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Insurance policy needed for large timber plantations

Many bottlenecks remaining

Acacia is one of the key production forest trees in Vietnam. Acacia species have affirmed their important role in greening bare hills and mountains, improving soil, preventing erosion, preventing drifting sands, providing the main source of raw materials for the wood processing sector and forest products exporting... Acacia plantations bring economic efficiency, increase income, contribute to hunger eradication and poverty alleviation in mountainous areas...

Insurance policy needed for large timber plantations

Mr. Trieu Van Luc, Director of the Department of Forest Development (General Department of Forestry). Photo: Trung Quan.

However, the correct perception of the role of acacia, finding a sustainable, high-value direction for this tree is still a problem without a satisfactory solution. Every stage from seed varieties, cultivation techniques, exploitation... all face "bottlenecks".

In the seeding stage, there are no regulations on management for households, individuals that invest in small-scale seed production and trading, leading to the lack of control over the results of these targets although this force accounts for 15% of the annual production of seedlings.

There are no regulations requiring organizations and individuals planting production forests with state budget loans or other funded programs, projects to use tissue or hybrid varieties for major forestry plant species that has been propagated by tissue, hybrid to improve productivity and quality.

The law enforcement on quality management of forest plant varieties in many localities has been lacking, strict compliance with the provisions of the law, inspection, supervision and handling of violations is still limited.

Practical models of acacia production have not been established, only recently recognized through trial models, leading to localities hesitant of risks when using new varieties...

The quality management of forest tree varieties in many localities has been lacking. Photo: TL.

In terms of cultivation, organizations and individuals often lack capital to invest in intensive afforestation and prolong cycle for large timber business. On the other hand, the awareness of many households about the effective value of afforestation for large timber business is still limited. Forest land fund is fragmented, not concentrated, mainly on household scale with an area of ​​1 - 2 ha. Afforestation for large timber business has a long cycle and high risks (natural disasters, markets, prices, etc.) with no insurance policy for planted forests.

The joint venture and association between farmers and large timber production businesses in the chain from the afforestation stage to products processing and consumption has not developed strongly and is unstable.

The forestry infrastructure has not met the requirements of production, especially the forestry road system. This leads to difficulties in investment and development of large timber forests from planting, thinning, exploitation and transportation at very high costs.

Afforestation is mainly still at a low level of intensive farming, small holes digging, not fertilizing or fertilizing in insufficient doses, very little care of the forest so the forest grows slowly and has low productivity.

Strict quality control of acacia seed is needed

Acacia is an easy tree to grow, to produce and market's demand is high... Therefore, farmers have made the most of the bare land and hills to grow acacia trees, demand for acacia seedlings is very high. AS a result, substandard seed production facilities has emerged, many households self-propagated and planted spontaneously, not following local recommendations...

It is necessary to tighten the management of acacia seed quality. Photo: VAN.

This leads to serious consequences, it not only reduces the growth and development of trees, causing low economic efficiency, but in the long run, it can also disrupt the forest development planning of many localities. Areas planted with improper techniques, densely planted areas on steep terrain, where there is a high risk of breakage, can easily lead to landslides or reduced soil quality...

To overcome this situation, each locality needs to actively grasp and strictly manage seed production, trading establishments in the area according to the provisions under Decree No. 27/2021/ND-CP by the Government on the management of forest varieties. Additionally, strengthen seed quality management from the stage of seed verification, seed sources and seed materials according to Circular 22/2021/TT-BNNPTNT by the Ministry of Agriculture and Rural Development.

In addition, perform propaganda and encourage all organizations, individuals in the area to plant forests with high-yield and high-quality tree varieties, tissue, hybrid varieties and large timber production. To encourage and create favorable conditions for organizations, individuals in the locality with a tissue culture facility to produce seedlings on an industrial scale and reduce the cost of seedlings for afforestation...

Regarding management agencies, it is necessary to support original varieties for seed production facilities using tissue culture technology to produce acacia seeds for afforestation in ecological regions with large area of ​​acacia plantation (Northeast, North Central, South Central, Southeast regions…).

It is necessary to have a plan, a methodical survey of the site for acacia trees development. Photo: VAN.

Propose, supplement and amend regulations on compulsory use of tissue and hybrid varieties (for varieties propagated using these methods) for afforestation in cases of utilizing state budget, programs and projects on afforestation funding.


It is necessary to review, amend, supplement land mechanisms and policies, exempt or reduce land rent and land use tax for afforestation areas, convert large timber plantations to encourage organizations, businesses and households to participate.

Invest in the construction of forestry infrastructure, forestry road system in concentrated large wood-material afforestation areas, according to the same current mechanism used for investment in construction of irrigation works, helping to reduce investment costs for all economic sectors participating in afforestation for large timber business. Innovate credit policies, create favorable conditions for organizations, households and individuals to borrow capital for investment in production forests planting.

Mr. Trieu Van Luc


Develop a policy on insurance for planted forests

In reality, through the process of information, propaganda, training, technical guidance by the Ministry of Agriculture and Rural Development, the General Department of Forestry, the agricultural extension system from central to local levels, many development models for large and effective acacia timber plantation have emerged.

Most notably, the model of Acacia mangium in Quang Ninh (8 years old), after 2 attempts of thinning, the current density is 600 trees/ha, the reserve is 127.17 m3/ha (5.7% higher than the 120 m3/ha non-converted forest), the average diameter of the converted forest (18 cm) is 27.7% higher than that of the non-converted one (13 cm). Therefore, the economic value is higher (13 cm diameter small timber is sold at a price of 800,000 VND/m3, for >15 cm large timber, selling price is 2 million VND/m3).

Currently, utilization of other production types under the canopy of acacia forest is still very limited. Photo: Hong Hai.

According to research results by the Vietnam Academy of Forestry Science, acacia plantations start to be exploited at the age of 5, if extended by 1 year, the corresponding added value is 1.57 times and 5-year extension is 4,24 times, optimal exploitation time for acacia plantations is 10-15 years old...

However, an issue that concerns most forest owners is that developing large timber forests as recommended by management units is a big risk. External factors such as pandemics, natural disasters, forest fires... are always lurking and can occur at any time. When an incident occurs, who will accompany, protect and ensure economic benefits for forest owners, while all investment costs are paid by forest owners.

Therefore, development of insurance policies for large timber plantations so that forest growers can invest without worry in large timber business, especially in high-risk areas due to natural disasters is a very necessary and long-term work.

In addition, there should be an initial support mechanism (funding) for large timber business owners to issue certificates of sustainable forest management according to international standards in order to increase product value and integrate into the international market...


The use of acacia forest to develop various economic forms such as combining tree planting under the forest canopy, agroforestry development, etc. is entirely possible. This can help forest growers have more income in the long run, while enhance reclamation, soil protection, erosion control... sustainably.

However, production households must pay close attention to choosing plant species suitable for production, business purposes and site conditions where they are planted. Each different ecological region with different conditions will require the appropriate type of intercropping. For example, for some areas, intercropping of agricultural crops such as cassava and maize is suitable; while Morinda officinalis and xanthioides are suitable in others…; Southwest provinces are suitable for forests in combination with aquaculture under the forest canopy...

Mr. Trieu Van Luc


Author: Trung Quan

Translated by Nguyen Hai Long

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