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Research Report

Chopping for chips: An analysis of wood flows from smallholder plantations in Vietnam

Nguyen Quang Tan
Copyright Date: Jan. 1, 2011
Pages: 36
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Table of Contents

  1. (pp. 1-1)

    This working paper is part of the research project ‘Strengthening Rural Institutions to Support Livelihood Security for Smallholders Involved in Industrial Tree-planting Programmes in Vietnam and Indonesia’, implemented by the Center for International Forestry Research (CIFOR), the University of Göttingen and the University of East Anglia, in collaboration with the Forest Science Institute of Vietnam (FSIV) and Bogor Agricultural Institute. The project’s aim is to advance livelihood security and achieve a sustainable reduction in poverty amongst rural smallholders involved in industrial tree-planting programmes in Southeast Asia. Its outputs will support improved governance of rural institutions, development of innovative partnerships, more...

  2. (pp. 2-2)

    Binh Dinh province is located in the South Central Coastal region of Vietnam, about 670 km from Ho Chi Minh City and 1060 km from Hanoi. It borders Quang Ngai province to the north, Phu Yen province to the south, Gia Lai province to the west and the Eastern Sea (also known in the Western Literature as South China Sea) to the east. The province has about 1.6 million people and covers about 600 000 ha, of which 257 500 ha (40.4%) is forest.

    Within Binh Dinh, the study covers two villages in two districts: Thuan Phong village of Cat...

  3. (pp. 3-3)

    The main approach employed in the study was commodity chain analysis, using access mapping. Following Ribot (1998), access mapping along a commodity chain provides two maps: distribution of profit and mechanisms, and structures and processes at work in the control and maintenance of that distribution. In more concrete terms, it consists of:

    identifying the actors involved along the commodity chain, from extraction, production, processing, exchange, transport and distribution to final sale and end use of the commodity;

    evaluating income and profit at each level of the commodity chain;

    evaluating the distribution of income and profit within each group along the...

  4. (pp. 4-13)

    The wood market chain from smallholder plantations in Thuan Phong village (Phu Cat district) is relatively direct. In general, seven groups of actors are involved: smallholder tree growers, local collectors, woodcutters, bark peelers, truckers, company collecting agents and industrial buyers. Smallholder tree growers are the starting point of the market chain, as the primary sellers of the wood. As indicated in , wood from growers’ plantations first goes to the local collectors, who hire woodcutters to fell the trees and workers to peel the bark. After that, the bark-clean wood is taken to industrial buyers in Quy Nhon with the...

  5. (pp. 14-21)

    This section discusses the distribution of costs and benefits amongst the actors involved in the wood market chains in four study sites. Costs discussed in this section vary during 2008, particularly with regard to wood and petrol; however, to make the discussion easy to follow, average figures are used in the calculations. In addition, most costs and benefits presented in this section are based on personal estimation, particularly those of the local collectors and wholesalers.

    Actors in the two study sites in Binh Dinh province are grouped together due to the similarities in the nature of costs and benefits involved....

  6. (pp. 22-23)

    This document aims to provide a better understanding of the flows of plantation wood from the producers in four study sites to large industrial buyers in Binh Dinh and Phu Tho provinces of Vietnam. It describes the actors involved in the market chains, their respective roles, the value added to the wood in the market chain and the distribution of costs and benefits. Findings from the study indicate various differences between the two provinces. In the study sites in Binh Dinh province, the flows of wood are relatively direct and the market price information is transparent. There are various end...