Pilot study: Propoor REDD IN Nghe An province Socioeconomic assessment and analysis of drivers for deforestation and forest degradation 2010

Pilot study:
Pro-poor REDD IN Nghe An province
Socio-economic assessment and
analysis of drivers for deforestation
and forest degradation
2010


This report was commissioned by SNV Vietnam. The purpose of this report is to assess two districts
(Con Cuong and Tan Ky) in Nghe An Province as potential sites for a Pro-Poor REDD project. The
report focuses on the assessment of socio-economic status and the drivers of deforestation and
forest degradation. The analysis and opinions expressed in the report belong to the author and do not
necessarily reflect SNV’s official positions. All correspondence related to this report should be sent to Mr
Richard McNally, SNV Vietnam Programme Leader for REDD:


Acronyms
CPC
DARD
DPC
FC

Commune People’s Committee
Department of Agriculture and Rural Development
District People’s Committee
Forest Company

NTFP

Non-Timber Forest Products

PFMB

Protection Forest Management Board

PPC
REDD

Provincial People’s Committee
Reduced Emissions from Deforestation and Forest Degradation

SFE

State Forest Enterprise

SNV

Netherlands Development Organisation

UNFCCC

United Nations Framework Convention on Climate Change

Pilot Study: Pro-Poor REDD in Nghe An Province
Socio-economic assessment and analysis of deforestation and forest degradation 2010

i


Table of Contents
List of Tables........................................................................................................................ iii

List of Figures....................................................................................................................... iii
1. Introduction......................................................................................................................4
2. Methodology......................................................................................................................5
3. Context of study area........................................................................................................6
3.1. District background........................................................................................................6
3.1.1. Natural conditions....................................................................................................8
3.1.2. Socio-economic conditions........................................................................................8
3.2. Commune background....................................................................................................8
3.2.1. Natural conditions....................................................................................................9
3.2.2. Socio-economic conditions......................................................................................10
4. Livelihoods......................................................................................................................11
4.1. Current livelihood options.............................................................................................11
4.1.1. On-farm activities..................................................................................................11
4.1.2. Off-farm activities..................................................................................................12
4.2. Primary household income sources...............................................................................12
4.3. Products for potential value chain analysis...................................................................13
4.3.1. Cassava................................................................................................................13
4.3.2. Met......................................................................................................................14
4.3.3. Acacia..................................................................................................................14
4.4. Cost-benefit analysis of potential alternative livelihood options...................................14
4.4.1. Cassava................................................................................................................15
4.4.2. Met......................................................................................................................15
4.4.3. Acacia..................................................................................................................15
5. Deforestation and forest degradation causal analysis......................................................16
5.1. Forest changes in Con Cuong and Tan Ky Districts........................................................16
5.2. Drivers of deforestation and forest degradation...........................................................16
5.2.1. Local people’s livelihood activities............................................................................16
5.2.2. Impact of industrialisation on forests........................................................................20
5.2.3. Gaps in forest management policy implementation.....................................................21
6. Potential risks leading to deforestation and forest degradation.......................................21

6.1. Expansion of plantation area for Tan Hong import-export company..............................21
6.2. Expansion of mining areas............................................................................................21
6.3. Brick-kilns....................................................................................................................21
6.4. Thatched cottage replacement programme for remote areas........................................21
6.5. Expansion of agricultural land......................................................................................22
6.6. Natural forest restocking project..................................................................................22
7. Proposed recommendations............................................................................................22
Annex..................................................................................................................................22

ii

Pilot Study: Pro-Poor REDD in Nghe An Province
Socio-economic assessment and analysis of deforestation and forest degradation 2010


List of Tables
Table 1: Climatic conditions of Con Cuong and Tan Ky Districts.......................................................7
Table 2: Population, labour and poverty rates in Con Cuong and Tan Ky Districts...............................6
Table 3: Topography and climate of selected communes in Con Cuong and Tan Ky Districts.................9
Table 4: Population, labour and poverty rates in six selected communes.........................................10
Table 5: Ranking and livelihood options in six selected communes.................................................13
Table 6: Changes in forest land in Con Cuong and Tan Ky Districts, 2005-2009...............................16
Table 7: Household dependency on cutting forest for agriculture...................................................17
Table 8: Households collecting forest products............................................................................19
Table 9: Households clearing natural forest for acacia plantations..................................................19
Table 10: Current land use in Con Cuong and Tan Ky Districts.......................................................23
Table 11: Economic structure of six selected communes..............................................................23
Table 12: Current land use in sixselected communes...................................................................24

List of Figures

Figure 1: Study process and methodology framework....................................................................5
Figure 2: Map of Nghe An Province with selected study districts and communes................................6
Figure 3: Current land use in Con Cuong District...........................................................................7
Figure 4: Current land use in Tan Ky District.................................................................................8
Figure 5: Current land use in sixselected communes...................................................................10
Figure 6: Economic structure of six communes...........................................................................11
Figure 7: Cassava market chain................................................................................................13
Figure 8: Met market chain......................................................................................................14
Figure 9: Acacia market chain...................................................................................................14

Pilot Study: Pro-Poor REDD in Nghe An Province
Socio-economic assessment and analysis of deforestation and forest degradation 2010

iii


1. Introduction
Following the United Nations Framework Convention on Climate Change (UNFCCC) Bali negotiations
in 2007, there was renewed interest in the issue of reduced emissions from deforestation and forest
degradation (REDD). In the context of global climate change, deforestation and forest degradation
in developing countries contributes significantly to CO2 emissions around the globe. REDD is a
mechanism to reduce carbon emissions based on the premise to financially reward those who reduce
deforestation and forest degradation. Many anticipate that significant carbon emission reductions can
be made if appropriate compensation schemata can be created.
The World Bank (WB) and the UN are piloting REDD, with an expectation that operationally it will
enable countries to gain ‘carbon credits’ for reducing deforestation and forest degradation. Viet Nam is
a pilot country for both WB and UN initiatives. Other pilot programmes are being launched to support
the implementation of REDD at the national and local levels in Viet Nam. SNV has started up one pilot
project in the Central Highlands: the SNV Cat Tien Landscape Pro-Poor REDD Project in Lam Dong
Province. This project has focused on the pro-poor aspect of REDD, by enabling and sharing equitable

benefit mechanisms for the local community through REDD payments.
Forest resources play an important role in national economic development as well as providing a
source of income from forest and non-forest products, sustenance and other customary uses for local
people. Forests also serve as important biodiversity habitats, providers of ecosystem services and now
potentially as generators of revenue via carbon credits. Payments for REDD are based on increases
in forest biomass and corresponding accumulated carbon in sinks; this means that forest resources
must be maintained or enhanced. In reality, though, forests suffer from the competing demands of
conservation and consumption. Consumer needs, agricultural expansion, biofuel, industrial crops and
clear-cutting for paper-pulp plantations are all major forces behind the loss and degradation of forests.
If the REDD goal, which is to reduce deforestation and forest degradation, is to be achieved, then these
powerful factors need to understood.
In summary, REDD offers financial rewards for the avoidance of activities that lead to the destruction
and degradation of forests. In doing so, it incentivises the sustainable and equitable management
of forests to benefit the people who live in and around these areas. SNV, therefore, is now looking
to expand its REDD project activities to the North Central agro-ecological region of Viet Nam. In
conjunction with local authorities, SNV has assessed two sites in Nghe An Province: Con Cuong and Tan
Ky Districts. Assessments include an examination of the drivers of deforestation and degradation, as
well as of local people’s livelihoods and socio-economic status.
The aim of this study is to report on this investigation of the causes of deforestation and forest
degradation in the abovementioned forest areas. These drivers will be assessed in relation to the socioeconomic status of the communes, current land use practices and demands, plus local and national
policy and external influencing factors. An analysis and initial insights about current livelihoods and
recommendations for alternative livelihoods at the commune level are also presented herein. This
study is part of the knowledge base needed to assess the overall potential for a pilot REDD project,
where interventions will be implemented to reduce forest deforestation and forest degradation on a
larger scale.

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Pilot Study: Pro-Poor REDD in Nghe An Province
Socio-economic assessment and analysis of deforestation and forest degradation 2010

2. Methodology
The study was conducted in three main steps: (1) preparation; (2) field work; and (3) reporting.
This process is illustrated in Figure 1. In order to obtain relevant data for this study, several methods
were employed, such as secondary data review, local resource person interview, focus group discussion,
household survey, and validation workshop.
Figure 1: Study process and methodology framework

Meet with Nghe An
DARD

Con Cuong and Tan Ky Districts
selected for assessment

Step 1: Preparation
Meet with Con Cuong
and Tan Ky DARDs



I nterview local
resource persons
at district and
commune levels



H
 old focus group

discussions at
village level



C
 onduct household
surveys



H
 old feedback
meeting with
relevant
stakeholders at
provincial and
district levels



C
 omplete report

Step 2: Field work

Step 3: Report writing

Cam Lam, Don Phu, Mau Duc
and Thach Ngan Communes of

Con Cuong; and Dong Van and
Tan Hop Communes of Tan Ky
selected for assessment



ocal resource person
L
interview conducted in 2
districts and 6 communes

 
Focus group discussions
conducted in 26 villages (17 in
Con Cuong and 9 in Tan Ky)


20 households surveyed
5
(340 in Con Cuong and 180
in Tan Ky)

Pilot Study: Pro-Poor REDD in Nghe An Province
Socio-economic assessment and analysis of deforestation and forest degradation 2010

5


3. Study area context
The study was carried out in two districts of Nghe An, Con Cuong and Tan Ky. Within each district,

communes were selected as suitable study sites; these were Cam Lam, Don Phuc, Mau Duc and Thach
Ngan Communes in Con Cuong District and Dong Van and Tan Hop Communes from Tan Ky District.

3.1. District background
3.1.1. Natural conditions
Geographic description
Con Cuong and Tan Ky are two mountainous districts in the western region of Nghe An Province. Con
Cuong lies at a distance of 120km from Vinh City, with Tan Ky 90km away from Vinh.
Con Cuong District shares its borders with Quy Hop and Quy Chau Districts to the north, Laos PDR to the
south, Anh Son District to the east, and both Tuong Duong District and Laos to the west (see Figure 2).
Correspondingly, Tan Ky District borders Quy Hop District, Do Luong District, Yen Thanh and Nghia Dan
Districts, and Anh Son District (see Figure 2).
Figure 2: Map of Nghe An Province with selected study districts and communes

Vietnam

Nghe An province

Study site (Cam Lam, Don Phuc,
Mau Duc and Thanh Ngan communes)

6

Study site
(Dong Van and Tan Hop communes)

Pilot Study: Pro-Poor REDD in Nghe An Province
Socio-economic assessment and analysis of deforestation and forest degradation 2010

Climate
Climatic conditions for both districts are presented below in Table 1.
Table 1: Climatic conditions of Con Cuong and Tan Ky Districts
Items

Con Cuong

Tan Ky

Annual average temperature

230C

23.50C

High temperature

420C

41.30C

Low temperature

120C

70C

1,800mm

1,700mm

60%

86%

North-easterly & South-westerly winds

North-easterly winds

Annual average rainfall
Annual average humidity
Monsoon

Current Land Use
Con Cuong District has twelve communes and one town. The total natural area of the district is
173,831.12 ha. Of that, just over 7.06% is used for agriculture, 76.41% is forestry land, and 16.53%
is used for other purposes (Figure 3).
Tan Ky District has 21 communes and one town. The total natural area of the district is 72,890.23
ha. In this district, 35.34% of land is agricultural, 52.95% is forested, and 12.71% is used for other
purposes (Figure 4).
Data for land use in Con Cuong and Tan Ky are shown in Annex 1, Table 10.
Figure 3: Current land use in Con Cuong District

Land use situation of Con Cuong district

17%

7%
76%

Agricultural land
Forestry land
Land for other use
purpose

Pilot Study: Pro-Poor REDD in Nghe An Province
Socio-economic assessment and analysis of deforestation and forest degradation 2010

7


Figure 4: Current land use in Tan Ky District

Land use situation of Tan Ky district

12.71%

35.34%

51.95%

3.1.2. Socio-economic conditions
Population, labour and poverty rate
The population of Con Cuong District is 65,239 people, comprised of 15,820 households, of which
approximately 62.1% (40,509 persons) are involved in labour. There are 4,853 poor households,
representing 30.7% of the population. The ethnic minority groups include the Thai, Tay, Nung, Hoa,
and Dan Lai, with a combined population is 45,667, representing 70% of the population (Table 2).
The population of Tan Ky District is 138,430 people, with 34,607 households, approximately 51.6% of
which (71,491 persons) are labourers. There are 6,436 poor households, representing 18.6% of the
total population. The ethnic minority groups include the Thanh, Thai, and Tho, representing 21.4% of

the population (Table 2).
Table 2: Population, labour and poverty rates in Con Cuong and Tan Ky Districts

District

Population

Labour

Poverty rate
(% of hhs)

Total

Kinh

Ethnic minority

Con Cuong

65,239

19,572

45,667

40,509

30.7

Tan Ky

138,430

108,806

29,624

71,491

18.6

3.2. Commune background
Cam Lam, Don Phuc, Mau Duc and Thach Ngan Communes in Con Cuong District, plus Dong Van and
Tan Hop Communes in Tan Ky District were selected as study sites, meeting the following criteria:

8

•

Prior history of loss and degradation of forest land and resources

•

New and existing factors that point to potential further risk of forest degradation

•

Shifting cultivation still existent

•

Possibility of developing interventions for prevention

Pilot Study: Pro-Poor REDD in Nghe An Province
Socio-economic assessment and analysis of deforestation and forest degradation 2010


3.2.1. Natural conditions
Geographic conditions in Con Cuong District
Cam Lam Commune borders Tuong Duong District to the north, the Lam River to the south, Don Phuc
and Binh Chuan Communes to the east, and Lang Khe Commune to the west (Figure 2).
Correspondingly, Don Phuc Commune borders Binh Chuan, Bong Khe and Mau Duc, Thach Ngan and
Mau Duc, and Cam Lam Communes to the north, south, east and west, respectively (Figure 2).
Mau Duc Commune shares its borders with Don Phuc, Bong Khe, Thach Ngan, and Don Phuc
Communes, following the same directions (Figure 2).
Finally, Thach Ngan Commune borders Quy Hop District and Anh Son District to the north and south,
and with Don Phuc Commune to the west (Figure 2).
Geographic conditions in Tan Ky District
To the north and south, Dong Van Commune borders with Tan Hop Commune and Huong Son and
Nghia Hanh Communes; the east and west-bordering areas are Tan An Commune and Tien Ky
Commune and Quy Hop District (Figure 2).
Tan Hop Commune borders Quy Hop District, Dong Van Commune, Giai Xuan Commune and Quy Hop
District (Figure 2).
Topography and climate
The topography and climate for the communes are described in detail in Table 3.
Table 3: Topography and climate of selected communes in Con Cuong and Tan Ky Districts
Con Cuong district

Tan Ky district

Commune
Cam Lam

Don Phuc

Mau Duc

Thach
Ngan

Dong
Van

Tan Hop

Average altitude

370m

370m

370m

370m

120m

120m

High point

693m

693m

693m

693m

340m

340m

Low point

220m

220m

220m

220m

40m

40m

Annual average temperature

230C

230C

230C

230C

23.50C

23.50C

High temperature

420C

420C

420C

420C

41.30C

41.30C

Low temperature

120C

120C

120C

120C

70C

70C

Annual average rainfall

1,800mm

1,800mm

1,800mm

1,800mm

1,700m

1,700m

Annual average humidity 60%

60%

60%

60%

86%

86%

Monsoon

northeasterly
and southwesterly
winds

northeasterly
and southwesterly
winds

northeasterly
and southwesterly
winds

northeasterly
winds

northeasterly
winds

Topography

Climate

northeasterly
and southwesterly
winds

Pilot Study: Pro-Poor REDD in Nghe An Province
Socio-economic assessment and analysis of deforestation and forest degradation 2010

9


Land use
The land uses for the six communes are shown in Figure 5, which clearly shows that the predominant
use of land in all of the communes is for forestry. The data on land use areas and percentages are
shown in Table 12, Annex 1.
Figure 5: Current land use in the six selected communes

3.2.2. Socio-economic conditions
Population, labour and poverty rates
The six selected communes are remote areas; most of population are ethnic minorities with high
poverty rates in comparison with district averages. The data for commune population, labour and
poverty rates are shown in Table 4.
Table 4: Population, labour and poverty rates in the six selected communes
Population
Commune

10

Labour

Poor

household
rate (%)

Total

Kinh

Ethnic minority

(people)

(people)

(people)

%

(people)

%

Cam Lam

2,541

120

2,421

95.3

1,264

49.7

48.5

Don Phuc

3,781

361

3,420

90.5

64.6

39.7

Mau Duc

5,352

653

4,699

87.8

3,422

63.9

37.4

Thach Ngan

5,658

762

4,896

86.5

3,872

68.4

40.6

Dong Van

11,719

7,438

36.5

6,035

51.5

36.5

Tan Hop

4,124

942

77.2

2,144

52

27.3

4,281

3,182

2,442

Pilot Study: Pro-Poor REDD in Nghe An Province
Socio-economic assessment and analysis of deforestation and forest degradation 2010

Economic structure
The economic structure in all selected communes consists of three main sectors: (1) agriculture and
forestry; (2) industry and construction; and (3) commercial service, in which the agricultural and
forestry sector plays a particularly significant role. In Figure 6 below, the communes from top to
bottom are Tan Hop and Dong Van (Tan Ky District); and Thach Ngan, Mau Duc, Don Phuc and Cam
Lam (Con Cuong District). The full data about economic structures is listed in Table 11, Annex 1.
Figure 6: Economic structure of the six communes

Economic structure of six selected communes

Dong Van

Commercial
service
Industrial and
construction

Mau Duc

Cam Lam 0

20

40

60

80

100(%)

Agricultural and
forestry

4. Livelihoods
4.1. Current livelihood options
Due to lack of land for cultivation, almost all households surveyed in the villages depend primarily on
natural resource-based activities (on-farm and off-farm) for their subsistence and livelihood.

4.1.1. On-farm activities
The on-farm activities of the local people concentrate on activities such as shifting cultivation,
cultivation of wet rice, annual crops, home gardens, and animal husbandry, all of which together
comprise the farming system in the village.
Shifting cultivation
The characteristic of shifting cultivation is to cultivate the plants without the use of fertilisers and
depend entirely on rain water. Traditional swidden agriculture has low productivity, but due to the
limited availability of good arable land, the people have few other options.
In recent times, the swidden land area has been reduced; local people are only allowed to practice
shifting cultivation in areas allotted and defined by the State. However, in reality, households still carry
out swidden cultivation activities in order to meet the family’s daily consumption demands. Swidden
activities mainly take place on forest lands belonging to the Protection Forest Management Board
(PFMB) and forest companies (FC), or falling under Commune People’s Committee (CPC) management.
Shifting cultivation is one way by which the local people are able to adapt to the poor soil conditions
and limited area of arable land. Varieties typically planted in swidden areas include various types of
local rice (hill rice), cassava, maize, beans, and other crops.

Pilot Study: Pro-Poor REDD in Nghe An Province
Socio-economic assessment and analysis of deforestation and forest degradation 2010

11


Wet rice
Wet rice land area is distributed along the streams and the lowest areas of the village. This land is used
for sowing and transplanting two rice crops per year, winter-spring and summer-autumn. The sowing
and transplanting time of winter-spring rice is from November to May, while for the summer-autumn
crop it is from June to October. Most of the households have very small paddies (the average field
area per household is 500m2) and wet rice productivity is accordingly very low. Current yields provide
the household with enough rice to eat for three to six months per year only, and production is not
enough to sustain households with enough rice even for their own food needs; therefore, naturally no
rice can be sold to provide an income source. Moreover, the wet rice areas in the village are minimally
sustainable, as these are dependent on and are located near streams, so during the summer season
when the streams are dry, the paddies are also dry. Conversely, during the rainy season, these streams
are often flooded and the water flow carries away the rice plants.
Home gardens
Traditional home gardens are characterized by various species such as banana, orange, lime and
others, with bananas being the chief among these. Generally, households still lack full understanding of
home garden management, thus the income from this avenue is limited.
Afforestation
In Con Cuong District, households were found to plant both met (a kind of bamboo) and acacia.
Households in Tan Ky plant acacia only. Presently, almost all households plant acacia on swidden land areas.
Animal husbandry
An increase in animal husbandry is an inevitable activity within all communities, as many households
hope to expand their livelihood options and boost their income by raising and breeding livestock,
including pigs, buffaloes, cows and poultry such as chickens and ducks. Pig farming requires a lot
of firewood and investment in feed and veterinary services, and few households can pay for animal
vaccination or medicine for sick animals. Although the local people are aware that animal husbandry
provides substantial income for the household, their income remains stunted due to a lack of
experience and capital, inadequate investment and lack of access to veterinary services.

4.1.2. Off-farm activities
In the surveyed villages, villagers carry out many activities related to the natural forest, such as shifting
cultivation, logging, gathering NTFPs, and hunting wildlife. Hunting or trapping activities are carried out
simultaneously with the shifting cultivation cycle. The ethnic minorities use traps around their fields
to protect the plants, setting them up in the forest and emptying them periodically. Formerly, local
people hunted wildlife for subsistence, to improve their family meals. Trapping animals for sale is also
increasing as an option to increase household income, but as yet income from this source is still low.
Local people also collect bamboo shoots, rattan, mushrooms, honey and other forest products. These can
serve as a significant source of household income, but due to over-exploitation, many of these NTFPs are
becoming exhausted. Bamboo shoots are the only exception, providing a constant and significant portion
of household livelihoods.
Logging activities for timber and firewood are illegal, yet some people in the villages still undertake this
task for the sake of the relatively high income it provides. Generally, the men are in charge of cutting
the timber and firewood, while the women and children cut and collect dry branches and trees for the
purpose of providing fuel-wood for household use.

4.2. Primary household income sources
Household income in the selected communes mainly comes from the agricultural and forestry sector.
Households rely on wet rice cultivation; cassava plantation, afforestation (acacia and met); raising pigs,
buffalo and cows; collecting bamboo; and cutting firewood. Households ranked how important each livelihood option was to their household subsistence and for income generation; results are shown in Table 5.

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Pilot Study: Pro-Poor REDD in Nghe An Province
Socio-economic assessment and analysis of deforestation and forest degradation 2010


Table 5: Ranking and livelihood options in the six selected communes
Ranking*

Con Cuong District
Sector

Tan Ky District

Commune
Cam
Lam

Don
Phuc

Mau
Duc

Thach
Ngan

Dong
Van

Tan
Hop

Wet rice cultivation

1

1

1

1

1

1

Planting cassava

2

2

1

1

1

1

Planting acacia

3

2

2

3

3

1

Planting met

1

1

3

3

-

-

Raising pigs, buffalos and cows

2

2

2

2

2

2

Collecting bamboo

1

1

1

1

2

1

Cutting firewood

2

1

1

1

1

1

* Ranking: 1- high priority; 2- average priority; 3- low priority
Source: Synthesis from local resource person interview at commune level and FGDs

4.3. Products for potential value chain analysis
Households grow a variety of agricultural and forestry products, yet three products – namely cassava,
met and acacia – have the greatest potential for development and value chain analysis.

4.3.1. Cassava
In all surveyed communes, cassava was one of a the main crops planted in their swidden land. Cassava
is used for domestic use (eating and feeding pigs), but the majority of it is grown for sale at the
market.
The market chain of cassava consists of four main actors: the producer, two levels of middle men, and
the manufacturer (Figure 7). The first level middle man is the person within the village or commune
who purchases the cassava from the households. The second level middle man is found at the district
level in Con Cuong, Tan Ky, Thanh Chuong and Do Luong, or at the provincial level. When the level one
middle man purchases a significant amount of cassava to transport, this is then sold to the middle man
at level two, who transports the cassava to be sold to manufacturers in Thanh Chuong District.
Figure 7: Cassava market chain

Middle man
1
Producer
(Household)

(collector
within
village or
commune)

Middle man
2
(businessmen
in Con Cuong,
Tan Ky, Thanh
Chuong and
Do Luong)

Manufacturer
in
Thanh Chuong

Pilot Study: Pro-Poor REDD in Nghe An Province
Socio-economic assessment and analysis of deforestation and forest degradation 2010

13


4.3.2. Met
In four selected communes in Con Cuong District, met is often planted in forest gardens, and on
forestry land. This crop is mainly produced for sale at the market.
The market chain of met consists of three main actors: the producer, the middle man/collector, and
businessmen (Figure 8). The middle men are people from Con Cuong town, they purchase the met
product within the district, then transport it to be sold to business owners in Dien Chau, Quynh Luu
Districts, in Nghe An Province.
Figure 8: Met market chain

Producer (Household)

Middle man
(Con Cuong town)

Business owner (Dien Chau
and Quynh Luu)

4.3.3. Acacia
The acacia market chain is composed of three main actors: the producer, the middle man and the
processing company (Figure 9). Middle men are persons within or outside commune who purchase the
live acacia trees on-site at the household forest, then hire labourers to cut and transport the trees to
be sold to Tan Hong processing company.
Figure 9: Acacia market chain

Forest owner
(Household)

Middle man (within or
outside commune)

Processing company
(Tan Hong)

4.4. Cost-benefit analysis of potential alternative livelihood options
Presently, most households concentrate on wet-rice cultivation to ensure food security, although the
area and productivity is still limited. In order to generate income, households tend to use swidden
land to plant cassava, acacia, and met. The most common model is to intercrop acacia and cassava.
However, farmers prefer to plant cassava and met over acacia, for the following reasons:

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Pilot Study: Pro-Poor REDD in Nghe An Province
Socio-economic assessment and analysis of deforestation and forest degradation 2010


•

Short turn-around period: cassava is about one year; met is about 4-5 years; acacia is about
5-7 years

•

Cassava and met are easy to plant and are suitable to the local natural conditions

•

Households have experience in planting cassava and met

•

Sources of seeds/seedlings are readily available locally

•

Long cropping and return period for met: 60-70 years from first time harvesting

•

Market demand is higher for cassava and met

4.4.1. Cassava (per ha/year)

Input costs:
Labour used (family labour): 80 days
•

Fertiliser: 50 kg x 10,000 VND/kg = 500,000 VND

•

Total input cost: 500,000 VND (excluding labour and seedlings)

Total revenue: 1,500 kg x 2,000 VND = 3,000,000 VND
Gross revenue: 3,000,000 VND – 500,000 VND = 2,500,000 VND

4.4.2. Met (per ha in first 5 years)
Input cost:
•

Seedlings: 250 seedlings x 5,000 VND = 1,250,000 VND

•

Fertiliser: 75 kg x 10,000 VND/kg = 750,000 VND

•

Labour used (family labour): 186 days (including harvest days)

•

Total input cost: 2,000,000 VND (excluding labour)

Total revenue: 1,000 trees x 8,000 VND = 8,000,000 VND
Gross revenue: 8,000,000 VND – 2,000,000 VND = 6,000,000 VND
From the 6th year, households invest only labour for tending and harvesting the crop(tending: 20 days;
harvesting: 50 days)

4.4.3. Acacia (per ha in 7 years)
Input cost:
•

Seedlings: 2200 seedlings x 6,000 VND = 1,320,000 VND

•

Fertilizer: 660 kg x 10,000 VND/kg = 6,600,000 VND

•

Labour used (family labour): 196 days (including harvest days)

•

Total input cost: 7,920,000 VND (excluding labour)

Total revenue: 18,000,000 VND (price at forest by purchase live trees)
Gross revenue: 18,000,000 VND – 7,920,000 VND = 10,800,000 VND

Pilot Study: Pro-Poor REDD in Nghe An Province
Socio-economic assessment and analysis of deforestation and forest degradation 2010

15


5. D
 eforestation and forest degradation
causal analyis
5.1. Forest changes in Con Cuong and Tan Ky Districts
The changes in forest area for Con Cuong and Tan Ky districts from 2005 to 2009 are presented in
Table 6. This data was collected from the Department of Agriculture and Rural Development (DARD) in
Nghe An Province, and shows an increase in forest cover (both natural forest and plantations) during
the given time period.
Table 6: Changes in forest land in Con Cuong and Tan Ky Districts, 2005-2009

Year

Plantation

Total
natural
area

Land
with forest cover

Natural
forest
area

(ha)

(ha)

(ha)

Total
area

<=3
years

(ha)

Land
without
forest
(ha)

Other
land (ha)

Forest
cover
(%)

Con Cuong district
05

172,536.8

127,971.4

125,802.4

2,169.0

 

29,231.8

15,333.6

74.17

06

173,815.8

128,094.4

125,830.8

2,263.6

 

26,451.0

19,270.4

73.70

07

173,815.8

128,751.9

125,591.1

3,160.8

725.5

25,793.5

19,270.4

74.07

08

173,815.8

130,018.9

125,700.6

4,318.3

1,810.8

24,518.4

19,278.5

74.80

09

173,815.8

132,817.6

127,386.4

5,431.2

1,810.8

21,775.2

19,223.0

76.41

Tan Ky district
05

72,558.0

19,775.6

14,318.9

5,456.7

1,336.6

20,978.0

31,804.4

27.25

06

72,890.2

19,363.0

14,319.3

5,043.7

 

18,501.0

35,026.2

26.56

07

72,890.2

20,720.9

14,251.5

6,469.4

1,506.4

17,141.9

35,027.4

28.43

08

72,890.2

25,402.3

15,237.6

10,164.7

3,006.5

12,461.7

35,026.2

34.85

09

72,890.2

27,299.3

15,209.8

12,089.5

889.9

12,060.7

33,530.2

37.45

Source: Nghe An DARD, 2010

5.2. Drivers of deforestation and forest degradation
Although statistical data from DARD shows that forest cover in both districts has increased, the local

resource persons at various levels (district, commune, village) recognise that forest (particularly
natural forest) area and quality is being reduced and degraded continuously. The study has found out
that there are three main factors leading to deforestation and forest degradation from the assessed
communes: (1) local people’s livelihood activities, (2) the process of industrialisation; and (3) gaps
between forest management policies and their implementation.

5.2.1. Local people’s livelihood activities
As outlined above, locals’ livelihoods are based largely on forest resources, and so these directly
affect the natural forest. The five main livelihood activities that contribute to deforestation and forest
degradation are shifting cultivation, firewood cutting, timber cutting, clearing forest for afforestation,

16

Pilot Study: Pro-Poor REDD in Nghe An Province
Socio-economic assessment and analysis of deforestation and forest degradation 2010


and gathering NTFPs. Although not all of these activities are legally recognised, they nevertheless form
the daily work activities of farmers in these areas.
Shifting cultivation
In the study area, there are limited wet rice production areas, and these have low productivity.
Households, therefore, do not have enough rice to eat for three to six months per year. To overcome
this difficulty, the government has allocated new shifting cultivation areas for each commune to
increase production. Currently, swidden land in these areas is exhausted, and there is not enough land
for crop rotation and only limited paddy fields; hence, farmers are unable to plant hill rice, so they
plant cassava and maize only. This situation is most notable in Tan Hop Commune, Tan Ky District. In
these circumstances, swidden land plays an important role in household sustenance and food supply
in the months between crops. Due to the shortage of land for subsistence cropping, most households
within the villages continue to cut natural forest in order to plant crops. Hill rice is planted in the first
year, followed by cassava and/or maize in second and third years. Acacia is then cropped after this

cycle, and is usually intercropped with cassava for both domestic use and commercial purposes.
Surveys indicated that over 72% of households still depend on clearing forests to expand land
(swidden land) for agricultural production (see Table 7).
Table 7: Household dependency on cutting forest for agriculture
Rate (%)
Forest dependence levels

Cam
Lam

Don
Phuc

Mau
Duc

Thach
Ngan

Dong
Van

Tan Hop

Not dependent at all

0

0

0

0

0

0

Slightly dependent

3

9

7

4

5

14

Somewhat dependent

7

15

17

18

3

4

Very dependent

75

51

73

71

86

54

85

79

97

93

92

72

Source:
Total Household survey, 2010
Harvest of forest products

The condition of the households tends to be very poor, with many of them facing difficulties such as
lacking a gas stove for cooking. Regardless, it is the custom of ethnic minorities to have a wood fire/
stove in the house for warmth, and for smoking foods such as maize, beans, and so on. Therefore,
fuel wood for cooking is an indispensable necessity of these households. However, the volume of wood
cut daily for cooking is negligible. Most households cut firewood from the natural forest area that has
been allocated to them (under Decree 163/ND-CP) or they collect dry firewood around the garden
for cooking. Therefore, the firewood cut and collected for use in the family home is minimal and not
considered a significant contributor to forest degradation.
In both assessed districts, firewood is cut to sell to the brick-kilns in Tan Ky District, which has caused
significant damage to natural forests. In Dong Van and Nghia Hoan Communes, there are many brick
trading villages, and these have a high demand for firewood. In the six surveyed communes, the
majority of households regularly cut firewood to sell to the brick-kilns on forest lands belonging to
PFMBs.. Collectors and middle men who live in these brick trade villages often come to Tan Hop and
Dong Van Communes to buy firewood. Although Con Cuong District does not have any brick trade
villages, the households from Cam Lam, Don Phuc, Mau Duc, and Thach Ngan Communes still cut
firewood from the forest to sell. In these communes of Con Cuong, it is easy to access and sell firewood.
Normally, the trucks transport bricks from Nghia Hoan and Dong Van Communes to sell within the
Con Cuong District communes, and return to Tan Ky loaded with firewood. This process allows brickkiln owners to sell bricks, and also to buy firewood, and as such transportation costs are reduced
significantly. Supply to brick-kilns is a key reason why the firewood market in Con Cuong has been
expanded, and as a result, there are added incentives for households in the area to cut firewood for sale.

Pilot Study: Pro-Poor REDD in Nghe An Province
Socio-economic assessment and analysis of deforestation and forest degradation 2010

17


In addition, households from the four assessed communes of Con Cuong District cut firewood in the
forest during the rainy season fuel the drying of bamboo shoots. In comparison to the amount of
firewood collected and sold to the brick-kilns, firewood for drying bamboo shoots is low and for a short
period of time, but it does affect forest resources to some extent.
As compared to the past, households indicated that timber resources in Tan Ky and Con Cuong Districts
are increasingly being exhausted. However, locals continue to cut firewood in the forest to sell and use
for essential needs such as repairing and building houses, making stables, and so on. Furthermore, the
sale of cut timber for income often funds the purchase of rice for home sustenance and other expenses
such as school feels and supplies, medicine, funerals and weddings, etc.
In contrast to shifting cultivation and cutting firewood, which are carried out by people from local
villages, the cutting of timber is undertaken by both local villagers and outsiders. The extraction
of trees for timber is mainly carried out by young people, especially those with poor families who
lack other options for stable jobs. The money made from selling this timber is often spent on daily
activities such as drinking, singing karaoke, and so forth. Additionally, an important reason why local
people still illegally cut timer is that the demand for wood is increasing (especially timber from natural
forests), meaning that the market prices are high. Still, there is a disparity between urban/lowland and
mountainous/upland value, hence outsiders often associate with villagers to encourage them to cut
timber.
Currently, NTFP resources in Tan Ky District are scarce, so local people mainly cut timber and firewood
from natural forests. Meanwhile, in Con Cuong District, Nua (a kind of bamboo) forests are still
abundant, so local people often collect these bamboo shoots, particularly during the wet season when
the yield is very high. In this season the gathered bamboo shoots cannot be sold, so firewood must be
cut in order to dry the bamboo shoots. In this way, gathering bamboo shoots during the wet season is
an indirect cause leading to forest degradation in Con Cuong District.
Nearly all of the surveyed households from the six communes collect firewood and timber from natural
forests of PFMBs, FCs or land managed by the CPC. The amount collected for firewood by households
exceeds the amount of extracted for timber. Table 8 depicts the extraction of timber and firewood from

forests, as well as the percentage of households who rely upon these activities.

18

Pilot Study: Pro-Poor REDD in Nghe An Province
Socio-economic assessment and analysis of deforestation and forest degradation 2010


Table 8: Households collecting forest products

Main forest product

Source of collection

Firewood

Timber

Rate (% of households)
Cam
Lam

Don
Phuc

Mau
Duc

Thach
Ngan

Dong
Van

Tan
Hop

Primary forest

0

2

7

1

1

5

Secondary forest

45

26

50

65

63

40

Mixed

13

32

43

32

22

35

Total

58

60

100

98

86

80

0

2

1

3

1

22

19

18

24

19

1

10

6

20

37

26

Primary forest
Secondary forest

32

Mixed

0

Total

32

22

21

Source: Household survey, 2010
Clearing forest for afforestation
There has been an increase in afforestation in Nghe An Province, driven by the increased market
demand for acacia timber. In recent years, many wood chip and pulp processing factories have been
built in the province. Improved conditions of roads, especially inter-village and inter-commune roads,
has further increased the volume of acacia timber purchased by middle men and collectors at the
village level. Despite this increased demand, most local people surveyed in the communes lack land
for planting acacia. As a result, apart from planting acacia on the allocated forestry land or swidden

land patches, they often cut natural forest around those patches to expand the area for planting.
Currently, the Tan Hong import-export company has been permitted by Nghe An PPC to invest in
planting acacia in Con Cuong, Tan Ky, Anh Son and Thanh Chuong Districts. The company has provided
loans to households for establishing acacia plantations, but this increased plantation area does not
involve the local authorities and careful monitoring (FD-DARD, ARDO and FPU), so households have
cleared natural forest land in order to participate in the company’s acacia plantation project. Data
about these households are shown in Table 9.
Table 9: Households clearing natural forest for acacia plantations

Households involved (%)
Con Cuong District
Type of forest

Tan Ky District

Commune
Cam
Lam

Đon
Phuc

Mau
Duc

Thach
Ngan

Dong
Van

Tan
Hop

Primary forest

0

2

0

0

0

0

Secondary forest

44

21

48

27

15

27

Mixed

7

0

7

0

2

1

Total

51

23

55

27

17

28

Pilot Study: Pro-Poor REDD in Nghe An Province
Socio-economic assessment and analysis of deforestation and forest degradation 2010

19


5.2.2. Impact of industrialisation
on forests
Tan Ky and Con Cuong Districts
have further transformed natural
forest through mining activities.
In one of the province’s industrial
development strategies, private
companies are mining with the PPC’s
permission. There are two chief subsectors:
•

 ining of ore (tin, manganese,
M
lead, zinc, coal)

–

 a Ly Company was issued a
D
license to mine ore in Dong Van
Commune, Tan Ky District, and
has been operating since 2008

–

 inh Duong Company is
B
licensed to mine ore in Tan Hop
Commune, Tan Ky District, and
has been operating since 2007

–

 ong Son Company is licensed
D
to mine lead and zinc in Don
Phuc Commune, Con Cuong
District, and has been operating
since 2006 (200 ha)

–

 im Hoang Company and Thuan
K
Thien Company are licensed
to mine coalin Don Phuc
Commune, Con Cuong District,
and has been operating since
2010 (80ha)

•

 ining of white marble: Hoang
M

Danh Company is licensed to
mine white stone in Tan Hop
Commune, Tan Ky District and
has been operating since 2006.

Mining areas are planned, yet because the mining management mechanism is not strictly monitored
or adhered to, mining is still occurring in forest areas that are not included in the plan. In addition,
mining is associated with a requirement for a significant number of timber poles for infrastructure and
support in the process. Poles for mining are made of hard wood taken from natural forests, and are not
included in the extraction and harvesting plan of the mining sector. Therefore, cutting poles for mining
is also one major cause of forest degradation.

5.2.3. Gaps in forest management policy implementation
Although DARD has in place a strict process to recheck the three forest types and the SFE reform
from provincial to commune level, their implementation is often constrained. As a result, conversion
of forest land from from protection forest to production forest is not consistent. The transformation of
these areas reduces the success in protecting natural forest resources.
Regulations on logging of natural forest are relatively loose, as state forest owners (forestry companies
and PFMB) are allowed to develop their own logging plans and have the legal right to conduct logging
activities. The forest owners develop annual management and use plans in line with logging quotas

20

Pilot Study: Pro-Poor REDD in Nghe An Province
Socio-economic assessment and analysis of deforestation and forest degradation 2010


provided by DARD. However, the monitoring process of logging activities is not comprehensive and
so plans are not strictly followed, leading to a serious negative impact on forest resources. The issue
is further exacerbated by the logging process itself, which is harmful to the natural environment and

reduces the potential for regenerating seedlings, thus decreasing the possibility of restoration and
prolonging the time needed for recovery after forest exploitation.
In recent years, PFMBs have signed forest protection contracts (with a fee of 200,000VND/ha/year)
with local households, encouraging them to participate in forest protection. However, the budget for
contracting forest protection mostly depends on financing from the 661 Project, which is allocated
annually to the PFMBs. This funding has been decreasing gradually and will end as of this year,
meaning the PFMBs have limited options for other financing to continue funding forest protection
contracts with local people. Therefore, households who have previously had contracts will no longer
provide forest protection services or carry out forest protection patrolling. These forests, therefore, are
now at greater risk due to an impending lack of forest protection services.

6. P
 otential risks leading to deforestation and
forest degradation
6.1. Expansion of plantation area for Tan Hong import-export
company
The Tan Hong import-export company has built a pulp processing enterprise in Con Cuong District
with a design capacity of 45,000 tons per year. Currently, the enterprise is operating at only one-third
of its capacity. To operate at full capacity, the company will need more raw materials and therefore
needs to expand its area of forest plantations to supply raw materials. Nghe An Province is in the
process of converting 7,000 ha of protection forest into production forest to be allocated to the Tan
Hong Company for planting acacia to supply their raw materials. In addition, to capitalise on other
expansion opportunities, the company will finance households who have forestry land to plant acacia.
This may serve as an incentive for households to cut natural forest to enable them to participate in the
company’s acacia plantation project. There needs to be strict control and monitoring of the material
supply areas of this company.

6.2. Expansion of mining areas
The mining companies that have been issued licenses will certainly increase their operations to reach
full capacity, and new companies are also in the process of setting up additional mining projects, which

will be licensed in the future. This will result in the transformation of forest land for mining purposes.
The increase in the size and number of mines will require an increase in infrastructure materials such
as hardwood poles. Therefore, proper planning and monitoring of the mining companies’ land areas
and material supplies is required to ensure minimal risk of natural forest loss and degradation.

6.3. Brick-kilns
A great need exists to improve the condition of local people’s houses, and the State has a support
programme to upgrade timber houses to brick. This necessitates the development of brick-kilns to
produce bricks. Therefore, the demand for firewood to fuel these kilns is going to increase. Use of
forest resources for firewood for brick-kilns is a major driver that will increase deforestation and forest
degradation.

6.4. Thatched cottage replacement programme for remote areas
Another State programme calls for the reduction of thatched cottages in upland areas. This programme
is intended to replace thatched houses with timber ones, and thus requires a large amount of timber.

Pilot Study: Pro-Poor REDD in Nghe An Province
Socio-economic assessment and analysis of deforestation and forest degradation 2010

21


The programme’s goal is to improve living conditions for the involved households, but it also poses a
potential risk of increased forest loss.

6.5. Expansion of agricultural land
The shortage of farming land is a major limitation in all communes studied. Land that is currently
used under swidden practices is becoming more and more exhausted as households are planting
acacia under district afforestation programmes or under the Tan Hong Company’s investments, rather
than preserving it for traditional swidden practices. The lack of agricultural land supplying households

with income and sustenance is likely to continue to drive households to clear natural forest areas to
cultivate hill rice, cassava and maize. In this way, the lack of adequate agricultural land is a significant
driver of deforestation and degradation.

6.6. Natural forest restocking project
Nghe An is in the process of implementing a project to restock the natural forests and will be
undertaken in Con Cuong and Tan Ky Districts in the coming year. This process is being directed by
MARD (Circular No 99/2006/TT-BNN), which is guiding the implementation of forest management
regulations, including Decision No. 186/2006/QD-TTg instructing the restocking of natural forests.
However, in practice, restocking has so far been incompatible with the promulgated technical process.
This is due to most forest owners wanting to transfer the poor natural forests to production forest to
plant acacia. Strict management and monitoring is required to ensure natural forest is not transformed
for commercial purposes, otherwise large areas of natural forest area will be lost.

7. Proposed recommendations
Based on the above findings, several recommendations are made below, addressing the need to
reduce further pressure on forests and deforestation, as well as suggesting possible options to achieve
broader livelihood improvements in the study areas.

22

•

Area planning for shifting cultivation: For ethnic minority households, shifting cultivation
is an indispensable activity, not only connecting them to traditional culture and customs, but
also playing an important role in meeting daily food demands. Therefore, deforestation will
continue to provide new areas for carrying out shifting cultivation. In order to overcome this
situation, local authorities (DPC and CPC) and government agencies at the district level (FPU,
Office of Natural Resources and Environment) should engage in proper planning procedures.
This will reduce the pressure on natural forests and contribute to improved food security for

local people, especially poor households. Along with this area planning, support to households
is needed to build more sustainable models of shifting cultivation with the aim of linking
livelihood improvement with forest protection.

•

Conducting forest land allocation or contracts for forest protection: linking livelihood
improvement such as supporting households to plant met (a kind of bamboo) in Con Cuong
District, plant rattan under natural forest canopy in both districts

•

Raising awareness: It is crucial that local people understand the role and necessity of
forests. Awareness can be raised by organising contests for forest roles among villages within
and among communes and by establishing an environmental protection club in each village.

•

Developing animal husbandry: Training on poultry and cattle breeding techniques should be
conducted in the communes, as well as training on disease prevention. Furthermore, access
to veterinary services must be improved in order for households to be able to raise animals
effectively.

•

Developing home gardens and forest gardens: Home gardens should be enhanced with
new varieties and species. Support in terms of market awareness and value chain development
is also necessary.

Pilot Study: Pro-Poor REDD in Nghe An Province

Socio-economic assessment and analysis of deforestation and forest degradation 2010


Annex
Table 10: Current land use in Con Cuong and Tan Ky Districts
Con Cuong District

Tan Ky District

(ha)

(%)

(ha)

(%)

Total of natural area

173,831.12

100

72,890.23

100

Agricultural land

12,279

7.06

25,762

35.34

Forestry land

132,817.60

76.41

37,864

51.95

Land for other purposes

28,734.52

16.53

9,264.23

12.71

Land use

Table 11: Economic structure of six selected communes

Rate (%)
Con Cuong District
Sector

Tan Ky District

Commune
Cam
Lam

Don
Phuc

Mau
Duc

Thach
Ngan

Dong
Van

Tan
Hop

Agriculture and forestry

82.5

55.3

69.7

51.6

51.4

78.3

Industry and construction

9.1

35.5

7.2

26.4

23.3

13.0

Commercial service

8.4

9.2

23.1

22.0

25.3

8.7

Pilot Study: Pro-Poor REDD in Nghe An Province
Socio-economic assessment and analysis of deforestation and forest degradation 2010

23