for additional information if needed): Gender of people interviewed: 1- Male 2- Female Relationship to head of household:…………………………………………… Full name of head of household: ………………………………………………… II Information on household: Ethnicity: Families are local or from other places? 1- local people (living within the district before 1990) 2- other places (reply to 2a, 2b) 2a If other places: starting to live in certain localities (write year): …………… 2b Styled migration: 1- Free 2- New economy 3- Other (specify)…………… Status of current residence: 1- Permanent residence 2- Temporary residence KT3 3- Other (specify)…………….…….…….…….…….…… Age: (KT3: Book long-term residence in a province or Central Government cities directly under other than the registered place of residence) Number of people in the family: ………………Number of laborers:…………………… Their main source of livelihood: 1- Agriculture 2- Forestry 3- Industry 4- Employee 5- Trade and services 6- Staff 7- Other Classified the household economy (according to the state standards): 1- poor 2- near poor 3- other …………… … Educational level decision makers in the household: 1- Illiteracy 2- Elementary 3- High School and above high school Activities that they participated in relation to timber (can choose more than one activity) 1- Afforestation 2- Exploitation 3- purchase, sale and transportation of timber / wood product 4- processing 5- Other (specify) …………………………………… Before opening production bases your family (Mrs.) has prepared what procedures? (Register of business, purchase tax invoice, contract to provide goods and products ) ………………………………………………………………………………………………… 10 What is the size of your factory? How many m2? What are machines equipped? How much is shopping dedicates machines? ………………………………………………………………………………………………… 11 Per year, how many kinds of m3 your family purchased? ………………………………………………………………………………………………… 12 The origin and volume of households buying and selling timber or transporting (applies to both cases the direct processing of households purchasing and organizing transport or sale) The origin timber sale transporting Natural forest of Purchase and sale / Yes No Transporting Yes No Average volume / year Plantations focused Yes No Yes No Layering (gardens, Yes farms, road ) No Yes No Note: The volume of transporting calculated by the average m3 roundwood per year 13 Papers relating to the purchase, sale and transportation of unprocessed timber originating from the exploitation of natural forests in the country (in case of direct household purchasing process and transporting organizations, if not, move on to question 14) Yes Note (marking) (not answer) 13a Comply with the legal provisions on legal documents a1 Invoicing The value added of the Ministry of Finance (in the case of wood purchased from the organization) founded by the owner wood, confirmed by forest products owners a2 A list of owners timber forest products made from certified by the commune People's Committee (the case of wood purchased from households) a3 A list of owners timber forest products made from certified by the Forest Department at the establishments (where to buy wood from the organization) 13b Roundwood with large head diameter> = 25 cm and the length> = m and sawn timber, and hewn timber forest in lengths from m or more, a thickness of cm and a width of 20 cm or more b4 Wood harvested from the forest is allocated to allow exploiting to use in place, otherwise then asked the following text b5 The record certifying hammering Forest Ranger by local authorities established and confirmed b6 A list of forest product by the exploitation unit or the owner timber establish, be certified by the local forest protection agencies 14 Papers relating to the purchase, sale and transportation of unprocessed wood sourced from plantations focused (if timber gardens, farms, scattered trees -> specify) (In case of direct household purchasing processing and transporting organizations, if not then move on to question 15) Yes Note (marking) (not answer) 14a Comply with the provisions of legal documents a1 Sales invoice Finance Ministry (the Value Added) as prescribed by the Ministry of Finance (in the case of wood purchased from the organization) established and certified by the owner wood a2 A list of forest products by forest owners or the owner timber establish (records of forest products by local communities, households and individuals output) 14b Roundwood with large head diameter> = 25 cm and length> = m and lumber, hewn timber forest in length from m or more, thickness of cm and a width of 20 cm or more of endangered, precious and rare, must have forest protection stamp on wood and materials: b3 The certification record hammering wood Forest Ranger by local authorities established and confirmed b4 A list of forest products by the exploitation unit or the timber established, be certified by the local ranger 15 Papers relating to purchase / transport timber and processed timber products sourced from natural forests 15a Comply with the provisions of legal documents a1 The invoice of Value Added prescribed by the Ministry of Finance (in the case of wood purchased from the organization) established by the owner and certified wood a2 A list of forest products established by the owner timber, be certified testing agency of the Provincial Forest Yes Note (marking) (not answer) 15b Roundwood with large head diameter> = 25 cm and length> = 1m to have forest protection stamp and the following documents b3 The certification record hammering wood Forest Ranger by local authorities established and confirmed b4 A list of forest products established by the owner timber, be certified testing agency of the Provincial Forest 16 Describe how the organization of production and processing of your family (Mr / Mrs.) (organizational inputs, production, markets, subjects consumed the product, the annual yield for each product category ) ………………………………………………………………………………………………… 17 How much is the average annual income of the family? How much is revenue from timber processing? ………………………………………………………………………………………………… 18 Annual capital investment to purchase, transport and processing of the family is taken from the source? Specifically, how many of each item (purchase of raw materials, labor remuneration, public transportation ) The local credit can afford to support your family (Mr./Mrs.), does not? If yes approximately how much investment compared to your family (Mr./Mrs.) needed? ………………………………………………………………………………………………… 19 The level of investment in transport and processing of your family (Mrs.), what the problem is often affected? (Market prices, supply and demand, the policy of the State, local ) ………………………………………………………………………………………………… 20 Currently, how much your family are using labor? How much Family labor involved in the operation of the workshop? Do you hire labor? If yes, how many? Rent seasonal or longterm? Do you have labor contract? ………………………………………………………………………………………………… 21 Your family workers (Mrs) are hiring local people and outsiders? As unskilled workers or people who have experience? The average salary of employees of your family (Mr./Mrs.) rent is how much / month? Also what is others mode? (Rewarded by product, social insurance contributions, supported accommodation, furnished labor protection ) ………………………………………………………………………………………………… 22 Your family (Mrs) has joint ventures, associated with households and businesses in the wood sourcing, manufacturing and consumer products, not? If so, how is done? (If you not move on to question 23) ………………………………………………………………………………………………… 23 Mr Family (Mrs.) what measures to deal with noise, dust and waste production is not? If so, how perform? The authorities have regularly checked or not? ………………………………………………………………………………………………… 24 According to Mr (Mrs.) current policy mechanisms of the State, local regulations relating to the purchase, transportation and consumption of processed with the problems of inappropriate? That is the problem? Why not fit? ………………………………………………………………………………………………… 25 What are the advantages and disadvantages which family he (she) was encountered in maintaining and expanding production? ………………………………………………………………………………………………… 26 What are the suggestions / wishes of protection for active expansion of production and consumption of products and innovative technology? Thank you so much! APPENDICES 1B HOUSEHOLD INTERVIEW QUESTIONS (For household groups having life dependent on forests, but no forest and forest land) No : (Circle the chosen answers) I Genreral information: District Commune Village Interview date: Interviewer’s name: Interviewees’s name Phone number ( if necessary) Gender of interviewer: 1- Male 2- Female Age: …………………… The relationship with head of household:…………………………………… Head of household’s name: …………………………………………………… II Households’s information Nationality Families are local or from other localities? Status of current residence: 1- Permanent residence 2- Temporary residence KT3 3- Other (specify)…………….…….…….…….…….…… (KT3: Book long-term residence in a province or Central Government cities directly under other than the registered place of residence) Number of people in the family: ………………Number of laborers:…………………… Their main source of livelihood: 1- Agriculture 2- Forestry 4- Employee 5- Trade and services 6- Staff 7- Other 3- Industry Classified the household economy (according to the state standards): 1- poor 2- near poor 3- other …………… … Educational level of decision makers in households 1- analphabetic 2- school 3- secondary school and high school Activities of households related to wood and timber (may be choose more than one activity) 1234- growing forest exploting forest purchasing and transportating of timber / wood wood manufacturing process 5- others ( clearly)…… How many Agricultural land area your family have? what are species often cultivated? The annual productivity? ………………………………………………………………………………………………… 10 With the field productivity,Is it enough to meet the your family’s consumption? If not, why? ………………………………………………………………………………………………… 11 Is the agricultural land area of your family interspersed with forests or forest land ? If it is, then how the agricultural land in the current position influences to the production activities of your family? (If not, move on to question 12) ………………………………………………………………………………………………… 12 Why your family hasn’t receive land, forest land to protect forest and to produce? Have your family disseminaded GĐGR policy by local government and encouraged to receive forestland? ………………………………………………………………………………………………… 13 How much is average annual income of your family? What is the main source of income? How much income from forest, how many percents of other revenues accounted for? ………………………………………………………………………………………………… 14 What about collecting activities of your family in forests? What kind of forest products your family often collect? How many kg aveage products/ one collecting time? How often does collecting activites of your family occur ? what are the purpose of those products? ………………………………………………………………………………………………… 15 After conducting FLA by local government , what are the troubles your family meet in the collecting forest product processes? ………………………………………………………………………………………………… 16 Has your family received supports from the government or public institutions to develop manufacturing processes? If yes, then what are the supports? What are the regulations to receive supports? If the financial capital or seedlings, how much? ………………………………………………………………………………………………… 17 Does your family take part in growing, protecting, exploiting and processing wood in forest? What are the form (working following the annual contracts or seasonal workers)? How many average income from such activities be? This work has often or not? 18 For Employment, how to calculate salary? Could the agreement write on paper and you sign or just verbal agreement? In addition to normal payment for salary, will the renter tobe sure to add any conditions your during work or not? ………………………………………………………………………………………………… 19 Have you disseminaded or trained about forest protection and development law? Has your commune and village have forest protection regulations? How has local people in your commune observanced those rules and regulations? Is there any infringement ocurr? If yes, then you know what are the reasons? ………………………………………………………………………………………………… 20 According to you, about the policies of the government and local regulations on agricultural production or regulation of participants receiving forest and forest land, what is any regulations not appropriate and necessary change to help local people receive more forestland? If yes then what needs to change? ………………………………………………………………………………………………… 21 What are the troubles your family meets in the agricultural manufacturing process? What are the methods your family appllies to overcome obstades and difficulties? ………………………………………………………………………………………………… 22 What you want to improve your manufacturing process? Thank you so much! APPENDICES Some pictures of internship series Picture 1: Timber production activities Picture 2: The products made from wood Picture 3: Planting activities and harvesting of forest people Picture 4: Reminding protect forests ... assess the potential impact of Voluntary Partnership Agreement (VPA) to the livelihood of local people in Dong Xa commune, Na Ri district, Bac Kan province Supervisor (s) Assoc Prof Tran Thi Thu Ha... in the final stages of the negotiation process Research project:“Assessing the potential impact of Voluntary partnership agreement (VPA) to the livelihood of local people in Dong Xa commune, Na. .. province; -Refer to paper maps and digital map of Dong Xa commune, Na Ri district, Bac Kan province; -The data, collected data is analyzed and processed according to the statistical indicators with