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MinistryofAgriculture&RuralDevelopment

CARDProjectReport

027/06/VIE


MS9+MS10:VALIDATIONANDCOMPLETION
REPORT
by
PeterVinden,PhilipBlackwellandPhanDucChien



August2010
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
VALIDATION AND COMPLETION REPORT 5
OBJECTIVES 5
Objective 1. Identify and define industry problems, needs and opportunities
through a comprehensive survey and review the rural sawmilling industry 5
Objective 2. Establish a facility for training and technology development 5
Objective 3. Develop and conduct training programs to improve operator
sawmilling and business skills for trainers and for mill operators 6

Objective 4. Investigate demonstrate and recommend more appropriate or

alternative technologies to improve industry performance. 6
Objective 5. Develop long-term strategies for industry development 7
Sustainability of project outcomes at institutional and operational levels 7
OUTPUTS 8
Extent to which project outputs and performance measures have been
achieved 8
Impact of project outcomes on target beneficiaries 11
Sustainability and coverage of benefits 12
ACTIVITIES : Detailed completion of activities 13
Justification for non completed activities 14
Quality of activity achievements 15
OBJECTIVE1 15
OBJECTIVE2 15
OBJECTIVE3 16
OBJECTIVE4 17
OBJECTIVE5 17
INPUTS 17
1. Policy Considerations: 19
THE DEVELOPMENT OF RURAL FOREST INDUSTRIES IN VIETNAM 19
Abstract 19
Background 19
The role of the National Forest Service 21
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The conservation of tropical rain forests and native habitats 22

The establishment of “New Forests” to meet the needs and bridge the divide
between city dwellers and rural settlers 22
Consolidating supply of raw materials 23
Consolidating domestic demand for wood products 24

Research 24
Education and training in forestry, wood science, timber engineering and
furniture 26
Research training and education focus. 26
Strategies to Assist Rural Sawmill Development in Vietnam 27
2. Appendix: 32
THE ESTABLISHMENT OF “NEW FORESTS” IN VIETNAM 32
Summary 32
Background. 32
New Forests 33
3. Appendix: 37
FOREST INDUSTRIES 37
2.1 Energy required for processing 38
2.2 The link between trees, wood and architecture 40
2.3 The popularity of forestry and foresters 40
2.4 Conclusions 41
4. Appendix: 42
FOREST INDUSTRIES RESEARCH 42
Background 42
Research program 42
Program 1. INNOVATION 44
Carbon positive design (CPD); 44
Design for recycling, reuse and reassembly 44
Design durability 44
Program 2 FUNDAMENTAL SCIENCE 45
Biochemical pathways for lignin, cellulose and hemicellulose biosynthesis 45
Lignocellulose fibre composition 45
Lignocellulose interactions 45
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Chemical and physical modification of wood fibre 45

Program 3: NOVEL TECHNOLOGIES 46
Low temperature fast pyrolysis 46
Modification of bark and in situ tannin fixation to provide a physical and
chemical sieve for waste capture of proteins, heavy metals and oil for
recycling 46

Microwave modification of biomass 46
Plant-fibre polymer composites 46
Sawmilling, drying and preservation and furniture manufacture 47
Program 4.  Education and knowledge transfer 47
PhD student research projects 48
Masters course work programs 48
Software aids in Design 48
Policy development programs incorporating Carbon Positive Design 48
Patent protection of innovative technologies 49
Potential research partners 49
Potential End user organizations 49
5. Appendix: 50
CONSOLIDATING TRAINING AND EDUCATION 50
4.1 Training requirements 50
Survey of industry attitudes to training 50
4.2 Training Program Structure 52
6. Appendix: 53
RURAL SAWMILL DEVELOPMENT IN VIETNAM 53
Conclusions 58

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VALIDATION AND COMPLETION REPORT
Thisreportprovidesasummaryofprojectachievementspresentedaccording toCARDprotocols
and final recommendations to ensure ongoing development of rural forest industries in
Vietnam.
OBJECTIVES
• Extenttowhichprojectobjectivesandperformancemeasureshavebeenachieved.
Objective 1. Identify and define industry problems, needs and opportunities
through a comprehensive survey and review the rural sawmilling industry.
This has been achieved by establishing an inception meeting with stakeholders from industry,
educationandresearchinstitutes,government, bilateralandmultilateralaidagencies.Detailed
questionnaires were developed with input from the inception committee. Vietnamese project
participantsattendedatrainingprograminAustraliatodevelopandrefinesurveymethodology
and review appropriate
 wood processing technologies. The industry survey and review was
undertakenbyajointVietnamese/Australianteaminrepr esentativeprovinces,incooperation
withprovincialDepartmentsofAgricultureandRuralDevelopment.
The survey was conducted in the form of a participatory rural appraisal (PRA). Individual mills
werevisitedandthefollowing
typesofinformationsoughtfromowners:logvolumeinput,sawn
wood output and grades, price and cost data, end‐use markets, equipment used, employee
statistics,problemsidentifiedbyowners,andowner’sviewsondevelopmentneedsofindustry. 
A complementary survey was also undertaken to include plantation growers to assess their
views
 on markets and prices and sawn timber buyers to assess their views on sawn wood
products purchased. The results were collated and a detailed report publish ed. The findings
weresupplementedbyaseparatereportoutliningthecurrentstateofdevelopmentofforestry
andtheforestindustriesinVietnam, theircontribution
totheeconomyandruraldevelopment 
andpotentialtogrowinthefuture.Thesereportswereusedasbackgroundtodevelopingmore
detailed reports on individual sectors of the industry including sawmilling, wood drying,

preservation, forest industries education and training, research and extension. Each of these
reportshasbeencompleted.
Objective 2. Establish a facility for training and technology development
Althoughthisprojectdidnotdirectlyestablishatrainingfacility,ithasbeeninstrumentalinthe
trainingofVietnameseresearchersandtrainersinWoodScienceandSawmilling.Thesepeople
haveusedthistrainingin theeducationofsawmillersandstudentsaspartoftheextension work
or training activities. The Lucas
 portable sawmill will further be used in the development of
training programs to teach on the quality advantages of quarter‐sawn timber over the
conventionalflatsawnmethod.
The Vocational School for Agriculture and Rural Development in Central Vietnam has
undertakenthetrainingandisnowusingthematerialwith
theirstudents.Thetrainingfacilityin
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Dai Lai hasbeen involvedin the training andextension workwith the ruralsawmillers in their
region.
This exte nsion program will continue as the researchers who have been trained are used in
workshopsandasaresourceforforestgrowersandfarmers.
The establis hment of a facility was extensively discussed
 within the project team and the
recommendation was that a stand alone facility would be expensive to establish and run plus
havelimitednumberofpeoplewhowouldusethefacilitythereforethetrainingoftrainerswas
consideredtobemorebeneficialandfittheprojectbudget.
Objective 3. Develop and conduct training programs to improve operator
sawmilling and business skills for trainers and for mill operators
Structured programs of sawmill training for rural communities were developed based on the
needsanalysisidentifiedinthesurveyofruralsawmills.Thefocusforthistraini ngwastechnical
ratherthantraininginbusinessskills,sinceitwasanticipatedthatthiswastheareaofgreatest
need. However, participants have identified

 a need for training in business skills and this has
been addressed in detailed curriculum developed for future courses. Course materials in the
formofTechnicalNotesandoverheadsweredevelopedforthesecourses.A“trainthetrain er”
coursewasheldinAustraliaforVietnameseparticipantsandagaininVietnam.
Foursessionsof
rural training have been completed successfully by the CARD project and feed‐back obtained
fromcourseparticipants.
Objective 4. Investigate demonstrate and recommend more appropriate or
alternative technologies to improve industry performance.
Detailed reports on each sector of the forest industries have been completed and
recommendations made in relation to the suitability of alternative technologies to improve
industry performance. Separate reports are provided on sawmilling, drying and preservation.
The central question is whether the small horizon tal band saw and vertical band‐saw can
 be
replaced with more automated facilities to provide centralised  processing. There is a chasm
between the costs and operational needs of these small sawmills versus the next level of
sophistication; aninvestment of $4,000 for the current rural sawmillversus 1‐2million for the
cheapestlevelofautomatedsawmill
(forexampletheHEWsawmill).Automationbrings withit
the need for continuously available wood raw material of high quality, and a substantial
improvementinworkerproductivityalbeitatthe expenseofjobs.Valueaddingandexpanding
theutilityofwood throughpreservation andcorrectdrying usingappropriate technologiesare
recommended
 instead of focusing on the replacement of small rural sawmills. The small rural
sawmill provides infinite flexibility in providing primary conversion of the log. None‐the‐less
substantial improvements in the operation of small rural mills can be achieved through a
program of sa wmill  improvement. This report summarises  recommendations from
individual
industrysectorsinrecommendingspecifictechnologiesthatcanimprovethelongtermviability
oftheindustry.

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Objective 5. Develop long-term strategies for industry development
There has been an acceleration in the establishment of fast growing plantations of mostly
Australianspecies (acacia’sandeucalypts).This hashadvery desirableimpacts inreducin g the
exploitationof nativeforests.A verysubstantialrural sawmillingindustryhas developed based
onthisrawmaterial thathas hadasignificantimpact
onruralprosperityandthe alleviationof
poverty.At thesametime theindustry has meta growingneed forconstructionandfurniture
timbers in the domestic market. However, the almost exponential proliferation of small
inefficientmillsusing lowqualityroundwoodwith scantregard forqualityor thetechnological
needs
ofend‐usingindustriessuchasfurniturehasresultedinsubstantialovercapacity,market
uncertainties and haphazard raw material supply. There are currently very limited means for
researchingandestablishingnewtechnologyorupgradingtheskillsoftheworkforce.
Detailed analysis of the sector provides a clear picture of an
 industry at a cross‐road that will
either see a substantial decline in its fortunes or (depending on Government policy) and the
futureroleoftheVietnamForestService,asubstantialexpansioninactivity,particularlyinvalue
adding in domestic furniture and construction, with employment and prosperity for the rural
sector.
Long‐term strategies are developed in this report to improve productivity of rural sawmilling
through new technologies that are relevant to expanding value adding. Analysis of the sector
identifies its importance and the need for long term policies directed towards improving the
availability and quality of plantation grown logs specifically
 for the rural sector. Training,
education, research and e xtension cannot be looked at in isolation. Similarly long term forest
operations relating to maintaining biodiversity, conservation of rare and endangered species,
reclamation of degraded land improving water quality and the provision of recreational areas
and conservation of areas of historical significance

etc, should not substitute or dimi nish
responsibility for integrating areas of production forests that can in the future maintain the
viability of rural areas and provide rural industries of the future. Thus the long term strategy
adopted in this report unashamedly recommends the involvement of Government and the
Vietnam Forest Service
 as an active player in the production of commercial plantations
specifically to meet the needs of rural industries. There will be counter arguments that
productionforestsarenotapublicutilityandassuchshouldnotbea governmentactivity,that
it should be left to the private sector. For
Vietnam’s rural poor such an argument is hardly
relevant.Thestrategydevelopedinthisreportisforthedevelopmentof“NewForests”,forests
thataregrownascloseaspossibletolargecitiestomeetamultipleofobjectives;toprovidean
interfacebetweentheurbandwellerandruralpoor.Research
investmentintoforestindustries
isexpandedtofocusonbestinternationalpracticeandglobalissuessuchasgreenhouseandthe
rolethatforestindustries canplayinreducingthecarbonfootprintthroughsubstitutingthe use
of non‐renewable resources such as steel and oil, whilst at the same time
providing the
infrastructureneededtoassisttheadoptionofnewtechnologiesbytheruralsector.
Sustainability of project outcomes at institutional and operational levels
The Vietnam Forest Service is thelogical institution thatshould be givenlong‐term carriageof
the aims of improving operator skills and techno logy in small rural sawmills in Vietnam.
Recommendations are provided in this report for the expansion and reorganisation of Forest
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Service activities to service these needs, through the provision of training programs, research
and extension. The recommendations are fairly radical in nature primarily because current
servicing of therural sectoris almostcompletely absent.Thein frastructure (trainedpersonnel
and equipment) needed for servicing thesector is also almost non‐existent. The
 CARDproject

has been successful in identifying how important the rural industry is and will become in
meeting dom estic needs for furniture and construction and the future prosperity of the rural
sector. The CARD project has provided a framework for research, education, training and
extensionas wellasmuch of
theresources(technicalnotesand overheads)needed toprovide
ongoing training. The sustainability of future outcomes in  this sector will depend on how
successfullythe ForestSer vicecanrealign itsobjectivesin relationto theruralsector andhow
effectiveitismarshallingnewresourcestoe xpandandtraintheworkforce
needed
OUTPUTS
Extent to which project outputs and performance measures have been achieved
Alloutputs,milestonesanddeliverablesasdefinedintheoriginalproposalhavebeenachieved
and are highlighted in table 1.Delays were experienced in meeting most of the completion
dates.This aroseprimarilyasaresultofdelaysfromtheUniversityofMelbourneinsigningthe
originalagreement.Thisresultedinunplanned
re‐sequencingofactivities.Theunfortunateand
untimely death of John Fryer who championed the project also left an enormous operational
gap for the project.John was responsible for managing project logistics and activities in
Vietnam.PhilipBlackwellwasappointedasavolunteerreplacementforJohnFryerandhasbeen
locatedwithin theVietnam Forest Service(Hanoi). Thisfilled thegapexperiencedin managing
project activities. Further delays arose from unanticipated internalchangesand reorganisation
withintheUniversityofMelbourneaffectingtheavailabilityofstaff
The objective of installing a horizontal bandsaw was changed instead to a vertical bandsaw
followinga
reviewoftheefficiencyoftherelativetechnologiesinsawingsmalllogs.Aninternet 
repositoryofalltechnicalreportsrelatingtotheCARDprojectwasestablishedtoassisttransfer
and review of documents  between Australia and Vietnam. It was decided that making the
internetconnectionavailablepubli cally shouldwaituntil:
• AlldocumentshadbeentranslatedintoVietnamese
• CARDhadapprovedandacceptedeachofthedocuments

• Future responsibility for on going extension following completion of the CARD project
hadbeenfinalised.Thisactivityisdiscussedbelow.
9

Table 1. Milestones and Deliverables

Output
Milestones
Milestonedescription Deliverables: comments
1. Contractsigning Contractcompleted completed
2 6‐monthlyprogressreports
andprojectcompletionreport
Fourreports,acceptedby
AusAID
3,6monthly
reportsand1
completion
report
completed

Objective1:toidentify&defineindustryproblemsandopportunitiesthrougha
comprehensivesurveyandreviewtheruralsaw‐millingindustry

Outcome
milestone
Milestone description
Deliverables comments
Meetingofinterestedparties Inceptionmeetingorganised
andnetworkoforganizations
andcompaniesinvolvedinthe

projectestablished.
completed
FormationoftheprojectSteering
Committee
SteeringCommittee
established;questionnaire
designedandsurveyoperations
designed.
completed
BaselineSurveyundertakenin
South,CentralandNorth
Vietnam
Draftreportcompleted completed
Output1.
Meetingofstakeholdersto
finaliserecommendationsand
reviewobjectives.
Surveyreportcompletedand
recommendationsfinalised
completed

Objective2:establishafacilityfortrainingandtechnologydevelopment

Evaluateandpurchase
portablemillfortraining
Portablemilloperational Changeddesignof
milltofocusonLucas
sawmillratherthan
horizontalbandsaw


Electronicwebpagedesigned
forclustergroups
Webpageoperational Confidentialweb‐
pagetoholdall
technicalreports
completed.
Blocktrainingcoursesand
datesdefinedandadvertised
totargetaudience.
Brochurescompletedand
disseminated
completed
Output2.
Meetingofstakeholdersto
reviewprogressand
objectives.
Reportincluding
recommendationsforfurther
conductofproject
completed




10

Objective3:Developtrainingprogramstoimprovesaw‐millingandbusinessskillsfortrainers
andformilloperators
Output3 Blocktrainingcoursesfor
trainersdefinedandheld

inAustralia.
Blocktrainingcoursesfor
trainersinAustralia
completedand
evaluated.Training
handbookfortrainers
drafted.
Completed.Handbookproviding
Technicalnotesandoverheads
Output4. Blocktrainingcoursesfor
trainersheldinVietnam
Blocktrainingcoursesfor
trainerscompletedin
Vietnamandevaluated.
Traininghandbookfor
trainersdrafted.
completed

Output5. Coursedesignforblock
deliveryinCentral
Vietnamandlecture
notescompleted.
Coursenotestranslated
intoVietnamese.
completed
Output6. Firsttrainingcoursefor
sawmillersinVietnam
Courseconductedand
evaluated,evaluation
report

completed
Output7 Meetingofstakeholders
toreviewcoursenote
materialandtrainingthe
trainer’smanual 
Reviewreportcirculated
tostakeholders
Technicalnotescompletedand
arenowbeingtranslatedinto
Vietnamese.Meetingwith
stakeholdersdelayeduntil
translationiscompleted

Output8 longtermimpactand
benefitsassessmentof
trainingonselectedsaw
millers
Assessmentreport
consideredbyadvisory
committee,
recommendationsfor
furthertraining
directions
Detailedrecommendations
completedinfinalValidationand
completionreport.
Meetingtobeheldwith
stakeholdersoncetranslationis
completed


Objective4:investigate,demonstrateandrecommendonmoreappropriateoralternative
technologiestoimproveindustryperformance.

Output9.

Evaluatetechniquesforimproving
theperformanceofVietnamese
manufacturedhorizontalbandsaws.
Portablesawmill
modified&tested.
Technicalreport
completed
Verticalbandsaw
substitutedfor
horizontalbandsaw
Output10.

Determineoptimumdrying
parametersforkeyplantation
species.
Technicalreport
completed
completed
Output11.

Establishhousekeepingprotocolsfor
reducingfungaldegradelogsand
sawntimber.
Technicalreport
completed

completed
Output12.

Reviewtechnologiesandneedfor
preservativetreatment
Technicalreport
completed
completed
Output13.

Comparetechnologyneedsfor
centralversusdecentralised
sawmilling.
Technicalreport
completed
completed
11


Objective5:developlongtermstrategiesforindustrydevelopment

Output14. Comparetechnologyneedsfor
centralversusdecentralised
sawmilling,andpolicy
implications
Technicalreport
completed
completed
Output15. Identifydomesticmarket
requirementsforsawntimber

(sizesgrades),evaluatequality
Technicalreport
completed
completed
Output16. Identifyfuturetechnologyand
trainingneeds
Technicalreport
completed
completed
Output17. seminarwithstakeholders;
reviewfindingsanddraftfinal
reporttoAusAIDand
recommendationstoMARD
Draftreport
completed
Draftreportcompleted.
Seminar/Workshopto
considerprojectfindings
andreportsbeheldata
reporthandingover
ceremony.
Impact of project outcomes on target beneficiaries
The rural sawmill survey report together with the report reviewing the current and future
prospects for forest industries in Vietnam highlight the very significant importance of this
industry to the economy of Vietnam and future well being of rural populations. Prior to
undertaking the survey therewasvery littleinformation available
on ruralsawmilling.Analysis
of the survey and it reporting has articulated a clear picture of the state of the industry, its
strengths,weaknesses,opportunitiesandthreatsandavisionforhowtheindustrycandevelop
inthefuture.

TheCARDprojecthastrainedacoreteamofVietnamesescientists
inthetechnologies(current
andfuture)thatwillassisttheindustrytodevelop.Visitstotheseindustriesduringtheconduct
ofthesurveyhasprovidedanauditoftheiroperations(asmightbeundertakenduringasawmill 
improvement program). The opportunity for providing advice on improving the operational
efficiencyofthe
sawmill,dryingortreatmentfacilitywastakentogetherwithon‐sitetrainingof
Vietnamresearchersintheapplicationofsawmillimprovementprograms.
Vietnamese research staff attended an intensive training program at the School of Forest and
Ecosystem Science, Creswick campus, Australia and learned about the hands on operation of
sawmills
and the alleviation of growth stresses; the efficient operation of kilns and treatment
plant,qualitycontrolmonitoringoffinis hed products,valueaddedmanufacturingandnewlow
tech technologies to assist expansion of sawmilling operations into value adding. The same
Vietnamese staffs participated in the development of training courses and have actively

participated in the training of rural communities in Vietnam in these aspects of wood
technology.
Detailed analysis of specific sectors (sawmilling, drying and preservation) has highlighted the
technical needs of these sectors, the technology options available and the cost / benefits of
adoptingparticulartechnologies.Veryspecificrecommenda tionshavebeen
providedineachof
12

these sectors as to the best technical and economic (low risk) options available for expanding
intovalueadding.
The haphazard and exponential proliferation of small sawmills has identified the potential for
this industry to be self starting and sustainable with appropriate technologies and local
investment. However, the survey also identifies the
 fragility of self help initiatives that are

dependenton continuingraw materialsupplies (albeitoflow quality)andthescantavailability 
of knowledge and technical skills needed to value‐add sawn timber output. Clear policy
decisions and action is needed to ensure continuing raw material supply of improved quality,
together
with appropriate training and the availability of appropriate technologies for value
adding that can betaken up through the sameprocess of selfhelp. At thesame time training
needstobeprovidedthatwillupgradeskillsandawarenessofOH&Sissues.
Training materials  and infr astructure have been developed and tailored
 to the requirements
identifiedinthesurvey.Implementationofpolicyrecommendationsfromthereportswillhavea 
major impact on the long term development of the industry and future development of rural
communities.
The most significant outcome of the project is that rural communities have articulated their
perceptionofthe
futureneedsoftheirsector,theiraspirationsandfearsforthefutureaswell
as their vision of what potentially could develop in terms of expanding their activity. To a
greaterextentthesawmillingcommunityhas articulatedoptimisminthelight ofopportunities
thatareavailableindevelopingproductsandmarkets.

TheprojecthasprovidedtheForestServicewithablueprintorplanthatis relativelylowriskin
itsimplementation,butwhichrecogniseswhathasbeenachievedbytheruralcommunityinlow
tech processing of plantation logs and builds onthis througha “New Forests”strategy and an
innovativeprogramofresearch,trainingeducationandout‐reach.
Sustainability and coverage of benefits
The rural sawmilling industry and has grown exponentially over the last 10 years utilising
resources that have been self  generated by rural peoplesthroughout Vietnam. It is an
incredible success story of international proportions where the right (home developed)
technology,availableatan affordablepricehascoincidedwiththeavailabilityof
affordableraw
materialandmarkets.Theopportunitynowexitsforthegovernmenttoprovideahelpinghand

to reduce the risks associated with taking on a logical evolutionary  role in moving to value
adding, not througha processof financialhandouts (localcommunities havedemonstrate d an
abilityfor selfhelp)
butsimply throughproviding securityinraw material availability, together
withcontinuationofthetraining,educationresearchandextensionstartedbytheCARDproject,
to provide skills, infrastructure and appropriate technologies that will meet the aspirations of
themanymillswanting totakethisnextstep.
Rural forest industries are very
 vulnerable to policy changes. Future deve lopment of the
industry needsto be underpinned orchampioned bya single governmentdepartment, inthis
case most appropriately the Vietnam Forest Service. A logical step in providing long term
securityofrawmaterialsupplyistheadoptionofa“NewForest”policy
(outlinedinthis report).
13

Adoptionofsuchapolicywillnotonlybenefittheruralpoor(byprovidingemploymentandraw
material), but alsothe city dwellers whoin the futureeconomic prosperity ofVietnam will be
lookingfor“green”areasofrecreationclosetothecity.Thusthepotentialcoverageofben efits
will embrace
 not only the rural population of Vietnam but also city dwellers that aspire to
enjoyinggreenareaswithintraindistancefrommajorcities.
Adoption of the recommendations in this report will need major policy initiatives focussed on
the Vietnam Forest Service. Very clearly the adoption of such broad reaching policy
changes
needs very clear articulation of the findings this CARD project. Thus the objective is to hold a
final debriefing workshop after all translation of project reports has been completed. A
conferencestylepresentationofreportfindingswill  beprovidedasaformalcompletiontothe
CARDproject.Thiswillbe
followedbyadetailedworkshopanalysisofreportrecommendations
andtransferoffutureinitiativeoftheprojecttothesteering committee.

ACTIVITIES : Detailed completion of activities
The7projectactivitiesdefinedatthecommencementoftheprojectarehighlightedin table2.
All activities have been completed. The death of John Fryer left a gap in managing project
activitiesinVietnam.However,theappointmentofPhillipBlackwell(anexpe rtinsawmilling)to
a volunteerposition to oversee
 CARDproject activities has ensured that allthe activities have
been brought to a successful  conclusion. The first activity‐development of the survey
questionnaire through the inception meeting of stakeholders meeting was characterised by
enormous enthusiasm and input into defining the survey questionnaire. No problems were
experienced in conducting the
survey or summarising the results. The data base provides a
detailed snapshot of an industry that has grown exponentially and is now looking at vertical
integrationtoexpanditsactivitiesintovalueaddedprocessing.
PhilBlackwellhaschampionedtheestablishmentofsaw‐milltrainingfacilities.Theoriginalaim
was to establish
 a horizontal band saw. Historically the original horizontal bandsaw was
developedforsawinglargerdiameternativelogsandhassincebeenadaptedforusewithsmall
diameteracacialogs.Astheprojectteambecamemorefamiliarwithoperationofthehorizontal
bad‐ saw, it became clear that  given the quality
and small diameter of acacia logs that the
industry would be better served with a vertical band saw. This also became obvious when
interviewing those mills that hadadopted vertical band‐sawing ratherhorizontal band‐sawing.
ThischangewasagreedtobyCARD.
Early on in the development of the project
 there was some aspiration to find the next
evolutionary stepin sawing.To move from smallscale horizontal sawing inthe backyard to a
moresophisticatedsystemssimilarinprincipletotheHEWsawingtechnology.Inundertakinga
detailedreviewofsawmillingtechnologiesincludingtheHEWsawingtechnology,it
isclearthat
theleap in technologybrings withit acostin capitaljump  from$3000to between$1‐2mi llion

and the additionalrequirements for continuity in supply ofhigh quality raw material. There is
obviously a  place for a very limited number of such automated mills in Vietnam. On
 bal a nce
however, it is not possible to substitute current te chnology without severe impacts on rural
employmentthatintheendwouldtendtobecounterproductive.However,muchcanbedone
througha sawmillimprovementprogram toimprove thesafeoperation ofcurrent equipment.
Atthesametimethereareappropriate
technologiesthatcanbeusedforvalueaddingsuchas 
theuseofproperlycontrolleddryingschedules(foruseinexistingkilns)andtheintroductionof
14

solar kilns.Similarly in thetreatment area,a “LowTech” treatmentprocess has beendesigned
forruralcommunitiestocomplementtheruralsawmill.Thisisidentifiedatthispointbecauseit
would be opportune to install drying and wood treatment facilities to complement the CARD
initiative in establishing a training mill. Funding
 of this additional equipment is beyond the
meansofthecurrentCARDbudget.
Activity3  involvedestabli shingan electronicweb page.Dr PhamDuc Chienhas establishedan
internet connectionforproject members toreview/edit projectreportsand trainingmaterial
as well as a repository for complete d work.
This has proven to be a valuable means of
communication between project members. Once the project is handed over to FSIV the net
workwillbemadeavailabletoclustersofsawmillsthroughapublicinternetconnection.
Activitiesand4,5,6and7haveprovidedtrainthetrainersessionsin
AustraliaandVietnamand
the delivery of 4 training sessions at various locations through Vietnam. A nucleus of Forest 
Service staff has been trained to provide on–going delivery. Teaching materials have been
developed and translated into Vietnamese to service on‐going training courses. Expansion of
thisnucleus oftrainersis
apriorityfor thefutureand recommendationshavebeen forwarded

thatallfield staffofthe ForestServiceshould  begiven level4‐6 trainingin forestindustriesso
thatinfuture,levels1‐4(basictraining inforestindustries)canbeprovidedtosawmillclust ers
throughoutVietnam.Thesawmillsurvey
has highlightedthatcoursespriortotheCARDproject
were of poor quality and barely relevant to needs. It will take some time to address this
perception.Inthemeantimethetraining ofallforestservicestaffplusmanagementlevelsfrom 
othergovernmentdepartments and industrywillensurethat
acontinuous stream of fieldstaff
are able and willing to continue to provide training in the field. Skill is  needed in targeting
clusters of sawmills and therefore recommendations include the provision of an extension
servicewithintheforestservicethatwilltakeonthisresponsibility.
Activity 8  is planned to
 be delivered in a workshop in September 2010. The workshop will
coincidewithtranslation ofallreportsandtechnicalnotes intoVietnameseanddelivery of the
final report to CARD. The objective this workshop is to deliver project findings and achieve
commitmenttorecommendationsofthefinalreport.
Justification for non completed activities
All activities of the CARD project have been completed. Activity 8 has been timetabled and
invitations sent out to key stakeholders. Whilst it may be argued that activity 8 should have
beencompletedearlier,thevolumeofreportsandmaterialsgeneratedbytheCARDprojecthas
been overwhelming in terms of
 the translation required into Vietnamese. As the project has
progressed it has also become clearer that rural sawmilling has become an enormously
importantsectorandinfutureitsservicingneedstobeatthecoreofForestServicepolicyand
activity. This importance needs to be articulated to relevant agencies
within government,
bilateralandmultilateralaidagencies. ThisCARDprojectneedstobehandedonasanon‐going
concern. Thus it is appropriate to hold a completion ceremony and a formal handing over of
furtherresponsibilityforfutureinitiativestostakeholdersandinceptioncommittee.
15

Quality of activity achievements
It is potentially inappropriate for the project team to comment on the quality of activity
achievements. The quality of work done should become ap parent at the final workshop. The
projecthasbeenenormousinscopeandhas requiredallmember softheprojectteamtowork
very long hours over an
 extended period of time. Despite the frustrations apparent in delays
that have occurred (at no fault of the project team) all activities have worked extraordinarily 
wellbecauseofthedetailedplanning undertakeatthefrontendoftheproject.JohnFryerhas
to be credited with the vision and management
skills needed in designing the details of the
program.However,everymemberoftheprojectteamhascontributedtotheprogramofwork
withenormousenthusiasmandcommitment.Hopefullythisisapparentinthereportsthathave
beenprepared.Commitme ntoftheprojectteampossiblyreflectsincreasingawarenessofhow
important
 this project will be for the future well being of the rural poor in Vietnam and the
responsibility thateach of us sharesin ensuring thattheir message is heardby thosethat can
influencefuturedirectionsforforestryandforestindustriesinVietnam.
Table2.Completionofactivities

Narrative

Performance
indicator
Means of
verification
Assumptions
risks
PROJECT
PURPOSE

Sustainable and profitable
development of small rural
sawmills in Vietnam

Greater acacia sawn
timber production
fromruralareas.
Expansion of trade
in sawn acacia
between rural
Vietnam and cities.
Experience of using
acacia for saw
timber is limited,
existing sawmill
equipment has
limitations.
OBJECTIVE1
To identify & define
industry problems and
opportunities through a
comprehensive survey and
review the rural sawmilling
industry.
Completed
questionnaire and
survey
Written report Survey conducted
primarily by
structured interview

with saw millers
OUTPUT1
Technical report on a
survey conducted to
determine state of sector
Review of report and
objectivesbyadvisory
committee
Written report Time frame may be
optimistic. Statistical
verification may be
difficult.
ACTIVITY1
Inception meeting of
stakeholders, establishment
of a stakeholder project
steering committee,
followed by survey
Survey Report
completed and
progress report
delivered.
Output 1 delivered
to CARD
(1
t
September
2007) and progress
report no 1 (1
October2007)

stakeholders need to
be engaged, feel
ownership of project
OBJECTIVE2
To establish a facility for
training and technology
development
Block training courses
in Central Vietnam
completed
ProgressreportNo.
4 completed and
deliveredtoCARD
physical facilities
may be inadequate
OUTPUT2 Course design for block
delivery in Central VN and
lecturenotescompleted.
Course notes
translated into
Vietnamese.
Publication of
CourseNotes
difficulty of finding
right level for course
content
16

ACTIVITY2. Evaluate and purchase
portablemillfortraining.

Portable mill
operational
ProgressreportNo.
2 completed and
deliveredtoCARD
That poor sawing
quality is due to
poor equipment &
improvements can
be made to the
locally
manufactured
sawmill.
ACTIVITY3. Electronic web page
designed for cluster
groups. The first draft will
be designed by PB and
thenadaptedbyFSIV
Webpageoperational Progress report No.
2 completed and
deliveredtoCARD.
Web page to be
displayed either by
FSIV or both
organizations.
ACTIVITY4. Block training courses and
dates defined and
advertised to target
audience.
Brochures completed,

target audience
identified and
brochures
disseminated
ProgressreportNo.
2 completed and
delivered to
AusAID
Efficiently targeting
audience
OBJECTIVE3
To deliver training courses
in VN and Aust
Curricula prepared,
trainingundertaken
.
trainingcompleted.
report and
evaluation
delivered
appropriate audience
identified, training
well targeted
ACTIVITY5. Block training courses for
trainersdefinedandheldin
Australia. Lecturing staff U
of M. PV, PB, GH, BO, DB.
Additional training in saw
doctoring held at the
Timber Training Centre ,

Aust.
Block training courses
for trainers in
Australiadrafted  byU
of M staff and
finalised. Training
hand‐bookcompleted
training completed
, handbook, report
andevaluation
appropriate audience
identified, training
well targeted to
needs
ACTIVITY6 Block training courses for
trainersheldinVN
Block training courses
for trainers
completed in VN,
training handbook for
trainersdrafted
trainingcompleted,
handbook, report
with evaluation
delivered
appropriate audience
identified, training
well targeted to
needs
ACTIVITY7 Block training courses for

saw millers held in Central
Vietnam.
Blocktrainingcourses
completed
stakeholder meeting
to review progress
andobjectives.
Survey and
Progress reports
No.2&4completed
and delivered to
AusAID
Achieve
engagement of
targetaudience
ACTIVITY8. Meeting of stakeholders to
review course note
material and training the
trainer’s manual. Project
objectivesreviewed.
Progress report no. 3
to CARD, October
2008

reviewreport
stakeholders take
active interest in
project
17

OBJECTIVE4
investigate, demonstrate
and recommend on more
appropriate or alternative
technologies to improve
industry performance.
Final report (no. 4)
delivered to CARD
May2009
report on
technology needs
with
recommendations
appropriate new
technologies
available, industry
amenabletochange
OUTPUT3 Evaluate techniques for
improving the
performance Vietnamese
manufactured horizontal
bandsaws.
evaluation
completed, specific
report on potential
improvements in this
technology
report with
recommendations
industry amenable

to change,
difficulties of
working with old
equipment are
resolved
OUTPUT4. Determineoptimumdrying
parameters for key
plantationspecies.
study completed,
report on optimum
drying conditions
report with
recommendations
industry amenable
tochange
OUTPUT5. Establish housekeeping
protocols for reducing
fungal degrade logs and
sawntimber.
study completed
report on protocols
report with
recommendations
industry amenable
tochange
OUTPUT6. Review technologies and
need for preservative
treatment in Vietnam.
Work to be conducted by
PVandNgoc

review completed,
report on preservation
needs
report with
recommendations
industry amenable
tochange
OUTPUT7. Comparetechnologyneeds
for central versus
decentralised sawmilling.
Work to be conducted By
PBandTRUNG
comparison
completed, report
report with
recommendations
industry amenable
tochange
OBJECTIVE5
Develop long‐term
strategies for industry
development. Work to be
conducted by PV, BO and
TRUNG.
long term strategy
dialogue open with
GoV
discussion papers
with
recommendations

GoV and industry
receptive to
discussion
OUTPUT9. Identify domestic market
requirements for sawn
timber (sizes grades)
evaluatequalityaspects
market requirements
identified and quality
needsevaluated
report on market
requirements
market information
available
OUTPUT10. Identify future technology
and training needs.
TRUNG,PV,PB,BO.
seminar with stake
holders; review
findings and draft
recommendations
seminar report
with draft
recommendations
stakeholders
engaged
OUTPUT11 Finalassessmentofuptake
of training and new
technology
Observed response to

training, improved
productivity and
safety
contribution to
finalreport
participants willing
tocooperate
OUTPUT12. Finalreport Final report (no. 4)
delivered to CARD
May2009
finalreport
all relevance
information
available
INPUTS
EquipmentDescription
Thefollowingequipmenthasbeenpurchased,suppliedandhandedovertoFSIV
18

Digitalmoviecamera,tripod,carrycaseandtapes.
2offresistancetypemoisturemeter
Hammertypeelectrodesandsparepartsforresistancetypemoisturemeter
Capacitortypemoisturemeter
Calibrationblocksforallmoisturemeters
Hotwireanemometer
Digitalthicknessgauges
Laptopcomputer
Dataprojector
A Lucassawmill hasbeen purchased
 and paidfor by the University of Melbourne anda Billof

ladinghasbeensuppliedtoFSIVadvisinganarrivaldateof19
th
September2010.
Lucasportablesawmill
Sparebladesforsawmill

19

1. PolicyConsiderations:
THE DEVELOPMENT OF RURAL FOREST INDUSTRIES IN VIETNAM
Abstract
This report summarises and analyses information obtained relating to the current status of
forest industries in Vietnam and recommendations obtained from a detailed survey of rural
sawmills and log producers. Separate reports focusing on sawmilling,  wood preservation and
drying operations together with education and research needs, highlight that research,
education,training
andextensionarefragmentedandunder‐resourced.
Theforestryandforestindustrysectors(includingfurnitureandhandicrafts)areveryimportant
to the future economic development  of Vietnam and are projected to grow. In making 
recommendations astohow sawmillsin ruralVietnam can contributetoeconomicgrowth and
the prosperity
of rural communities it is difficult to achieve an integrated approach unless a
futurevisionofforestry,theForestServiceandforestindustriesisarticulated.
Far‐reachingrecommendationsaremadeinrelation toexpandingtheroleoftheForestService
to embrace amore expansiveresearch, educationand extensionprogram.A
 nationalresearch
programisdefinedthatfocusesonforestindustries thatshouldprovideresearchofthehighest
international standing. The overall vision is a research program that focuses on rolling back
climate change, providestechnologies thatare clean and movessociety towards a sustainable
futurebasedonapplyinglife‐cycle

criteria.
Researchstaffingneedsareidentifiedforsawmilling,woodprotectionanddrying.Theobjective
is to provide research of the highest quality where staff  engage also in collaborative
arrangements with other research providers, educational institutions and industry to provide
on‐goingeducation,training,andextensionto assistdevelopmentof therural
forestindustries
sector.
Structural arrangements are identified through the Vietnam Forest Service(for example the
establishment of a Timber Preservation Authority) to provide better quality control of timber
usedin furnituremanufacturing andconstructionthat shouldenhance the reputation of wood
employed in these industriesin Vietnam,thusdeveloping the
domestic market for using more
wood relative to materials that have a much higher carbon foot‐print; protecting timber and
wood product export markets from pests and diseases and safe guarding Vietnam from
accidentalimportsofundesirablepestsanddiseases.
Background
Thisreportprovidesasummaryoffinalrecommendationsbeingconsideredbystakeholdersand
senior Forest Service officials to ensure ongoing development of rural forest industries in
Vietnam
In fulfilling the objectives of the CARD project, specialised reports (Table 1.) have focused on
providingbackgroundinformationfromwhichdetailedanalysescouldbe
undertakenofspecific
20

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 can not 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.
Table 1. Reports completed for the CARD project

Background CARD reports:
(i) Review of forest industries in Vietnam
(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 research1
Progress reports
Technical reports
Validation and Completion report
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:
• 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betw een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Vietna m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.
21

• 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ther efore 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.
The role of the National Forest Service
The success of a Forest Products Research Laboratory will depend to a  great extent on its

structureandculture.It’sculture willdependonhowitisorganisedwithinthesectoritservices.
If there is a strong national Forest Service, then the Forest Products Research Laboratory will
organiseitselfand
drawitsculturefromtheForestService.Iftheroleoftheforestserviceisto
be dissipated such that it’s mission becomes unclear or dysfunctional or resources become
difficult, then it is better that the research function is devolved possibly to an independent
commercialentityandtheservicesneeded
bygovernmentpurchasedfromsuchanentity.
Potentially forestry and forest products research should provide a pivotal role in rolling back
global warming. Thisarises becauseforests providea storeof sequestered carbon thatcan be
managedtomeetamultitudeofobjectives.Whenmanagedproperlytheforestsprovideavast

array of products and services. This requires long term planning and long  term stability in
organisational structure and a tradition of community service. This report argues for a strong
commitment byGovernment toa nationalforestservice thatintegrates theneeds ofthetotal
forest sector. Component Divisions  (head office)
of the Forest Service should include the
following:
• ForestServiceAdministration
• ForestPolicy
• ForestConservation
• ForestManagement
• ForestEconomics
• ForestResearch
o ForestProductsLaboratory
o ForestManagement
o ForestConservation
• Fire
• ForestExtensionandTraining
• CommercialForestEnterprises

Geographically the forests
 of Vietnam could logically be segregated into 3 regions, North,
CentralandSouthVietnam,wheretheconservators(headsofthefunctionalunitsfromeachof
theseregions)reportdirectlytotheChiefConservatorofForests.
22

The purpose of outlining a possible structure of the Vietnam Forest Service is to focus on the
role and functional units within such a forest service and secondly and more importantly
illustrate thefunctional roleof researchand it’ssegregation into4 distinct researchgrouping s
and secondly identify the separate role
 of forest extension (that focuses on farm forestry and
training
The conservation of tropical rain forests and native habitats.
Currently less than 10% of world forests are registered as or certified as meeting the
environmental standards required for sustainable production. Given the North/ South divide
(northern and southern hemispheres) there is an urgent need to ensure that forestry and the
implementationofforestpolicycomesundertheaegisof
asingleorganizationchargedwiththe
responsibilityofensuringthatforestsareproperlymanaged,sothatthegoalsofconservationat
a nationallevel are met.Forest Conservationneeds to be given teethand authority to ensure
thatthereisnoillegallogging;thattheforestsaremanagedtoensure
biodiversity;thatrecords
are kept of the long term management objectives; that scientific information is collected and
analysedandmadeavailableforfuturegenerations.Theseobjectivescannotbemeteffectively
through dissipation of the role of the national forest service or transfer of de cision making to
local community forestry interests. However,
 community engagement and community
requirementsneed tobe addressed,but addressedprofessionallythrough aforestservicethat
is trained in meeting these needs; needs that often have a multitude of frequently conflicting
objectives.

Itis recommended th at asingle NationalForest Serviceis providedwithsoleresponsibilityfor
managing public
forests (whether national heritage or production forests, but excluding
privatelyownedforests)andensuringthatexistingorsurvivingrelicornearrelicrainforestsare
protectedfromfurtherunsustainableexploitation.Theforestserviceneedstobeprovidedfull 
autonomy in ensuring that there is no illegal logging or practices that might
 lead to the
deteriorationoftheseforests.
The establishment of “New Forests” to meet the needs and bridge the divide
between city dwellers and rural settlers
Forestry is avocation, a calling forthose interested in nature, conservation and sustainability.
The Forest Service should monitor the environme nt and provide protectio n for endangered
species; it should provide rural employment and opportunities for sustainable rural industries
and provide recreation for city dwellers. A stable Forest Service should provide a
 vocational
career. It should provide stable employment for it’s staff and skill development through
education and training; help substitute imports of value added products, encourage the
development of valueadded exports; meet community needs for products and infrastructure;
apply life cycle analysis to ensure carbon positive development of infrastructure and
communities.
ForestServices needto have powersof enforcementsimilartothose ofthearmyor police,to
ensure that forest boundaries and resources are protected. Fore sts are too important for the
well being of the planet to allow indiscriminate conversion to agriculture. Forests need to be
protectedfromfire.This
requiresthe developmentoffire plansforeachforest area,extensive
23

monitoringandresearch offireproneareasandlocalstaffthatarefamiliarwiththeareas,the
science of monitoring and the management skills needed for command and control of
emergency situations. The training needs are extensive and traditionally foresters received

extensive university training in all the skills needed to manage
 multiple objectives. Entry into
University requires very high levels of school education and achievement to ensure that the
demandsofforestmanagementarecateredforusingthebestbrainsavailableforthejob.
The demise of forest services into organizations that simply provide monitoring, policy
developmentandadvicetoministers
hasseenanumberofconsequences.Theseinclude:
• The dismantling  of research capability and loss of infrastructure needed in managing
nationalforestassets,
• Demiseofforestandforestindustrieseducation,
• Expansionofillegallogging,
• Environmentaldegradation,
• Communitydegradation,
• Increasedincidenceoffire,
• Theestablishment
ofunsustainableplantationforests,
• Lossofrecords,
• Lossofnationalpurposeinrelationtoforestry
• Lossofcontrolinlanduse,
• Poorlandmanagement
• Areductioninemployment,
• Lossofscientificexpertiseandrecords,permanentsampleplo ts,expertiseandscientific
knowledge.
• Lossof
communityforestryanddiscreditingofforestrypractices
Itisrecommendedthattheprincipleof“NewForests”asoutlinedinthis report(Appendix1.)is
adoptedwherebymultiplepurposeforestryis practicedtomeetthe needsof thecitydwellers
andtheruralcommunity.Keyelementsof“NewForests”from
aruralcommunityperspectiveis
employmentandgenerationofrawmaterialsfornewindustries.Thisiscriticalfromthepointof

view of consolidating future supplies of raw material and consolidating the domestic demand
forwoodproducts.
Consolidating supply of raw materials
Survey results from the small rural sawmilling industry highlighteda chronic problemfor most
rural sawmills inensuringan adequate and consistentsupply oflogs for theirbusinesses. Toa
greater extent the use of small‐scale low capacity horizontal bandsaws can be viewed as
“opportunistic processing of raw materials as
 and when the opportunity arises”. The current
focus of raw material (acacia) producers is to produce wood chips for export. Wood chips
representalowvalueproductandthereisenormousopportunitylossinsatisfyinglocaldemand
forfurnitureandpotentialmarketsinbuildingandconstructionthathavenotbeen
realised.The
absenceofanyplannedlongtermsupplyoflogstoruralsawmillsservicingthedomesticmarket
means that thereis insufficientsecurity forany entrepreneurial activity to eitherinvest in kiln
drying equipment or sawmilling equipment. The problem is difficult in Vietnam because of a
shortage of suitable forestry
 land, the small size of farms where farm forestry might be
practiced.None‐the‐lessthe“NewForests”strategyprovidesamajorinitiativeforthelong‐term
24

development of rural sawmilling and value adding industries. In the short term the potential
valueofwoodchipexportsneedstobeweighedaga instthepotentialforhighervalueproducts
fordomesticconsumptionandemployment.
Consolidating domestic demand for wood products
The prosperity of rural communities is tied to developing a cash economy and demand for
products.Thedevelopmentofnewruralindustriessuchasis providedbyforestplantationsand
furniture manufacturing are often pivotal in generating cash flow. Appendix 2 “Forest
Industries” provides gene ric information as to the long term
 merits of wood products in
mitigating carbon use from fossil fuels; their potential for rolling back carbon emissions and

theircapacityforgeneratingruralindustriescashandinfrastructure.
Research
The key to developing dynamic and sustainable forest industries in Vietnam, whether focused
on theindustrial sector or ruralsector or both,is through the establishmentand support ofa
highly motivated mission orientated research institute focussed on such an outcome. The
history ofmission orientated researchinstitutions all highlight how
 effectivesector orientated
research,education andtrainingcan be(relativeto disciplinebasedresearch) inimplementing
change, in promoting new technology, skill development and infrastructure support. Industry
sectors that have had dedicated research laboratories focussed on the national, regional and
individual needs of a sector tend to prosper and become
more inter nationally competitive.
Institutions such as ICFRE, Dehra Dun, India; the UK Princes Risborough  Laboratories (Fo rest
Products Laboratories); the NZ Forest Research Institute, Rotorua; Division of Forestry and
Forest Products CSIRO; US Forest Products Laboratories, Madison, have all demonstrated this
capacity,throughprovidingknowledge andinformation of thef undamentalattributes of
wood
asa rawmaterial, spear‐heading thedevelopmentof newtechnologiesand products,capacity
buildingandprovidingthetechnicalinfrastructureneededforinnovationaswellasthetechnical
solutions needed for the day to day issues and problems arising in forest industry enterprises
andappreciationoftheeconomicand
politicalenvironmentinfluencingtheshortterm andlong
termdevelopmentoftheforestindustries.
Whilst in manycountries forestindustries researchlacks theglamour andhigh profileenjoyed
by manyof thehigh tech, discipline based researchgroupings, the needfor researchand out‐
reachinforestindustrieshasnever been
greater.Thisarises  fromthefactthat woodproducts
store or sequester carbon as a solid, environmentally safe, stable product. The production of
liquidCO2(thatsequesterscarbonbutalsolargeamounts ofoxygen)isbeingproposedbythe
coalindustryintheUS,EuropeandAustraliaas ameans

ofsequesteringcarbondioxidederived
fromthe combustion of coal.Wood or the 5,000 or so productsthat canbe madefrom wood
provides the raw material for value adding. These include paper for education; low cost high
quality structures for shelter and furniture, bio‐resins, bio‐plastics,  bio‐charcoal, bio
‐energy,
medicinesetc.Woodprovidestheseoutcomeswhilstatthesametimesequesteringcarbonand
reducing dependencyon usingfossilfuels.The carbonstoredin woodcan be producedat low
cost whilst at the same time providing environmental services such as reducing soil salinity,
reducing erosion,  maintaining biodiversity, providing 
areas for wild‐life refuge, providing
recreational areas for large urban populations, employment in rural areas to reduce rural
25

depopulation improving rural infrastructure, and reducing dependence on imported products.
LiquidCO2ontheotherhandthatispotentiallypumpedintothesea‐bed,(hopefullytoremain
dormant) is expensive to produce and increases the use of fossil fuels in its production and
providesnoneoftheseservicesorproducts.
The
 ancient Greekscientistsrecognised Earth,Fire, Waterand Airas the4 essential elements.
TheancientChinese civilisationsalsorecognisedthese elements,but alsoidentified Woodas a
5
th
 essential element. Whilst wood is possibly the oldest construction material known to man,
thepotentialofwoodasanindustrialrawmaterialisalmostinfinite.Woodfibrecansubstitute 
forcottonfibreinthe manufactureofclothes and fabrics.Rayonanda  range ofbiodegradable
bio‐plastics canbe manufactured
from wood plastics and substitutemany coaland oilder ived
plastics.Arangeofbio ‐fuels andotherwidelyusedindustrialchemicalscan alsobederivedfrom
wastebiomass,forexample,ethanol,methanol,furfuraletc.Manyoftheseproductshavebeen
manufacturedinthepastbutwerediscontinuedwhencheapoil

becameavailable.
Asanindustrialrawmaterialplantationgrownwoodhastomeetthecostsofgrowingthecrop
on a sustainable basis. Oil and coal are non‐renewable and there is no replacement cost
associatedwithminingtheseresourcestoexhaustion.However,withthepotentialintroductio n
ofcarbontax,
thisanomalytoalevelplayingfieldshouldseeadjustmentsintherelativecostof
wood as araw material.The issueis how do weensure thatwood products are creditedwith
carbon storage and the inevitable life cycle benefits that undoubtedly accrue? Clearly
Governmentpolicies  andprotocolsneed to
beappliedjustlysothatthetruelifecyclebenefits
arecaptured.
The role of forest product research laboratories  is therefore changing and needs to change
quickly.Governmentshavebeenslowtoidentifythevitalrolethatindustrialforestryandwood
productscanmakeinrollingbackCO2emissionsand
sustainingruralinfrastructure.
ForestryandtheforestindustriesinVietnamhaveavitalroleintheeconomyofVietnam.Forest
products comprise the fifth largest export. The forest products economy is also expected to
grow following the implementation of thegovernments plan toestablish 5 millionhectares  of
forest.Forestryand
itsassociatedsawmillingisalsoimportanttoruralcommunitydevelopment.
It provides employment and cash in rural areas as well as many products that are consumed
locally.
Forest productsresearch is very fragmented in Vietnam and is currently failing to provide any
cohesiveadviceorleadershiptothedevelopmentof
forestryortheforestindustries.
It is recommended that a Forest Products Laboratory (Centre of Excellence) is established in
HanoiunderthebanneroftheVietnam ForestryDepartmenttoprovidesuchleadership.
Ratherthan identifyingsections  ordepartmentswithin theinstitutionthatembracetradi tional
areas of scientific endeavour, it is
recommended that Programs are established under the

managementofprogrammanagersthat defineveryspecificobjectives,goalsandoutcomes.In
other words theseprograms shouldbe directed towardsachieving outcomesin awelldefined
businessplanandoperationplanthataddressesandimplements governmentpolicy.Detailsof
theprogramsaredeveloped
inAppendix3.