26 IUFRO World Congress
thStockholm, Sweden, 23–29 June 2024

DEVELOPMENT OF SMALLHOLDERTEAK PLANTATIONS IN VIETNAM
Tran Lam Dong and Dang Thinh Trieu
Vietnamese Academy of Forest Sciences

Outline•

Vietnam timber production 2023•

History of Teak planting in Vietnam•Current Teak plantation in Vietnam•Advantages and constraints ofsmallholder Teak plantation
development•

Supporting smallholder Teak plantation
development by ITTO Teak Project•

Conclusion and recommendations

Vietnam timber production 2023
14.8 M.ha forested area; 42% cover rate
• 10.1 M.ha natural forest• 4.7 M.ha planted forest:

 3.95 M.ha of timber production forest
 >70% managed by smallholders of 1-3 ha/household)• 30 M.m3 timber harvest annually• 5.800 timber processing enterprises• 515 FDI timber processing companies
13.46 B. USD exporting wood products• 8.12 B. USD furniture• 2.22 B. USD woodchips• 0.68 B. USD wood pellets• 2.44 B. USD artificial boards and others

Native trees
and others
Bamboo(0.08 M.ha) (0.27 M.ha)
Eucalypt(0.25 M.ha)
Pine(0.25 M.ha)

Rubber
(0.90 M.ha)

Acacia(2.20 M.ha)

History of Teak planting in Vietnam•

1899: First introduced toVietnam•

1939 – 1962: Trial planted fromthe North to the South•

1960s on ward: Planted widelyin the Southeast, Central
Highland and Northwest, butwith little successCurrent Teak plantation in Vietnam
Plantation area(1,000 ha)
7.65

0-20 yrs
72.5%

Age classes (%)
21-40 yrs 41-60 yrs 61-80 yrs
24.1%
0%
3.3%

74% managed by households and 26% by private/state corporation
Productivity (MAI; m3/ha/year): 5-12

Smallholder Teak value chain in Son La province• Planted by smallholders in 1990s supported by some projects.
• The existing plantation is about 4,000 ha• From 2015, farmers started thinning or harvesting, about 10,000 m3/year
Householdsell standingtree

Middleman
Harvest andtransport

Small sawmill
Board, furniture
Furniture processing
Flooring, furniture…

Local buyers
ExportTeak value chain in Son La province
Income offarmer in a 20year rotation
Income of
middlemenYear
Income after 20 year
Income/m3
Income/m3/year

Income (USD)
9,064
91
4.55

ProfitSaleLog diameter % ofCost(without bark) logs (USD/m3) (USD/m3) (USD/m3)
3587
104
17
<11cm
20183
210
27
11-15cm
20226
256
30
16-20cm
10270
300
30
20-24cm
15348
391
43
≥25cm
26.8
Average

Profit ofActor
different actors• Farmer (year/m3)
in the value• Middlemanchains• SawmillProfitRate (%)(USD/m3)
4.55
2.67
26.8
15.72
139.1
81.61

Advantages of smallholder Teak development inVietnam• High demand of Teak timber• Active actors, especially middlemen
and wood processors• Good policy on timber legality
insurance system, certification…

25,000,000

50,00020,000,000

40,000m3• Good market (both domestic andexport)

60,00015,000,000

30,00010,000,000

20,0005,000,000

10,000002015

2016

2017

Cubic meter

2018

USD

USD

Imported round wood Teak to Vietnam• Secure land tenure and ownershipConstraints of smallholder Teak development inVietnam• Limited improved germplasm or seed source• Low productivity in some area (degraded andacidic soils)• Small-scale(1-3 ha/household), low capacity(silviculture knowledge and finance) for long
harvesting rotation• Lack of incentives for long-rotation planting(low value chain, market engagement, microfinance mechanism…)

Supporting smallholder Teakplantation development by
the ITTO Teak Project• Improvement of germplasm
and seed sources Selected hundreds of plus trees

 Importing improved clones from Laos,

Thailand• Capacity building: National workshops on Teak Trainings on nursery and silviculture techniques for local

extensionists, forestry officers and selected farmers

• Development of demonstration plots:- Trials of silviculture treatments- Teak planting in different regimes, such as plantation,
agroforestry, scattered planting…

• Supporting teak smallholder
group certification:

Support a wood processing company tocooperate with Teak planting
smallholders to develop a smallholder
group certification in Dak Lak province(500 ha)Conclusion and Recommendations• High potential for development of smallholder Teakplantation in Vietnam• Need many supports for boosting teak growth by: Improvement of germplasm quality and seedling
production
 Technical capacity building to teak growers andstakeholders (forestry officer, extensionist…)
 Development of diverse silviculture options fordiversifying income regime (teak-based agroforestry,intensive planting for short rotation, tree-outside-forestplanting…)
 Improvement of the value chain and marketing bybuilding partnerships among the chain actors, especiallythe primary processors, middlemen and the growers…
via group certification
 Micro-finance mechanism for long-term investment, arepromising solutions.

Thank you for your attention!

Contact: Trần Lâm ĐồngEmail: dong.tran@vafs.gov.vn | Mobile: +84 986506018 | http://sri.org.vn/