Key factors influencing the decision making in largesized timber plantation of local small households in vinh linh district quang tri province

VIETNAM NATIONAL UNIVERSITY OF FORESRY FOREST RESOUCRES & ENVIRONMENTAL MANAGEMENT FACULTY STUDENT THESIS KEY FACTORS INFLUENCING THE DECISION MAKING IN LARGESIZED TIMBER PLANTATION OF LOCAL SMALL HOUSEHOLDS IN VINH LINH DISTRICT, QUANG TRI PROVINCE Major: Natural Resources Management Faculty: Forest Resources and Environmental Management Student: Luu Thi Van Student ID: 1453092230 Class: K59 Natural Resources Management Course: 2014 - 2018 Advanced Education Program Developed in collaboration with Colorado State University, USA Supervisor: Dr Le Dinh Hai Hanoi, October 2018 ACKNOWLEDGEMENTS I am glad to have an opportunity to express my acknowledgements to many people involving in the study, without whom I could not finish my study First and foremost, I would like to express my deep sense of gratitude to respected supervisor Dr Le Dinh Hai from Faculty of Economics and Business Management, Vietnam National University of Forestry for his continuous support, patient guidance and encouragement throughout my research project Besides, I also want to thank to Mrs.Vo Thi Hai Hien, a lecturer from Faculty of Economics and Business Administration for her constructive suggestion during whole time I worked with my thesis In addition, I would love to thank to many local people for their contribution to this project Special thanks to local people in Vinh Thuy Commune, Vinh Chap Commune, Vinh Long Commune and Vinh Ha Commune for providing helpful information and helping me at that time I took households survey in Vinh Linh district The last but not least, my thanks go to my family, my dear friends for their endless love, support and encouragement to me throughout all my life Hanoi, 2018 i TABLE OF CONTENTS Acknowledgements i CHAPTER INTRODUCTION CHAPTER STUDY GOAL AND OBJECTIVES 2.1 Goal of the study 2.2 Objectives of the study CHAPTER METHODOLOGY 3.1 Study site 3.1.1 Quang Tri Province 3.1.2 Vinh Linh district 3.1.3 Situation of plantation in Vinh Linh district 3.2 Methodology Definition of large-sized timber plantation or large sized-timber 3.2.1 Framework of factors influencing large-sized timber with long-term rotation of small household 10 3.2.2 Data collection 16 a) Secondary data collection 16 b) Primary data collection 16 3.2.3 Data analysis 18 CHAPTER STUDY RESULTS 25 4.1 Economic efficiency comparison of small –sized timber and large-sized timber plantation 25 4.1.1 Cost-benefit analysis of small-sized timber plantation 25 4.1.2 Cost-benefit analysis of large-sized timber plantation 26 4.2 Descriptive statistic on surveyed households in Vinh Linh district 28 4.2.1 Characteristic of household head 28 4.2.2 Characteristic of household in Vinh Linh District 31 4.2.3 Plantation activities of surveyed household in Vinh Linh district 32 4.2.4 Understanding of local people about large-sized timber in Vinh Linh district 35 Knowledge of local people about large-sized timber plantation 35 Understanding of local people about policies related to large-sized timber 36 4.2.5 Support for community for large-sized timber plantation 37 4.3 Correlation analysis of factors with decision of planting large-sized timber of households in Vinh Linh district 37 4.4 Key divers affecting large-sized-timber planting decision of surveyed households 39 ii CHAPTER V DISCUSION 41 5.1 Economic efficiency comparison of small –sized timber and large-sized timber plantation 41 5.2 Background characteristic of respondents 41 5.3 Characteristics of household planting plantation in Vinh Linh district 42 5.4 Understanding of local people about large-sized timber plantation 44 5.5 Key divers affecting to the decision of local people on planting large-sized timber 44 5.6 Potential suggestion which may encourage local people to shifting from plant small-sized timer into large-sized timer with longer rotation 46 CHAPTER VI CONCLUSION 50 CHAPTER VII REFERENCES APENDICIES iii LIST OF TABLES Table 3.1:Standards to identify small-sized timber & large-sized timber of acacia hybrid Table 3.2:Survey sampling design in Vinh Linh District 18 Table 3.3: Dependent variables and independent variables 19 Table 3.4: List of dependent variable and potential independent variables 23 Table 4.1:Cost and revenue structure of small-sized timber plantation 25 Table 4.2: Cost-benefit analysis of small-sized timber plantation 26 Table 4.3: Cost and revenue structure of large-sized timber 27 Table 4:Cost-benefit analysis of large -sized timber plantation 28 Table 4.5: Descriptive Statistics of quantitative variables 29 Table 6: Relationship between gender of households head and decision on planting large sized timber 30 Table 4.7: Variables have strong relationship with decision of household on planting large-sized timber in Vinh Linh district 38 Table 4.8:Key divers affecting to the decision of local people on planting large-sized timber 40 Table 5.1: Economic efficiency comparison of small –sized timber and large-sized timber plantation 41 Table 5.2: Different between small-timber plantation and large-timber plantation 42 Table Ranking of influential factors 47 iv LIST OF FIGURES Figure 3.1: Potential factors effect decision of local people on planting large-sized timber Figure 4.1:Education level of household head in Vinh Linh district 30 Figure 4.2: Household wealth ranking at Vinh Linh district 31 Figure 4.3: Sources of capital of households at beginning of rotation 32 Figure 4.4: Lack of capital at 4th-5th years of plantation 32 Figure 4.5:Accessibility to the forest land 34 Figure 4.6: Sources of seedlings 34 Figure 4.7: Participation of local people in FSC project 35 Figure 8: Knowledge about large sized timber forest of households in Vinh Linh district 36 Figure 4.9 Understanding of local people about polies related to large-sized timber 36 Figure 4.10 Support from community for large-sized timber plantation 37 v ABBREVIATION BCR Benefit- Cost ratio CBA Cost Benefit Analysis FAO Food and Agriculture Organization FSC Forest Stewardship Council IRR Internal Rate of Return MARD Ministry of Agriculture and Rural Development NPV Net present value SPSS Statistical Package for the Social Sciences SWOT Strengths, Weaknesses, Opportunities and Threats VND Vietnam Dong WWF Word Wild Fund vi CHAPTER I INTRODUCTION Because of unsustainable management and very high demand for conversion of forest land into others land for social-economic development, the forest area and forest quality have been continuously decreasing In 1943, Vietnam had 14.3 million of forests, with 43% forest cover; by the year 1990 only 9.18 million remained, with a forest cover of 27.2% (MARD, 2007) But from 1990 to the present, the Vietnamese government has taken many actions to conserve nature forest and increase forest cover again According to the database of Ministry of Agriculture and Rural Development, total area of forest cover continuously increases from 27.2% to 41.19% in 2016 The forest cover increasing includes all three forest categories: production, protection (for specific ecosystem services, e.g watershed management) and special use forests (protected areas, conservation), but the main contribution is several million of newly established plantations (Acacia, Eucalypt and Pinus) in production forest Currently, they cover more than 3.5 Million ha, with the prospect that plantations will cover more than 4.1 Million by 2020 (MARD 2015) These plantation forests, with mostly fast- growing species such as Eucalypts, Acacia, Styrax tonkinnensis, and Manglietia glauca, are mainly managed by state forest enterprises and private forest owners who, according to recent regulations, can have the full rights over investing and harvesting their plantation forests In fact, a majority of 2.5 million cubic meters annually cut in Vietnam’s plantation forests is of small-size young timber (7-8 years old) which is used mainly for pulp and paper, pit-prop, construction and wood-chip purposes (Nguyen, 2006) Quang Tri is a province in Central Vietnam with one city, one town and eight districts In general, topography of Quang Tri is very complicated including hills, mountains, lowland, coastal sand-banks and islands The main terrain is mountainous and hilly overlooking the sea with high steep and fast flowing water which cause unpredictable flooding and landslide make production and daily life activities of local people very difficult Therefore, forest plantation, especially large-size timber forest plantation is very important because it will bring many benefits such as improving income of small households who take part in plantation activities, reducing the impact of natural disaster and protecting soil as well as environment Quang Tri province has total 473,981 in which total forested area is 231,653 accounting for 48.9 % of total land The total area of plantation is 91,792 ha, in which 32,391 is plantation of small households Moreover, Quang Tri is one of the earliest provinces having FSC certified forest but the certified forest area is very small compared to the total plantation forest area (Hoang et al 2015) There is only 861.8 of forest which got the certificate from FSC for sustainable forest management in total 91.792 of plantation in 2014 In recent years, many policies and projects of governance as well as international organizations were implemented such as Decree No 744/QD-BNN-TCLN on 18 April 2014 in Approving the Action Plan for Enhancing the productivity and value of panted production forest for the period 2014-2020; Decision No 38/2016/QD-TTg “Promulgating a number of policies on forest protection and development, and supporting for investment in infrastructure construction and assignment of public-utility tasks to agricultural and forestry companies”; or group as a group certification project supported by WWF and IKEA to promote small households practice long-term rotation plantation, reduce young forest exploitation and transform form small-sized timber plantation to large-sized timber plantation with longer rotation Besides that, many researches and projects related to large-sized timber plantation were published, mentioned about different aspects of the effectiveness of planting large-sized timber with longer- rotation like research of Nguyen Quang Ha in 2001 determined optimal rotation in planting material forests, or research of Nguyen Nghia Bien on development of large-sized timber plantation in 2005 and study on Reasons why farmers choose to harvest small-sized timber in Yen Bai province Research of Nguyen Thi Hoang Hai on Costs Comparison between FSC and Non FSC Acacia Plantations in Quang Tri Province, Vietnam in 2015 The results of those researches indicated that long-term rotation help local people have higher income, supply industry wood for wood furniture industry and provide environment protection function For those reasons, I decide to conduct study on “identifying key factors influencing large-sized timber with long-term rotation of local people in Vinh Linh distrct, Quang Tri province, Vietnam” in order to have better understanding about long-term rotation plantation CHAPTER VI CONCLUSION The result of Cost-Benefit analysis proved that both small and large- sized timber bring economic efficiency for forest growers However, large-sized timber with all indicators (NPV, IRR, BCR) was higher than small sized timber indicated that planting large-sized timber bring more benefit for local people Moderate households are largest contribute to plantation in Vinh Linh district Most of farmers at the middle age or old age and have high education level who have tendency to plant large-sized timber plantation There are 41 % forest owners plant large-sized timber and FSC project plays important roles in promote local people practice large-sized timber in Vinh Linh district The binary regression model was used to identify keys factors having strong influences in decision making of local people The result of running model shows that independent variables have strong correlation with planting large-sized timber plantation decision of local people which can be explained 83.4% the change of the model The study revealed that sources of seedling is the most important factor and following by support from local community, FSC project participation and area of forest affected by tropical typhoons s are four key factors can changing decision of local people on planting large-sized timber Potential suggestions have supposed to encourage forest owners practice large-sized timber They focus on increasing quality of seedlings; resisting of plantation; strengthening support of community and encouraging people participate in FSC group In addition, all suggestions should proceed in a synchronous way and together with all stakeholders in increasing large-sized timber plantation area in Vinh Linh district 50 51 CHAPTER VII REFERENCES Bhim Adhikari, Salvatore Di Falco, Jon C.Lovett (2003) “Household characteristics and forest dependency: evidence from common property forest management in Nepal” Decision 607/QĐ-BNN-TCLN (03/03/2017) on Approving the results of forest inventory and investigation of 19 provinces: Bac Ninh, Quang Binh, Quang Tri, Thua Thien Hue, Binh Phuoc, Dong Nai… Vietnam Trade Promotion Agency, 2013, “Economic achievements in Quang Tri Province - Part 1” FAO, 2002, Forest Plantation Working Papers: Case Study on Long Rotation Plantations in New South Wales FINNISH FOREST ASSOCIATION “Timber grades (puutavaralajit)” Harrison, S.R & Herbohn, J.L 2001b Towards a vibrant tropical small-scale forestry industry: Imperatives, opportunities and challenges https://www.smy.fi/en/glossary/timber-grades-puutavaralajit/ Access on 06/23/2018 MARD, (2007): Forestry Development Strategy 2006-2020 MARD, (2015): Forest Sector Development Report Year 2014 Forest Sector Support Program (FSSP) Annual Conference, 04-02-2015 Hanoi, Vietnam MARD,2014, Decision 744/QĐ-BNN-TCLN: Approved Action Plan Improving Productivity, Quality, And Value Of Forests Planted Phase Manufacturing 2014-2020 10 Markku Kanninen, (2013) “Factors influencing farmers’ tree planting and management activity in four case studies in Indonesia” 11 Maturana, J., Hosgood, N & Suhartono, A 2005 Moving towards companycommunity partnerships: Elements to take into account for fast-wood plantation companies in Indonesia CIFOR, Bogor 12 Nguyen Nghia Bien ,(2006), “Why farmers choose to harvest small-sized timber? – A Survey in YenBai Province, Northern Vietnam” 13 Tran Mai Anh (2015), “Analyzing the key drivers of tree planting from local people with Bayesian Networks in Cao Phong District, Hoa Binh Province, Vietnam” 14 Vietnam Standard: TCVN 11567-1:2016 “Lantation - Large timber plantation transformated from small wood - Part 1: Acacia hybrid (A.mangium x Aauricculiformis) 15 Gebreegziabher, Zenebe & Mekonnen, Alemu & Kassie, Menale & Köhlin, Gunnar, 2010 "Household Tree Planting in Tigrai, Northern Ethiopia: Tree Species, Purposes, and Determinants," Working Papers in Economics 432, University of Gothenburg, Department of Economics 16 Tabachnick, B G., & Fidell, L S (2007) Using multivariate statistics (5th ed.) Boston, MA: Allyn and Bacon APENDICIES Table 7.1 Relationship between factors and decison on planting large-sized timber of local people in Vinh Linh Decision on planting large-sized timber No Count Row N % Yes Count Row N % Total Count Row N % Gender of Female 14 82.4% 17.6% 17 100.0% households Male 65 55.6% 52 44.4% 117 100.0% head Total 79 59.0% 55 41.0% 134 100.0% Households Poor 21 80.8% 19.2% 26 100.0% wealth ranking Moderate 53 54.6% 44 45.4% 97 100.0% Rich 45.5% 54.5% 11 100.0% Total 79 59.0% 55 41.0% 134 100.0% Sources of Loan 80.0% 20.0% 100.0% capital at Own 75 58.1% 54 41.9% 129 100.0% beginning of Total 79 59.0% 55 41.0% 134 100.0% Lack of money No 34 38.2% 55 61.8% 89 100.0% at 5th year Yes 45 100.0% 0.0% 45 100.0% period Total 79 59.0% 55 41.0% 134 100.0% Soil condition Suitable 52 48.6% 55 51.4% 107 100.0% Unsuitable 27 100.0% 0.0% 27 100.0% Total 79 59.0% 55 41.0% 134 100.0% Knowledge No 72 91.1% 8.9% 79 100.0% about large- Yes 12.7% 48 87.3% 55 100.0% sized timber Total 79 59.0% 55 41.0% 134 100.0% Training No 68 89.5% 10.5% 76 100.0% session Yes 11 19.0% 47 81.0% 58 100.0% Total 79 59.0% 55 41.0% 134 100.0% Accessibility to Difficult 34 82.9% 17.1% 41 100.0% the forest land Easy 28.1% 23 71.9% 32 100.0% Moderate 36 59.0% 25 41.0% 61 100.0% Total 79 59.0% 55 41.0% 134 100.0% rotation Understand No 77 69.4% 34 30.6% 111 100.0% market of LST Yes 8.7% 21 91.3% 23 100.0% Total 79 59.0% 55 41.0% 134 100.0% 100.0% 0.0% 100.0% Yes 78 58.6% 55 41.4% 133 100.0% Total 79 59.0% 55 41.0% 134 100.0% Sources of No 75 91.5% 8.5% 82 100.0% seedlings Yes 7.7% 48 92.3% 52 100.0% Total 79 59.0% 55 41.0% 134 100.0% FSC project No 77 87.5% 11 12.5% 88 100.0% participation Yes 4.3% 44 95.7% 46 100.0% Total 79 59.0% 55 41.0% 134 100.0% Support from No 76 79.2% 20 20.8% 96 100.0% community Yes 7.9% 35 92.1% 38 100.0% Total 79 59.0% 55 41.0% 134 100.0% Understanding No 78 62.9% 46 37.1% 124 100.0% policies Yes 10.0% 90.0% 10 100.0% Total 79 59.0% 55 41.0% 134 100.0% Primary 80.0% 20.0% 100.0% 25 69.4% 11 30.6% 36 100.0% High School 50 53.8% 43 46.2% 93 100.0% Total 79 59.0% 55 41.0% 134 100.0% Natural disaster No Education level school Secondary school Table 7.2 : The result of correlation between variables and decision of surveyed households Independent variables Pearson correlation Sig (2- tailed) Education level 163 0.60 Household wealth ranking 211* 0.14 Forest land area 313** 000 Knowledge about large sized timber 784** 000 068 433 -.369** 000 Sources of seedlings 830** 000 FSC project participation 803** 000 Support from community 653** 000 Understanding policies 283** 000 Distance to the field Area of forest affected by tropical typhoons s * Correlation is significant at the 0.05 level (2-tailed) ** Correlation is significant at the 0.01 level (2-tailed) VINH LINH SURVEY QUESTIONNAIRE (Vinh Linh District – Quang Tri Province) Part I : General information about household planting forest A General information  Date : …………/…………/…………  Name of interviewee:…………………………………………  Relationship with household head (if have ): …………………………………  Phone number( if have ):……………………………………  Sex: ❒ 0= Male ❒ 1=Female………  Ethnic 1=Kinh ; = Other  Age …………………………………  Village:…… …… ▪Commune: …………:…▪ District: …………:……………  Household ranking : ❒ 1=Poor ❒ 2=Mordertae 3=Rich   Types of household : ❒Farmer ❒Business Education level : ❒ Illiterate ❒ Intermediate ❒ Primary ❒ Collage/ University ❒ Secondary schools ❒ Graduate ❒ Other ❒ Other (please detail) ❒ High schools  Occupation:……………………………………………… B Information about characteristics of household Please list number of family member and related information - Total family’s member: ……… - Total labour: ………… - Number of labour practice plantation:…………… No Name Sex 0= male 1= female Age Silvicutural Relationship Education knoeledge with Occupation 0= No level household 1= Yes head Status of productive land of household No Indicator Total area of productive land Forest plantation land 2.1 Area of small-sized timber plantation 2.2 Area of large-sized timber plantation 2.3 Area of land for planting agroforestry Agriculture land Land for other purpose Area(ha) Capital for forest plantation Total capital invest for forest plantation: ……… (VND million) - Owns capital: ……………………………… (VND million ) - Do you have any loan for planting forest  Yes  No If yes please answer for more detail Sources of credits Amount of money ( Unit VND) Interest rate (%) Time Loan purpose ( month) Bank Credit Funds Relatives Other ( please detail) - What is your opinion about loan procedure? ❒ Easy, convenience ❒ Moderate Do you have any overdue loans?  Yes  No ❒ Difficult, complicated If yes, what is the reason for this? - Reasons: ………………………………………………………………………………… ………………………………………………………………………………… …………………… Income of household No Indicator Total income Income from plantation Business Contents Number ❒Small: ❒Large: ❒Agriculture: Other source of income ❒Shelters: ❒Timber and NTF products: ❒Other : Part 2: Status and factors influence forest planting activities of small households Experiences about forest planting - How long have you been practice forest plantation? …….years - Do you know about silvicultural techniques for plantation forest? Yes No - If yes how did you get that knowledge?  Learn from parents and old people  Internet/ newspaper  Training session  Other: ……………………… - Which organization organize the training session?  Forestry Extension of Commune/ District  Project Program  Forest management organizations in the locality  Others:………………… - What is the content of training session?  Planting techniques (seedlings, thinning, harvesting …)  Pest and Disease control  Forest fire prevention  Other:………………… - Did you apply those knowledge into plantation activities? ❒ Yes ❒ No Note Information about characteristic of plantation - General information about tree species plantation No - Species Area(ha) Density (tree/ha) Time Rotation Sources of seedlings Note - Is there a control on the source of seed for the forest owner? ❒ No ❒ Yes Location of plantation? Distance Unit (km) Accessibility to the plantation From household to the farms Form farms to market where selling wood From farm to wood factory Select the accessibility: 1: difficult, have to walk; 2: regular, accessible by motorbike; 3: easy, accessible with car - Did your plantation affect by nature disaster? ❒Yes ❒ No Nature disaster (reason) Flooding Tropical typhoons s Forest fire Other Timing for planting activities STT Indicators Site preparation Digging Transporting & Planting Fertilizing Weeding Protecting and Tending Extra planting Thinning Other Times/ year Time (days) Resilience of trees Note Silvicultural techniques Year 2014 2015 2016 2017 Site preparation Machine Handmade Planting Seeds Seedlings Harvesting Clear cutting Thinning Economic factors Cost and revenue of planting trees No a) 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 b) 1.11 1.12 2.1 2.2 Year Contents 1st Cost Production Cost Forest design Site preparation Seedlings Planting Fertilizers Weed control Protection Harvesting Transport of log Transports of chip wood Other cost FSC certificate cost Contribution to authority Revenue Log ( D>15cm) Chip wood ( D