Báo cáo khoa học nông nghiệp " Improvement of operator skills and technology in small rural sawmills in Vietnam " MS7 doc

Ministry of Agriculture & Rural Development

CARD Project Report

027/06VIE
Improvement of operator skills and technology in small
rural sawmills in Vietnam.

MS7:PolicyDocument
Thedevelopmentofruralforestindustriesin
Vietnam

By
Peter Vinden, Philip Blackwell and Phan Duc Chien

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May2010
ProjectReport 027/06VIE
ImprovementofoperatorskillsandtechnologyinsmallruralsawmillsinVietnam.
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TableofContent
1 Background 3
2 The establishment of “New Forests” in Vietnam 4
2.1 Summary 4
2.2 Background 4
2.3 New Forests 6
3 Forest Industries 9

3.1 The link between trees, wood and architecture. 11
3.2 Conclusions 13
4 Forest Industries Research 13
4.1 Background 13
5 Consolidating training and education 14
5.1 Training requirements 14
5.1.1 Survey of industry attitudes to training 14
6 Rural Sawmill Development in Vietnam 17
6.1 Conclusions 22
7 Discussions and Recommendations 26
7.1 The role of the National Forest Service 26
7.1.1 The conservation of tropical rain forests and native habitats. 27
7.1.2 The establishment of “New Forests” to meet the needs and bridge the
divide between city dwellers and rural settlers 27
7.1.3 Consolidating supply of raw materials 28
7.1.4 Consolidating domestic demand for wood products 29
7.2 Research 29
7.2.1 Research program 31
7.3
Program descriptions 34
7.3.1 Program 1. Innovation 34
7.3.2 Program 2 Fundamental science 34
8 Program 3. Novel Technologies 36
8.1.2 Program 4. Education and knowledge transfer 37
8.1.3 Potential research partners 38
8.1.4 Potential End user organizations 38
9 Educationandtraininginforestry,woodscienceandtimberengineeringandfurniture 40
10 Strategies to Assist Rural Sawmill Development in Vietnam. 42
11 Conclusions 46

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1 Background
In fulfilling the objectives of the CARD project, specialised reports have focused on
providing background information from which detailed analyses could be undertaken of
specific sectoral issues within the forest industries in Vietnam. In pulling together
potential policy information and detailed recommendations into this final report it is clear
that on-going relevant research education and training will only occur if there is an
environment and organisation promoting the long-term ongoing pursuit of these
activities. The requirements of rural development cannot be looked at in isolation and in
the current instance need to be examined in relation to the long-term goals of forestry
and the forest industries in Vietnam.
Background reports:
(i)
Review of forest industrie
sinVietnam
(ii)
Survey of rural sawmills in Vietnam
(iii)
Survey of log producers in Vietnam
Sector reports
(i)
Sawmilling
(ii)
Drying
(iii)
Wood Preservation
(iv)

Education training and research
Policy and recommendations
Chien et al (2010) reviews the current state of the forest products industry in Vietnam
and has highlighted the economic importance of the forest industries sector to Vietnam.
In brief the sector:
• Sawn timber production in Vietnam exceeds 2 million m3 /annum.
• Wood exports rank fifth in importance behind crude oil, textiles, footwear and
seafood
• Exports increased on average by 43% annually between 2000 and 2008.
• Vietnam has become the 4
th
largest global manufacturer and exporter of furniture
that together with handicrafts are exported to over 100 countries.
• Domestic production of timber is supplemented by significant imports of
unprocessed logs. Fifty-three percent of logs processed in Vietnam are imported.
The value of timber imports exceeds US$1 billion.
• Vietnam uses 11 million m3 of wood / year of which 57% is used for sawn timber
for producing outdoor and indoor furniture and construction timber. The
percentage end-use of acacia produced by rural sawmills (derived from
questionnaires directed at small rural sawmills, Blackwell et al (2009 highlights
also the importance of the domestic markets for furniture production.
• Domestic production of raw logs from plantations is expected to grow
substantially following the Vietnamese Governments objectives (1998) of
establishing a 5 million hectare reforestation program. Various estimates (e.g.
MARD, 2010) estimate that by 2020, Vietnam could be capable of supplying 20
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million m3 annually. Currently domestic wood production from plantations is
expanding at about 10% / annum. This has offset a reduction in the availability of

wood from natural forests.
• Seventy-five percent of the current harvest from plantations comprises acacia
spp. This percentage is expected to increase.
• The plantation rotation age for acacia is approximately 7-8 years. Logs have a
small average diameter of approximately 250 mm.
Logically there needs to be investment and expansion of forest service activities to
ensure that the true potential of forestry and forest industries meet both government and
the general public expectations. This report therefore provides background or a potential
vision of forestry and forest industries in Vietnam and broad recommendations as to how
the sectors might develop. Clearly different people will have different visions as to how
forestry and forest industries might develop. The vision given here identifies generic
ideas as to why the sector is important. The ideas are presented to provide a discussion
point but more importantly a vision of the future that can inspire those in decision making
roles of the need to provide clear, long-term policies for rural and urban development in
Vietnam.
2 Theestablishmentof“NewForests”inVietnam
2.1 Summary
In an era of rapid global warming and peaking oil and natural gas production, forest
ecosystem management of our relic forests and reafforestation of redundant land,
should be at the forefront of any campaign to roll back our carbon footprint whilst at the
same time maintaining or increasing economic productivity and environmental
improvement. This section of the report argues a case for establishing “New Forests”;
large public forest lands located adjacent to densely populated cities that re-establish
species indigenous to the area, thus expanding biodiversity, protecting endangered
species, reconnecting city dwellers with nature and rural culture, improving water quality
and waste recycling, providing employment and valuable wood products that expand the
sequestration of carbon from the atmosphere through planned expansion of relevant
forest industries.
The objective is to systematically substitute the use of oil, petrol, resins, steel, aluminium
plastics and concrete and reduce our dependency on oil whilst at the same time

expanding productivity and standards of living as well as providing a sustainable raw
material supply for rural industries.
This need is urgent in the face of unprecedented population growth and poverty,
unchecked exploitation of non-renewable resources, global warming, rural
destabilisation and environmental impoverishment. Conservation of the past is not
enough. The objective of is to engage in the future, to create a future that is viable and
sustainable for future generations.
2.2 Background.
According to ancient Greek philosophy all matter is comprised of four ‘roots’ or elements
of earth, air, fire and water. Fire and air were classified as outwardly reaching elements,
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where-as earth and water, turned inwards and down-wards. The relationships between
these elements is defined by Aristotle who explains that these roots are not just physical
manifestations or material substances but also spiritual essences. Hence their
representation by gods! Ancient Chinese tradition identifies a fifth element “wood”, a
living material that interacts and balances the four roots. The relationships between
these roots are as important today as they were to the Greeks and Chinese. They are
the global issues that shape sustainability, biodiversity, greenhouse / CO2 emissions
(climate), water quality, drought and bush-fires.
Forests cover approximately one quarter of the worlds land area. Virtually everyone
agrees that forests are important for the products and services they provide, the
conservation of biodiversity, maintenance of soil and watersheds, contributions to the
storage of carbon, the provision of microclimates and ecosystems, heritage and spiritual
values and some would argue the weather. Most societies tend to value these
traditionally non-tradable products and services that forests can provide. Timber or wood
based products are also significant in the world economy amounting to 2% of global
GDP or US$600 billion. These include the provision of shelter, furniture, packaging and
paper (some 5,000 or so products), but as important are the non-wood products that are

so essential to the economy of subsistence communities for medicines, food and shelter.
In the past, forests had a relatively much higher impact on the economy. Samuel Pepys
(an English public servant of the 17th Century) identified three-quarters of shipping to be
associated with trade in timber. Development or the transition from subsistence to a
cash economy has been achieved by many civilisations through exploiting forest
resources and today forest exploitation continues to be significant in maintaining the
viability of rural communities both in industrialised and emerging economies. Human
interaction with forests follows three distinct phases. These include human subsistence
where there has and in many instances continues to be a dependence on plant
gathering, firewood collection, and hunting to eke out a living. This has often evolved into
forest exploitation, the development of a cash economy, an agricultural economy and
then industrial development. The degradation and over-exploitation of forests has often
led to a backlash, the impoverishment of land needed for subsistence agriculture and
crop failures, droughts, desertification, various landslides, disease. In our ancient
civilisations various rulers have imposed penalties associated with forest destruction to
prevent degradation of the environment. More recently, however, concern for
deforestation has come from society and through elected governments. Ultimately,
however, as societies develop forests should achieve a steady state of sustainability.
Unfortunately in a changing and evolving world the concepts of steady state and
sustainability are not totally clear.
Concern for deforestation today arises more particularly in the North / South divide. The
total land area covered in forest is about 34 million km2 or 27% of global land area. In
the North the forest area is now increasing by approximately 2 million ha/year, where-as,
in the South, deforestation is occurring at approximately 14 million ha/year (UN 2004).
The wide variety of products and services derived from forests has effectively been a
free resource from nature, infinitely renewable and sustainable. However, population
growth particularly in the 1950’s and 60’s has led to unprecedented deforestation for
agriculture and urban development, particularly in Africa, Asia and Latin America. The
world population has grown from about 1.6 billion in 1900 to 5.7 billion in 1995 and
projected to grow to about 9.4 billion in 2050 and stabilise to about 11 billion by 2200

(UN 1998).
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Concern about deforestation is not a new phenomenon. In England, Julius Caesar
introduced severe penalties through “Consulares silvae” that could result in the
castration of offenders. King Canute introduced extensive forest laws and by the Middle-
Ages some 5 million hectares of England and Wales had been set aside as royal forests
for hunting. Stringent forest laws were introduced by the Normans and administered by
foresters to reduce the onslaught of deforestation (Richardson 2000). John Evelyn in his
book SILVA or a Discourse of Forest Trees, And the Propagation of Timber in his
Majesty’s Dominions (1662) led to the development of extensive private plantations to try
and stem the shortage of oak needed to keep the British Navy afloat.
2.3 NewForests
The word “forest” is of French origin (foret). It replaced the Celtic equivalent frith
following the invasion of England by William the Conqueror. In fact reference to the New
Forest of Southern England dates from 1079 when William established the Royal “Nova
Forestas”. Much of the land had been degraded and the soil denuded following the
Stone Age and then Bronze Age when vast areas were cleared. Much of the land could
only support heath. Relic oak forests were used in the sixteenth century by the Royal
Navy and were replaced with oak plantations. The Great War resulted in a focus on
faster growing softwoods as a strategic raw material resource in the event of another
war. Today (after almost1000 years), 95 % of the New Forest is still owned by the crown.
And softwood plantations are now being managed back to the “old growth” oak forests.
The New Forest is rich in history, flora and fauna. It preserves ancient history and
cultural heritage and provides a refuge for wild life in what is a very densely populated
area of England. The New Forest covers a wide range of habitats including a range of
heath lands, bogs and wetland as well as deciduous woodland and provides a sanctuary
for a number of very rare British plants and animals. In fact it provides a home for some
indigenous British species that now no longer exist outside the New Forest. The New

Forest has been designated a Site of Special Scientific Interest.
Global warming has brought about acute public interest and concern in relation to future
impacts on the environment; the economic consequences of global warming; the
numerous technical issues associated with climate change including fire, water and
pollution and policy formulation and implementation. Environmental issues include
biodiversity, the conservation of ecosystems, endangered species, fire, urbanisation and
the impacts of global deforestation. Economic issues relate to maintaining industrial
productivity and lifestyles in the face of rising oil prices, the costs of resource
conservation for future generations, the costs of implementing continuous environmental
improvement and life cycle analysis (LCA) and the consequences of reducing our carbon
footprint.
Ecosystems change with time. The landscape that we may be familiar with today may
have been completely different 500 years ago and different again 1000 years before
then. This rapid change reflects human interaction. The current natural distribution of
species of both plants and animals since the last ice-age has seen a massive migration,
evolution and adaptation of species occurring as a result of climate change and the
movement, isolation and joining of land masses. Trees represent climax vegetation and
as a structural species within an ecosystem are relatively robust from extinction.
However, in nature, natural disasters arise. Flooding, hurricanes and fire can clear areas
that then progress through a cycle of colonisation by opportunistic plants, replacement
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by shrubs that might provide shelter for tree species and eventually a steady state of old
growth forest that remains almost static until disaster strikes again. Human intervention
(within the context of ecosystem sustainability) has to be considered akin to a natural
disaster, except where there is the unnatural disaster of urban development that
imposes soil removal, concrete, tarmac and supermarkets on the landscape. Urban
sprawl imposes real limits on the extent to which natural ecosystems may regenerate
and recover when left to their own devices. However, many natural ecosystems have

also disappeared without human intervention because of climate change. Over the
centuries, variations in water table may create difficulties for an “original native species”
to regenerate. Or the climate over several hundreds of years may just favour an
alternative more competitive species. In other words there is no such thing as an original
native species, because the landscape is continually evolving and changing in response
to environmental and biological forces.
The issue today, however, is that climate change may be so rapid that we may lose the
intricacies of many of our ecosystems, the interdependencies of plants and animals that
may have taken thousands and millions of years to evolve. Key elements may become
lost, so that the ecosystem becomes impoverished. Such loss of biodiversity is a tragedy
for future generations. New Forests has as its principle objective, the practical
maintenance of regional biodiversity. The managed maintenance of ecosystems that
exist currently or existed within recorded history. Whilst “management of the ecosystem”
may once again be seen as undesirable from a purist’s perspective, the objectives of
New Forests is to maintain biodiversity and where destroyed, recreate as far as
practicable an idea of what the living ecosystem may have looked like to our ancestors.
The traditional practice of forestry dates back several millennia and has undergone
parallel evolution in different civilisations. Written forest laws in the UK date back to the
Romans, where severe penalties were imposed on individuals who failed to abide by
these laws. The forest laws developed by King Canute in Winchester in 1016 also
reflected a concern for forests and their conservation. King Canute is most famous for
forbidding the sea to rise. The world is awaiting similar leadership or a similar conviction
that can limit the rising sea levels due to global warming! The training of professional
foresters throughout the centuries and in different civilisations has for the most part
tended to reflect the need to manage forests for future generations whilst at the same
time meeting the objectives of the custodians and rights of the general public.
In summary “New Forests” takes its model from the New Forest. The New Forest has
been managed intensively for almost 1000 years and has for the greater part enjoyed
sustainable forest management that continues to improve the wealth of plant species,
biodiversity as well as the health of the landscape for this generation and future

generations. It has a rich history of documented management. Biodiversity has been
maintained, not just the forest species but examples of plants and animals from all the
different ecosystems that have existed in the area for more than a thousand years.
Some of these “original” habitats such as the heath lands are man made from activities
of the Bronze Age and have arisen as a result of the soil becoming impoverished. None-
the-less, the maintenance of such habitats is seen as a legitimate objective because wild
life has adapted to these man-made circumstances and formed a unique ecosystem in
its own right. The forest has also become a refuge for endangered indigenous species, a
living heritage.
The Forests whilst established by William the Conqueror for maintaining deer for hunting
also retained “commoners” or the general public’s rights of access for specific uses.
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Public rights included access, gathering fire-wood, bracken collection, cutting peat,
digging clay and grazing ponies and cattle on heath land and grazing of pigs during the
harvest when acorns are abundant. These rights play an important role in the
management of the various ecosystems. They incorporate many quaint customs in their
management and execution that are still applied today. Public right of access underlines
an important principle that the forests exist for public good. In an era where peoples live
within an urban environment, this principle becomes even more important for future
generations.
Exotic species have been introduced at different times to meet specific policy objectives
of the custodians of the New Forest. Many ecological purists may not see this as a
sympathetic activity. However, as with man made ecosystems, the introduction of
exotics has an historical significance in human development and thinking and a scientific
interest that should be preserved for future generations. Tree farming for industrial
timber supply also represents an important or legitimate rural industry especially within
the current context of global warming as a means of carbon sequestration, a sustainable
option for the substitution of oil derivatives and a means of maintaining economic

productivity in a world where rising prices for oil will inevitably exact a toll on human
welfare. However, a primary objective of “New Forests” is to nurture indigenous
biodiversity and reproduce ecosystems that eventually reflect the whole range of natural
ecosystems that are indigenous to the area.
The long-term goal of “New Forests” is for selected areas of land located close to heavily
populated areas to be gazetted and then managed to become the old growth forests
typical of the area in which they are located. Specific objectives include:
• Providing a systematic process for maintaining the long-term genetic diversity of
plants and animals for future generations.
• Establishing areas of scientific interest.
• Preserving historical land-marks and artefacts and cultural traditions.
• Providing general public access to living forest.
• Providing production forests to meet rural industry requirements.
The New Forest has thousands of preserved historical sites where significant events are
recorded for posterity. Such artefacts of human history enrich the visitor’s experience,
particularly in an era where diversity in virtually all human activity is being challenged.
“New Forests” will similarly respect the spirit and spirits of past generations so that future
generations can reflect on the human condition and at the same time make provision for
future generations.
Whilst the goal is to provide New Forests for all major population centres, initially only
one or two sites would be selected to demonstrate the potential. The actual site will be
determined to a greater extent by the quality of land available. The sites need to be
fertile. Forest establishment is much more difficult on poor or impoverished soils.
Climatic conditions also need to be stable. Whilst it is tempting to try and restrict forestry
to marginal land “to try and do something for land that has been mismanaged in the past
this would defeat the primary objective of “New Forests”, that is, to secure biodiversity.
Maintenance of biodiversity is a first step in a goal to identify plants and ecosystems that
may help reverse the impacts of environmental degradation. The areas selected also
need to be located close to a large population centre with suitable infrastructure (rail) to
facilitate rapid public access and enjoyment.

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3 ForestIndustries
Forest industries have a major capacity for reducing our dependency on oil and other
non-renewable resources. However, such an initiative requires an integration and
expansion of research, education and training to this end.
The utilization or mining of non-renewable fossil fuels predominantly for energy has had
a number of consequences. These include unprecedented economic growth and wealth
generation and an exponential growth in consumption. However, we have been warned
that we are “squandering valuable natural resources for low value uses such as energy”;
that we are “artificially pricing manufactured synthetic commodities because no account
is taken of raw material replacement cost”. In other words there is no future opportunity
value being taken into account; that we are “failing to recognize the potential resource
needs of future generations”. We are also being told that expansion in consumerism is
resulting in the pollution of land, soil, water and waterways and the accumulation of
waste in landfills; that an expansion of urbanization results in the depopulation and
breakdown of infrastructure in rural areas; that “the release of sequestered CO2 from
fossil fuels is resulting in the accumulation of CO2 and other gases such as methane in
the atmosphere”. However, the dire projections, made in the 1960’s, that fossil fuels
would become exhausted by the turn of the century failed to materialize. The discovery
of more reserves of oil and gas and the ability to mine resources economically at greater
depths are obvious reasons. However, there has also been an unparalleled
technological revolution in processing technology, material science, product
development, manufacturing and communication that increased productivity beyond any
projections or dreams that could be envisaged at the time. In a world where improving
standards of living can only be achieved through expanding improvements in
productivity, primarily through globalization, where will improvements in productivity arise
in the future?
There have been many papers written extolling the virtues of wood as a raw material;

that it is renewable, sustainable and recyclable; that it is environmentally friendly,
relatively non-toxic, and not just benign to the environment but enhances the
environment; that it uses low energy in its production and remanufacturing, (low
embodied energy) and is relatively low in social cost. It is pointed out that the production
of wood is centred in rural often remote areas where there is a desperate need to
maintain infrastructure and employment. Forests are often grown in areas where there
are environmental problems as a means of alleviating these problems. Production
forestry is seen as a commercial solution to very serious soil degradation, salinity
problems, water quality issues, greenhouse and global warming, and one answer to
achieve some measure of carbon sequestration.
The benefits of forestry and forest industries have been broadly advertised extensively
for decades even centuries, to the extent that one would think that some priority might
be placed by society in trying to cement tree growing and wood utilisation as a national
priority, so that national benefits might accrue from these activities. There is the
additional benefit that such a priority might go some way to improving the trade balances
in wood products. However, such is not the case, in fact the opposite!
There has been a trend towards privatising forestry, particularly production forestry; to
segregating production forestry from environmental forestry; to locking up funding that
might be available for expanding timber production infrastructure to go toward
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purchasing public forests and therefore slow the industrial development of forest
industries.
In the last 10 years there has also been a dramatic reduction in the funds available for
research, education and training in forestry and forest products. A large number of
forestry schools have closed around the world, including the Forestry Department at
Oxford University. Dedicated research institutes into forestry and forest products have
also closed. An example is the recent closure of the forestry and forest products division
of the CSIRO. Despite the attributes of wood being near perfect from an environmental

perspective, it is surprising that substitution of wood by competitive materials like steel,
plastic, bricks, concrete and aluminium has been so successful. The trends in
substitution in the last 40 years have been systematic and methodical. But there again
the strategies and resources made available for innovative research in competing
industries, together with the training and education available to support competing
products has also been very thorough. Environmental attributes are important, but
seemingly not as important as cost, technical appropriateness and performance. The
rate of innovation of new products from competing materials and their adoption by end-
using industries has left wood based products floundering. They are becoming “mature
products”, uncompetitive, old-fashioned, technically less appropriate and non-
performing. To add insult to injury the new non-wood based products (also based on
traditional materials) are advertised as environmental friendly and recyclable and
sustainable! And we know, the public know, that this is not the case, but this has not
made any real difference. Why should we use wood as a construction material?
Unlike most other materials that have a finite resource or are tied to high energy costs
e.g. oil, steel, copper etc., the future availability of timber can be assured on a sustained
yield basis. Unlike all other materials used in construction, the costs of the wood material
include the costs of re-establishing plantations needed for sustainability. Hardly a level
playing field when compared to mining the alternative materials. The long-term
availability of wood on a sustainable basis is just one of the attributes favouring its use.
There are many others:
Energy required for processing
Energy consumption is a key issue in manufacturing costs. Given that a high proportion
of energy is generated from non-renewable fossil fuels, energy efficiency in manufacture
will not only affect the real price of manufactured items but also the sustainability of
some manufacturing processes.
• Steel beams require more than 10 times the production energy of the equivalent
timber beam
• Brick cladding for houses uses about 20 times as much energy as wood cladding
• Aluminium window frames use over 50 times the energy of equivalent wooden

frames.
• Timber beams store about as much carbon as is released by the production of
the steel beam.
So in terms of sustainability, energy consumption in manufacturing and carbon emission,
wood is superior to any other product.
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Trees are one of the most efficient solar converters known to man. Photosynthesis takes
carbon dioxide out of the atmosphere (carbon sequestering), water and nutrients from
the ground and converts it to cellulose fibre. In fact cellulose is the most abundantly
available polymer on earth. The microstructure of plant fibre is very complex. The
cellulose microfibrils, which form the building blocks, have a tensile strength equivalent
to aluminium. The fibrils form fibre bundles, which are cemented together in a matrix of
lignin, which provides very high tensile and compressive strength to the fibre wall.
Another lesson from mother-nature arises from the provision of natural biodegradability.
With time and the provision of moisture and decay fungi, wood will degrade and release
the fixed carbon dioxide back into the atmosphere. The absence of cellulose and lignin
building up in the environment is witness to the efficiency of this process. Carbon
sequestering is a major function of forests. One acre of softwood forest removes
approximately 7.5 tons of carbon from the atmosphere each year, up until about 30
years. The rate of sequestering in a plantation forest then drops off because the rate of
growth of the forest declines until the rate of decay of the forest exceeds the mean
annual increment, when there is no increase in the net storing of carbon. If the timber is
used for timber framed house construction then the building is capable of storing up to
three tonnes of carbon, unlike the steel framed which releases about 2.9 tons of carbon
into the atmosphere.
From a purely technical standpoint, plant fibre has considerable unrealised potential as a
material. When spruce fibre is compared to man made fibre composite systems, both the
strength and stiffness per unit weight exceeds that of glass fibre composites and

because the plant cell wall is itself a composite, the toughness (or work of fracture) of
wood exceeds that of carbon fibre composites. Table 1 outlines the strength and
stiffness of air-dry spruce relative to synthetic materials.
Other factors which strengthen woods position as a competitor to glass and carbon fibre
include:
• Plant fibre is a fraction of the cost of glass and carbon fibre.
• Uncertainty in the future supplies (and costs) of oil make fibres originating from a
renewable resource obviously attractive.
• The long term availability of plant fibre at low cost is assured from:
o Forests
o Agricultural waste products (e.g. cereal straws)
• The surface chemistry of plant fibre is such as to make it very reactive to
adhesives.
• Reactive groups in the hemicelluloses lignin and cellulose provide sites for
chemical modification.
3.1 Thelinkbetweentrees,woodandarchitecture.
The requirements of a sustainable strategy for material use in construction include:
• increased use of renewable materials
• more efficient use of materials, reduction of waste
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• design of longer life applications
• recycling of materials after useful life
• emphasis on processes producing less environmental impact
The popularity of forestry and foresters
Forestry and the forest industries have not always been unpopular with the general
public. The fact that we have large tracts of native forests and vegetation throughout the
world is to a large degree because foresters, their training and ideals, promulgate long-
term sustainability and the maintenance of biomass if not biodiversity. Most cultures also

revere the use of wood where it is used with economy or where there is sympathy
between the design and the material being used. What attracts school leavers to do
forestry and why are a large number of people still sympathetic to forestry and the
profession of forestry? In many cases it is idealism that at some future point in the
world’s history we will reach a point where the rate of human population stabilises,
where the resources used become sustainable or made available in perpetuity, where
we cohabit the earth with other organisms (both plant and animal) in a mutually
respectful manner. In other words we achieve a steady state of zero growth in resource
exploitation. It comes from an understanding that forest management can provide real
solutions to environmental issues such as salinity, green-house and biodiversity. It is
understanding that all land including wild-lands have to be managed to maintain their
aesthetic attributes, their scientific and ecological value and that the professional
knowledge and impartial decision making processes involved is what the forester is
trained to do, to cope with conflicting objectives and provide an interface for society
needs. In general foresters have done this reasonably well.
The use of timber and forest products has been a preference for a discerning public.
Leaving aside the aesthetic attributes of wood and wood products and their historical
importance in human development, an educated public knows that timber production
and utilisation is a sustainable industry; that of all human activity, the planting of trees,
processing the trees into timber and then creating new value in the form of designed
products provides enormous value to society. The spin-off in terms of carbon storage,
employment, rural development, heritage, export earnings, regional development and
the provision of infrastructure and therefore wealth is almost incalculable. However,
over the last 30 –40 years substitution of alternative materials has become rife. Almost
every aspect of wood use has come under pressure from (and being objective) inferior
materials and products. But the reasons are less clear. A fundamental question is this. If
steel, concrete and aluminium had all the environmental attributes that wood has, would
substitution of wood products have been greater or less than it is now. Given the “good
news story” that can be weaved around wood it seems unbelievable that forestry and the
forest industries should be so poorly positioned relative to other products. Some of the

reasons include:
• Lack of training of architects, engineers and building science students in the use
of wood.
• Complex building codes and specialist training needed in timber engineering
• Lack of experience of architects and builders in designing and building in wood.
• The poor image of wood (dimensional instability, surface degradation and
checking associated with UV exposure, instability associated with changes in
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relative humidity, biodegradation due to fungi and insects and variability in
quality, (strength, elasticity hardness and toughness).
• The difficulty in re-establishing mass markets for many products arising from
changes in building culture where the use of substitute products has become
established as the industry norm and stream-lined through architect / builder /
contractor relationships.
• Slow adoption of electronic technology to enhance communication in the value
chain;
• Slow incorporation of market intelligence gathering and processing through
electronic communication with end-users;
• Poor integration of component manufacturing and building procedures.
The forest industries lag behind many of their competitors. For example the culture of
electronic communication that now pervades many industries, particularly the
architectural, building management, designing, specifying and manufacturing industries
provides the means for addressing many of the issues raised above.
New forests will be very different from what they look like now. Production forests will
provide an aesthetic landscape. They will look nice and authentic for city folk. They will
contribute to wild life corridors and the maintenance of biodiversity. They will provide
space and recreation for city folk. They will provide a solid investment for a world of
increasing change and uncertainty. They will provide assurance of a sustainable

superannuation. The new forests will provide water and recycling of waste materials and
effluent.
3.2 Conclusions
World wide there is increasing recognition of the role of forestry and forest industries in
rolling back global warming; providing a stable ecology for native vegetation and raw
materials for new sustainable industries. A cringe faction will rigorously dispute the need
for intervention in these industries. However, the lack of engagement by the forestry
sector in relation to global warming and its pivotal role in the debate on climate change
and reducing fossil fuel consumption is pointing to a market failure of this sector in many
parts of the world. Global warming and future uncertainty means that we can no longer
afford to remain inactive or hide behind a blind belief that market forces will bail out the
need for making responsible decisions for future generations. In an era of global
warming and potential energy shortages, we have to find alternative means for
maintaining productivity in industrial manufacturing, but at the same time uncouple our
dependence on oil and other non-renewable resources. The conservation movement
has a focus on the past, preserving the romance of what was good, and the creation of
“living museums”. And this is vitally important. However, “New Forests” is passionate
about conserving the future; engaging in creating a future that is viable and sustainable
for future generations.
4 ForestIndustriesResearch
4.1 Background
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The objective or mission of research undertaken in forest industries should be to
marshal between discipline intellectual resources in support of the great issue of our
time, namely the design of futures that are sustainable. And to apply innovative concepts
of carbon positive design in all activities, leading to the development of new systems of
production, industrial manufacture, fabrication, use, recycling and /or disposal that
mitigates and ideally rolls back carbon release into the atmosphere. This is achieved

through:
• slowing down the use of valuable fossil fuels through a process of oil / coal
substitution through the sustainable utilisation of ligno-cellulosic derivatives
manufactured from plant fibre biomass and
• improving the durability and life cycle of such products through fundamental
studies of the structure and function of lignocellulose derived products and
application of this knowledge through innovative clean technologies.
Cellulose is the most widely available natural polymer on earth. Lignin is the second
most widely available polymer. Both polymers have extraordinary chemical and physical
properties and technological attributes that can provide a primary source of sustainable
chemicals, materials, liquid fuels and food.
Overarching research needs includes:
The delivery of fundamental research into the molecular basis for cellulose, lignin and
fibre production in plants, to elucidate the biochemical pathways for lignin, cellulose and
hemi-cellulose synthesis in plants and explore how this knowledge can be applied to
plant production industries for example plantation forests, to support tree/plant fibre /
polymer improvement for industrial use.
The use of life cycle analysis to evaluate innovative applications of plant fibre or
biomass. The use of life cycle analysis should be designed to focus research needs and
assist scientists in anticipating and prioritising fundamental problems and innovative
solutions of direct importance to land managers, (agriculture, forestry and horticulture),
architects, building engineers, planners, industrialists, manufacturers and consumers.
The process and research content will also be of direct interest to the general public and
students who wish to expand their understanding of the potential for ligno-cellulosic
production and utilisation; the design of industrial ecosystems and long term planning
needs for a sustainable future.
5 Consolidatingtrainingandeducation
The survey analysis of past training experience in forest industries in Vietnam (Blackwell
et al 2010) poses a serious problem, firstly because of the low incidence of staff and
labour working in sawmills receiving any training, secondly because literacy levels in this

industry are very low, thirdly because of the number of sawmills indicating that the
quality of training was a problem and fourthly because of the number of enterprises that
felt that the training available wasn’t relevant to their needs. On the positive side, 73% of
enterprises indicated interest in receiving training.
5.1 Trainingrequirements
5.1.1 Surveyofindustryattitudestotraining
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A summary of industry attitudes towards current training in wood processing is
summarised below. Data has been amalgamated for all regions (i.e., North, Central and
South).
Table 1. Survey analysis of past training experience by sawmills %.
Staff receiving training in the past 13
Enterprises interested in receiving training 73
Enterprises indicating that the quality of existing training courses was a
problem
53
Enterprises indicating that the training in the past wasn’t relevant to their
needs
63
Table 1 illustrates very clearly that employees of rural sawmills have received very little
training in the past. What training was potentially available was mostly irrelevant to their
perceived needs and the quality of training that was available in the past was potentially
poor. However, it should be noted that given the low number of staff receiving training,
the perception of “poor quality” was probably based on here-say rather than experience.
The low quality of training and the relevance of the training that is provided rank very
high in terms the problems identified by the industry and probably accounts for the low
uptake of training that is provided. The loss of labour arising from staff attending training
courses is also a significant factor indicating that training provision should be mobile and

centre around clusters of mills.
Table 2. Survey analysis of training problems
TRAINING PROBLEMS RANKING

Low quality of training.
73
Fees are too high. 0
Loss of labour. 40
The training is not relevant. 63
Training is not suited to the equipment. 20
The distance is too far for training. 13
The equipment at the institute is too old. 3

The same questionnaire attempted to prioritise the topics that enterprises felt were
important. The topics have been ranked in order out of 10 based on the priority accorded
by those enterprises interested in receiving training (table 3.).
Table 3. Ranking of training topics
Topic Ranking

Further manufacturing 13.4
Saw sharpening 12.2
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Sawmill practices 11.8
Marketing 11.5
Business management 9.1
Air drying. 9.1
Preservation 8.7
Equipment 8.7

Kiln drying 7.5
Wood properties. 4.7
Sawmill safety 4.0
Sawmaps 3.2

Sawmill owners clearly identify further manufacturing as the highest priority, followed
closely by saw sharpening, sawmill practices and marketing. We believe that this
highlights concerns on the part of sawmill owners who are focussing on how they can
add value to their current sawmill businesses, through better hands-on skills; how
marketing can improve their sales performance and how their day to-day performance
can be lifted through improved saw sharpening and better sawmill practices.
A second tier of skills focuses on business management, drying (air drying followed by
kiln drying), preservation and equipment handling.
Fundamental knowledge of wood as a raw material and OH&S were ranked as a low
priority. Similar surveys conducted in Australia, the US and Europe would potentially
have ranked training these in these topics as most import. There is possibly a lack of
appreciation of the value or need of such information in understanding practical forest
industry operations, the value of solving problems from first principles. Such information
provided by the survey is valuable in highlighting where demand for courses will arise.
Clearly a strategy that identifies these topics as study areas in their own right would be
unsuccessful and highlights a need for weaving the principles of wood-science, OH&S
and sawmaps to the more practical skills identified by the survey.
Technical notes and overhead presentations developed for the industry.
• Further Manufacturing
• Sawmilling
• Drying
• Wood preservation
The priorities for enterprise management comprise marketing and business
management. Neither of these requirements has been provided by this project primarily
because at the start of the project it was anticipated that both need and market demand

was orientated towards providing a better understanding of the technological
requirements for processing wood. However, given the demand for further knowledge of
these important disciplines a curriculum has been developed to provide the rudiments of
enterprise management. These elements include:
Information Technology and Communication.
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Project Management.
Leadership and Working in Teams.
Service Quality.
Occupational Health & Safety.
Managing Staff
Financial Management for Resource Ind.
Forest Products Marketing
Training Program Structure
There are natural groupings for subjects to provide intermediate qualifications. Ideally a
National Certificate, National Diploma and National Advanced Diploma leading to
articulation in undergraduate qualifications.
6 RuralSawmillDevelopmentinVietnam
An overview of Vietnam’s forest industries and domestic market requirements is
provided as a detailed separate report (Chien et al 2010). Salient points are as follows:
• Sawn timber production in Vietnam exceeds 2 million m3 /annum.
• Wood exports rank fifth in importance behind crude oil, textiles, footwear and
seafood
• Exports increased on average by 43% annually between 2000 and 2008.
• Vietnam has become the 4th largest global manufacturer and exporter of
furniture that together with handicrafts are exported to over 100 countries.
• Domestic production of timber is supplemented by significant imports of
unprocessed logs. Fifty-three percent of logs processed in Vietnam are imported.

The value of timber imports exceeds US$1 billion.
• Vietnam uses 11 million m3 of wood / year of which 57% is used for sawn timber
for producing outdoor and indoor furniture and construction timber. The
percentage end-use of acacia produced by rural sawmills (derived from
questionnaires directed at small rural sawmills, Blackwell et al (2009 highlights
also the importance of the domestic markets for furniture production.
• Domestic production of raw logs from plantations is expected to grow
substantially following the Vietnamese Governments objectives (1998) of
establishing a 5 million hectare reforestation program. Various estimates (e.g.
MARD, 2010) estimate that by 2020, Vietnam could be capable of supplying 20
million m3 annually. Currently domestic wood production from plantations is
expanding at about 10% / annum. This has offset a reduction in the availability of
wood from natural forests.
• Seventy-five percent of the current harvest from plantations comprises acacia
spp. This percentage is expected to increase.
• The plantation rotation age for acacia is approximately 7-8 years. Logs have a
small average diameter of approximately 250 mm.
This analysis highlights a number of important attributes impacting on future directions
for the industry. Firstly the forest products industry is an important export earning sector
that should continue to expand in the future. Protocols need to be in place to ensure that
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pests and diseases are contained and are not imported with unprocessed logs. Control
methods need to be in place pending outbreaks of timber and forest diseases.
(i) Export of furniture and crafts requires similar safeguards i.e. inspection to ensure
that exports are free of any pests that may lead to barriers being imposed
because of potential infection risks in the importing country. There is increasing
international awareness of the importance of containing and minimizing risks of
disease transfer between and within national boundaries.

(ii) Domestic production of timber destined for high value uses such as furniture
manufacture or export needs to be free from sap-stain that may arise during log
handling and transport.
(iii) There is an unrealized market potential for domestic timber production to be
used in construction. Realisation of this potential demand needs to be preceded
with the implementation of some preservative protection against termites and
decay that will be required for sapwood protection.
Results of an intensive survey undertaken of the rural saw-milling industry engaged in
the processing of acacia and eucalyptus species Vietnam identified that approximately
90 % of the rural sawmills operating in Vietnam are family businesses. Ten percent are
private companies. The growth in rural sawmills has been relatively recent. Of all the
sawmills interviewed none had been in operation longer than 18 years. The average
time that sawmills had been in operation was 5.3 years thus indicating that the
expansion of the rural saw-milling industry has been very recent. This probably reflects
the maturing of acacia plantations that forms the raw material base for this industry and
the freeing up of the economy to promote entrepreneurial activity.
Sources of business finance were primarily from existing family businesses with funds
supplied ranging from VDN 25-700 million (average VDN 165 million), Private finance
loans ranged from VDN 2-2500 (average VDN 144.7) and relatives VDN 10-100
(average VDN 43.6). None of the sawmills interviewed had received government grants
for establishing enterprises. Sources of funds between regions ranged enormously.
Banks loans were more prevalent in the Central Vietnam (on average VDN 259 million),
whereas the average loan in the North was VDN 50 million and VDN 48 million in South
Vietnam. The total estimated investment in rural sawmill equipment was VND 335,300
million. The average investment in each saw milling enterprise was VND 161million in
the North, VDN 150 million in Central Vietnam and VDN 249 million in the South of
Vietnam.
The survey identified that a large number of the rural mills only operated part time.
Table 4. Percentage number of sawmills operating full time.
Region Full time operation

North 25
Central 52
South 47
However, of those mills that indicated that they were operating full time a large number
identified reasons as to why there were substantial periods of down time. Key issues
comprised:
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• Lack of a continuity in the supply of logs and
• Inconsistent markets.
Other reasons identified included:
• That they only supplied local needs that were seasonal or
• That they supplied specialised end uses such as coffins, joinery etc.
• Bad weather and
• Inconsistent power supply.
Despite a potential over capacity for sawing the available raw material and inadequate
markets, 44% of sawmills indicated either plans to expand or a wish to expand their
activities. Target expansion areas were primarily furniture manufacturing (78% of
respondents) of whom 21% indicated that they would like to focus on high value export
markets. Other markets included handicrafts, and kiln drying of timber. Reasons
forwarded for identifying these potential opportunities related to a perception that there
were substantial market opportunities in these particular sectors. The main obstacles
hindering expansion related primarily to a lack of funding followed by the lack of
available skills. Other issues included the availability of quality raw material, lack of good
managerial skills, a lack of knowledge and unstable market conditions. In most
instances, there was a perception that there was an expanding market for furniture and
that expansion into such areas would stabilise demand for sawn timber.
Saw-milling equipment (horizontal and vertical bandsaws) have been manufactured

almost exclusively in Vietnam. A few mills were imported from China. Most of the mills
surveyed owned only 1 mill. Mill expansion usually involved purchasing addition mills.
Most sawmills also owned circular saws. These have been introduced more recently for
recutting flitches into sawn timber for furniture and other end uses. Virtually all mills had
rudimentary saw doctoring capability. The equipment was purchased new. However,
skills in saw doctoring varied enormously between mills. None of the mills surveyed
indicated any modifications to purchased equipment indicating that in general the saw-
milling equipment was suitable for the sawing of acacias. Only 12% of mills surveyed
have plans to upgrade equipment. Emphasis on replacement focused on:
• Purchasing vertical bandsaws because these were more suitable for sawing
small logs,
• Establishing furniture manufacturing equipment,
• Replacing old circular saws.
Further processing undertaken by sawmills to add value include:
• Air-drying. Only a third of all sawmills engage in drying.
• Kiln drying is undertaken by relatively few mills, although a number of mills send
their timber to enterprises that specialise in kiln drying,
• Preservative treatment was being conducted by 13 enterprises
• Integration of sawmills into manufacturing was reported and focused mainly on
furniture (16 companies) pallet making (9 companies) and construction (9
companies).
Those companies involved in kiln drying were experiencing very serious problems
particularly in relation to drying to a consistent moisture content and identifying suitable
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drying schedules for eucalypts and some native species. The Australian team observed
some larger enterprises who were not covered by the terms of this survey have invested
heavily in kiln drying equipment. These kiln were not operated correctly and results for
the more difficult to dry species were unsatisfactory, the main cause was lack of training

of the operators and limited understanding of the principles of timber drying.
Discussions with the kiln operators revealed a genuine interest in learning and getting an
understanding of how they could improve the quality of the finished products.
Log storage times at the sawmill were on average 1 month in the South 1.1months in
Central Vietnam and 0.6 months in the North. The total elapsed time from tree felling
and transport to the log storage yards was not identified. However, storage in extreme
cases at the log yard was reported to be as long as 6 months. Strategies need to be
implemented to streamline the logistics of supply to reduce log storage time particularly
given the incidence of decay that was reported by 29% of respondents. Log supply was
identified as a problem for 57% of respondents, mainly because of “availability”. The wet
season also compounded the problem often resulting in a discontinuity in supply.
Research needs to address the whole question of log supply. Techniques need to be
developed to reduce sap-stain including proper housekeeping techniques at the sawmill
to lift logs off the ground and provide timely rotation of the stockpile. This is needed to
avoid the development of a decay environment in the yard. The biggest problem (25% of
respondents) in relation to log quality was the presence of sweep (i.e. bent logs).
Inevitably sweep resulted in the crosscutting of logs into short lengths. The most
common log length was 2.4 metres.
Just over 60% of the sawmills interviewed in the survey processed acacia species
(Acacia mangium and Acacia auriculiformis). The minimum log diameters specified
comprised 10cm (24%), 12cm (59%) and 15cm (17%). These sawmills reported
volumes of between 2 and 300m3 of logs milled per month with prices paid between 0.6
and 2.5 million VDN per m3. Eucalyptus camaldulensis and Eucalyptus urophylla were
sawn in 38 % of sawmills, about 25% of the volume of acacia species. Ten sawmills
indicated the use of other plantation species. Six were sawing Pine; one was sawing
Khaya tonkinensis; three were sawing rubberwood with one of these mills also milling
Sau, Rieng and Dieu. Only two sawmills in the north indicated the use of imported logs
with a combined consumption between 3-6m3 per month.
The conversion efficiency of sawlogs into sawn timber was very consistent between
regions, 53%, 50% and 53% respectively for the North, Central and Southern regions.

These recovery rates are high given the small diameter of logs and indicate that the
sawmill technology is relatively efficient in maximising value from the logs. The recovery
results calculated would be considered to be very high, this may be due to the method of
using the volume of sawn timber as a percentage of the volume of logs. All sawmills
used a flat sawing method which gives the greatest recovery and width were usually the
maximum possible and may contain wane (The presence of bark or lack of wood from
any cause on the edge or corner of a piece of wood. ) on one or both edges.
An end use analysis of timber derived from the survey highlights the dominance of
furniture manufacturing and construction.
Table 2. End uses of acacia sawn timber in Vietnam by region.
End use Total Vietnam North Central South
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Furniture 42% 57% 48% 27%
Construction 26% 34% 28% 21%
Flooring 2% 2% 5% 0
Pallets / Crates 24% 2% 19% 42%
Unknown 1% 1% 1% 0
Other 5% 5% 0 10%
TOTAL 100% 100% 100% 100%
These statistics highlight a very high proportion of timber being used in furniture
manufacture, particularly in North and Central Vietnam. In the South, pallets and crates
dominated the market. The percentage end-use contrasts with other markets, for
example Australia, Europe and North America, where timber in construction would tend
to dominate the market (probably greater than 70% whereas furniture and packaging
might comprise and 15 and 5% each). The current analysis indicates that there is
potential for substantial market expansion in the construction and building industries.
In construction, timber is used mostly for formwork (shuttering for concrete). This is a
relatively low value (but important) end use and the life cycle for the product is relatively

short. Pallets and crates representing 51% of the market in South Vietnam comprise low
value markets. Timber is usually rough sawn with no value adding in terms of drying or
machining. Quality requirements for this market are also relatively low. Once again the
life cycle is relatively short. Furniture and flooring represent high value markets.
Expansion in these markets is hampered by an apparent shortage of suitable logs.
Limitations in the availability of longer logs, which is also frustrated by the logistics of
transport and man handling will also limit market development in construction. There is
an expectation that the domestic furniture market will continue to develop as marketing
and distribution become more sophisticated and better quality logs become available.
Approaches to providing longer lengths of timber have been addressed to some extent
by State enterprises in Hanoi by introducing finger jointing. The technology (imported
from China) is relatively cheap and appears to be successful. Short random lengths of
sawn timber are purchased from a myriad of sawmills located in the Hanoi area for
drying and reprocessing into longer lengths.
Customers specify quality requirement. Forty-eight percent of saw millers who answered
this question indicated that there are quality requirements that they have to meet. Forty-
two percent of respondents indicated that they work by agreement. Only a relatively
small number of mills (11%) indicated that they have sawing tolerances. Nine percent
work to agreements. The presence of stain in timber, whilst a very prevalent defect, was
either not considered as being important, or was tolerated as being inevitable. Only 8%
of respondents indicate that there are limits placed on the amount of stain and only 3%
have stain limits specified in agreements or contracts
All respondents to the survey completed a swot analysis (strengths weaknesses,
opportunities and threats). To a greater extent many of the strengths were also identified
as weaknesses
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Strengths included:
• Cheap labour

• Experience
• Easy to run business
• Cheap equipment
Weaknesses
• Technology and equipment is old
• Lack of knowledge in marketing, business and management skills
• Lack of finance
• Unstable market demand
• Space for expansion is limited
Opportunities
• Expanding into furniture manufacture
• Government policy that allows a sawmill to run its own business
• Increasing plantations
• Increasing demand for products
• Open markets.
The opportunities identified were similar between each of the regions. There was a
sentiment that the industry was becoming better known to the general public; that the
work associated with wood processing was in general relatively easy to learn; that a
culture of shared learning could be achieved and that the business was relatively cheap
to invest in.
Threats
• Competition
• Unstable markets
• Policy change
• Unstable log supplies
• Safety,
• Unstable log supply,
• Simplicity of products
• Lack of skilled workers,
• Small size of business

• Limited investment funds
6.1 Conclusions
The survey provides a snap-shop of a rural industry that has expanded very rapidly in
the last decade following the maturing of acacia and eucalypt plantations. There are
similarities in the responses to the survey conducted in North, Central and South
Vietnam. The expansion has arisen as a result of government policy that has
encouraged entrepreneurship and market freedom, a cheap labour force, cheap raw
materials (logs), cheap robust saw-milling equipment that has coped with the relatively
small diameter logs and a Vietnamese work ethic that has succeeded in building an
important rural industry that has flow on benefits to the local community.
The first question that arises is whether the “old fashioned” saw-milling equipment has
served its purpose and whether more sophisticated saw-milling equipment should be
encouraged. In the short and medium term the answer to this is probably no. Sawmill
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efficiency (conversion of logs into sawn timber) is amazingly high given the quality of
logs that are available to most of the rural sawmills. It is unlikely that an improvement in
yield could be achieved by introducing more sophisticated equipment. Secondly a very
high proportion of sawmills are not operating to full capacity. Equipment breakdown was
not identified as a core reason for equipment working below capacity; rather raw
materials supplies and inconsistent markets were identified as primary reasons. Higher
cost more sophisticated sawmills would exacerbate this problem. The capital cost for
establishing a horizontal Vietnamese sawmill is very low, US$3-4,000. The fact that the
sawmill is not operating to capacity is unimportant in terms of paying off capital, whereas
the introduction of more sophisticated in-feed and out-feed systems and automation
would see more than a hundred fold increase in the capital investment needed. This
changes the nature of the business from being low cost, rural, part time, seasonal and
flexible to being full time, ideally 3-shift, inflexible, labour reducing industrial production.
Transportation costs for logs to larger fewer mills would increase. Many of the locations

currently used by small horizontal sawmills would be totally unsuitable for expansion into
larger mills since many are on sites that can’t expand or are located adjacent to
dwellings.
Visits to a number of integrated forest industry complexes in Central and South Vietnam,
that were established in the last 2-3 years to produce very high quality furniture, solely
for export identified some very interesting features.
Firstly, there was a very high level of occupational health and safety applied to workers.
Secondly, very high quality logs of beech and oak from Germany; oak from Russia;
cherry and pine from the US, teak from the Philippines and tropical hardwoods from
South America etc. were being imported as raw materials for furniture manufacture.
Thirdly, some of the most sophisticated computer controlled furniture manufacturing
equipment (in one enterprise valued at $US80million) had been imported for
manufacturing knockdown furniture components for export. Saw milling however,
employed a bank of Vietnamese horizontal sawmills (in one case, 20 horizontal
bandsaws in a row) to provide primary conversion of very high value logs into high value
sawn timber for subsequent processing into high-value quality furniture. Very clearly it
would be relatively easy to write a case for employing a US$2-5 million sawmill complex
to undertake this function. Such a decision had not been made primarily because the
cost of 21 horizontal bandsaws is still a fraction of the cost of a fully integrated sawmill
and the conversion rate achieved using the horizontal mill coupled with low labour costs
couldn’t justify such an investment. On balance at this point in time there is no
justification for trying to encourage a departure from the rudimentary home-grown saw
milling equipment currently being used. Improvements can be made to the Vietnamese
bandsaw type mills and these are highlighted in a separate report.
Fourthly, value added kiln drying and wood treatment facilities had been established, as
well as very well maintained air-drying practices. This is elaborated below.
Potentially there is no value to be achieved from the government providing financial
incentives for establishing more low cost sawmills. The investment needed to establish
new mills is low and is best left to market forces. However, at the same time as the
survey was conducted audits were undertaken of kiln drying operations. Many of the

kilns inspected were imported and of high quality. In addition Vietnamese manufactured
kilns ranged from being well-designed units that met the requirements for drying acacia
and eucalypt species, through to poor quality in-house built units, which produced
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questionable quality material. However, operation of these all kilns was sub-optimal due
to the failure to use fairly basic drying principles and utilisation of standard monitoring
equipment (i.e. wet bulb sensors) to ensure correct operation. In other words drying was
achieved using an oven or ‘hot box’ rather than a properly controlled dry kiln. The
inevitable consequences of this resulted in drying degrade, non uniform moisture content
and / or over drying. This is a training issue since most of the kilns audited had the
equipment available for monitoring relative humidity via wet bulb sensors which
inexplicably at times had been disconnected. Most drying operation failed to use baffles.
This inevitably led to inefficient energy use and variable wood moisture content both
within and between boards, on completion of drying. In addition their appeared to be a
lack of adherence to species-specific drying schedules. Whether the best kilns are being
used for Vietnamese conditions is also an issue (a research and technology transfer
issue). Whilst many sawmills interviewed in the survey identified kiln drying as a
business opportunity, clearly there is not enough sawing capacity for each individual mill
to justify establishing its own drying facilities. Air-drying requires a great deal of skill and
a surprisingly low percentage of sawmills engage in air-drying. Space is an issue for
many mills as is training in air-drying practices. There is also a question of the minimum
moisture content that could be achieved using air-drying. It is anticipated that this would
be approximately around or just below fibre saturation point (fsp).
The utilisation of solar drying technology is considered to be a viable and economic
alternative option. Initial research results indicate that significant savings can be
obtained. All of these issues have been reported separately and recommendations made
to facilitate an industry improvement in drying. High quality seasoning and drying are
prerequisites for successful furniture manufacturing. Many small rural sawmills have

their sight set on furniture manufacturing as a logical extension of their sawmill activities.
Sap stain, decay and insect attack are important issues in Vietnam primarily because of
climate. As soon as a tree is felled it becomes susceptible to this rapid process of
colonisation. The lesson is that trees should be left standing until the supply processing
chain has been organised and timetabled. Both the survey and quality auditing of the
stored logs and finished products indicate an industry–wide problem. Sap-stain is
common in logs. Pines and rubber-wood are particularly vulnerable to sap-stain, much
more so than acacias and eucalypts. But it is still a problem with these species. Apart
from the delays in log transport, other issues identified include proper housekeeping of
logs at the mill site; the need in some severe cases for prophylactic treatments at the
sawmill to alleviate stain and decay. A high volume of acacias is used in furniture and
the survey indicates that this market will continue to grow and substitute the use of
acacias in low value uses such as packaging, crates, boxes etc. Much of the domestic
furniture uses a dark lacquer finishes. This is an effective strategy in masking stain in
wood. However, as the market expands, fashion may change to bring about a demand
for furniture that displays the intrinsic species characteristics. This is the case for short
clear lengths of rubber wood for export. The market requires a light colour. Export
rubber-wood is inevitably preservative treated to prevent sap stain. Ten years ago this
would have involved treatment with relatively high concentrations of PCP
(Pentachlorophenol – (5%) mixed with borax- (1.5%). Fortunately given the dioxin
impurities in PCP this practice appears to be history and treatment now focuses on the
use of boric acid plus borax that is benign from an environmental and human toxicity
perspective, although the preservative is still quite toxic to fish. Given the trend towards
using acacia for furniture, preservative treatment is potentially not an issue for most
sawmills.
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A visit to a treatment plant manufacturer in South Vietnam identified that highly
sophisticated treatment plant was being manufactured. The owner of the foundry was

concerned about potential future markets for the plant and this concern is probably
justified. A separate report produced by the research team highlights needs in terms of
training and research; the opportunities for niche markets in treated timber and round
wood for construction, but also the design of a simple treatment plant that can be used
by rural sawmills without exposing workers or the environment to toxic chemicals.
Occupational Health and Safety is a key issue for rural sawmills. Fortunately the survey
identified less of a problem in terms of accidents than was anticipated given some of the
work practices and the total absence of any work-place control for the prevention of
accidents. These issues have been evaluated, reported and recommendations made to
improve the working environment. Survey results as to sawmill owner preferences in
relation to training, placed a low priority on OH&S. Whilst this could possibly be justified
based on survey results, issues such as noise and dust were not considered by the
survey of owners but were audited at the time of the survey. Long-term health issues
(nose, lung capacity hearing and eye-sight) are of concern. Implementation of current
Vietnamese legislation in relation to OH&S needs to be taken on board by mill owners.
OH&S training is obviously one of the key strategies in implementing change in the work
place. Future education training and research needs is reported separately but takes into
account the findings from the survey. Clearly apart from the basic elements of training in
wood processing, this survey identifies a clear demand for training in business,
bookkeeping, marketing and management.
The survey provides some quantification of the basic needs of rural saw milling in
Vietnam. The exercise provides invaluable information from which strategies can be
developed for improving the performance of the industry. Key issues identified by the
survey that require further investigation include the lack of information in relation to log
supply. This is an issue that needs to be addressed by the Vietnamese Forest Service.
Secondly the inconsistent market demand reported by many sawmills needs to be
addressed. This needs an industry wide or cluster approach to providing collective
information and quality standards and finally, mechanisms to promote the development
of value adding industries such as kiln drying and furniture manufacturing.