markets of important products, non timber forest products

Vietnamese - German Technical Cooperation SOCIAL FORESTRY DEVELOPMENT PROJECT (SFDP) SONG DA

Ministry of Forestry (MoF) - GTZ Forestry Inventory & Planning Institute (FIPI) - GFA

Markets of Important Products,

Non Timber Forest Products

and Agricultural Products

in the Provinces Hoa Binh, Son La and Lai Chau

in the North West of Vietnam

Baseline Study No. 4

Christian Rake Günther Meyer Luong Van Tien

Nguyen Quang Long Vu Dinh Quang

Nguyen Viet Tuc Do Cong An

Hanoi, December, 1993

TABLE OF CONTENTS

1 Introduction 2

2 Forest Products 3

2.1 Logs and Timber 3

2.1.1 Exploitation 3

2.1.2 Consumption and destination of product 5

2.1.3 Product market chains 7

2.1.4 Prices 8

2.2 Processed Sawnwood and Plynwood 10

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2.2.1 Production 10

2.2.2 Regional Demand 10

2.3 Fuelwood 11

2.4 Prognosis of markets for forest products 12

3. Non Timber Forest Products 15

3.1 Bamboo 15

3.1.1 Production 15


3.1.3 Prices 17

3.2 Bamboo Shoots 18

3.3 Rattan 19

3.3.1 Production 20


3.3.3 Product market chains 22

3.3.4 Prices 22

3.4 Tung-Oil and Shellac 24

3.4.1 Production 24


3.4.3 Prices 26

3.5 Medicinal and aromatic herbs and plants 27

3.5.1 Production 28

3.5.2 Market channels of the products 28

3.5.3 Prices 30

3.6 Colours, Pigments 31

3.7 Prognosis of markets for non timber forest products 32

4 Agricultural Products 34

4A Food Crops 34

4.1 Rice (Paddy Rice + Upland Rice) 34

4.1.1 Production 34


4.1.3 Product market chains including important historical changes 37

4.1.4 Prices and peculiarities of price system 38

4.1.5 World rice market 38

4.2

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Maize 40

4.2.1 Production 40

4.2.2 Consumption, market channels and prices 42

4.3 Cassava 44

4.3.1 Production 44


4.4 Soy bean 46

4.4.1 Production 46

4.4.2 Consumption, market channels and prices 48

4.4.3 Peculiarities of price system 49

4.4.4 Demand outlook for vegetable oil 49

4B Industrial Plants 51

4.5 Tea 51

4.5.1 Production 51

4.5.2 Consumption, market chains, prices and demand forecast 52

4.6 Coffee 54

4.6.1 Production, processing, consumption, market chain and prices 54

4.6.2 World market for coffee 55

4.7 Cotton 57

4.7.1 Production 57

4.7.2 Consumption and processing 58

4.8 Silk / Mulberry 58

4.C Fruits 60

4.9 Banana, Mango, Longan, Citrus, Plum, Apricot, Pineapple 60

4.9.1 Production 60

4.9.2 Consumption, destination and market chains 60

4.9.3 Prices 61

4D Livestock Products 62

4.10 Meat, Milk 62

4.10.1 Production 62

4.10.2 Consumption, utilisation and prices of livestock products 62

4.10.3 Market forecast 64

5 Conclusions and recommendations 65

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List of Annexes

6 Bibliography 68

7 Annexes 75

Annex 1 List of persons and organisations consulted

Annex 2 State controlled log exploitation

Annex 3 Accounting wholesale prices for round logs in the North West region

Annex 4 Sawnwood production

Annex 5 Fuelwood exploitation of state units by provinces

Annex 6 List of wood and forest products with export permission

Annex 7 Officially registred food crop area and production in rice equivalents

Annex 8 Officially registred rice area and production in Hoa Binh by districts

Annex 9 Officially registred rice area and production in Son La by districts

Annex 10 Officially registred rice area and production in Lai Chau by districts

Annex 11 Rice price quotations in 1993

Annex 12 Officially registred maize area and production in Hoa Binh by districts

Annex 13 Officially registred maize area and production in Son La by districts

Annex 14 Officially registred maize area and production in Lai Chau by districts

Annex 15 Officially registred cassava area and production in Hoa Binh by districts

Annex 16 Officially registred cassava area and production in Son La by districts

Annex 17 Officially registred cassava area and production in Lai Chau by districts

Annex 18 Officially registred soy bean area and production in Hoa Binh by districts

Annex 19 Officially registred soy bean area and production in Son La by districts

Annex 20 Officially registred soy bean area and production in Lai Chau by districts

Annex 21 Coffee growing area and production in Son La by districts

Annex 22 Officially registred cotton area and production in Son La by districts

Annex 23 Officially registred cotton area and production in Lai Chau by districts

Annex 24 Registred fruit growing area and production in Son La

Annex 25 Officially registred fruit area and production in Lai Chau

Annex 26 Fruit plantations in Hoa Binh by districts and species in 1992 and 1993

Annex 27 Officially registred stocks of main animal categories by districts

Annex 28 Assessment of supply and demand of different products

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List of Tables and Figures

Figure 1 Wood cuttings in the SDW 4

Table 2 Annual wood requirements for new houses 5

Table 3 Structure of Vietnamese wood exports 6

Figure 4 Market chain of logs and timber 8

Table 5 Actual market prices on different trading levels for different log qualities (1993) 9

Figure 6 World market prices of different wood products 9

Figure 7 State controlled fuelwood production 11

Figure 8 State controlled bamboo exploitation of different species 15

Figure 9 State controlled bamboo exploitation by provinces 16

Table 10 Actual market prices of bamboo at different market levels (1993) 18

Table 11 Bamboo shoot exploitation [in tons] by province and year 18

Table 12 1993 market prices of bamboo shoots 19

Table 13 Rattan exploitation 1986-1992 in Hoa Binh and Lai Chau provinces 20

Table 14 Prices for rattan at different market levels for standard quality per ton 23

Figure 15 Price evolution of rattan of standard quality in constant 1993 VN Dong/ton 23

Table 16 Area of tung trees and lacquer host trees in the SDW in 1993 24

Table 17 Production of tung seeds and seed lac in the SDW in tons per year 25

Table 18 Price development of tung oil and shellac in nominal VND per kg 27

Table 19 Registered production of main aromatic and medicinal plants in SDW 28

Figure 20 Market chain of medicinal plants 29

Table 21 Recent prices of some dried medicinal plants on different market levels 30

Table 22 Rice production in the SDW between 1986 and 1991) 34

Figure 23: Rice production area in the SDW by provinces 35

Figure 24: Paddy and upland rice production area in the SDW by provinces 35

Figure 24 cont.

Paddy and upland rice production area in the SDW by provinces 36

Figure 25 Rice prices on world market in US$ per ton 40

Table 26 Maize area, production and productivity in the surveyed provinces 41

Table 27 Development of maize area and maize production in each of the surveyed provinces

42

Figure 28 Market chain of maize including current prices [ VND per kg ] 43

Table 29 Cassava area, production and productivity in the surveyed provinces compared to 44

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The following abbreviations were used in the report :

national figures

Figure 30 Development of cassava area and production in each of the surveyed provinces 45

Table 31 Soy bean area, production and productivity in the surveyed provinces 46

Figure 32 Development of soy bean area and production in each of the surveyed provinces 47

Figure 32 cont.

Development of soy bean area and production in each of the surveyed provinces 48

Figure 33 Market chains of soy bean seed including current prices [ VND per kg ] 49

Table 34 Typical course of edible oils intake as a function of income 50

Table 35 Location and area for tea production in 1992 51

Table 36 National area under tea plantations and production of dried tea 52

Table 37 National coffee plantation area and production 54

Table 38 Coffee area and production in the surveyed provinces in 1992 54

Table 39 Cotton area and production in the three provinces and in Vietnam 57

Table 40 Silk cloth export prices in 1992 59

Table 41 1993 market prices for selected fruits on different trade levels in VND/kg 61

Table 42 Milk production in Moc Chau in tons per year 62

Figure 43 Today's market chains of milk and livestock including prices in VND/kg 63

cbm cubic meter

CEMMA Committee for Ethnic Minorities and Mountainous Areas

FH farm household

FOB free on board (export price)

GATT General Agreement on Tariffs and Trade

GOV Government of Vietnam

ha hectare

HYV high yielding varieties

mio million

MOA Ministry of Agriculture

MOF Ministry of Forestry

NAFORIMEX Forest Products Export-Import, Production and Service Corporation

NTFP Non Timber Forest Product

SAE State Agricultural Enterprise

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Remark: The display of numbers and figures follows the Vietnames and German rules applying a dot as a thousand separator and a comma as a decimal separator (e.g.: 1.700,50 = one thousand seven hundred comma five zero).

The following exchange rates were used in the study :

1. Introduction

This study forms part of the baseline studies of the Social Forestry Development Project Song Da (SFDP)). Embedded in the activities of the Orientation Phase of the project, these studies were assessed necessary to obtain a sound basis for future project planning.

The purpose of the market study was to gain an understanding of the markets of the main forest, non timber forest, and agricultural products produced in the project region. Market potentials and constraints for distinct products should be assessed in order to facilitate project planning for the promotion of growing and marketing of suitable products. Impacts from SFDP activities can only be sustainable when the market conditions of the produce is taken into consideration.

Methodologically, the study is divided into two parts; one describing production and prices as well as consumption and market chains and the development in recent years; the second forecasting trends, potentials and constraints for future market development.

Historically, there are two major periods to be described; before and after the party congress in 1988 which confirmed the doi moi policy first formulated in 1986. The decision of the party congress to gradually switch the economy from a centrally steered socialist economy to a social market economy has had significant influences on the markets of all products surveyed. Thus, the prices before 1988 have to be regarded as accounting prices rather than reflecting interactions of the market forces.

In the course of this survey several interviews were conducted with representatives from Ministries (forestry, agriculture, trade), Provincial and District Governments, members of the Provincial forestry, agricultural and trade administration, representatives from (state) forest and agricultural enterprises, forest research centres, private traders and farmers). Beside that, statistical data was collected and evaluated. Although the provinces Yen Bai and Lao Cai belong also to the Song Da Watershed with one district each, the study surveyed the

SDW Song Da Watershed

SFDP Social Forestry Development Project Song Da Watershed

SFE State Forest Enterprise

sqm square meter

STO State Trade Organisation

VINACAFE State coffee processing and export company

VINATEA State tea processing and export company

VND Dong

ws wholesale

VND / US$ 1986 1987 1988 1989 1990 1991 1992 1993

shadow rate 1.500 5.500 6.700 7.500 7.800 8.000 12.500 10.700

official rate 900 3.900 3.900 4.200 6.000 7.000 11.000 10.700

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provinces Hoa Binh, Son La and Lai Chau only, since access to the other two districts is very difficult and no important additional information would have been derived from these comparatively small areas.

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2. Forest Products

2.1 Logs and Timber

The three provinces in the Song Da Watershed (SDW) have had a stable share of about 7-8% of national wood exploitation over the period of contemplation (1986 - 1991). Comparing the SDW forest cover of ~280.000 ha with the national forest cover of some 9.3 mio ha which reflect 3% of the resources, the regional forests have been exploited over-proportionally.

Most of the wood produced in the region leaves the provinces as logs or roughly squared timber; processed sawn wood has played only a minor role. Before 1988 the state forest enterprises were the only legal producers of commercial logs. Nevertheless private forest exploitation was and still is tolerated for house construction. Beside these two segments of exploitation there has been a "secret market" of timber by-passing the state controlled commercialisation. Since 1988 the state forest enterprises have been distributing parts of their forest lands to their former forest workers who nowadays exploit the plots on their own account. Nevertheless, the state enterprises still play the major role in forest management and commercialisation.

2.1.1 Exploitation

With the exception of 1987, wood exploitation from the region during the period from 1986 to 1991 has been more or less stable in the range of 250 thousand cbm. The political decision to allocate state enterprises' lands to the workers might have interfered the production: In 1987 exploitation rose significantly (to rise funds for the land distribution process or to draw as much profits as possible under the old legal settings, since nobody could assess future legal changes). Figure 1 illustrates the statistical data of wood cuttings in the three provinces. Annex 2 contains the distinct exploitation figures.

From the three provinces surveyed Lai Chau has always contributed about 45% to the region's production reflecting its share of the forest resources. Although the province Son La possesses resources of the same size, exploitation has always been less than in Lai Chau. Compared to its resources the province Hoa Binh has exploited its forests much more intensive. Nevertheless, due to an intensive plantation programme this province has nowadays triple the forest cover rate compared to the other two provinces.

Figure 1: Wood cuttings in the SDW

The statistical data indicate) that 8% of the controlled cuttings are undertaken by the state sector. This amount will decline sharply in the following years: MOF has set the permitted state wood exploitation to 7.020 cbm (1.390 in Hoa Binh, 4.130 in Son La, and 1.500 in Lai Chau) with its decision dated 8.1.1993, thus halving the state production.

The figures for the non-state production reflect the permitted private logging for house construction and private use. Additionally, there is the "secret market" by-passing the control. The volume of wood channelled via the "secret market" is estimated by the Forestry Departments at around 5% of the controlled volume, thus reaching 10-15 thousand cbm per year. To make the risk worthwhile, mostly precious woods of quality group 1 and 2 (Chukrasia, Fokienia, Erythropleum etc.) is handled there.

The volume of private logging for local consumption can be cross-checked as follows: Since most of this wood

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is used for house construction, the private wood extraction has good correlation to the population growth. With an annual growth rate of 3-4% (including net-migration) some average 36.000 new inhabitants are to house annually in the region. Forming around 6.000 new households per year the annual wood requirement is about 90.000 cbm (based on an average of 15 cbm per house including some furniture). Additionally, existing houses must be replaced after their useful life span. Assessing a useful life span of around 15 years, 7% of the existing houses have to be replaced annually, resulting in a wood requirement of around 160.000 cbm.

Table 2: Annual wood requirements for new houses

Altogether, the private logging reaches a volume of about 250.000 cbm per year which is in the range of the statistical data. Together with the uncontrolled commercialisation, 250.000 - 300.000 cbm logs are extracted annually from the forests in the region. Accounting for an average standing volume of 30 cbm per ha, some 8-10.000 ha or 3,5% of the region's forest are exploited annually.

2.1.2 Consumption and destination of product

Around 50% of the exploited wood is consumed privately in the region, mainly for house construction. The exploitation within the "secret market" is assessed to be sold to saw mills in low land provinces for construction purposes or from there to export markets. Out of the regional state exploitation only 2% (1% of total) is devoted to be processed locally to sawn wood for construction and furniture. 70% of state production was used for the construction of the Hoa Binh dam and hydro-electric power station in recent years, while some 28% (14% of total exploitation) was transferred to low land provinces either for local use or for export purpose. In the future the construction of the Ta Bu dam in Muong La district could compensate for the demand of the nowadays completed Hoa Binh dam.

According to the consumption plans) the state wood production of whole Vietnam is devoted to the following demand sectors:

The export market is the dominant consumer of Vietnamese wood products. By regarding "main works" as a special case of construction, the construction sector and the paper processing sector are the second important consumers of wood. The use for mine pillars is also remarkable, while the other sectors only play subordinate roles.

Wood exports are nowadays mostly composed of round woods and sawlogs, while floor boards have lost their importance, although its exports in absolute terms are more or less stable. Due to an enormous increase in round wood exports (and to a smaller extent sawlog exports as well) the overall wood exports in round wood equivalents have doubled from 1988 to 1989. The exports of veneer are relatively stable over the years with an annual average of ~ 3 mio sqm. Despite the sharp increase in national wood exports, the share of the exports (as well as absolute exports) from the SDW have decreased significantly. The main export commodity from the SDW is wood from Chukrasia (Po Mu tree).

1989 1990 1991 1992 1993 Average

Population ['000] 973 1.008 1.043 1.079 1.117

Growth ['000] 34,1 35,3 36,5 37,8 35,9

New Households 5.700 5.900 6.100 6.300 6.000

Required cbm 85.500 88.500 91.500 94.500 90.000

Exports 34% Veneer 4%

Paper production 23% Matches & pencils 2%

Construction 15% Boat construction 1%

Pit props 14% Tools of wood 1%

Main works 7%

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Table 3: Structure of Vietnamese wood exports

Most recently the Government has banned the exports of unprocessed and semi-finished wood with the decision No. 462-TTg dated 11.9.1993; only wood products, furniture etc. will be allowed for exports with special permits).

2.1.3 Product market chains

Before the beginning of the doi moi policy logs and timber were considered as a state owned resource that was controlled, exploited and distributed by the state. The State Planning Committee, which has sub-sectoral divisions, elaborated an assessment of requirements for the following year based on the resource demand in the whole country, the capacities of processors and the needs of Government projects. This total requirement was announced to the Ministry of Forestry (MOF) as a plan quota. The task of MOF was to divide this overall quota into provincial exploitation quotas according to the production capacities of the state forest enterprises within the country. At the same time a plan for distribution was set up by MOF, and both, exploitation and distribution plan, were announced to the centrally controlled forest enterprises as well as to the Provincial Forestry Departments who controlled the provincial forestry enterprises. Exploitation was carried out by the state forest enterprises (SFE), collection and transport was carried out by the SFEs themselves, the Forestry Departments or state controlled transport companies. Final consumers were local processors and saw mills (2% of state controlled log production), to a large extent the Hoa Binh hydro-power project for construction material (70%), and 28% of the region's state controlled log production were transferred to low land provinces to wood processing enterprises, for construction purposes or for exports carried out by state-controlled export companies; all against appliance of the state-announced accounting price.

Today, forests and their wood resources are still considered as a state owned resource, which is still controlled by the state, though not necessarily exploited and distributed by the state any more. Forest lands of the SFE were allocated to the former workers, other forest land has been allocated to individuals and is going to be allocated. Thus, two distinct loggers can be distinguished today: SFEs and individual forest possessors), although the SFEs have obviously reduced or stopped logging activities. Individuals can apply for the logging rights and quotas for a distinct forest plot within their possession at the Provincial Forestry Departments and have to pay a stumpage fee (or resource tax) of 40% of the forest gate price. They are free in their decision whom to sell the logs to. There are several registered traders: the former forwarding agents such as SFE and state transport companies, and private, be it collective or be it individual traders with transport capacity. Most of the logs still go to wood processing enterprises in the low land provinces for construction purposes, and to a small extent to licensed export companies, be it state owned or private ones).

Beside the legal logging and trading, there is still existing a "secret market" of logs. Exploiters without logging rights sell their products to unregistered traders who try to sell the logs to private wood processors in the low lands. The Provincial Forestry Departments estimate the volume of that market segment at 5% of the controlled exploitation. Generally, the 50% of the log exploitation carried out individually for house construction has to be approved by the Government as well, although it is not liable to the stumpage fee). However, these rules are often not obeyed. These logs are used for the construction of the exploiter's house or stay on the village market. Figure 4 illustrates today's market chain of logs and timber.

Figure 4: Market chain of logs and timber

Item Unit 1986 1987 1988 1989 1990 1991

Round wood equiv. '000 cbm 244,1 176 191,3 421,2 435 349,2

Floor board '000 cbm 68,6 49,2 53,8 49,2 56 51,6

Sawlogs '000 cbm 70,1 n.a. n.a. 72,3 142,1 94,8

Round wood '000 cbm 21,5 16,7 23,2 125,7 198,9 115,9

Veneer '000 sqm 3.444 3.192 2.730 2.878 3.324 2.977

Cinnamomum ton 1.203 1.550 1.247 1.707 1.710 n.a.

Aromatic wood ton 78,5 81,7 45,4 36,9 20 n.a.

Wood products mio $/Rb ) 0,5 0,9 1,5 3,6 7,4 4,2

Exports from SDW 1986 1987 1988 1989 1991 1992

Round wood equiv. cbm 7.213 8.876 5.839 9.800 1.961 842

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2.1.4 Prices

Before 1988/89 prices were regulated by the Government. Accounting prices were announced to be used in the "trade" or exchange between different state owned enterprises. Decisions No. 352/VGNN-BB dated 30.9.1985 and No. 48/VGNN-KHCS dated 16.7.1988 regulated the whole sale prices for logs of all categories and purposes. The country was categorised into four regions reflecting the difficulty of forest exploitation. The SDW belonged mainly to region No. 1. Wood is classified into eight different groups reflecting quality. Group 1 contains the valuable tropical hard woods. Annex 3 gives the accounting prices within region No. 1 for all eight quality groups. The current market prices for all market participants are shown in table 6.

Table 5: Actual market prices on different trading levels for different log qualities (1993)

*) Market participants as indicated in figure 4

Differences between forest gate prices at exploiter A1 and A2 reflect the payment of the stumpage fee. Private loggers only have to account for their harvest costs, such as labour costs, local transportation and other running costs, since planting and tending of the forests had been carried out under the previous regime of the state forest enterprises. Thus, the forest gate prices do not reflect real prime costs. Differences between registered (C) and unregistered (B) wholesalers are due to the payment of the stumpage fee and other registration costs, such as capital tax, trade tax etc.

Figure 6: World market prices of different wood products

Quality Group

A1*) [VND/m3]

A2*) [VND/m3]

B*) [VND/m3]

C*) [VND/m 3]

D*) [VND/m 3]

Export*) [VND/m 3]

I 360.000 500.000 1.500.000 5.000.000 7.000.000 9.000.000

II 220.000 300.000 600.000 2.400.000 3.500.000 4.900.000

III 180.000 250.000 400.000 1.900.000 2.800.000

IV 150.000 200.000 280.000 1.300.000 2.300.000

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Figure 6 illustrates prices on international markets for distinct woods or wood products. While prices for woods and timber of good quality have remained stable or have slightly increased (in current terms), prices for pulp have fallen sharply due to an increased supply.

2.2 Processed Sawnwood and Plywood

2.2.1 Production

Sawnwood production in the region is of comparatively small importance. Most of the wood exploited in the region is used either locally for house construction as round logs or roughly squared timber or leaves the region in this very form. The amount of sawnwood produced and consumed by local people for furniture etc. has already been included in the figure of individual logging and wood consumption in the previous chapter. It is estimated that around 7% (17.000 cbm) of that volume is processed to sawnwood annually.

The state controlled sawnwood production is even lower: about 2% (between 4.000 and 8.000 cbm annually) of the state controlled wood exploitation is processed in the region by three state run wood processing factories. The largest sawmill in Hoa Binh employs 150 workers. These enterprises are equipped with outdated machinery, mainly with Vietnamese or Chinese band saws. The production shows a declining trend over the period of 1986 to 1991). Compared to state controlled national production the regional output is disproportional low (2-3% of national), regarding 7-8% of national wood production. Most of the wood is processed closer to the consumption centres.

Beside that, there are 11 smaller, privately run wood processing workshops in the region. Their equipment consists mostly of circular saws and hand tools. Together with small carpenter workshops they serve the local demand for sawn wood and furniture.

2.2.2 Regional Demand

A decade ago demand for furniture in the north-western mountainous regions was very low due to very poor living conditions and small economic exchange with other regions. Most of the regional demand for sawn- and plywood was centred in the towns by public institutions and the administration. Parallel to the privatisation policy (doi moi) and the upgrading of road No. 6, with an increased economic exchange with other provinces, accompanied by improvements of the living conditions, and the infiltration of Kinh culture, the demand for furniture and, thus, in processed wood has risen. This development is going to continue, thus increasing demand further in the future.

Apart from that, the following years will show a peak demand in Dien Bien Phu, since the capital of Lai Chau is

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going to be transferred from Lai Chau town to Dien Bien Phu from 1994 onwards. The equipment of the whole administrative offices, hotels, newly established or upgraded service offices etc. will require an estimated volume of 20.000 to 25.000 cbm sawn wood.

2.3 Fuelwood

As well as the exploitation of logs and timber, also the fuelwood sector can be divided into a state controlled and a private one. The SFEs have been exploiting fuelwood for the provision of office kitchens, cooperative kitchens, state restaurants, brickwork enterprises, people living in the towns and for the demand in low land provinces (Ha Noi, Ha Tay, Nam Ha, Thai Binh, Ninh Binh). 11% of the national state controlled fuelwood is exploited from the region with an annual average of 3.200.000 steres. 60% of that volume is devoted to low land provinces, 32% meet the regional state and cooperative demand, while 8% are sold to local population in the towns (ca. 17.000 households). These figures probably vary largely between the three provinces, since transportation costs to a high degree influence the fuelwood trade. The further, away from the low land provinces the less (or negligible volumes) will be devoted to these markets. Figure 7 illustrates the fuelwood production of SFEs in the region. Apart from a sharp increase in production in Lai Chau after the reorganisation of SFEs in 1986 production is in a steady state.

Figure 7: State controlled fuelwood production

Most of the 170.000 rural households (average of 6 persons) collect their fuelwood themselves. With an average consumption of 15 steres per household and year an estimated 2.500.000 steres of fuelwood are exploited and consumed locally. Apart from the state controlled trade of fuelwood to other provinces (largest consumer in the low land provinces are the brickwork enterprises) there exists a private trade as well. It is estimated that the state controls about 80% of this trade resulting in another 400.000 steres which are produced and transported to other provinces privately. Thus, total fuelwood production in the region amounts to about 6.100.000 steres annually.

Unlike in low land provinces and cities, where coal and electricity have gradually reduced fuelwood consumption, there is no sign of such a development in the mountainous region. Although coal is provided in the towns to subsidised prices and the use of fuelwood is prohibited for limework enterprises, there has been no decrease in fuelwood demand. On the contrary, demand will probably rise with population growth.

Beside the exploitation for subsistence needs and the local fuelwood market at village level the State Fuel and Material Company formerly played a dominant role in the fuelwood market. This institution is present from central to local level and acted as collector, wholesaler and retailer at the same time. It provided fuelwood (as well as other goods) to entitled individuals or institutions with stamps. Nowadays with the abolishment of the stamp system they have to compete with private traders.

Prices of fuelwood are highly determined by transportation costs. Thus producers receive currently a forest gate price of 30.000 to 40.000 VND per stere. The wholesale price in Hoa Binh is between 100.000 and 120.000 VND per stere, while a retailer in Ha Noi asks for 300.000 to 400.000 VND per stere (however, this source is assessed as highly questionable).

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2.4 Prognosis of markets for forest products

The growing environmental concerns world wide influence both, log production as well as international demand for tropical hardwoods. Many log-producing countries have become increasingly aware that their forest resources cannot be sustained under recent rates of deforestation, and have adopted policies to reduce their log production. External pressures expressing environmental concerns have also pushed governments to reduce production. Over the past 3 - 4 years, production of tropical logs has fallen by about 5%. The annual rate of production decline was about 1,7% with an upward trend of annual decline. Of the major producing countries, significant declines in log production were registered in Indonesia, the Philippines, Thailand, and Brazil. Additionally, Malaysia has announced to reduce its logging in Peninsular Malaysia (that excludes Sabah and Sarawak) by 26% in the first half of the nineties in order to sustain timber resources. Malaysian production is supposed to decline by some 3 mio cbm by 1996. Consequently, log and sawnwood exports declined. However, plywood exports from the same countries have risen due to attempts to increase domestic value added through further processing.

Since 1990, imports and consumption of tropical logs and sawnwood have been declining in Europe and Japan, the two biggest import markets for tropical timber. The timber market has been adversely affected by the economic recession in these countries, the growing concerns over the availability of tropical timber supplies, and the reduced levels of housing construction, especially in Japan. Imports of tropical logs in these countries have fallen by 20% from 1989 to 1992, while those of tropical sawnwood have declined by some 28% in the same period.

Apart from the decline in consumption due to the reduced level of economic activity, there has been substitution away from tropical timber in favour of temperate timber, even softwoods. The Japanese Plywood Manufacturer's Association is promoting the use of softwood logs for plywood production, with the aim of switching 30-50% of logs for plywood production from hardwood to softwood over the forthcoming years. In fact, the share of imports of temperate hardwoods increased in these countries, so did the share of imports of softwoods. However, the rate of substitution will taper off with time, as substitution has its technical limits. Nevertheless, the trend of substituting other timber for tropical timber is expected to continue over the next 10-15 years.

While imports and consumption of tropical timber by industrial countries show a declining trend, tropical timber consumption is increasing in producing countries as a result of their economic growth. This is particular true for South East Asia. During the past years, an expanded demand for logs by processors in log-producing countries and an increased demand for logs in Korea, Taiwan, and China could be registered. National demand in Vietnam is going to increase as well. The booming construction sector which demands large amounts of sawn- and plywood anticipates the projected economic growth of Vietnam.

Under these projected demand and supply scenarios, real tropical timber prices are forecast to show small increases in the near future. A higher increase than in Europe is assessed to take place in East Asia because the demand pressures are expected to be higher, given the higher rates of economic growth in the region and the demands of the local processing industry. For the following decade, timber prices might increase at a somewhat higher rate, mainly because the substitution for tropical timber on the consumption side is expected to reach its limits, and because environmental pressures and demands to guarantee sustainable supplies will be increasing with time. Log production costs will also increase with time, as logging moves to less accessible areas.

The fuelwood sector in the SDW is assessed to be more or less stable in the mid-term. Since there is no sign that neither the substitution of coal for fuelwood nor increasing efficiencies in use show any significant effects in the mountainous regions, the regional fuelwood demand will increase with population growth. Increasing incomes and continuous encouragement for substitution might taper off the growth rates a decade later. However, fuelwood demand from low land provinces are projected to rise at lower rates or even stagnate in the future, as substitution of other energies for fuelwood is well advanced due to cost advantages and might offset rising demand from population growth in the mid-term. The latter development will set disincentives for far-away exploiters in the North West. The fuelwood market will regionalise.

Fuelwood supply in the region seem to be assured in the medium run, as fuelwood is exploited from bare and fallow lands as well as from the forests of all categories. Regional differences exist; particularly in areas with high land use pressure where fallow and bare lands are diminishing, thus reducing local fuelwood resources. Under these projected scenarios for demand and supply, real prices for fuelwood will be stable over the foreseeable future; reduction in low land demand will be offset by increasing local demand.

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3. Non Timber Forest Products

3.1 Bamboo

3.1.1 Production

Some 26.000 ha of bamboo forests can be found in the SDW (8% of the national bamboo area), most of it in the province Son La (16.500 ha), while Lai Chau has bamboo forests of about 8.000 ha, and 1.500 ha can be found in the part of Hoa Binh belonging to the SDW. However, the reserves of bamboo are assessed to be higher; 23.000 ha in Son La, 12.000 ha in Lai Chau, and 7.000 ha in Hoa Binh including areas of the provinces outside the SDW and scattered bamboo in other forest types.

Figure 8: State controlled bamboo exploitation of different species

The slender bamboo of the Neohouzeana type had played the dominant role in exploitation in the mid eighties. Its declining trend in production stopped in 1988 and exploitation stabilised on a similar level as that of the Membranaceaus or Bambusa type bamboos (7 to 8 million trees per year). Dendrocalamus patellaris (Giang ông) is almost exclusively exploited in Hoa Binh province; it is sold in pieces or sections of around 1,2 m length. Its production shows an upward trend.

In addition to these official, statistical data which covers the state controlled production, be it by SFEs or by individuals with exploitation rights), bamboo is exploited for subsistence and consumed locally for house building, temporary field huts, weaving material etc. There are estimates of an exploitation of around 30 trees per household and year, resulting in some 5,5 million trees per year for the SDW. Thus, total exploitation in the region is about 13 million trees per year not covering the parallel or "secret " market which is supposed to be thin nowadays.

Figure 9: State controlled bamboo exploitation by provinces

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Most of the controlled bamboo production takes place in Hoa Binh province. Although having the least resources of the three provinces, the vicinity of markets in the low land provinces is the driving force behind, since transport costs of that voluminous good to a high degree influence whether to be worthy for exploitation or not. That explains the comparably low production in Lai Chau which is mostly consumed within the province. At the present state of knowledge there is not yet an explanation for the oscillation of Son La's production.


Bamboo is closely related to East-Asian culture, especially to the Vietnamese. It has always played an important role as material for a wide range of products, such as for house and hut construction, bamboo mats, weaving articles, food, paper, handicrafts, chopsticks, etc. Thus, the greatest part of production is subject to Vietnamese consumption.

Most of the state controlled bamboo production is supplied to consumers in the low land provinces as well as to the provincial towns. Due to the vicinity of Hoa Binh province to the Vinh Phu paper mill large parts of the province's production have this destination. Bamboo from Son La province (and to a smaller extent from Lai Chau province) is often transported via Song Da water way by rafts to Hoa Binh and there reloaded to lorries for the transport to the Song Hong delta where it is used as construction material, as fuel for brickwork enterprises or in factories which produce glue-pressed bamboo mats. Small amounts are used for handicraft, art products and chopsticks. The latter products are also for export. While in the eighties handicraft articles and art products dominated the export of bamboo products, nowadays chopsticks and bamboo mats are the main bamboo articles with destination Japan and Taiwan. In the period from 1986 to 1992 the export of bamboo products from Vietnam accounted for some cumulative 300 million US$).

In the cities, bamboo is gradually replaced by other materials, such as concrete, steel or plastic. Despite that substitution overall consumption is still stable; population growth and a booming construction sector seem to offset that development. However, it is foreseeable that demand for bamboo will decline in the future, although this development will not reach rural areas in the near future.

The bamboo market nowadays is almost entirely in private hands. Most of the exploitation as well as the trade is carried out by private farmers or traders respectively. Farmers offer their produce at the road side to by-passing collectors who deliver directly to paper mills, processing units or retailers, or the bamboo is sold at the river side to rafts men who act as middlemen.

3.1.3 Prices

Formerly, the above mentioned decisions No. 352/VGNN and No. 48/VGNN regulated the forest gate price of

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bamboo of different quality and for different purposes as well. Beside the state controlled trade a parallel market of bamboo existed in these times, since state controlled supply did not meet the demand in the low lands. Prices were double the official ones in that market segment. Actual market prices are summarised in table 10.

Table 10: Actual market prices of bamboo at different market levels (1993)

The average trade margins of 170% and 50% for the wholesalers and retailers respectively reflect the importance of transport costs in the bamboo trade.

3.2 Bamboo Shoots

Bamboo shoots play an important role in the diet of Vietnamese people, especially of the montagnards. Since bamboo can be found in most of the existent forests in the region to various extents, almost every farm household collects bamboo shoots for the daily diet. It is assumed that each family consumes between 20 and 40 kg of bamboo shoots annually. Official statistical data on provincial level estimate the exploited volume as listed in table 11.

Table 11: Bamboo shoot exploitation [in tons] by province and year

The annual increase of production seems to meet the increasing demand from population growth, abstracting from income growth and positive income elasticities for bamboo shoots. Since there is a high preference on fresh bamboo shoots, Hoa Binh's production, as the closest province to the demand centres in the low lands, is dominantly devoted to the extra-regional trade. On the contrary, in Lai Chau province which has hardly any transport facilities for fresh bamboo shoots to the low land provinces the shoots are mainly exploited for subsistence needs and local markets. The amount of bamboo shoots leaving this province is almost entirely traded as dried shoots.

The marketable surplus of the farm households is sold directly to the local markets in fresh form. In case of long distances to the market, the shoots are dried and offered on the communal markets during one of the market visits of a farm household member or, in case of road access, often sold to by-passing middlemen who sell the produce to wholesalers in the provincial towns. Private wholesalers buy fresh and dried shoots on the provincial markets and sell the product to retailers in the low land provinces. Since prices depend very much on the distance to the main consumption centres in the delta, prices in Lai Chau and Son La are around 50% lower than in Hoa Binh. Table 12 illustrates the current market prices.

Table 12: 1993 market prices of bamboo shoots

Bamboo species

Diameter [ cm ]

Length [ m ]

Forest gate [VND/tree]

Wholesale [VND/tree]

Retail [VND/tree]

Bambusa 8-12 8-10 2.000-3.000 7.000-8.000 10.000-12.000

6-8 6-8 1.500-2.500 5.000-6.500 8.000-10.000

4-6 5-7 1.000-1.500 4.000-5.000 6.000- 7.000

Neohouzeana 4-6 6-7 300- 500 600- 900 1.000- 1.200

<4 <6 200- 300 400- 600 800- 900

Province 1986 1987 1988 1989 1990 1991 1992 local cons.

Hoa Binh 4.855 4.783 4.957 5.386 5.353 5.400 5.820 ~30%

Son La 4.768 4.825 4.270 4.389 4.960 4.937 5.125 ~60%

Lai Chau 465 864 948 959 865 872 886 ~90%

Total 10.088 10.472 10.175 10.734 11.178 11.209 11.831 ~50%

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3.3 Rattan

Alike bamboo, rattan for a long time has played an important role in the daily lives of the montagnards, as well as elsewhere in forest regions in South East Asia. Due to its flexibility and its long stems of great strength, rattan is a primary binding material for a wide range of uses. In unsplit form it has been used as ropes for tying livestock, securing boats and constructing bridges. During times and in places where nails have been unavailable, it has been used to lash the structural beams of houses. In the split form, rattan has varied uses: bamboo slats can be tied with rattan to make house floors, roofing thatches can be held in place with split rattan, split strips of the epidermis can be woven into mats and baskets, etc. Due to the substitution by other materials the local importance of rattan has declined sharply nowadays. By the early 1970s the rattan market began to pick up, as rattan items, such as wicker furniture and split rattan floor mats, became popular in Europe, North America and Japan. The profitability of that market has caused large export booms, first in the Philippines and later in Indonesia. Both countries have nowadays banned exports of rattan cane in order to protect the few remaining resources and to participate in the value added production of these commodities.

Almost everywhere found in the SDW forests in the past, the occurrence of rattan has decreased drastically due to extinction of forests and to an over-exploitation of rattan itself.

3.3.1 Production

Out of approximately 30 different rattan species found in Vietnam, only Calamus rudentum and Calamus caesius play a significant role in the SDW. The former makes up to 90% of the overall production, while Calamus caesius has only a small share. The properties of tradable sections of Calamus rudentum (export standard) are described as of a length of 5,2 meter, a diameter between 16 and 32 mm, a moisture content of 18-20%, and a weight of around 2,2 kg. Table 13 gives the exploitation figures of rattan for the provinces Hoa Binh and Lai Chau during the years 1986 to 1992. Figures for Son La province were not available, although exploitation takes place there as well. The weight of the production is calculated taking into account standard properties as described above. Exploitation from both provinces accounts for an average of 10% of the national export volume.

Table 13: Rattan exploitation 1986-1992 in Hoa Binh and Lai Chau provinces

Until 1987 rattan was a state owned and controlled commodity like all other resources as well. However, due to the fact that rattan is scattered in the forests, it has never been exploited directly by the SFEs. The forest enterprises bought rattan from the local people in exchange with food, clothes or consumer goods at accounting prices determined by the Government. The production figures show an increase in 1988, at the time when trade was liberalised, although the trade with China as the main export market was cut off at that

Market level Location Fresh shoots [VND / kg]

Dried shoots [VND / kg]

local market Lai Chau / Son La Hoa Binh

500-550 1.000-1.100

8.000-10.000 12.000-14.000

wholesale Lai Chau / Son La Hoa Binh

1.000-1.200 1.700-2.000

10.000-12.000 12.000-15.000

retail Low land centres 2.500-3.000 17.000-35.000

Province 1986 ['000 m]

1987 ['000 m]

1988 ['000 m]

1989 ['000 m]

1990 ['000 m]

1991 ['000 m]

1992 ['000 m]

Hoa Binh 700 620 2.875 2.165 7.000 5.600 n.a.

Lai Chau n.a. 2.106 2.283 2.034 2.210 2.210 4.318

Total 700 2.726 5.158 4.199 9.210 7.810 4.318

Weight [t] 296 1.153 2.185 1.777 3.897 3.304 1.827

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time. There is another sharp increase in exploitation in 1990 when the border between Vietnam and China was reopened.

Although rattan resources are reported to have declined drastically, exploiters seem to be able to rise supply quickly picking up incentives set by market opportunities. That leads to the assessment that rattan can still be found in the region, at least at locations further off the roads and villages.

Additional to the natural rattan collected in the forests, there have been plantation programmes with Calamus tonkinensis in low land provinces, such as Thai Binh or Hai Hung to meet the growing export demand.


Calamus rudentum is almost entirely sold to rattan processing factories in the low lands for export and the urban markets. There is no processing enterprise in the SDW and regional demand for rattan furniture is not noticeable. Calamus caesius is mainly used locally as binding material.

Rattan has to be bleached, oil-boiled and polished before being used as furniture. Almost 90% of the exploited Calamus rudentum is exported from Vietnam; the rest satisfies the urban demand for wicker furniture. 75% of the exports have been in the form of oil-boiled canes; only 25% have been processed to final products before leaving the country. The main market for rattan cane has been China, while final products have been destined to Hongkong, Singapore, Taiwan and Thailand. However, quality of finished products is still comparatively low in Vietnam. During the second half of the eighties between 15 and 20.000 tons of rattan have been exported annually. Export volume reached its maximum in 1991 with 50.000 tons accounting for some 26 mio US$.

In 1993 the Government of Vietnam (GOV) announced an export ban on raw and semi-finished rattan. Only final products, such as furniture are further allowed to leave the country. In order to reach the previous export earnings in the rattan market, Vietnamese processors will have to increase the quality of their produce significantly. That might help to access European and Japanese markets as well, since the demand in these regions for wicker furniture is still high. Beside that, the urban demand in Vietnam for rattan products will rise significantly in the future as a result of a growing medium and higher income class.

3.3.3 Product market chains

Exploitation of rattan in the SDW has always been carried out by individuals. Formerly, the SFEs bought all the produce) from the farmers in exchange with consumer goods. The SFEs acted as wholesalers transferring the rattan to the processing units in the low land provinces who handed over the processed product to state export companies.

Nowadays the market is liberalised, private traders exist, processing factories have been privatised, and licensed, privately run exporters exist among the state controlled export companies. However, since rattan resources are scattered in the region and not concentrated at specific locations, the collection by lorries poses problems to by-passing private traders). That is the reason why forest enterprises still dominate the wholesale market. In contrast to former times, prices are negotiated between exploiters and SFE today.

3.3.4 Prices

During the times of state controlled trade, prices for the producers and trade margins of the wholesalers (SFE) were set at very low levels. Most of the profits were siphoned off by the state export companies. Via the announcement of accounting prices and the monopson in wholesale as well as the monopoly in export the Government could draw funds from indirectly taxing rural producers.

With the liberalisation of trade the position of the export companies has weakened through competition while the wholesale market has still been controlled by the SFEs, resulting in higher trade margins for the wholesalers. Additionally, the war between Vietnam and China caused a loss of the important Chinese export

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market during that period, resulting in non marketable stocks kept at the export companies. They even had to sell their produce to local furniture processors at dumping prices. After the war the export market recovered quickly resulting in an export peak of 50.000 tons) in 1991.

Table 14: Prices for rattan at different market levels for standard quality per ton

A look at the price evolution in constant prices in figure 15 illustrates the real price increase on international markets, thus reflecting the growing demand for wicker furniture and the increasing scarcity of rattan. The price leap after 1991 is a reaction of the markets to the export ban for rattan cane from Indonesia which has covered around 70% of the world supply by that time. The impact of increasing export prices is nowadays transferred to the primary exploiters as well, thus indicating developing market mechanism in Vietnam.

Figure 15: Price evolution of rattan of standard quality in constant 1993 VN Dong/ton

The rattan market has very good potentials for development, if there is progress in exploiting rattan in a more sustainable way, and if Vietnamese processors of rattan items succeed in improving the quality of their products. The export ban for unfinished rattan products might set incentives for both.

3.4 Tung-Oil and Shellac

The plantation of tung trees (Aleuritis montana = Vermicia montana) and lacquer host trees (Dalbergia obtusifolia and Protum seeratum) in the north-west of Vietnam has been part of a reforestation programme (No. 327) aiming at quickly setting up protection forests with fast growing species and at the same time obtaining marketable non wood forest products. Planting density is generally 400 trees per ha with approximately 10.000 ha planted before 1993.

Level Unit 1987 1988 1989 1991 1992 1993

Exploiter ['000 VND] 624 832 1.248 1.456 2.080 3.120

Wholesale ['000 VND] 800 1.000 3.000 3.500 4.576 6.240

Margin WS [ % ] 28 20 140 140 120 100

Export )

FOB Ha Noi ['000 VND] [US $]

2.750 500

4.020 600

4.550 600

4.800 600

10.000 800

11.235 1.050

Margin EX [ % ] 244 302 52 37 119 80

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3.4.1 Production

The area covered with tung trees and lacquer host trees in the SDW is listed in table 16 following figures of the Provincial Forestry Departments. One fifth of the tung plantations are reported to consist of already adult trees, while 10% of the lacquer area is already productive.

Table 16: Area of tung trees and lacquer host trees in the SDW in 1993

Hoa Binh province has been focusing mainly on tung plantations supplying its oil factory in Hoa Binh town, while Son La and Lai Chau provinces have invested in both commodities, the former preferring shellac and the latter tung (or abrasin) oil.

In case of Aleuritis, which start to yield in the third year and reach maximum yields in the tenth year with an expected productive period of 30 years, the harvest consist of the tung seeds. The oil is extracted after crushing the seeds mechanically. An average oil extraction of 20% can be expected.

Shellac is produced from the secretions of the lacquer insect Laccifer lacca syn. Kerria lacca. These secretions are produced to protect the brood of the insect and are laid in thick, hard layers around the branches of the host plants. During the harvest the branches are cut off the trees. At this stage the produce is called stic lac. After removing the branches and chopping the remaining material it is traded as seed lac. Table 17 gives the official production of seed lac and tung seeds for the three provinces from 1986 to 1993.

Table 17: Production of tung seeds and seed lac in the SDW in tons per year

Official tung seed production has been stable in the eighties and is still on the same level in Son La and Lai Chau provinces. During the last three years production has risen significantly due to increased harvests in Hoa Binh province.

Apart from this official production, large amounts of tung seed as well as seed lac is produced and marketed by private exploiters by-passing the official channels. The overall production can be estimated as follows:

Tung tree plantations: 1.260 ha (20%) of 6.300 ha are already productive. Yields are reported to reach 3 kg of tung seeds per tree; still 50% below the potential of 5-7 kg per tree. With a plant density of 400 trees per ha 1.500 tons of tung seed is gathered annually. Thus, official production makes up 40% of total production.

Seed lac production: 320 ha (10%) out of 3.227 ha of lacquer host tree plantation are in the productive age. 2 kg of seed lac is produced per tree (potential yields are 5-10 kg per tree). With a plant density of 400 trees per ha 256 tons of seed lac is produced annually in the region. The controlled production has a share of 65%, most of it produced by SFEs.

Hoa Binh Son La Lai Chau Total

Tung tree area [ha] 2.000 700 3.600 6.300

Lacquer host tree area [ha] 40 1.737 1.450 3.227

Tung seed 1986 1987 1988 1989 1990 1991 1992 1993

Hoa Binh 94 98 201 218 150 200 250 400

Lai Chau 81 83 34 55 48 60 73 150

Son La 83 29 15 10 39 43 60 100

Total 258 210 250 283 237 303 382 650

Seed lac 1986 1987 1988 1989 1990 1991 1992 1993

Hoa Binh 11 8 8 10 14 12 11 20

Lai Chau 66 64 74 77 54 61 70 100

Son La 50 48 30 26 44 42 40 50

Total 128 119 111 113 112 115 121 170

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Tung-oil is esteemed for quick drying, hard and water resistant paints. There are important and cheaper substitutes, such as dehydrogenated castor oil and synthetic oils which gradually oust tung-oils from its use. Best technical qualities are derived from Aleuritis fordii which plays the dominant role in Chinese production. China is also the main importer of Vietnamese tung seed and oil. However, since quantities have been small, qualities inferior (wrong species), markets decreasing, and relations to the main client China unstable in the past, most of tung seed has been for domestic use. From 1992 official production in the SDW 50% were handled by Hoa Binh oil factory (state run), 25% were processed by Naforimex I oil factory in Ha Dong, and another 25% were used as seed for the reforestation program No.327. However, large parts of the uncontrolled production of tung seeds are passed directly to China by private traders. Official exports of tung oil were 120 tons in 1986, 110 tons in 1987, and 100 tons in 1988, and dropped to 10 tons in the years 1989 and 1990 each. Production area has been 50% and 30% in Cao Bang and Quang Nam / Da Nang provinces respectively, while 6% have been produced in the SDW.

Shellac has mainly been used in paints for furniture finishing, in other paints, and as electrical isolation material. In recent years new possibilities of shellac use have been developed: e.g. coating of fruits and sweets in the food industry, and coating of tablets and pills in the pharmaceutical industry. Considerable amounts of shellac are still used to produce paints. Due to an increased environmental awareness and the growing sensitivity for the harmlessness of ingredients shellac might increase its market segment, especially through its various positive properties, such as physiological harmlessness, water solubility, biological decomposition, excellent adhesion, hardness, gleam, electrical properties, miscibility with other resins etc.

Small amounts of seed lac have been exported from Vietnam in the early eighties to the Soviet Union, China and Japan, but low quality and small exportable volumes refrained the development of an export market. Annual Vietnamese exports of bleached, white shellac oscillate around 10 tons. Thus, most of the produce is nowadays consumed domestically. The oil factory in Ha Dong processes 20-40 tons of seed lac to shellac per year; the remaining quantity (85%) is processed manually by small workshops to furniture finishing. These private processors buy the seed lac from regional operating, private collectors. However, the shellac processing unit in Ha dong is reported to have an annual capacity of 1.000 tons; most of the capacity is lying idle.

3.4.3 Prices

Like prices for other products, prices for tung oil and shellac have been announced formerly by GOV; nowadays they are driven by supply and demand. Table 18 lists the price development of both products on different trade levels.

Table 18: Price development of tung oil and shellac in nominal VND per kg

Product Market level 1986 1988/89 1991 1993

Tung seed Producer 1.800

Tung seed Collector 300 800 1.300 3.500

Tung seed Border China 6.000

Tung oil Processor 14.000

Tung oil Retailer 3.000 7.000 11.000 16.000

Seed lac Producer 13.000

Seed lac Collector 2.500 3.000 17.000 25.000

Shellac Processor 55.000

Shellac Retailer 14.000 20.000 30.000 80.000

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In real terms, prices for shellac are exposed to high fluctuation, while tung oil prices are more or less stable. The price difference between the price obtained through direct exports (smuggling) of tung seeds to China and the price offered from processors explains the high share of tung seed production channelled via the "secret market".

Additional to the a.m. both commodities, pine resin, turpentine oil and castor oil play important roles in the Vietnamese plant oil production. However, in the SDW their shares are less important. In the recent decade some plantations of Styrax tonkinensis have been established in the region, both for protection forest and benzoine production.

3.5 Medicinal and aromatic herbs and plants

Over 1.800 plant species of medicinal value occur in Vietnam. Three fourth of them grow naturally. The Medicinal Plants Institute in Ha Noi is carrying out research work on the cultivation of medicinal plants. The Materia Medica Institute, also in Ha Noi, develops pharmaceutical products with natural ingredients.

3.5.1 Production

Production of medicinal herbs and plants in the SDW is mainly gathering of wild plants growing in the forests. Up to now, there is only a small cultivation area: some species are grown scatteredly in home gardens, sometimes interplanting in forest plantation occurs, e. g. in the districts Sinh Ho, Phong To and Ky Son.

The following species are of major importance in the SDW: Amomum xanthioides (sa nhân = Cardamom), Codonopsis pinosula (dang sâm), Coix lachryma (y di), and Amomum costatum (thao qua). Other medicinal plants gathered in the region are: Polygonum multiflorum (ha thu o do), Angelica sinensis (duong quy), Atractylodes macrocephala (bach truat), Artemisia annua (thanh cao hoa vang), Ligusticum wallichii (xuyen khung), Eucommia ulmoides (do trong) etc., as well as some aromatic plants, such as Homalomena aromatica (thien nien kien), Cinnamomum cassia (que), Illicium verum (hoi), Eucalyptus ssp., Litsea cubeba oil, Cymbogon citratus and nardus (sa), Mentha arvensis (bac ha), Ocimum sanctum (huong nhu), and others.

Table 19: Registered production of main aromatic and medicinal plants in SDW

Obviously, the province Lai Chau plays a strong role in the exploitation of these main medicinal plants. Since transport cost influence the marketing of medicinal plants only to a minor degree, the distance to the consumers and exporters in Ha Noi and the low land provinces do not impede the exploitation in the remote Lai Chau province.

3.5.2 Market channels of the products

Various parts of the plants are used for pharmaceutical purposes, such as roots, tubers, leafs, bark, fruits, and seeds. Most of the produce is gathered by individual farm households in the region; and they are free to sell to whom they want. Often, these individuals carry out the first post harvest treatments of the plants. The officially registered production documented in table 19 is the amount channelled via state enterprises, Provincial Forest or Agricultural Departments, or forest farms run by central export companies. Market participants

Species 1986 [ton]

1987 [ton]

1988 [ton]

1989 [ton]

1990 [ton]

1991 [ton]

1992 [ton]

Hoa Binh

Son La

Lai Chau

Amomum xanthioides

40 21 58 33 20 n.a. n.a. 30% 10% 60%

Codonopsis pinosula

43 60 43 40 n.a. n.a. n.a. 35% 65%

Coix lachryma

n.a. n.a. 27 34 29 31 31 100%

Amomum costatum

12 17 18 17 17 n.a. n.a. 100%

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estimate that the registered production amounts to ~ 30% of the total production. 70% of the production in the northern parts of Vietnam is handled by traders from Ninh Hiep village in Gia Lam district, Ha Noi. Traders in this village have specialised in handling all kinds of medicinal plants for many years. Even before the liberalisation of Vietnamese markets, these traders dominated the collection and transportation of medicinal plants having been provided with the necessary trade papers by the state controlled organisations in these times. Collection, transportation, drying, preservation and classification is carried out nowadays by these businessmen. Since export licenses are still mostly in other hands, Ninh Hiep traders sell the produce to licensed export companies or to pharmaceutical processing factories in Vietnam. Figure 20 illustrates the market channels of medicinal plants.

Figure 20: Market chain of medicinal plants

Most of the production is for direct exports it in the form of extracts or dried herbs. Only 10-20% of the medicinal plants are consumed or processed domestically; some locally as traditional medicine (dried herbs or alcohol extracted essences), the rest in pharmaceutical factories. One of the most promising innovations in the sector is the development of an anti-malaria product containing Artemisin (from Artemisia annua L.). Vietnamese and Chinese scientists have developed this product simultaneously. Although international approval is not yet achieved, tests in both countries have been successful and pharmaceutical companies in Ha Noi are still working on the improvement of the product design. In Ky Son district, Hoa Binh, some plantations (interplanting between eucalyptus and pine reforestation) already exist. Since most of the anti-malaria products lose their effectiveness over time due to increased resistance of the pathogen, new effective products have prosperous prospects.

3.5.3 Prices

Medicinal plants are one group of a few commodities which have never been regulated by GOV. Even before 1986 private collectors and wholesalers operated and prices were determined by market forces. However, due to fast growing inflation trade was carried out mostly as barter trade in these times. Farmers exchanged the gathered plants for sodium glutamate (taste amplifier), wholesaler exchanged for import goods with the foreign trade companies.

Prices on international markets are susceptible to instability. Even within a short period oscillation of prices for medicinal plants (as well as for aromatic plants and essential oils) is high. However, the main price determining criteria is quality.

Table 21: Recent prices of some dried medicinal plants on different market levels

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3.6 Colours, Pigments

In the north-west of Vietnam two kinds of natural dyes are of importance. Blue indigo colours from Indigofera tinctoria and Indigofera triffolata are mainly for subsistence use, while red pigments obtained from Hibiscus sabdariffa are exported.

Indigofera ssp. is closely related to the traditional clothing of the ethnic minorities in the region. As a complementary product to cotton people grow Indigofera on a small scale to dye their traditional clothes, such as blankets, shirts, skirts, kerchiefs etc. Since there is no statistical data available, production can only be estimated. With the assumption that each household cultivates some 200 m2 annually around 4-5.000 ha are under Indigofera in the SDW. With yields of 1-1,5 tons of fresh leafs per ha some 5-7.500 tons of fresh leafs are produced annually exclusively for home consumption.

Hibiscus sabdariffa is a newly introduced plant in the SDW which is suited to the ecological conditions of the mid- and highlands of north-west Vietnam. The pericarps of the fruits are used to produce red dye for the food industry. The area of 2.000 m2 was planted in 1992 on a research scale. In 1993 the seed obtained from the previous harvest was used to expand the cultivated area to 10 ha in Hoa Binh province. In 1994 some 100-200 ha are planned to be under Hibiscus. The productivity is about 400-500 kg of dried fruits per ha, and last year's production (4,5 tons) has been exported to Germany. There is a close cooperation between the German processing company and a Vietnamese export company) and some producers in the region. This is to guarantee good qualities through research and extension, and in order to obtain a better link between producers and processors for the production of the required qualities. The cooperation also includes buying guarantees of the customer. Export prices in 1993 were in the range of 1-1,3 US$ (10.700-14.000 VND) per kg of dried fruits.

Although chemical dyes have substituted the use of natural dyes since 40 years, the natural pigments gain back segments of the market nowadays due to an increasing health awareness in Europe and North America. As the carcinogen effects of some synthetical dyes have been proven, in many countries law demands a certificate of harmlessness. Thus, natural dyes for food, cosmetics and clothes have regained importance, as these long lasting and expensive expertises are not required for plant dyes.

3.7 Prognosis of markets for non timber forest prod ucts

With the exception of bamboo, most non timber forest products show an increasing trend on the demand side. In particular international demand is rapidly expanding.

Although bamboo faces a current peak in demand due to a booming Vietnamese construction sector, projections forecast stable to declining demand in the future, as in the centres bamboo is gradually replaced by other construction materials. However, in rural areas bamboo will maintain its important role as

Product market level

1992/93 [VND/kg]

Amomum exploiter 45.000-50.000

xanthioides wholesale 60.000-65.000

export 30.000-80.000

Coix exploiter 1.500-2.000

lachryma wholesale 2.000-3.000

export 2.800-4.300

Amomum exploiter 7.000-9.000

costatum wholesale 12.000-17.000

export 14.000-30.000

Page 11 of 12

construction material in the mid term, thus mitigating the demand decrease from low land provinces. Bamboo shoot markets will experience rising demand from growing population as well as from income growth.

Very prosperous outlooks exist for the rattan market, since international demand for wicker furniture is still rapidly growing and the development of a middle class in urban Vietnam pushes domestic demand for these products. The pressure on an (over-) exploitation of the resources in the region caused by the growing demand is mitigated in the short-term by the export ban for unfinished products imposed recently by GOV. This policy sets incentives to quickly upgrade and expand processing capacities in order to meet the international demand. Although the ban will depress export demand of rattan in the short run leading to falling prices in the very near future until stocks are processed, the Vietnamese rattan market will recover quickly after the development of a quality oriented processing industry. International prices are forecast to rise steadily. Since consumer price fluctuations are nowadays transferred to producers in Vietnam as well due to rapidly developing market mechanisms and competition, rattan exploiters in the SDW will participate in that price increase as well. That scenario might not only lead to the exploitation of remote forests, it could also set incentives to cultivate or tend rattan in a sustainable way. If deforestation continues at current rates, thus extinguishing the habitats of rattan, and no attempts are made to use rattan resources sustainably, Vietnam will follow the Philippine way, losing entirely its share as an important producer and being dependant on importing raw material.

The foreseeable increasing production of tung oil from the newly established plantations in the SDW will face some difficulties to find export markets in the future. With growing levels of economic activity in the main foreign market China, the market will demand better qualities (from Aleuritis fordii) and will substitute dehydrogenated castor, soy bean or linseed oil or synthetic oils for tung oil. The growing domestic demand for water resistant paints following an upward trend of the overall Vietnamese economy might offset the tapering off of the export market.

Due to increased environmental concerns and health awareness and the growing sensitivity for the harmlessness of ingredients, shellac is likely to increase its export market segment, especially through its various positive properties, such as physiological harmlessness, water soluble, biological decomposition, excellent adhesion, hardness, gleam, electrical properties, miscibility with other resins etc. Similar prospects are forecast for pine resins and colophon, while the market of canarium resins seems to be stagnant.

Very prosperous outlooks exist also for most of the medicinal plants, aromatic plants and essential oils. These products will find expanding export markets as well as growing domestic demand. However, medicinal plants without an export market like those which are dominantly used in traditional medicine will experience an unstable and declining domestic demand, since the projected income growth will switch consumer preferences to processed medicines. Since supply projections and cultivation potentials for the SDW are good, the focus has to be put on the required qualities.

Similar prosperous outlooks exist for food and textile colours. Due to a revival of natural dyes in the industrial countries, these products may easily find growing export markets in the future as long as quality standards are attained and assured.

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4. Agricultural Products

4.A Food Crops

4.1 Rice (Paddy Rice + Upland Rice)

4.1.1 Production

Food crops cultivated in the SDW are rice, maize, cassava and soy beans, whereof rice plays the dominant role, be it in area or be it in production). Rice production in the three provinces forms only 1,3% of the national rice production, although 2,3% of the national rice area is located in the surveyed provinces. Thus, productivity is below national average, and per capita production in the region reaches only 52% of the national amount of 290 kg per capita (figures for 1991). Table 22 shows that the annual cultivated area under rice has been slightly declining over the years; reduction of upland rice fields in Son La and slightly declining paddy areas in Hoa Binh are responsible for that development. Rice production in the SDW heavily depends on climatic conditions, as 52% of the rice area are cultivated with upland, rainfed rice accounting for some 30% of the regional production).

Table 22: Rice production in the SDW between 1986 and 1991)

Figure 23 shows that most of the rice production area of the Song Da Watershed is located in Son La province (47%), while Lai Chau cultivates some 32% and Hoa Binh holds a share of 21% of the SDW rice production area. (Figures for 1992 were not available in Hoa Binh).

Figure 23: Rice production area in the SDW by provinces

As illustrated in figure 24, upland rice area in the districts of Hoa Binh belonging to the SDW is beyond average with 21% of the total provincial rice area, while in Son La upland rice dominates with 60%. Overall productivity seems to have increased only moderately over the last years; Vietnam's achievements in increasing rice productivity and production were above all made in the delta provinces).

Figure 24: Paddy and upland rice production area in the SDW by provinces

1986 1987 1988 1989 1990 1991

Area [ha] 91.882 85.192 86.759 84.281 85.202 82.431

Production [tons] 150.646 138.596 151.083 159.284 122.802 142.855

Productivity [tons/ha] 1,64 1,63 1,74 1,89 1,44 1,73

Page 1 of 20

Figure 24 cont.: Paddy and upland rice production area in the SDW by provinces

In the course of the liberalisation of the Vietnamese economy land has been handed over from state enterprises and cooperatives to individual farm households according to their labour force. These private farmers are the main rice producers nowadays. Rice production on the remaining land of the skeleton state enterprises does not play any significant role any more. However, there is still enough room for improvements in the regional rice production, since the use of advanced production technologies (high yielding varieties, fertilisers, pesticides) is still behind Vietnamese averages. Additionally, the water supply and irrigation systems are susceptible for improvements, as a great part of the region's paddies have only a one time water supply per year. A future obstacle for the expansion of the regional rice production will be the construction of a second dam of the Song Da near Ta Bu which will flood a great part of Son La's and Lai Chau's paddies.

Page 2 of 20


Rice is still the staple food in Vietnam, and food security is measured in rice security, although other staples, such as maize, cassava and sweet potato, taro and arrow root serve as substitutes. For the SDW, statistics report that 50% of the inhabitants face rice scarcity for 1-3 months per year, while 20% of the population have to live with a 4-6 months rice shortage. Families living at the banks of the Hoa Binh basin are reported to be worst of, as a lot of them have been displaced losing their paddy areas in the course of the dam construction. A future dam at Ta Bu might worsen these figures.

However, the regional production is mostly devoted to secure subsistence requirements; local surpluses enter the inter communal trade and are sold in the provincial towns. Hardly any production leaves the region. On the contrary, as per capita production is low in the SDW, and regional rice production covers only some 56% of the statistical requirements of rice equivalents), there is a need to import rice from low land provinces. Rice will remain the main staple food in the region in the foreseeable future. Demand growth will be driven a) by population growth, and b) by moderately increasing regional incomes, since income elasticities for rice in the SDW as a deficit region are assessed to be still over proportionally-high compared to urban Vietnam.

4.1.3 Product market chains including important his torical changes

Before 1988 the state has had a monopoly on all trading activities. This especially referred to the food market. A food stamp system existed (covering other goods as well) which regulated the subsidised supply to entitled consumers, such as civil servants, army members, cadres, state employees etc. and their families. It was the task of the state food trade organisation (STO) to level out regional surpluses and deficits and to supply the state employees. Entitled people had the right to buy an average of 13 kg of rice per month and person at subsidised prices. However, there existed a very thin "secret market" by-passing the state control. The farmers were organised in cooperatives and state enterprises, thus producing for their subsistence needs. The STO bought local surpluses for the supply of urban consumers and to deficit regions. Around 8% of the rice production of the three provinces were handled by the STO annually. Additionally, between 17.000 and 18.000 tons of rice were imported by the STO from other provinces to meet the regional demand.

With the transition from a centrally steered economy to a social market economy the STO has lost its trading monopoly and has to compete with other traders nowadays. Rice production in the SDW is still dominantly for subsistence needs. Local surpluses are offered by the farmers on the communal markets or sold to traders who had made contracts of deliverance in advance. These local surpluses reach the markets in the provincial towns or other deficit areas in the region.

Despite the liberalisation of the markets, a relict of the centrally steered economy has been revived: Since 1992 in the course of the special support for ethnic minorities in mountainous areas CEMMA) funds special shops in the SDW which supply staple foods, salt, medicine and fertilisers in pre-determined amounts and subsidised prices to the montagnards.

4.1.4 Prices and peculiarities of price system

Formerly, the state controlled rice price has been kept on a level that the salary of an academical state employee could suffice to buy around 150 kg of rice per month.

Nowadays, prices are formed by offer and demand, at least in the main surplus regions, Me Kong delta and Song Hong delta. Due to increasing rice exports, prices even have been approaching international prices. Vietnamese consumers have to compete with the world market demand nowadays. In the framework of the subsidy policy for consumers in mountainous areas rice is supplied to the montagnards neglecting the transport costs from the low land provinces. Thus, pan-territorial prices are maintained with the transport costs covered by the treasury. Since private traders in the region have to compete with these state suppliers, retail prices of white rice are in the range of 1.900-2.100 VND per kg of standard quality, like they are in the low land provinces. Surplus producers in the region receive 1.500-1.600 VND per kg, while middlemen demand some 1.700-1.800 VND per kg. Best quality glutinous rice can attain an additional 50% surcharge). For the future, domestic rice prices are forecast to rise moderately approaching international price level.

Page 3 of 20

4.1.5 World rice market

Since Vietnamese rice consumers have to compete with international rice demand nowadays, and Vietnamese rice producers can benefit from the positive price impacts due to Vietnamese rice exports, it is necessary to look at the international rice market as well. Although rice is the main staple food of half the world's population, international rice trade reaches only some 10% of the volume of international wheat trade. Only 2-3% of world production is internationally traded, since most of the produced volume is consumed within the producer countries. While China and India are by far the largest rice producers and consumers in the world, followed with distance by Indonesia, there are only four important export countries: Thailand, Vietnam, USA and Pakistan. Main import regions are the Middle East and North Africa, the other African countries (above all Nigeria and South Africa), and Brazil and Mexico on the American continent.

After expanding rapidly for two decades, world rice production and consumption growth have slowed down since the mid eighties, with consumers diversifying their diets and several producer countries turning to more profitable crops. Although the world demand/supply is more or less balanced, the international rice market is in a state of slight surpluses nowadays. The emerge of Vietnam as a major exporter in recent years has added to the recent downward pressure on prices. For the future, world rice production can be expected to grow slower, since the expansion of areas planted with high yielding varieties (HYV) is reaching its limits and the yield cap on the existing HYV impedes further productivity increases. Much of the growth in rice production in Asia has come from extending the areas cultivated with HYV. With this source of growth no longer available, further growth must come from increased yields; but experience shows that this is not the case, and yields may even fall in some countries because of soil fertility problems resulting from years of intensive production. However, Vietnam has not reached that level yet, and there is still some room for growth of production.

On the demand side rice is still the traditional cereal food in Asian countries and the dominant staple in low and middle income countries. However, as income increases rice consumption rises under-proportionally, since income elasticities for staple foods tend to be low and even reach negative values in advanced welfare situations. People switch to higher valued food diversifying their diets. Thus, demand growth in most Asian countries will slow down and will mainly be driven by population growth.

On the trade side rice is very much affected by the new GATT agreement in two ways: 1) Japan and Korea have recently opened their rice markets for imports, thus increasing the international demand for rice. However, consumers in these two countries are assessed to substitute wheat for rice in the mid-term. 2) The elimination of subsidies and price supports for wheat and grain producers in Europe and North America will lower production of these commodities and increase consumption in the producing countries in the short-term. Together with an increasing demand in deficit countries that will cause an increase in wheat and grain prices in the mid-term, thus offering the opportunity to rice exporters with cost advantages to penetrate new markets in low income countries which so far have relied on cheap and dumped wheat imports. The GATT agreement affect the important rice exporter USA as well, since American rice will enter the market with prices gradually adjusted to the prime costs. American rice producers will lose their comparative advantages, while low cost producer countries, such as Vietnam or Thailand might overtake parts of the US market shares.

Figure 25 illustrates the world market prices for white rice (5% broken, FOB Bangkok) since 1950. It is obvious that the achievements through "Green Revolution" techniques during the fifties to seventies have put pressure on real prices (constant prices) through over-proportional supply growth. This development seems to have come to an end since the mid eighties, and prices have stabilised on the current level.

Figure 25: Rice prices on world market in US$ per ton

Page 4 of 20

4.2 Maize

4.2.1 Production

Maize is the second important food crop in the SDW after rice. For the sake of simplicity and on the contrary to the previous chapter about rice production, figures in this chapter refer to maize production in the entity of each of the three provinces). The development of the regional maize area, production and productivity is shown in table 26. Figure 27 shows the development of the cultivated area and the production since the mid eighties for each province.

Table 26: Maize area, production and productivity in the surveyed provinces

The total cultivated area under maize has increased in the period from 1986 to 1991 by 24%. While maize areas in Lai Chau province have been more or less stable, Son La has extended its area continuously and Hoa Binh has doubled maize cultivation from 1987 to 1988. This extension falls in the time of land privatisation and - in Hoa Binh case - might well be a quick response to compensate for the loss in paddy area. Overall production has increased by 38% in the same period indicating improvements in productivity due to privatisation and the increased use of HYV. Productivity in Son La is comparatively best, Lai Chau is in the range of average productivity, while farmers in Hoa Binh do not reach average yields. However, regional productivity does not reach national averages yet.

The overall maize production in the region shares some 11% of the national maize production. Lai Chau contributes with 51% to the regional production, while Son La and Hoa Binh produce 36% and 13% respectively. The province Lai Chau holds the third position among the maize producing provinces in northern Vietnam, and is ranking fifth in the national contest.

Most of the maize is produced by individual farm households in the region. Post-harvest treatments include manual removing of the corn from cobs and drying of grains. Research on maize varieties and seed production of HYV (e.g.: TSB1, TSB2, Q2) is carried out by some state agricultural enterprises. Improved

1986 1987 1988 1989 1990 1991

Area [ ha ] 46.001 48.699 55.117 52.586 50.904 57.095

Production [ tons ] 52.710 36.899 66.013 66.561 60.969 72.811

Productivity [ tons/ha ] 1,15 0,76 1,20 1,27 1,20 1,28

VN Production [ '000 t ] 570 561 815 838 671 n.a.

VN Productivity [ t/ha ] 1,42 1,38 1,60 1,65 1,55 n.a.

Page 5 of 20

seeds are supplied by state seed suppliers.

Figure 27: Development of maize area and maize production in each of the surveyed provinces

4.2.2 Consumption, market channels and prices

Maize had been included in the food stamp system described in the previous chapter as well. Generally, 30-50% of the provided food (in rice equivalents) had been distributed as maize, and the State Trade Organisation (STO) handled about 60-80% of the regional production. About 50% (~20.000 tons) of the regional production was transported to the low land provinces as food and for the supply to feedstuff processing units.

Nowadays, the STO has to compete with private traders, and the traded volume of the STO has fallen to ~10% of the regional maize trade. This market share belongs mainly to urban consumers. Private traders dominate the market with a trade share of about 90%. Producers transport the dried grains in sacs to collection posts at the roadside where by-passing traders pick up the produce. Main consumers are livestock keeping farmers in the low lands (50%) and the feedstuff processing factories in Ha Noi and neighbouring provinces (40%). Livestock experts estimate that the current national maize production meets only 50% of the national demand of the livestock sector. Figure 28 illustrates the market channels of the regional maize production. The market prices on each level are shown as well.

World market prices in 1993 were around 105 US$ per ton (~1.100 VND/kg) free on board gulf port. With the additional costs, insurance and freight imports of maize were comparatively more expensive than domestic maize. That explains to a certain extent the negligible imported volume, although demand for feedstuff is strong and growing. Thus, future prospects for the maize market are good. Despite growing demand driven by population growth, increased welfare will turn consumer preferences to animal products thus pushing the demand for feedstuff.

Page 6 of 20

Figure 28: Market chain of maize including current prices [ VND per kg ]

4.3 Cassava

4.3.1 Production

Cassava is the third important staple food crop in the SDW after rice and maize. Figures in this chapter refer to cassava production in the entity of each of the three provinces).

The development of the regional cassava area, production and productivity is shown in table 29. Figure 30 shows the development of the cultivated area since the mid eighties for each province in the upper part, while the lower graph illustrates the corresponding production.

Table 29: Cassava area, production and productivity in the surveyed provinces compared to national figures

The regional cassava production amounts to some 10-12% of the national production, while the province Son La is the most important producer out of the northern Vietnamese provinces. In the national contest, Son La is third after Dong Nai province (203.000 t) and Quang Nam / Da Nang province (172.000 t).

While the aggregated area moves around an average of 32.000 ha, highest oscillation occur in Hoa Binh

1986 1987 1988 1989 1990 1991

Area [ ha ] 32.280 30.673 35.722 34.323 29342 33.369

Production [ tons ] 273.850 239.123 307.933 297.274 254.245 292.580

Productivity [ tons/ha ] 8,48 7,80 8,62 8,66 8,66 8,77

VN Area [ '000 ha ] 315 299 318 285 257

VN Production [ '000 t ] 2.882 2.738 2.839 2.585 2.276

VN Productivity [ t/ha ] 9,15 9,16 8,93 9,07 8,86

Page 7 of 20

province, while the cultivated area under cassava has been moderately extended in the other two provinces. Overall productivity lacks any significant development and ranges below national average productivity. Climatic variances hardly affect the yields of cassava. Nevertheless, Son La attains average yields of 10,4 tons per ha, while farmers in Hoa Binh reach 6,6 tons per ha only. Son La produces some 46% of the regional production, while Hoa Binh and Lai Chau contribute 33% and 22% respectively. Production is entirely carried out by individual farm households.

Figure 30: Development of cassava area and production in each of the surveyed provinces


Cassava plays an important role in the diet of those montagnards who do not have sufficient rice and/or maize to meet their subsistence needs. On regional average 20-30% of food subsistence requirements are met by cassava. The remaining production is generally fed to livestock, pigs in particular. Cassava leafs as a by-product are used to feed fish.

Due to its bulky properties and low value the traded volumes of cassava are small. Most of the production meets the farmers demand for feed and food. Since cassava can best be stored as living plants in the ground, harvest takes place according to seasonal requirements. Storage in the form of dried slices is also popular. However, some trade occurs in Hoa Binh province, as distances to consumers in the low land provinces are less determining. The few private traders engaged in the cassava market set up contracts with the producers and buy the "standing crop". Yields are estimated and negotiated in advance, and dates of harvest and delivery are defined according to transport possibilities and demand. Thus, farmers minimise risks of storage losses and traders assure quality, since fresh cassava is perishable. In 1993 farm gate prices were between 150 and 250 VND/kg fresh cassava depending on the distance to the market. While 10% of the traded volume are consumed by the food processing industry as supplementary ingredient to noodles and biscuits, 50% are destined to alcohol distillers and 40% is used in the livestock sector, be it directly by livestock rearers or by feedstuff processing factories. While the traders sell the cassava for about 300-400 VND/kg, often there are

Page 8 of 20

additional trade agents involved as middlemen, having contracts with the processing enterprises; they surcharge an additional 25% to the price.

4.4 Soy bean

4.4.1 Production

The description of the soy bean market refers to figures for the entity of each of the three provinces, although not all of the districts belong to the SDW. Special attention has to be paid to production figures for Hoa Binh, as most of the province's cultivation takes place outside the SDW (in Lac Son and Yen Thuy districts). Detailed figures of area and production for each of the districts (within and beyond the area of the SDW) are documented in Annexes 18-20. Table 31 shows the development of the regional soy bean area, production and productivity, and the corresponding national figures.

Table 31: Soy bean area, production and productivity in the surveyed provinces

Figure 32 shows the development of the cultivated area since the mid eighties for each province in the upper part, while the lower graph illustrates the corresponding production. The regional acreage under soy bean accounts for some 7% of the national area, while only 5% of the national production is produced in the region. Averaged over the period from 1986 to 1991 Son La province holds a share of 41% of the region's production (with 45% of the area), while Lai Chau and Hoa Binh provinces produce 31% and 28% (on 30% and 25% of the region's soy bean area) respectively. The overall area cultivated with soy beans has been expanded by 54% from 1986 to 1991, while production has risen by 37% only. The area expansion is mainly due to increased cultivation in Son La and Hoa Binh; both provinces have doubled their 1986 cultivation. Soy bean cultivation in Lai Chau is stable. Average productivity reaches only three quarters of the national average, with farmers in Hoa Binh approaching the national productivity by ~90%). Abstracting from the above-average yields in 1986 and bad productivity in 1987 due to climatic reasons, productivity shows an upward trend. However, there is no development in national soy bean yields; being the stepchild of agricultural research and extension in Vietnam soy beans might deserve more attention in the future, since actual yields are distinctly below potential yields).

Figure 32: Development of soy bean area and production in each of the surveyed provinces

1986 1987 1988 1989 1990 1991

Area [ ha ] 5.479 10.882 6.877 6.192 7.181 8.424

Production [ tons ] 3.092 4.575 3.758 3.670 4.242 5.478

Productivity [ kg/ha ] 729 420 547 593 591 650

VN Area [ '000 ha ] 106,5 118,1 103 100,2 110

VN Production [ '000 t ] 84,7 95,8 85,3 82 86,6

VN Productivity [kg/ha] 795 811 828 818 787

Page 9 of 20

Figure 32 cont.: Development of soy bean area and production in each of the surveyed provinces

Soy bean is a cash crop which has gained increasing importance in the regional crop rotation since the beginning of the privatisation policy.

4.4.2 Consumption, market channels and prices

Quality of soy beans from the North West is said to be best in Vietnam. Soy bean processing enterprises buy preferably SDW origins.

As a cash crop, only small amounts are used for home consumption by the producing farm households. However, some 25% of the regional production is demanded by the regional population; the remaining 75% of the volume reaches the inter regional trade. 25% is dealed by the State Food Trade Organisation (STO), while 50% of the production is channelled via private trade. Main products made from soy bean seed are soya curd (Tofu), soy bean "milk" and feedstuff with market volumes of 40%, 20% and 15% of the regional production respectively. Figure 33 illustrates the market channels of soy bean seed.

Figure 33: Market chains of soy bean seed including current prices [ VND per kg ]

Page 10 of 20

4.4.3 Peculiarities of price system

While international prices for soy bean seed CIF Rotterdam are in the range of 235-245 US$ per ton (1993), soy bean prices in Vietnam are heavily protected (the producer prices reach already world market price level). With the policy to support the discriminated mountainous areas the Government offers high prices through its STO. 25% market share seem to suffice for the regulation of the prices. If private traders offer lower prices producers can always sell to the State Trade Organisation. Moreover, there are no reported imports of cheaper soy beans, thus completing the protection of domestic producers.

4.4.4 Demand outlook for vegetable oil

Due to other sources of vegetable oil and oil imports Vietnamese soy bean production is not yet processed to soy bean oil in large quantities up to now. However, future demand prospects suggest to invest in that processing line, as the following experiences explain.

Demand for fats and oils is determined by a variety of factors, including income, population, relative prices, and cultural preferences; however, historical evidence shows an archetypical pattern of demand development that is tied to economic development and that is valid beyond national boundaries: At very low levels of daily caloric intake, when income is small and per capita calorie supplies are around 2.000 calories per day, the share of the diet derived from edible oils is extremely low. Daily calories come from cereals, roots, tubers, or pulses. As food becomes more affordable through income growth or price declines, vegetable oils consumption grows rapidly. Although still a small part of the diet, the relative share grows rapidly. As disposable income (and calorie intake) grow further, poultry and other meat sources are added to the diet, thus contributing to the rising demand for oilseed by-products, such as oil meal. When incomes climb still further, total fat consumption stagnates, with changes coming in composition of fats rather than levels; the growth in vegetable oil consumption takes place at the expense of unhealthier animal fats. When illustrating the average caloric intake from vegetable oils as a function of income, a graph as sketched in figure 34 is typical; be it for countries with different levels of economic activity or be it for distinct income classes within a country. However, in the low income situation, very small increases in income can trigger very large increases in edible oil demand (high income elasticities of demand). In other words, in all income classes (or countries) clustered around the lower left corner of the graph (that is the overwhelming majority of Vietnam's population), a 1% increase in income generates an increase of more than 1% in demand for fats and oils. The projected economic growth in Vietnam will boost the demand for vegetable oils, be it soy bean oil, coconut oil, palm oil or other oil seeds in the near future.

Table 34: Typical course of edible oils intake as a function of income

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4.B Industrial Plants

4.5 Tea

4.5.1 Production

Tea is produced in altitudes between 900 and 1.500 m a.s.l. and production area in 1992 in the three provinces accounted for some 3.060 ha, while around 6.800 ha were planted with tea. Since production figures are missing, production of dried tea is calculated as follows: The average yield is estimated to be 5,5 t/ha fresh leafs). This results under a fresh : dried ratio of 4,5:1 in some 3.700 tons of processed tea to be produced in the region.

Table 35: Location and area for tea production in 1992

For the second half of the eighties table 36 shows the tea area and production for entire Vietnam. In recent years, tea area expansion follows the slight upward trend as already indicated in the second half of the eighties, although some plantations have been cut down in 1991 as a response to the sharp reduction of demand from the former Soviet Union.

Great parts of the tea production are still in public hands; 40-50% is cultivated by private farmers. There are several tea processing enterprises in the region, one in Hoa Binh town, at least two in Son La province: in Moc Chau and in Son La town, and one in Tam Duong in Lai Chau province. There is another important tea processing enterprise in the neighbouring province Vinh Phu. A large tea factory can also be found in Ha Noi aiming at export markets. Most of the regional processed tea is black tea. In addition to the factories, some tea cultivating farmers are engaged in small scale home processing as well. They produce generally green tea.

Province Area [ ha ]

productive Area [ ha ]

Districts

Lai Chau 650 380 Phong To Tuan Giao Dien Bien

Son La 2.263 1.680 Moc Chau Mai Son Yen Chau Phu Yen

Hoa Binh 3.914 ~ 1.000 Tan Lac Ky Son Kim Boi Da Bac

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Table 36: National area under tea plantations and production of dried tea

4.5.2 Consumption, market chains, prices and demand forecast

Tea plays a very important role in the daily life of the Vietnamese people, both as major beverage as well as for ceremonial purposes. There is a high preference on green tea. Black tea has only a minor share in domestic markets. Black tea production is for exports (in former times mainly to the USSR, nowadays to the Middle East and other south-east Asian countries).

From the regional production only ~ 10% is consumed in the region, while ~ 50% is exported and the rest is destined to domestic markets in the low land provinces. However, quality from the SDW is said to be ordinary. Better qualities are obtained from Vinh Phu, Bac Thai and Lam Dong origins. An exception is a small production area of ~ 15 ha in Phu Yen district where special qualities are produced.

Most of the private tea producers - a lot of them former workers in the state enterprises - sell the harvested fresh tea leafs directly to the processing enterprises which are still state run and under the guidance of VINATEA, the state tea processing and export organisation. In the export chain there is no further middleman engaged. Quantities which are destined for domestic consumption in the low land provinces are sold to wholesalers before reaching the retail market. Some producers are engaged in small scale home processing and sell their produce either on the local markets or to private collectors who deliver to either wholesalers or retailers in the low lands.

Prices depend on quality and on season. In 1993 producers received 1.500 VND/kg of first class fresh leafs (800 VND for second class), while prices for black tea at the exit of processing enterprises were:

Special aromatic teas, e.g. Moc Chau tea with lotus flavour, reach 23.000 VND per kg. Wholesalers and retail traders add their margins. Seasonal variances can reach 30-40%. Although average world market prices were around 210 US$ per ton) in 1993 and in an historic baisse, Vietnamese exporters could occasionally attain far higher prices) for some limited quantities. However, tea exports must be heavily supported by the treasury (processing and export activities are state run). Since there are no imports reported, domestic consumers pay highly protected prices. 8.500 tons of tea were exported in the first 9 months of 1993, a 38% increase in comparison to the same period of the previous year.

The domestic per capita consumption is estimated to grow only moderately with future economic growth, since saturation seems to be reached; income elasticity of tea demand is assessed to be close to zero in Vietnam. Thus, growing domestic demand will be driven by population growth.

International tea demand prospects are critically dependant on demand development in the CIS. After the sharp decline in the USSR's domestic tea production in the late 1980s due to the Chernobyl accident, the former Soviet Union has been supplied by India with 50% of India's total tea exports under a special trade agreement. This import demand broke down temporarily leaving India with the task to diversify its export destinations. This increased the decline of prices that had already started. Prospects for CIS's imports depend on their economic recovery and development. Import demand in the Middle East, another important import region, is forecast to grow moderately. Import demand in tea-consuming industrialised countries, such as Great Britain, Canada or Australia, is expected to decline. To a large extent, this is due to changing tastes: demand for coffee and other beverages has been increasing at rapid rates. Tea consumption in India, as the world's largest tea producer and exporter, is projected to increase at higher rates than Indian production increases. Thus, the main tea exporter India will experience a decline of exports, handing over its export

1986 1987 1988 1989 1990

Area [ '000 ha ] 58,1 59,2 59,1 58,3 60,0

Production [ '000 tons ] 30,1 29,0 29,7 30,2 32,2

Class VND/kg Class VND/kg Class VND/kg

1. 15.000 3. 11.000 5. 6.500

2. 13.000 4. 8.000 6. 5.500

Page 13 of 20

shares to the main competitors Sri Lanka, Kenya and Indonesia. All in all, international tea demand is forecast to grow only moderately.

Vietnam's share in world's production is only ~ 2%, while the four main exporters produce around 70%. Export prospects for Vietnam will heavily depend on the production of special qualities and the development of the cost-competitiveness of Vietnam. With the current high domestic price level export markets can hardly be gained.

4.6 Coffee

4.6.1 Production, processing, consumption, market c hain and prices

Increasing attention has been paid to coffee in Vietnam since 1986; plantation area has almost doubled in the second half of the eighties, as shown in table 37. In Son La province coffee area quadrupled from 1990 to 1992 from 278 ha to 1087 ha. A decade ago there was hardly any coffee in the region, although climate is very suitable to the plants. Compared to national coffee production, the output of the region is still negligible.

Table 37: National coffee plantation area and production

Table 38: Coffee area and production in the surveyed provinces in 1992

Due to lackingf production data from Lai Chau and Hoa Binh province, detailed production figures can be presented here only for Son La province ). Since most of the plantations have been established in recent years, only parts of the planted area are already in the productive phase. In Son La, coffee growing area is concentrated in Son La town, Tua Chua and Mai Son districts. A coffee processing enterprise has recently started to operate in Son La town. All of the plantations in Son La are run by private farm households. In the other two provinces state enterprises cultivate some 50% of the plantations. The entire production is passed to VINACAFE, a state run coffee processing and export organisation. Since regional demand is negligible, almost the entire production leaves the SDW region whether to be exported by VINACAFE or to be sold to wholesalers who serve the domestic demand via retail traders in the cities. However, domestic demand for coffee is still low (green tea is highly preferred) and most of the production tries to find export markets.

Export volumes have risen by ten times in the previous decade; during the first nine months of 1993 Vietnam has exported 66.000 tons, a 6% increase compared to the same period of the previous year. With the exception of some regions in Dac Lac and Tam Dong Vietnam produces robusta coffees. Due to the large areas which will soon become productive, future production and thus exports are forecast to increase sharply. Despite world market prices at historical low levels (in real terms) at around 150 US$/ton, Vietnamese export statistics report FOB prices of 980 US/ton and 1.100 US/ton for two contracts in summer 1993. Since farmers receive 6-8.000 VND/kg (dried beans?) what equals approximately 6-800 US$/ton, the state has to subsidise producer prices heavily, as it cannot be assumed that the entire export volume is sold to such extraordinary prices.

4.6.2 World market for coffee

1986 1987 1988 1989 1990

Area [ '000 ha ] 65,6 92,3 111,9 123,1 119,3

Production [ '000 tons ] 18,8 20,5 31,3 40,8 59,3

Son La Hoa Binh Lai Chau

Area [ ha ] 1.087 350 281

productive Area [ ha ] 223 n.a. 85

Production [ tons ] 167 n.a. 94

Page 14 of 20

World coffee prices were at their lowest levels ever in the previous three years. This depression has been due mainly to the increased world production and exports since the suspension of the quota system (July 1989) which has been operating under the International Coffee Agreement (ICA). When the export quota system was still in force, most of the producing countries were forced to accumulate large stocks. Since the collapsing of the agreement, producing countries have exported substantial amounts of these stocks. Additionally, many countries encouraged their coffee growers to invest in new plantations; the idea was to establish evidence of higher exports than before so that they would be able to obtain larger quotas if the quota system were reintroduced. World production in the early nineties was at near record levels.

The sharp price decline has also been due to slow supply response to the reduction in world prices: being a tree crop, coffee supply does not respond to changing prices in the short run, thus accelerating the trend. Additionally, many producing countries depreciated their real exchange rates and also reduced export taxes in order to try to maintain real producer prices. Above all, world demand stagnated. Import demand in the main consumer countries, the high income countries, has been stagnant partly due to slower growth or recession, and partly due to already low income elasticities for coffee demand). The decline in imports of the former Soviet Union has also been an influencing factor.

It is estimated that even the most efficient coffee producers are facing difficulties in covering even their variable production costs with current low prices. Although most countries have reduced or eliminated export taxes, a lot of producers with potentials of switching to more profitable crops are uprooting their plantations. This is especially concerning Brazil, the world's largest coffee exporter (one third of world production with 25% of world exports)). Thus, world production is likely to stagnate in the future.

Prices have always been critically dependant on what had happened in Brazil. E.g. spring frosts in Brazil with the subsequent collapse in production have been influencing world prices significantly in the past. However, coffee production in Brazil is forecast to stagnate or even decline moderately.

Since Vietnam is mainly producing robusta coffee, it is affected by the changing preferences from robustas to arabicas in the industrialised countries. In addition, the expected increase in robusta production in low cost producing Indonesia and Vietnam itself should further depress robusta prices. Also, the reduced imports of the CIS, which were mainly robustas formerly, puts additional pressure on robusta prices. All in all, due to stagnating production in the main export countries coffee prices might recover moderately after the reduction of stocks in the consumer countries, but will be at best stagnant in the medium run due to stagnant demand.

However, demand for extraordinary qualities will remain strong. These coffees are usually processed and sold by small roasters in the consuming countries, so exporters do well by increasing their contacts with these roasters and jointly developing high quality, customised brands. However, as Vietnam's production can not meet such extraordinary quality standards nowadays, its only chance to gain significant market shares is to utilise cost advantages, if there are. Otherwise, the treasury will be burdened with each additional exported ton of coffee. It is open to proof whether Vietnamese producers are able to cover their variable as well as their fixed costs in the medium run or not.

4.7 Cotton

4.7.1 Production

The SDW is Vietnam's second important cotton growing region: 40-50% of the national cotton production is located here). The most important region is Tay Nguyen district, Dac Lac province in the central highlands. However, cotton plays a minor role in the region's economy as well as in its land use, since overall production is very low. Table 39 shows the development of the cotton growing area and production in comparison to the national figures.

Table 39: Cotton area and production in the three provinces and in Vietnam

1986 1987 1988 1989 1990 1991 1992

Hoa Binh

Area [ ha ] 1.166 1.220 1.112 727 538 399 n.a.

Page 15 of 20

During the surveyed period cotton production has declined steadily by ~ 7-8% annually in the SDW as well as in entire Vietnam. While the decline in cotton growing area was less sharp in Son La and Lai Chau provinces, farmers in Hoa Binh almost eliminated cotton due to poorest yields. Although productivity in Son La and Lai Chau is around national average, the yields are still very low in comparison to world averages of 1,4 t/ha and potentials of ~ 4 t/ha.

The regional output is produced on small scale level by individual farm households. Ginning of the cotton seed is carried out mainly with the help of water driven ginning mills.

4.7.2 Consumption and processing

Like silk and textile dyes, cotton has also been an indispensable product for the ethnic minority to maintain their traditions. Cotton clothes have ever been part of their traditional dresses. The entire production is used for home processing by women; only very small surpluses are sold locally to neighbouring processors. Other products than clothes are mattresses, bed covers, "Tho cam" cloth or shoulder-bags. These finished products are offered on the regional markets. Since the other main production region (Tay Nguyen) is populated by ethnic minorities as well, it is assumed that consumption patterns are similarly there.

However, the comparatively low production can not even meet the regional demand for clothing; Vietnam has imported growing amounts of cotton and clothes, particularly from China.

4.8 Silk / Mulberry

Silk is produced from the cocoons of silk worms (Bombyx mori L.). The silk worms are kept in baskets and fed with leafs of the perennial mulberry shrubs (Morus alba L.). The shrubs can be cut back every few years to keep the branches in the reach for harvest. To obtain the produce the cocoons are treated with boiling water to kill the worms before their metamorphosing to butterflies. The boiled cocoons have to be brushed and spinned to obtain silk thread. 1 kg of cocoons provides ~ 115 grams of silk.

Although silk production and mulberry cultivation in the region has its tradition on a very small scale, the recent extension of mulberry areas is due to special promotion by the Government authorities. In the course of a programme to "change plant cultivation structures by the promotion of market oriented production for domestic and export demand" which started in 1991, the province Son La was chosen as an adequate silk

Production [ tons ] 188 206 176 127 108 63 n.a.

Productivity [ kg/ha ] 161 169 158 175 201 186 n.a.

Son La

Area [ ha ] 2.286 2.596 2.472 2.254 1.645 1.869 1.908

Production [ tons ] 943 681 859 806 590 697 714

Productivity [ kg/ha ] 413 262 347 358 359 373 374

Lai Chau

Area [ ha ] 1.740 1.802 2.014 1.653 1.225 1.038 1.200

Production [ tons ] 673 655 746 652 494 446 459

Productivity [ kg/ha ] 387 363 370 394 403 430 383

Vietnam

Area [ '000 ha ] 12,9 13,2 12,3 9,2 8,3 n.a. n.a.

Production [ '000 t ] 4,6 4,2 4,2 3,3 3,1 n.a. n.a.

Productivity [kg/ha] 357 318 341 359 373 n.a. n.a.

Page 16 of 20

producing region. In the last three years the mulberry area has been expanded to ~ 2.500 ha with regional disparities. Almost the entity of the plantations can be found along national road No. 6 in the districts Moc Chau, Son La town, Mai Son, Tuan Chau and Yen Chau. All of the plantations are in private hands. Mainly women are involved in harvesting the mulberry leafs and feeding of the silk worms.

Most recently, a state run silk processing factory has been constructed in Moc Chau. Farmers sell the boiled cocoons to private collectors who deliver to the processing factory. The bulk of the production is destined to export markets, while a small part meets the urban demand in the capital. Prices of ~ 20.000 VND/kg of cocoons are reported for 1993, while mechanically processed silk thread yields 25-28 US$/kg on export markets. Exportable silk cloth was offered by Ha Noi exporters at the following prices depending on quality:

Table 40: Silk cloth export prices in 1992

Export prospects for silk are promising, since silk clothes have become very fashionable in the industrialised countries as the main final consumers. Processing takes place either in the silk producing countries themselves or in other developing countries were the garment industry finds low cost labour supply. E.g. Thailand has an import need of ~ 600 tons per year, since the capacities of its garment industry exceeds the domestic production by far. The same applies to the important silk processing country India which imports 2.000-3.000 tons per year.

4.C Fruits

4.9 Banana, Mango, Longan, Citrus, Plum, Apricot, P ineapple

4.9.1 Production

As a result of the specific climatic conditions a variety of fruits can be grown in the SDW. Due to the favourite climate some species are much more productive or yield much better qualities than in low land provinces).

An acreage of ~ 4.800 ha was covered with fruit trees in 1992 in the three provinces. 50% of the area is located in Hoa Binh province where fruit growing promotion has been most successful and programmes of the Government are most ambitious). Around 50% of the Hoa Binh's fruit plantations lie in the SDW. Most of the fruit trees are tended by private farm households. However, there are some plantations on state agricultural enterprises (SAE) and SFEs as well. Mai Son district intends to open a fruit processing factory, but is still looking for foreign investments. Due to irregular and expensive power supply - electricity lines from the hydro-electrical power station in Hoa Binh have not reached the district yet - these options will most probably remain plans for the near future.

4.9.2 Consumption, destination and market chains

A few years ago, when the national road No. 6 had not been upgraded, most of the regional fruit production (~ 80%) had been consumed in the region. Only fruits from Hoa Binh province could easily reach the main markets in the low lands and the capital. With the improvements of the infrastructure trade activities have increased significantly, thus leading to volumes of ~ 70-80% of the fruit production being destined to the low land provinces nowadays. The producers sell their fruit surpluses to a small extent to the communal market or directly to communal retailers. The majority of the production is sold to private buying agents and collectors. Often these traders visit the producers in advance, estimate the production, negotiate the price and an advance payment, and come back at a definite date to collect the harvest. They sell the fruits whether to

Quality Width [m] US$/m

Ordinary Silk "Lu 12" 1,15 3,5

Silk with flower decor 0,9 3,0

Silk No. 4, coarse, thick 0,9 3,5

Silk Satin 0,9 3,5

Page 17 of 20

intermediate forwarding agents or directly to wholesale markets in Ha Noi and the low land provinces. A special trade can be observed with bananas from Lai Chau province. Private exporters buy the fruits from the collectors and sell the bananas to China. 90% of the provincial production is said to be destined to the Chinese market.

Fruit demand in the low land centres Ha Noi and Hai Phong seems to be still higher than supply. In particular the domestic supply can not meet the growing demand in the cities; there are several imported fruits, such as apples, pears and grapes from China on offer. Since street vendors who have specialised in selling these imported fruits can be seen at almost every corner, the market share is assessed to be high. With the projected economic growth in conjunction with high income elasticities for fruits demand is forecast to increase in the future. Although the fruit promotion programmes will result in an increased supply within a few years, regional production is not assessed to meet the growing demand.

Plans to increase fruit production in the SDW have always to take into account the transport difficulties. There are oral reports of large plum production in far away Lao Cai province which could not be marketed due to transport bottlenecks. Fruit promoting programmes should also pay attention to (cool) storage facilities. When aiming at export markets very high quality requirements have to be guaranteed.

4.9.3 Prices

Before the upgrading of road No. 6 the regional production was home consumed or supplied to communal and regional markets. Since the local production could not be transported, prices tended to be low. Nowadays, transport facilities have been improved, but there are still difficulties during the rainy season, when landslides bloc the main road or minor roads are closed to traffic. During these times regional producers face difficulties to sell their fruits in time. Prices tend to decline seasonally. Table 41 lists prices for some selected fruits (mango, plum and banana) on different market levels. Data for the intermediate trade between collectors and wholesale market was not available. Additionally, retail prices of imported apples and pears are listed.

Table 41: 1993 market prices for selected fruits on different trade levels in VND/kg

4.D Livestock Products

4.10 Meat, Milk

4.10.1 Production

Animal husbandry plays an important role in the household economy of the rural families. Most of the livestock is reared on a small scale basis. Beside poultry which is kept by every rural household, pigs, buffalos and cattle are the most important animal categories). Additionally, goats and horses are reared in Lai Chau and Son La provinces.

9% of the Vietnamese buffalo stocks are kept in the region. The corresponding figures for cattle and pigs are 4% and 5% respectively. While stocks of buffalos have experienced a moderate growth and pig production has increased at even higher rates (~ 3,5%/a with the highest growth of ~ 7,5%/a in market near Hoa Binh

Fruit Producer Collector Wholesale Ha Noi

Retail Ha Noi

Export to China

Mango, Yen Chau 900 - 1.000

1.100 - 1.200

1.800 - 2.000

2.500 - 3.000

-/-

Plum, Moc Chau 3.000 - 3.500

3.500 - 4.000

6.000 -6.500

7.500 - 8.000

-/-

Banana, Lai Chau 500 - 600

1.000 - 1.200

-/- -/- 1.700 - 1.900

imported Fruits 10-13.000

Page 18 of 20

province), cattle stocks have decreased by ~ 2,5% per year. Two thirds of the regional cattle and two fifths of the pigs are found in Son La province, while buffalo production is more or less equally distributed between the 3 provinces with emphasis on the paddy producing districts in the valleys (and in Hoa Binh case low land districts).

In Moc Chau, Son La province, there is a milk processing enterprise run by the central Government. The dairy cattle of this SAE as well as most of its land have been distributed to some 200 former labourers. Around 1.300 cows are reported to be productive. The development of Moc Chau's milk production is shown in table 42. It accounts for 18-20% of the national milk production.

Table 42: Milk production in Moc Chau in tons per year

4.10.2 Consumption, utilisation and prices of lives tock products

Beside some home consumption the entire milk production is bought by the state run milk processing enterprise. Milk is processed into five distinct products: pasteurised fresh milk (20-25%), sweetened, condensed milk (60%), sweetened, condensed, dried and compressed milk (10%), butter and cream (5-10%). The enterprises has own refrigerator trucks and other transport facilities at its disposal. The produce is directly delivered to 62 agents in Ha Noi and surrounding districts who act as milk retailers.

Buffalos and cattle are mainly used for traction purposes and manure production in the region. Milk and meat production are of subordinate importance. With the liberalisation of the Vietnamese markets farmers have started to rear buffalos and cattle for the delta provinces where they are used as draught animals. This trade with living animals is also due to the difficulties in transport; fresh meat supply to the demand centres in the delta is impeded by bad road conditions and the lack of refrigerator trucks. Thus, the small amounts of buffalos and cattle for slaughter are destined to regional markets.

There is more trade with small livestock, such as pigs, goats and poultry, particularly from Hoa Binh province to the red river delta. Producers sell the living animals on the communal or regional market. Traders transport the livestock to the demand centres and deliver to restaurants or slaughters who act as beef wholesalers.

In the period of the centrally steered economy the market for livestock and livestock products was regulated. The producing cooperatives had to sell their produce to the State Trade Organisation according to plan production figures and accounting prices. Surplus production could have been sold freely on regional markets. The STO was charged with the slaughtering and distributed the beef via its food stamp system.

Figure 43: Today's market chains of milk and livestock including prices in VND/kg

1986 1987 1988 1989 1990 1992

2.854 1.952 1.698 1.741 1.069 2.160

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Due to the milk's sensitivity to storage and transport and the monopoly of the processing enterprise trade margins at the processing/transport stage are high (+144%). Margins in the living animal trade are in a normal range of ~ +20% for each trade level. Producers receive 1,5 - 1,7 mio VND per buffalo and 0,8 - 1,1 mio VND per cattle. Retail prices for beef in Ha Noi are in a stable range of 18.000 VND per kg.

For the first 9 months of 1993 Vietnamese exports of processed meat are reported. With 8.253 tons exports have doubled in comparison with the same period of the previous year.

4.10.3 Market forecast

Income remains the most important factor influencing demand for meat. Demand generally increases with higher incomes. However, the relationship is non-linear: at a certain income level, consumption tends to stabilise and then declines at the highest incomes with turns to fish products. Rising incomes also affect the type of meat demanded, with more expensive cuts of meat demanded at higher income levels. In low income situations pork dominates the meat demand by far (as long as there is no cultural preoccupation). With rising incomes beef substitutes pork, and poultry gains importance.

In Vietnam, high income elasticities for meat as well as for milk and milk products and currently low average consumption levels indicate a large potential for growth of demand for livestock products. Since the Vietnamese production is not forecast to keep pace with demand development driven by population and income growth, prices are likely to increase in the medium run. An exception might be the poultry sector where comparatively small investments in high technology production can quickly rise the supply. There exist already joint ventures in that sector with Thai investors in Southern Vietnam.

Page 20 of 20

5. Conclusions and recommendations

The wood market is strongly influenced by governmental regulation. With the sharp reduction of state controlled logging and an export ban on raw materials, wood supply will decline in the future. However, the booming construction sector in Vietnam might set incentives for increased illegal logging. As it is impossible to fully control the "secret market" and 50% of the wood are used locally for construction purposes, unsustainable logging will probably continue. Improved local processing techniques might reduce wastes, thus tapering off the strong local demand for wood.

Programmes to increase the forest cover should not focus on the plantation of pulp material trees, since pulp and paper prices are rapidly decreasing. Private forest farmers will lose confidence in the promoting agents after having experienced an economic disaster with unprofitable species. Since domestic demand for logs and sawnwood for construction is strong and growing, suitable species for such purposes should be identified.

The very prosperous outlooks for the rattan market together with the export ban on unfinished rattan products should be understood as a challenge. To be in line with the export policies and to meet the international demand for high quality all activities aiming at improving rattan processing (technically as well as the design of furniture) promise to be profitable. Parallel to the improvement of processing technology attention should be paid to sustainable production. Much can be learnt from experiences of traditional and improved "rattan gardens" in Kalimantan, Indonesia. Shifting cultivators establish a rattan plantation as a fallow crop in their shifting rotation cycle. In combination with other forest trees (as living poles for the rattan) or even with some appropriate fruit trees, such as jack fruit, ecologically sound land use systems in conjunction with high profitability can be established when intensively promoted. Profitable "fallow" crops also reduce the pressure on land use and can offset the reduction of the fallow period. This production is not bound to the vicinity of main roads, as rattan can easily be transported by horses or ox-carts. Additionally, rattan plantations have an effect on local employment situation through pre-processing activities (removing of thorns).

The suitability of fast growing Aleuritis montana trees as protection forest is offset by its oil with low quality. New plantations should be carried out with Aleuritis fordii species which yield much better oil qualities. Although export markets for tung oil are forecast to decline a growing domestic demand for water resistant paints (with tung oil as ingredient) has to be satisfied.

Shellac production can fill up a moderately growing niche in the world market. However, it is essential to set up production and trade linkages which guarantee steady (not necessarily high) supply and high and constant qualities. Producers will not engage in such niche production if sales are not predictable and transparent.

Similar recommendations have to be made for the prosperous markets of medicinal and aromatic plants, essential oils and food and textile colours. Although a lot of them is gathered from wild grown species, a variety can be cultivated as well. Being a non-bulky product cultivation does not depend entirely on location and infrastructure, although some products need quick processing (drying, distillation). However, the engagement of farmers in that sector depends heavily on the transparency and predictability of the markets. A close collaboration and network between (foreign) processors, traders and producers is an indispensable prerequisite for a constant development of these markets. Such vertical integration should facilitate the exchange of information in the fields of required varieties and qualities, and required quantities as well as improve market transparency through price information. Support of the establishment of tight producer-processor linkages that meet the requirements of the market participants: stable and predictable supply and demand and assured qualities is highly recommended.

Moreover, a variety of these products can be processed locally or regionally. It remains to investigate whether such small or medium scale processing enterprises could be promoted.

The support of the production and marketing of NTFPs with prosperous market outlooks has, in addition, positive ecological effects, as high profits obtained from the forests can set incentives for producers to protect the habitat of the high value plants.

Most of the food crops grown in the region still suffer a low productivity. In conjunction with the dominant subsistence orientation of the producers, it results in a pressure to use most of the soil resources for the production of food, thus contributing to forest depletion and impeding the establishment of ecologically sound perennial plantations. Increasing the productivity of food crops is the challenge to take the land use pressure from the forest areas. However, the improvement needed requires additional inputs such as new varieties, fertilisers, pesticides, improved soil management techniques etc. Since most of the farmers cannot afford the additional inputs, the promotion of profitable cash crops can create the required cash income. Since it is easier to start such programmes with products already in place, initial focus should be placed on the

Page 1 of 2

promotion of crops like maize, mulberry, soybean or groundnuts which face a promising market outlook. The promotion of market oriented pig production can serve the same purpose. Parallel, an agricultural extension service should disseminate the advanced technologies for the improvement of food crop's productivity. Once subsistence needs of the regional population can be assured with less soil resources through higher productivity, farmers can additionally engage in the production of crops with high relative profitability without major food security risks. It remains to investigate whether these crops can contribute to an improved ecological land use as well, and how the economic, institutional and market environment can be tuned or modified to incriminate such crops and cropping systems with positive ecological impacts, such as perennials. However, the subsistence orientation as one strategy of risk minimising of the farmers, who merely have enough experience with liberal markets in Vietnam, is an obstacle for the transformational change of farming systems towards ecologically sustainable farming systems which rely to a large extent on market production.

Despite the growing domestic demand for fruits in the centres, fruit production in the region is restricted to areas in the vicinity of roads. Although there are ambitious fruit promotion programmes in the whole country, there will be a supply deficit in the foreseeable future. Thus, the promotion of integrated fruit plantations("home or forest gardens") is assessed to be economically viable and ecologically sound. Since investment needs can hardly be covered by the rural households, appropriate credit schemes have to be developed. There is still a need for research on the design of credit schemes that facilitate the farmers' decision towards perennial crops. Special attention should also be paid to functioning transport facilities that meet the requirements of growing quantities, vulnerable goods, and in-time collection. In areas which are not served by a sufficient infrastructure it remains to investigate whether local processing units for dried fruits can overcome the transport obstacles and increase relative profitability of fruit crops in these locations. Thus, farmers' decision in crop production and land use can be influenced towards more sustainable production systems.

Albeit coffee and tea plantations have very positive ecological impacts, their profitability for the national economy is questionable, given the saturated world market situation, the actual world market price baisse, and the dull forecast. Actually, both markets are protected in Vietnam. In the framework of a policy to support environmental harmless production, such protection can be justified. However, in the medium run, cost advantages in production and processing will determine Vietnam's export share in the markets of these commodities. That will require an improvement in productivity on the production as well as on the processing side. On the other hand, extraordinary qualities will always find a market. Since Vietnam's coffee production with its robusta varieties cannot meet these requirements, special tea qualities can be produced and should be promoted.

Generally, farmers in the SDW still have very few experiences with market production and marketing. Having experienced the period of the centrally steered economy and taking into account the impacts of high inflation rates in the second half of the eighties, they hardly trust the market mechanisms already. Thus, they still refrain from turning from subsistence production to market orientation. Trust in market mechanisms will increase with reliable trade over time. However, since most of the markets for forest, non timber forest and agricultural products in the SDW are still "buyers" markets, meaning that producers offer their produce at the road side to by-passing collectors, the bargaining power of these producers is low. A functioning market and price information system that reaches the farmers in the region can improve that situation of lacking transparency.

Annex 28 contains an assessment of actual and potential supply and demand of the surveyed products in tabular form.

Page 2 of 2

6. Bibliography

Due to an intermediate translation from Vietnamese language into German the translation of titles into English language might lack accuracy. Deviations from the original titles may be excused.

A. Documents of various Organisations and Institutions (1 - 54)

A1. Central Level (1 - 10)

A.2 Inter-Ministerial/Ministerial Level

1. Government, Implementation of urgent measures for immediate deforestation stop, reference 90 -CT, 19.03.1990.

2. Politburo of the Central Committee of the Communist Party of Vietnam, Socio-economic development in mountainous and minority areas. party decision No. 22 (1991).

3. Peoples's Chamber of Vietnam, Act on Forest Conservation and Development (8 1991).

4. Publishing House for Statistics, 30 years of establishing and developing the forestry sector - 1961-1990, Hanoi, 1991.

5. Publishing House for Statistics, Statistical data on agriculture, forestry and fisheries in Vietnam (1976-1991) - main sectors of production, Hanoi, 1992.

6. Central Committee of the Communist Party of Vietnam, Agricultural development and rural development, resolution of the 5th Central Committee Conference (VII Congress of the Communist Party), 1992.

7. Government, Policy and decree on investments in the utilisation of clearings and logged-off areas, resolution 13-CP, 1993.

8. Government, Regulative on advancement of the agricultural sector (agricultural extension), resolution 13-CP, 1993.

9. Government, Strict administration of recovery, transport and export of timber, reference 462-TTg, 11.09.1993.

10. Government, Regulative on handing over the forestry soils to the organisations, families, persons for the purpose of a sustainable long-term utilisation.

11. State Commission for Prices, Wholesale prices for timber and paper wood, resolution 352/VGNN, 01.10.1985.

12. Ministry of Forestry, Strategic regulatives for a long-term development of forestry, Journal for Forestry (3/1987).

13. Ministry of Forestry, Strategic regulatives for the development of the forestry industry until 2000. Journal for Forestry (3/1987).

14. Ministry of Forestry, Strengthening of export of forestry products, Journal for Forestry (3/1987).

15. State Commission for Prices, Wholesale prices for timber and paper wood, resolution 46/VGNN, 07.06.1988.

16. NAFORIMEX/Ministry of Forestry, Report on the export situation for 1981 - 1989, Hanoi, 1990.

17. Ministry of Forestry, Investment project on the establishment of the economic area for critical conservation at the lake Hoa Binh (Song Da River), 1-1990.

Page 1 of 5

18. State Commission for Science and Technology, Scientific-technical approaches to solving the main problems of implementing the tasks for socio-economic development of the lake district Song Da. Report during the conference on establishment of the economical-technical programme for the Song Da River Basin.

19. NAFORIMEX I./Ministry of Agriculture, Strengthening of the scientific-technical activities related to production and cultivation of special forestry products as a contribution to the socio-economical Development of the Song Da Basin.

20. Ministry of Trade, World market for maize, Information brochure on international economy and trade, No. 8 (4/1990).

21. Ministry of Forestry, Report on results of forest resources inventory all over the country, Hanoi, 1991.

22. Ministry of Forestry/FAO, Tropical forest action plan of Vietnam, Forest Review Project (VIE-88-037), Hanoi, 1991.

23. FIPI/Ministry of Forestry, Project on Establishment of Protection Forest Models in the Basin, on strengthening of possible food supply on the spot, on the organisation of the new life for minorities in Tua Chua District, Lai Chau Province (Hanoi, 1991).

24. Inter-Ministerial Level: Ministry of Forestry, Ministry of Trade, State Planning Committee, Fixing of export list for timber and rattan products, Circular 09-TT/LB, 18.05.1992.

25. Ministry of Forestry, Report on forestry-related activities in 1992, Hanoi, 1993.

26. NAFORIMEX I:/Ministry of Forestry, Report on export and import in 1990-1992, Hanoi, 1993.

27. NAFORIMEX I:/ Ministry of Forestry, Project on Forestry and Agriculture, Settledness of SFE Song Ma, Son La Province, Hanoi, 1-1993.

28. NAFORIMEX I:/ Ministry of Forestry, Project on Forestry and Agriculture, Settledness of SFE Huoi Leng, District Muong La, Province Lai Chau, Hanoi, 3-1993.

29 Ministry of Forestry, Regulative on logging quantities for the provinces in 1993, official dispatch 14/LS-CNR, 08.01.1993.

30. Ministry of Forestry, Realisation of "standing trees' prices", official dispatch 03/KTTC, 17.03.1993.

31. Strict execution of Governmental Regulative 90-CT of 19.03.1992 on timber species belonging to groups I and II. Official dispatch 63/LS-CNR, 25.03.1993.

32. Inter-ministerial Level: State Planning Committee, National Bank, Ministry of Forestry, Ministry of Finance: Regulative for execution of the Government's resolution 264-CT of 22.07.1992 on investment policy for the development of the forests, circular 11 TT/LB, 10.06.1993.

33. Ministry of Forestry, Report on the implementation of forestry-related activities in the first half of 1993.

34. Central Advisory Commission for Inventory of natural forest, clearings and logged off areas, Hanoi, 7-1993.

35. Ministry of Trade, Export of agricultural products of Vietnam (1985 - 1992), Trade Journal (9/1993).

36. Governmental Commission for Minorities and Mountainous Areas, Export of 10.000 t of dried Majok, illustrated information brochure "Minorities and Mountainous Areas" No. 34 (10-1993).

37. Ministry of Trade, Prices of selected world market products (maize, soybeans, cotton, coffee etc.), Market information brochure No 224 (19.10.1993).

38. Ministry of Forestry, Reports No. 38 - 42 from the conference on extension of measures for executing the resolutions of the Central Committee-5 Conference on Forestry (in the Bureau of

Page 2 of 5

A3. Province/District Level (43 - 45)

the Ministry of Forestry, 28.10.-30.10.1993):

Assessment of the realisation of plans and planning regulatives for 1994 - 1995.

39. Ministry of Forestry, Solutions for main problems arising from execution of the resolutions passed on the Central Committee-5 conference on forestry.

40. Programme on Reforestation of clearings and logged-off areas (1993 - 200).

41. Ministry of Forestry, Assessment of forest conservation and administration activities in 1991 - 1993 and tasks, purposes and measures of forest conservation an administration in 1994 - 1995.

42. Ministry of Forestry, Programme for Forest Extension in Forestry.

I. Hoa Binh Province

43. Agricultural Administration of the Province Hoa Binh, Situation assessment and development strategies for agricultural production in the province Hoa Binh in the period of 1991 - 2000, Hoa Binh, 1991.

44. People's District Committee Da Bac (Hoa Binh), Concept for economical development of the district Da Bac for 1992 - 1995 - 2000, Da Bac 7-1992.

45. Statistical Department of Hoa Binh Province, Socio-economic situation in the province Hoa Binh in 1992, Hoa Binh, 1993.

46. Statistical Department of Hoa Binh Province, Data on the socio-economic situation in the province Hoa Binh in 1992, Hoa Binh, 1993.

47. Agricultural Administration of the Province Hoa Binh, Execution plan for the resolutions of the provincial party leadership conference-5 (11th party congress) on a further renewal of agricultural and rural development, Hoa Binh, 1993.

48. Forest Administration of the Province Hoa Binh, Programme on the development of forestry in Hoa Binh until 1995 and 2000, Hoa Binh, 1993.

II. Son La Province (49 - 52)

49. Statistical Department of Son La Province, Statistical annual report of the province Son La 1990, Son La, 1991.

50. Statistical Department of Son La Province, Statistical annual report of the province Son La 1992, Son La, 1993.

51. Party Committee of the District Moc Chau (Son La), Activity Programme of the District's Party committee on realisation of the resolutions of the Central Committee Conference-5 (7th party congress), Moc Chau, 1993.

III. Lai Chau Province (53 - 54)

53. Statistical Department of the Province Lai Chau, Statistical annual report of the province Lai Chau 1990 (1986-1990), Lai Chau, 1991.

54. Statistical Department of the Province Lai Chau, Statistical annual report of the province Lai Chau 1992.

Page 3 of 5

B. Authors (55 - 74)

55. Dot, P. X., Deployment of the results 1986 - 1990 for the purpose of a further all-round renewal as a contribution to the development of forestry.

56. D., N., Coffee on the world market, Information brochure on international economy and trade "Foreign Trade" No. 42 (16.01.1992).

57. Ha, N. Q., The resolutions of the Central Committee-5 Conference on the establishment and development of forestry. Lecture of the Minister of Forestry on the extension congress of measures for executing the resolutions of the Central Committee-5 Conference on Forestry.

58. Khoi, N., Son La Province establishes the activity programme on execution of the resolutions passed on the Central committee-5 Conference, Journal "People", 23.09.1993.

59. K., N. D., Agents firmly believe in the strong tea market, Information brochure on international economy and trade "Foreign Trade" No. 26 (03.08.1992).

60. Lan, N., Chances for oilseed supply, information brochure on international economy and trade "Foreign Trade" No. 42, 1-1992.

61. Loc, T., Required practical measures for the conservation of silkworm culture, information brochure on international economy and trade "Foreign Trade" No. 19 (10-16.05.1993).

62. Nien, T. H., High-productive maize cultures, Agricultural Publishing House Hanoi, 1987.

63. Pho, N. V., Environmental problems related to construction and conservation of the reservoir Hoa Binh. Report on the conference for designing the W-T programme for the Song Da basin, Hanoi, 1990.

64. Quang, V. D., Market research related to main special forestry products in the forest development area (FDA) as a contribution to the elaboration of a special forestry products cooperative model for families to be developed. Research Report Centre for Applied Research on Forestry and Forestry-related Special Products, Hanoi, 1993.

65. Quoc, M., World market for cotton. Information brochure on international economy and trade "Foreign Trade" No. 31 (09.08.1993).

67. Quoc, M., World milk production and foreign trade with dairy products, information brochure on international economy and trade "Foreign Trade" No. 35, 30.08.-05.09.1993.

68. Thuy, H., Coffee of Vietnam, a strength for development, Trade Journal 9-1993.

69. Thuy, T. S., Forestry - 5 years of implementation of renewal policy according to the resolution of the VI. Party Congress, Forestry Journal 6-1991.

70. Tien, L. V., Tropical forest action plan in the field of non-timber forest products, information brochure on special forestry products (1988).

71. Tien, L. V., Situation and perspective of the development of special forestry products in Vietnam. Report on the international conference of FAO/RAPA on "Assistance in the Development of Non-timber Forestry Products in Asia and the Pacific", Bangkok, 1991.

72. Van, H. Silkworm culture sector - an effective means for creating jobs. "Vietnam - Foreign Investment", 01.-15.09.1993.

73. Van, C. H., The north-west area and the problems of settledness. Report on the conference for designing the W-T programme for the Song Da Basin , Hanoi, 1990.

74. Vy, T., Situation in the production, cultivation and development, regulatives on some main special forestry products until 2000. Report of the Department for Forestry and Forest Industry at the Ministry of Forestry, Hanoi, 1991.

75. World Bank, Price prospects for major primary commodities 1990 - 2000, Vol. II, 1993.

Page 4 of 5

Annex 1 List of persons and organisatons consulted

Hoa Binh province:

Son La province:

1 Mr. Dan Vice-Head of Watershed Protection Committee

2 Mr. Dang Vice-Director of Provinvial Forestry Department

3 Mr. Diep Director of Tung-Oil Processing Enterprise

4 Mr. Ding Head of Technical Section of Prov. Forestry Dep.

5 Mrs. Hanh Trader in Ha Dong

6 Mr. Hoang Secretary of Provincial People Committee

7 Mr. Linh Director of Provinvial Forestry Department

8 Mr. Long Director of Provinvial Trade Department

9 Mr. Ngan Farmer in District Luong Son

10 Mr. Qua Farmer in District Da Bac

11 Mr. Quynh Director of Sawmill

12 Mr. Thoc Head of Planning Section of Prov. Agric. Dep.

13 Mr. Thuan Director of SFE Thu Ly

14 Mr. Thuat Head of Statistical Department

15 Mr. Toan Head of Extension Section of Prov. Agric. Dep.

16 Mr. Anh Secretary of Moc Chau Tea Processing Enterprise

17 Mr. Bay Vice-Director of Forest Research Centre

18 Mr. Chien Head of Planning Division of Moc Chau Milk Processing Enterprise

19 Mr. Doan Forest Control Division

20 Mr. Dung Vice-President of Provincial People Committee

21 Mr. Hai Head of District Forst Control Moc Chau

22 Mr. A. Hong Forest Science Institute

23 Mr. Hong Dairy Farmer in District Moc Chau

24 Mr. K. Hung Vice-Director of Provincial Forest Control Division

25 Mr. Hung Director of Coffee Processing Enterprise

26 Mr. Luong Vice-Director of Provincial Forestry Department

27 Mrs. Minh Farmer in District Mai Son

28 Mr. Moc Head of Rural Production Section of Prov. Forestry Dep.

29 Mr. Nhu Vice-Director of SFE Moc Chau

Page 1 of 2

Lai Chau province:

30 Mr. Phuc Vice-Director of SFE Muong La

31 Mr. Soi Director of SFE Muong La

32 Mr. Than Farmer in District Mai Son

33 Mr. Thon Vice-Director of SFE Mai Son

34 Mr. Tiu future Head of Extension Section of Prov. Forestry Dep.

35 Mr. Toan Head of Technical Section of Prov. Forestry Dep.

36 Mrs. Tom Provincial Forestry Department

37 Mr. Tu Vice-President of District People Committee Yen Chau

38 Mr. Tuan Director of Agroforestry Technical High School Mai Son

39 Mr. Ve Director of Forest Research Centre

40 Mr. Vo Planning Section, Provincial Forestry Department

41 Vu Economic Section of Prov. Forestry Dep.

42 Mr. An Vice-President of District People Committee Phong To

43 Mr. Cat Director of Provincial Agricultural Department

44 Mr. Chien Farmer in District Muong Lay

45 Mr. L. Chien Vice-President of District People Committee Sinh Ho

46 Mr. Chu Vice-Head of Planning Section of Prov. Forestry Dep.

47 Mr. Chua Director of SFE for Special Forest Products

48 Mr. Hai Vice-Director of Provincial Forestry Department

49 Mr. Hong Director of Provincial Forestry Department

50 Mr. Nghia Head of Planning Section of Prov. Agric. Dep.

51 Mr. Phu Vice-Director of Provincial Agricultural Department

52 Mr. Quy Director of Coffee Processing Enterprise Dien Bien

53 Mr. Son Head of Technical Section SFE Lai Chau

54 Mr. Sinh Vice-President of District People Committee Tua Chua

55 Mr. Thong Director of SFE Tuan Giao

56 Mr. Vien President of District People Committee Tam Duong

Page 2 of 2

Annex 2 State controlled log exploitation

['000 cbm]

Sources:

� Provincial Statistical Yearbooks � 30 Years Construction and Development of the Forestry 1961-1990 MOF, Statistical Publishing House, 1991

Province 1986 1987 1988 1989 1990 1991 Total

Lai Chau 115 142 120 117 115 117 726

Son La 63 104 68 94 91 84 504

Hoa Binh 60 67 59 58 51 46 341

Whole Region 238 313 247 269 257 248 1,571

Vietnam 3,393 3,709 3,383 3,262 3,446 3,364 20,556

Regional Share 7% 8% 7% 8% 7% 7% 8%

Page 1 of 1

Annex 3 Accounting wholesale prices for round logs in the North West region

Decision No. 352/VGNN-BB dated 30.09.1985 (A2 - 11) [current VND/m3 ]

Quality Length (m)

Quality Length (m)

Diameter 1-2,4 2,5-3,9 > 4 Diameter 1-2,4 2,5-3,9 > 4

(cm) (cm)

1st group 5th group

20 - 24 4,400 4,760 5,500 20 - 24 540 580 680

25 - 34 5,130 6,230 6,960 25 - 34 630 770 860

35 - 44 6,230 7,330 8,060 35 - 44 770 900 990

45 - 54 6,960 8,060 8,800 45 - 54 860 990 1,080

55 - 64 7,330 8,430 9,160 55 - 64 900 1,041 1,130

> 65 7,700 8,800 9,350 > 65 950 1,080 1,170

2nd group 6th group

20 - 24 2,870 3,110 3,590 20 - 24 380 420 480

25 - 34 3,350 4,070 4,550 25 - 34 450 540 610

35 - 44 4,070 4,790 5,270 35 - 44 540 640 700

45 - 54 4,550 5,270 5,750 45 - 54 610 700 770

55 - 64 4,790 5,510 5,990 55 - 64 640 740 800

> 65 5,030 5,750 6,230 > 65 670 770 830

3rd group 7th group

20 - 24 1,800 1,950 2,250 20 - 24 310 380 380

25 - 34 2,100 2,550 2,850 25 - 34 360 430 480

35 - 44 2,550 3,000 3,300 35 - 44 430 510 500

45 - 54 2,850 3,300 3,600 45 - 54 480 560 610

55 - 64 3,000 3,450 3,750 55 - 64 510 590 640

> 65 3,450 3,600 3,900 > 65 540 610 660

4th group 8th group

20 - 24 850 920 1,060 20 - 24 260 290 330

25 - 34 990 1,200 1,340 25 - 34 310 370 420

35 - 44 1,200 1,410 1,550 35 - 44 370 440 480

Page 1 of 3

45 - 54 1,340 1,550 1,690 45 - 54 420 480 530

55 - 64 1,410 1,620 1,780 55 - 64 440 510 550

> 65 1,440 1,690 1,830 > 65 450 530 570

Quality Length (m)

Quality Length (m)

Diameter 1-2,4 2,5-3,9 > 4 Diameter 1-2,4 2,5-3,9 > 4

(cm) (cm)

1st group 5th group

20 - 24 104,500 135,800 156,700 20 - 24 14,800 17,700 20,400

25 - 34 146,300 177,600 198,500 25 - 34 19,000 23,600 25,800

35 - 44 177,600 209,000 229,800 35 - 44 23,600 27,200 29,900

45 - 54 198,500 223,800 250,700 45 - 54 25,800 29,900 32,600

55 - 64 209,000 240,300 261,200 55 - 64 27,200 31,200 34,000

> 65 219,400 270,800 271,700 > 65 28,500 32,600 35,300

2nd group 6th group

20 - 24 62,700 81,500 94,000 20 - 24 10,500 13,600 15,700

25 - 34 87,800 106,600 119,100 25 - 34 14,600 17,800 19,900

35 - 44 106,600 125,900 137,900 35 - 44 17,500 20,900 23,000

45 - 54 119,100 137,900 150,400 45 - 54 19,900 23,000 25,100

55 - 64 125,400 144,200 156,700 55 - 64 20,900 24,000 26,100

> 65 131,600 150,400 163,000 > 65 21,900 25,100 27,200

3rd group 7th group

20 - 24 41,800 54,300 62,700 20 - 24 8,400 10,900 12,500

25 - 34 58,500 71,100 79,400 25 - 34 4,700 14,200 15,900

35 - 44 71,100 83,600 91,900 35 - 44 14,200 16,700 18,400

45 - 54 79,400 91,900 100,300 45 - 54 15,900 18,400 20,100

55 - 64 83,600 96,100 104,500 55 - 64 16700 19,200 20,900

> 65 87,800 108,700 108,700 > 65 17500 20,100 21,700

4th group 8th group

20 - 24 20,900 31,300 31,300 20 - 24 7300 9,500 11,000

25 - 34 29,300 39,700 39,700 25 - 34 10,200 12,400 13,900

Page 2 of 3

35 - 44 35,500 31,300 46,000 35 - 44 12,400 14,600 16,100

45 - 54 39,700 39,700 50,200 45 - 54 13,900 16,400 17,600

55 - 64 41,800 31,300 52,200 55 - 64 14,000 16,800 18,300

> 65 43,900 39,700 54,300 > 65 15,400 17,000 19,000

Page 3 of 3

Annex 4 Sawnwood production

[cbm]

Sources:

� Provincial Statistical Yearbooks � 30 Years Construction and Development of the Forestry 1961-1990 MOF, Statistical Publishing House, 1991

Province 1986 1987 1988 1989 1990 1991 Total

Lai Chau 1,215 597 1,018 849 540 802 5021

Son La 4,139 3,013 650 1,100 850 866 10618

Hoa Binh 3,048 3,735 2,573 1,733 2,100 2,135 15324

Whole region 8,402 7,305 4,241 3,682 3,400 3,803 30963

Vietnam 308,514 264,720 236,258 162,081 194,724 199,120 1365417

Regional Share 3% 3% 2% 2% 2% 2% 0.022676589

Page 1 of 1

Annex 5 Fuelwood exploitation of state units by provinces

'000 steres ]

Sources: Provincial Statistical Yearbooks

Province 1986 1987 1988 1989 1990 1991

Hoa Binh 1,093 1,111 1,102 1,098 1,133 1,076

Son La 1,016 1,248 1,098 1,183 1,102 1,128

Lai Chau 531 1,261 1,189 1,197 1,191 1,193

Region 2,640 3,620 3,389 3,478 3,426 3,397

Vietnam 28,395 31,021 29,818 30,833 32,054 30,640

Share of Region 9% 12% 11% 11% 11% 11%

Page 1 of 1

Annex 7 Officially registered food crop area and production in rice equivalents

[ ha ] - [ t ]


1986 1987 1988 1989 1990 1991 1992 Average

Hoa Binh

Area 75,557 71,503 82,347 79,601 72,220 77,184 72,437 75,836

Production 131,294 129,530 130,005 153,527 133,406 133,833 133,578 135,025

Son La Area 84,588 78,303 81,483 80,227 79,811 86,106 83,823 82,049

Production 150,948 122,549 164,750 169,537 145,162 166,003 153,292 153,177

Lai Chau

Area 75,454 78,155 81,892 81,444 81,610 84,531 84,270 81,051

Production 136,452 119,824 147,711 151,173 118,801 149,297 151,946 139,315

Region Area 235,599 227,961 245,722 240,272 233,641 247,135 240,530 238,694

Production 418,694 371,903 442,446 474,237 397,369 449,135 438,816 427,514

Page 1 of 1

Annex 8 Officially registered rice area and production in Hoa Binh [paddy + upland rice]


District 1986 1987 1988 1989 1990 1991

Area [ ha ]

Thi xa 384 429 1,118 1,207 943 1,272

Da Bac 3,962 3,390 3,644 2,958 2,940 2,495

Mai Chau 3,342 3,165 3,283 2,685 3,229 3,222

Tan Lac 6,741 6,418 6,448 6,517 6,559 6,113

Lac Son 10,158 9,414 9,731 10,394 10,259 10,183

Ky Son 5,058 4,645 4,905 4,689 3,948 3,898

Luong Son 5,429 5,318 5,353 5,237 5,197 5,197

Kim Boi 8,866 8,477 9,124 9,450 9,308 9,698

Lac Thuy 2,418 2,418 2,733 2,714 2,844 2,801

Yen Thuy 3,924 3,264 2,953 3,404 3,605 3,324

Total 50,282 46,938 49,292 49,255 48,832 48,203

Production [ t ]

Thi xa 801 812 2,513 2,982 2,409 1,711

Da Bac 4,460 4,613 4,086 3,904 2,962 3,010

Mai Chau 6,982 6,127 5,695 5,978 6,032 6,361

Tan Lac 11,754 11,747 9,949 12,535 12,596 11,950

Lac Son 19,849 20,088 16,160 25,456 23,025 22,140

Ky Son 10,530 9,790 8,367 10,374 8,198 8,583

Luong Son 11,325 10,866 10,224 11,867 11,651 9,249

Kim Boi 16,056 16,554 15,752 20,600 19,023 16,814

Lac Thuy 3,088 4,028 3,270 3,795 4,408 3,742

Yen Thuy 4,645 4,917 2,419 6,126 5,619 4,217

Total 89,490 89,542 78,435 103,617 95,923 87,777

Page 1 of 1

Annex 9 Officially registered rice area and production in Son La by districts [paddy + upland rice]


District 1986 1987 1988 1989 1990 1991 1992

Area [ ha ]

Thi xa 2,024 1,871 1,717 1,868 1,859 4,399 4,772

Quynh Nhai 2,871 2,462 2,756 2,491 2,530 2,532 2,362

Thuan Chau 10,025 8,579 9,449 9,318 8,878 9,517 9,412

Muong La 3,939 3,994 3,595 4,137 4,173 4,074 3,502

Song Ma 9,666 6,828 8,769 10,622 11,377 11,434 11,324

Mai son 5,578 5,101 5,129 5,049 4,820 4,876 5,692

Bac Yen 4,007 4,024 3,766 2,767 3,183 3,225 3,252

Yen Chau 3,854 3,363 3,141 3,077 4,818 4,440 2,474

Phu Yen 6,445 5,562 5,251 4,872 3,270 9,041 4,189

Moc Chau 6,206 5,410 4,674 4,924 4,865 4,910 4,398

Total 54,616 47,194 48,247 49,125 49,773 50,965 48,380

Production [ t ]

Thi xa 4,051 2,726 4,563 5,177 4,852 4,654 4,404

Quynh Nhai 4,346 4,256 5,241 4,515 3,278 4,402 3,265

Thuan Chau 15,515 13,220 15,710 17,587 13,915 17,769 17,887

Muong La 4,417 5,974 6,417 7,278 4,970 6,465 4,482

Song Ma 15,814 12,422 15,225 18,020 17,458 18,260 15,879

Mai Son 8,099 5,017 8,947 9,303 5,023 8,209 3,888

Bac Yen 4,491 3,978 4,444 3,792 3,004 3,461 2,736

Yen Chau 5,850 4,215 5,370 5,638 9,837 5,918 4,388

Phu Yen 10,604 10,961 11,060 10,995 4,533 9,730 11,280

Moc Chau 7,725 6,378 6,362 8,100 5,942 4,078 5,302

Total 81,012 69,147 83,339 90,405 72,812 83,546 73,511

Page 1 of 1

Annex 10 Officially registered rice area and production in Lai Chau by districts

District 1986 1987 1988 1989 1990 1991 1992

paddy upland paddy upland paddy upland paddy upland paddy upland paddy upland paddy upland

Area [ ha ]

Thi xa LC 192 75 199 75 222 150 202 320 156 320 97 180 122 102

Dien Bien 7,083 6,609 7,466 9,756 7,553 10,445 5,599 10,447 7,658 10,800 7,991 11,113 7,927 11,176

Tuan Giao 2,936 3,303 2,910 3,300 3,051 3,340 2,931 3,340 2,964 3,598 3,050 3,480 2,904 3,505

Fong Tho 3,298 2,479 3,494 2,100 3,549 2,213 3,535 2,213 3,468 2,338 3,560 2,064 3,454 2,065

Sin Ho 1,411 2,886 1,447 2,896 1,466 2,946 1,462 2,946 1,478 3,585 1,548 3,025 1,579 3,025

Muong Lay 1,352 2,057 1,342 2,276 1,336 2,549 1,346 2,549 1,068 2,360 1,022 2,936 1,168 2,807

Muong Te 1,196 2,511 1,171 2,142 1,174 2,329 1,083 2,329 1,031 3,009 1,129 2,445 1,064 2,744

Tua Chua 1,122 2,254 1,047 2,000 1,233 2,325 1,141 2,325 1,127 2,641 1,114 250 1,129 2,582

Total 18,590 22,174 19,076 24,545 19,584 26,297 17,299 26,469 18,950 28,651 19,511 25,493 19,347 28,006

40,764 43,621 45,881 43,768 47,601 45,004 47,353

Production [t]

Thi xa LC 723 38 622 60 610 180 687 384 447 54 393 180 396 816

Dien Bien 21,842 8,446 20,881 8,962 24,879 12,963 27,213 13,832 24,321 9,171 27,021 13,534 313,711 13,009

Tuan Giao 7,425 3,951 6,604 3,532 7,651 4,147 7,422 4,348 7,800 2,260 8,641 3,536 9,091 3,920

Fong Tho 9,682 2,876 9,114 2,379 10,272 2,584 10,220 2,763 5,842 1,934 9,723 2,208 10,389 2,263

Sin Ho 3,891 3,706 3,483 3,476 3,760 3,780 3,798 3,831 3,288 1,584 3,054 2,615 3,326 2,722

Muong Lay 3,986 2,810 3,937 4,188 3,866 4,564 4,055 3,287 2,842 1,678 3,111 3,156 4,060 3,238

Muong Te 3,061 2,631 3,127 2,400 3,027 2,445 2,841 2,662 2,692 1,180 2,189 2,445 2,108 2,838

Tua Chua 3,104 3,037 2,680 2,180 2,740 2,733 2,882 1,946 2,070 1,609 2,618 2,055 2,694 2,144

Total 53,714 27,495 50,448 27,177 56,805 33,396 59,118 33,053 49,302 19,470 56,750 29,729 345,775 30,950

81,209 77,625 90,201 92,171 68,772 86,479 376,725

Page 1 of 1

Annex 11 Rice price quotations in 1993

Retail prices in Can Tho province town

Source: "Market and Price", several editions

1-Sep 13-Oct 2-Nov 1-Dec 8-Dec Average

Ordinary Paddy VND/kg 1,030 1,000 1,050 1,150 1,150 1,076

Special Paddy VND/kg 1,300 1,400 1,400 1,550 1,550 1,440

Ordinary Rice VND/kg 1,900 1,700 1,800 2,000 2,000 1,880

White Rice (5%) VND/kg 2,200 2,200 2,200 2,300 2,300 2,240

Special Rice VND/kg 2,700 2,800 2,800 2,800 2,800 2,780

Glutinous rice VND/kg 3,000 3,000 3,000 3,000 3,000 3,000

Rice Bran VND/kg 1,550 1,300 1,400 1,450 1,500 1,440

Retail Prices Hanoi

6-Dec 29-Nov 1-Nov 3-Oct 30-Aug Average

Ordinary rice VND/kg 1,700 1,700 1,700 1,750 1,800 1,730

Special rice VND/kg 3,800 3,800 3,800 3,800 3,800 3,800

Glutinous rice VND/kg 3,000 3,000 3,000 3,000 2,800 2,960

Export Prices FOB

5-Dec 29-Nov 26-Oct 27-Sep 25-Aug 34176

White rice (5%) US$/ton 235 238 220 203 220 210

White rice (10%) US$/ton 232 230 208 190 190 190

Page 1 of 1

Annex 12 Officially registred maize area and production in Hoa Binh


District 1986 1987 1988 1989 1990 1991

Area [ ha ]

Thi xa 41 45 384 182 299 287

Da Bac 1,038 1,004 1,014 1,686 641 824

Mai Chau 1,140 1,208 1,375 992 1,076 1,286

Tan Lac 911 953 1,403 1,252 734 1,784

Lac Son 1,090 1,329 3,253 2,140 1,568 1,915

Ky Son 611 451 745 473 432 1,021

Luong Son 250 313 590 554 435 649

Kim Boi 642 761 1,474 1,639 1,260 1,697

Lac Thuy 399 394 919 1,206 737 825

Yen Thuy 330 459 217 1,015 904 1,006

Total 6,452 6,917 11,374 11,139 8,086 11,294

Production [ t ]

Thi xa 52 27 286 148 328 206

Da Bac 882 693 817 745 501 469

Mai Chau 798 870 973 695 861 1,099

Tan Lac 475 467 812 732 392 947

Lac Son 700 891 3,253 2,794 1,742 1,453

Ky Son 742 396 895 576 521 1,317

Luong Son 202 346 909 781 468 868

Kim Boi 556 651 1,378 1,629 1,057 1,546

Lac Thuy 396 400 847 1,003 911 1,066

Yen Thuy 155 343 721 649 558 546

Total 4,958 5,084 10,891 9,752 7,339 9,517

Page 1 of 1

Annex 13 Officially registred maize area and production in Son La by districts


District 1986 1987 1988 1989 1990 1991 1992

Area [ ha ]

Thi xa 620 641 537 600 601 862 876

Quynh Nhai 534 392 492 480 500 713 843

Thuan Chau 2,120 2,808 2,915 2,857 2,776 2,861 2,785

Muong La 820 1,140 1,145 1,189 1,244 1,217 1,220

Song Ma 939 1,378 1,228 1,165 924 1,636 1,675

Mai son 1,675 1,715 1,735 1,788 1,939 2,024 1,981

Bac Yen 1,572 1,721 1,647 1,072 1,363 1,356 1,611

Yen Chau 1,609 2,190 2,258 2,585 1,396 3,356 3,108

Phu Yen 950 956 1,180 993 2,100 1,455 1,755

Moc Chau 2,158 2,827 2,741 2,985 3,644 3,272 3,725

Total 12,997 15,768 15,878 15,714 16,487 18,752 19,579

Production [t]

Thi xa 771 419 591 750 905 1,620 1,489

Quynh Nhai 673 233 616 672 625 1,027 520

Thuan Chau 3,891 1,416 3,501 3,980 3,609 3,858 1,822

Muong La 820 798 1,131 1,307 1,372 1,314 1,098

Song Ma 1,382 184 1,737 1,747 1,372 2,454 2,178

Mai Son 2,640 741 3,808 3,243 3,667 4,190 2,471

Bac Yen 1,840 1,728 2,106 1,361 1,594 1,643 1,611

Yen Chau 2,408 2,609 4,038 4,394 1,348 5,034 5,341

Phu Yen 735 748 1,410 1,241 2,730 1,486 1,877

Moc Chau 3,239 3,613 4,030 4,375 6,464 6,338 6,538

Total 18,399 12,489 22,968 23,070 23,686 28,964 24,945

Page 1 of 1

Annex 14 Officially registred maize area and production in Lai Chau by districts


District 1986 1987 1988 1989 1990 1991 1992

Area [ ha ]

Thi xa 82 104 114 65 56 140 104

Dien Bien 5,061 5,284 5,968 5,864 5,965 6,432 6,665

Tuan Giao 3,049 3,190 3,459 3,408 3,600 3,634 3,580

Phong Tho 4,078 4,182 4,024 4,174 4,226 4,369 4,324

Sin Ho 3,888 3,904 3,952 3,995 4,026 4,030 4,145

Muong Lay 2,365 2,368 2,636 2,636 2,635 2,781 2,731

Muong Te 1,425 1,400 1,342 1,461 1,048 950 1,149

Tua Chua 5,344 5,300 5,087 4,830 4,565 4,713 3,314

Total 25,291 25,732 26,581 26,433 26,122 27,049 26,012

Production [ t ]

Thi xa 90 4 140 67 59 144 107

Dien Bien 6,159 4,065 7,280 8,497 8,509 10,288 10,553

Tuan Giao 4,574 2,048 4,877 4,724 4,814 5,007 4,937

Phong Tho 5,213 4,406 4,828 5,176 5,283 5,187 4,213

Sin Ho 4,160 4,099 4,255 4,395 3,428 3,828 3,731

Muong Lay 3,559 1,070 3,453 3,848 3,742 4,079 3,975

Muong Te 1,232 744 968 1,242 702 950 1,011

Tua Chua 3,874 2,523 5,779 5,506 3,125 4,844 3,148

Total 28,862 18,960 31,580 33,453 29,661 34,327 31,675

Page 1 of 1

Annex 15 Officially registred cassava area and production in Hoa Binh

District 1986 1987 1988 1989 1990 1991

Area [ha]

Thi xa 120 110 360 336 137 316

Da Bac 1,622 1,700 2,150 2,130 1,665 2,127

Mai Chau 2,880 2,500 2,954 2,110 2,100 2,127

Tan Lac 1,519 1,485 1,818 1,792 1,248 1,410

Lac Son 2,121 2,060 2,163 2,493 2,010 2,010

Ky Son 2,228 2,050 2,122 1,929 731 1,177

Luong Son 1,114 1,074 1,100 1,121 987 927

Kim Boi 1,447 1,078 1,354 1,354 1,064 1,202

Lac Thuy 1,002 752 956 1,052 966 1,060

Yen Thuy 333 303 373 420 482 381

Total 14,386 13,112 15,350 14,737 11,390 12,737

Production [t]

Thi xa 720 507 2,140 2,016 822 1,896

Da Bac 12,193 11,897 13,975 15,336 11,656 15,576

Mai Chau 20,160 16,250 20,681 14,775 13,650 15,952

Tan Lac 11,666 9,682 12,153 11,679 9,104 9,272

Lac Son 9,666 9,768 10,815 12,465 11,055 11,220

Ky Son 16,377 15,196 15,195 15,392 5,443 10,881

Luong Son 8,282 7,730 8,228 10,280 8,478 8,559

Kim Boi 9,316 7,657 9,088 9,275 6,706 7,401

Lac Thuy 4,611 4,889 6,086 6,417 5,797 6,358

Yen Thuy 1,675 1,457 2,134 2,196 243 1,672

Total 94,666 85,033 100,495 99,831 72,954 88,787

Productivity [t/ha]

Thi xa 6.0 4.6 5.9 6.0 6.0 6.0

Da Bac 7.5 7.0 6.5 7.2 7.0 7.3

Mai Chau 7.0 6.5 7.0 7.0 6.5 7.5

Page 1 of 2


Tan Lac 7.7 6.5 6.7 6.5 7.3 6.6

Lac Son 4.6 4.7 5.0 5.0 5.5 5.6

Ky Son 7.4 7.4 7.2 8.0 7.4 9.2

Luong Son 7.4 7.2 7.5 9.2 8.6 9.2

Kim Boi 6.4 7.1 6.7 6.9 6.3 6.2

Lac Thuy 4.6 6.5 6.4 6.1 6.0 6.0

Yen Thuy 5.0 4.8 5.7 5.2 0.5 4.4

Average 6.4 6.2 6.5 6.7 6.1 6.8

Page 2 of 2

Annex 16 Officially registred cassava area and production in Son La by districts


District 1986 1987 1988 1989 1990 1991 1992

Area [ ha ]

Thi xa 630 713 1,114 903 821 927 842

Quynh Nhai 452 397 639 650 649 620 602

Thuan Chau 2,302 2,276 2,373 2,386 2,454 2,636 2,645

Muong La 1,498 1,418 1,869 1,465 1,516 1,679 1,600

Song Ma 1,122 1,584 1,691 1,859 1,200 1,639 2,229

Mai Son 1,465 1,076 1,625 1,172 1,361 1,346 1,348

Bac Yen 336 376 331 500 251 267 269

Yen Chau 1,173 1,130 1,240 1,295 1,123 1,996 1,546

Phu Yen 883 1,043 1,212 1,116 1,100 1,256 1,400

Moc Chau 1,219 1,195 1,324 1,359 1,200 1,200 1,230

Total 11,080 11,208 13,418 12,705 11,675 13,566 13,711

Production [ t ]

Thi xa 7,560 6,417 13,368 11,648 10,263 11,124 10,104

Quynh Nhai 458 4,654 7,348 7,800 786 7,378 7,103

Thuan Chau 21,885 18,389 24,205 25,055 31,902 31,896 23,805

Muong La 13,258 11,741 14,952 15,382 15,465 15,951 15,200

Song Ma 13,294 9,938 19,954 18,598 12,360 16,718 24,519

Mai Son 17,137 6,343 14,787 11,720 13,608 12,787 12,806

Bac Yen 3,046 4,348 4,639 7,000 3,372 3,195 3,276

Yen Chau 14,408 14,866 17,980 12,930 11,791 14,000 16,233

Phu Yen 9,454 11,160 13,089 11,160 11,220 12,369 14,700

Moc Chau 10,975 10,955 12,843 16,236 14,400 15,000 15,375

Total 111,475 98,811 143,165 137,529 125,167 140,418 143,121

Productivity [ t/ha ]

Thi xa 12.0 9.0 12.0 12.9 12.5 12.0 12.0

Quynh Nhai 1.0 11.7 11.5 12.0 1.2 11.9 11.8

Thuan Chau 9.5 8.1 10.2 10.5 13.0 12.1 9.0

Muong La 8.9 8.3 8.0 10.5 10.2 9.5 9.5

Song Ma 11.8 6.3 11.8 10.0 10.3 10.2 11.0

Mai Son 11.7 5.9 9.1 10.0 10.0 9.5 9.5

Bac Yen 9.1 11.6 14.0 14.0 13.4 12.0 12.2

Yen Chau 12.3 13.2 14.5 10.0 10.5 7.0 10.5

Phu Yen 10.7 10.7 10.8 10.0 10.2 9.8 10.5

Moc Chau 9.0 9.2 9.7 11.9 12.0 12.5 12.5

Average 9.6 9.4 11.2 11.2 10.3 10.7 10.8

Page 1 of 1

Annex 17 Officially registred cassava area and production in Lai Chau


District 1986 1987 1988 1989 1990 1991 1992

Area [ ha ]

Thi xa 135 76 134 40 38 100 152

Dien Bien 1,722 1,310 1,572 1,674 1,492 1,576 1,630

Tuan Giao 1,780 1,839 2,198 2,433 2,349 2,676 2,700

Phong Tho 759 645 697 779 788 913 970

Sin Ho 273 269 2,673 241 245 430 680

Muong Lay 948 955 960 409 380 643 1,045

Muong Te 1,058 1,010 1,065 1,128 914 1,189 1,397

Tua Chua 100 150 101 183 71 112 190

Total 6,774 6,253 9,400 6,888 6,277 7,639 8,764

Production [t]

Thi xa 1,836 378 690 362 349 900 1,368

Dien Bien 15,329 11,550 14,053 13,265 11,839 12,529 12,860

Tuan Giao 14,321 12,869 17,428 19,612 18,919 19,323 20,098

Phong Tho 6,072 6,400 5,864 6,528 6,383 7,750 8,160

Sin Ho 3,906 3,823 3,798 3,435 3,491 6,106 8,100

Muong Lay 9,995 9,101 9,110 3,681 3,238 6,544 10,450

Muong Te 11,050 11,211 11,625 11,280 9,414 13,077 10,949

Tua Chua 945 148 963 1,752 713 1,140 1,900

Total 63,453 55,479 63,532 59,915 54,345 67,369 73,885

Productivity [t/ha]

Thi xa 13.6 5.0 5.1 9.0 9.2 9.0 9.0

Dien Bien 8.9 8.8 8.9 7.9 7.9 7.9 7.9

Tuan Giao 8.0 7.0 7.9 8.1 8.1 7.2 7.4

Phong Tho 8.0 9.9 8.4 8.4 8.1 8.5 8.4

Sin Ho 14.3 14.2 1.4 14.2 14.2 14.2 11.9

Muong Lay 10.5 9.5 9.5 9.0 8.5 10.2 10.0

Muong Te 10.4 11.1 10.9 10.0 10.3 11.0 7.8

Tua Chua 9.5 1.0 9.5 9.6 10.0 10.2 10.0

Average 10.4 8.3 7.7 9.5 9.5 9.8 9.1

Page 1 of 1

Annex 18 Officially registred soy bean area and production in Hoa Binh


District 1986 1987 1988 1989 1990 1991

Area [ ha ]

Thi xa 5 20 n.a. n.a. n.a. 29

Da Bac 25 274 19 32 58 28

Mai Chau n.a. 37 n.a. n.a. 120 89

Tan Lac 16 640 5 n.a. n.a. n.a.

Lac Son 357 1,223 488 442 700 1,000

Ky Son 265 502 56 30 86 161

Luong Son 66 397 14 6 5

Kim Boi 33 640 54 5

Lac Thuy 57 293 24 4 523 65

Yen Thuy 233 514 317 420 3 725

Total 1,057 4,540 977 933 1,496 2,102

Production [t]

Thi xa 3 7 n.a. n.a. n.a. 17

Da Bac 10 144 19 25 37 48

Mai Chau n.a. 12 n.a. n.a. 120 36

Tan Lac 10 57 2 n.a. n.a. n.a.

Lac Son 284 879 317 398 560 930

Ky Son 207 259 34 26 51 105

Luong Son 38 52 4 n.a. 10 4

Kim Boi 15 224 27 2 n.a. n.a.

Lac Thuy 42 61 7 3 340 17

Yen Thuy 145 400 245 327 27 492

Total 754 2,095 655 781 1,145 1,649


Thi xa 0.6 0.4 0.6

Da Bac 0.4 0.5 1.0 0.8 0.6 1.7

Mai Chau 0.3 1.0 0.4

Tan Lac 0.6 0.1 0.4

Lac Son 0.8 0.7 0.6 0.9 0.8 0.9

Ky Son 0.8 0.5 0.6 0.9 0.6 0.7

Luong Son 0.6 0.1 0.3 1.7 0.8

Kim Boi 0.5 0.4 0.5 0.4

Lac Thuy 0.7 0.2 0.3 0.8 0.7 0.3

Yen Thuy 0.6 0.8 0.8 0.8 9.0 0.7

Average 0.6 0.4 0.6 0.7 2.0 0.8

Page 1 of 1

Annex 19 Officially registred soy bean area and production in Son La


District 1986 1987 1988 1989 1990 1991 1992

Area [ ha ]

Thi xa 99 502 108 116 34 79 54

Quynh Nhai 8 9 10 22 3 25

Thuan Chau 56 528 404 320 137 245 424

Muong La 310 457 416 28 79 119 110

Song Ma 638 486 881 720 1,381 1,215 1,500

Mai Son 333 566 706 680 535 745 670

Bac Yen 117 218 199 195 33 90 54

Yen Chau 216 173 321 470 579 492 481

Phu Yen 263 299 413 246 496 911 828

Moc Chau 263 301 136 199 210 220 175

Total 2,303 3,539 3,584 2,984 3,506 4,119 4,321

Production [ t ]

Thi xa 51 97 54 51 17 42 27

Quynh Nhai 5 2 4 9 1 10

Thuan Chau 19 238 206 192 76 187 269

Muong La 121 217 179 114 36 58 55

Song Ma 360 243 489 412 798 753 900

Mai Son 185 149 336 331 226 367 354

Bac Yen 65 38 94 92 14 40 30

Yen Chau 104 66 129 204 272 290 241

Phu Yen 173 163 274 134 217 636 535

Moc Chau 200 192 96 146 160 163 132

Total 1,283 1,405 1,857 1,680 1,825 2,537 2,553


Thi xa 0.5 0.2 0.5 0.4 0.5 0.5 0.5

Quynh Nhai 0.6 0.2 0.4 0.4 0.3 0.4

Thuan Chau 0.3 0.5 0.5 0.6 0.6 0.8 0.6

Muong La 0.4 0.5 0.4 4.1 0.5 0.5 0.5

Song Ma 0.6 0.5 0.6 0.6 0.6 0.6 0.6

Mai Son 0.6 0.3 0.5 0.5 0.4 0.5 0.5

Bac Yen 0.6 0.2 0.5 0.5 0.4 0.4 0.6

Yen Chau 0.5 0.4 0.4 0.4 0.5 0.6 0.5

Phu Yen 0.7 0.5 0.7 0.5 0.4 0.7 0.6

Moc Chau 0.8 0.6 0.7 0.7 0.8 0.7 0.8

Average 0.5 0.4 0.5 0.9 0.5 0.6 0.6

Page 1 of 1

Annex 20 Officially registred soy bean area and production in Lai Chau


District 1986 1987 1988 1989 1990 1991 1992

Area [ ha ]

Thi xa 1 3 4 4 3 3 4

Dien Bien 203 246 178 213 205 123 155

Tuan Giao 433 526 522 762 837 862 873

Phong Tho 423 446 462 469 442 507 528

Sin Ho 352 276 301 268 269 115 105

Muong Lay 205 187 147 24 175 199 219

Muong Te 170 130 121 241 78 54 28

Tua Chua 307 500 500 246 190 260 255

Total 2,093 2,314 2,234 2,226 2,198 2,123 2,167

Production [ t ]

Thi xa 0 0 1 0 1 1 3

Dien Bien 128 145 109 161 155 97 126

Tuan Giao 163 170 313 430 542 560 541

Phong Tho 275 290 277 309 283 358 380

Sin Ho 151 120 132 123 121 52 68

Muong Lay 113 100 49 17 87 58 163

Muong Te 111 65 73 168 48 35 17

Tua Chua 101 160 165 72 40 91 94

Total 1,041 1,050 1,118 1,280 1,277 1,252 1,392


Thi xa 0.2 0.1 0.2 0.1 0.2 0.2 0.7

Dien Bien 0.6 0.6 0.6 0.8 0.8 0.8 0.8

Tuan Giao 0.4 0.3 0.6 0.6 0.6 0.6 0.6

Phong Tho 0.6 0.7 0.6 0.7 0.6 0.7 0.7

Sin Ho 0.4 0.4 0.4 0.5 0.5 0.5 0.6

Muong Lay 0.6 0.5 0.3 0.7 0.5 0.3 0.7

Muong Te 0.7 0.5 0.6 0.7 0.6 0.6 0.6

Tua Chua 0.3 0.3 0.3 0.3 0.2 0.4 0.4

Average 0.5 0.4 0.5 0.5 0.5 0.5 0.7

Page 1 of 1

Annex 21 Coffee growing area and production in Son La by districts


District 1990 1991 1992 1990 1991 1992

Area [ ha ] Production [ t ]

Thi xa 82 122 300 3 6 36

Quynh Nhai 5 15

Thuan Chau 13 200 250 6 12

Muong La 27 32 35 14

Song Ma 15 15 20 4

Mai Son 117 151 246 81

Bac Yen

Yen Chau 17 25 83 9

Phu Yen 2 13 53 6

Moc Chau 5 35 85 5

Total 278 598 1,087 3 13 167

Productive 20 ? 8 223

State 48 0 0

Private 230 598 1,087

Page 1 of 1

Annex 22 Officially registred cotton area and production in Son La


District 1986 1987 1988 1989 1990 1991 1992

Area [ ha ]

Thi xa 100 116 28 70 72 66

Quynh Nhai 168 180 176 280 220 173 177

Thuan Chau 306 308 285 275 271 289 118

Muong La 169 348 401 211 93 143 140

Song Ma 301 294 318 320 236 237 243

Mai Son 233 297 301 232 190 265 350

Bac Yen 255 200 203 210 47 67 55

Yen Chau 195 239 218 220 120 120 173

Phu Yen 381 380 357 304 322 323 401

Moc Chau 178 234 213 174 76 180 185

Total 2,286 2,596 2,472 2,254 1,645 1,869 1,908

Production [ t ]

Thi xa 5 46 9 21 32 27

Quynh Nhai 50 49 53 84 57 55 53

Thuan Chau 107 78 91 197 87 92 35

Muong La 51 126 120 68 31 49 49

Song Ma 105 9 111 112 80 71 83

Mai Son 150 32 165 117 86 123 135

Bac Yen 77 30 61 63 12 18 17

Yen Chau 67 84 76 75 32 40 55

Phu Yen 221 149 107 122 148 154 197

Moc Chau 62 78 75 60 30 63 63

Total 895 681 859 907 584 697 714


Thi xa 0.1 0.4 0.3 0.3 0.4 0.4

Quynh Nhai 0.3 0.3 0.3 0.3 0.3 0.3 0.3

Thuan Chau 0.3 0.3 0.3 0.7 0.3 0.3 0.3

Muong La 0.3 0.4 0.3 0.3 0.3 0.3 0.4

Song Ma 0.3 0.0 0.3 0.4 0.3 0.3 0.3

Mai Son 0.6 0.1 0.5 0.5 0.5 0.5 0.4

Bac Yen 0.3 0.2 0.3 0.3 0.3 0.3 0.3

Yen Chau 0.3 0.4 0.3 0.3 0.3 0.3 0.3

Phu Yen 0.6 0.4 0.3 0.4 0.5 0.5 0.5

Moc Chau 0.3 0.3 0.4 0.3 0.4 0.4 0.3

Average 0.4 0.3 0.3 0.4 0.3 0.4 0.4

Page 1 of 1

Annex 23 Officially registred cotton area and production in Lai Chau


District 1986 1987 1988 1989 1990 1991 1992

Area [ ha ]

Thi xa 32 32 n.a. n.a. n.a. n.a. n.a.

Dien Bien 510 510 648 531 536 466 467

Tuan Giao 242 280 310 200 185 120 120

Phong Tho 227 244 252 213 210 204 210

Sin Ho 150 157 159 161 171 175 168

Muong Lay 262 270 285 298 n.a. 123 136

Muong Te 215 200 251 240 101 n.a. 111

Tua Chua 110 110 109 15 23 60 48

Total 1,748 1,802 2,014 1,658 1,225 1,148 1,260

Production [ t ]

Thi xa 11 11 n.a. n.a. n.a. n.a. n.a.

Dien Bien 199 189 272 224 297 197 206

Tuan Giao 99 106 125 80 74 47 48

Phong Tho 76 75 83 68 65 66 63

Sin Ho 70 70 73 75 79 80 50

Muong Lay 79 68 71 102 n.a. 30 34

Muong Te 92 95 80 96 40 n.a. 44

Tua Chua 46 41 42 6 9 24 14

Total 673 655 746 652 564 444 459


Thi xa 0.3 0.3

Dien Bien 0.4 0.4 0.4 0.4 0.6 0.4 0.4

Tuan Giao 0.4 0.4 0.4 0.4 0.4 0.4 0.4

Phong Tho 0.3 0.3 0.3 0.3 0.3 0.3 0.3

Sin Ho 0.5 0.4 0.5 0.5 0.5 0.5 0.3

Muong Lay 0.3 0.3 0.2 0.3 0.2 0.3

Muong Te 0.4 0.5 0.3 0.4 0.4 0.4

Tua Chua 0.4 0.4 0.4 0.4 0.4 0.4 0.3

Average 0.4 0.4 0.4 0.4 0.4 0.4 0.3

Page 1 of 1

Annex 24 Registred fruit growing area and production in Son La


Remark: Production figures questionable

District 1990 1991 1992 1990 1991 1992

Area [ ha ] Production [ t ]

Orange 26 27 26 11 12 11

Lemon 25 25 25 5 5 6

Mandarin 26 27 27 8 8 8

Grapefruit 33 35 35 28 28 25

Longan 38 40 50 16 17 190

Banana 421 426 420 1,769 5,304 5,400

Pineapple 171 171 165 467 467 495

Productive 740 751 748 2,304 5,841 6,135

Total

Plantation 1,043 1,079 1,049

Page 1 of 1

Annex 25 Officially registred fruit area and production in Lai Chau


District 1986 1987 1988 1989 1990 1991 1992

Area [ ha ]

Orange 93 94 92 96 97 98 100

Lemon 20 20 22 23 23 24 25

Longan 18 20 23 23 25 25 26

Litchi 12 13 13 15 15 10 18

Banana 181 193 196 200 203 206 208

Pineapple 180 184 184 185 288 200 202

Mango 48 49 51 53 54 55 58

Peach, Plum 83 84 85 86 87 88 88

Jackfruit 27 27 28 30 31 32 35

Grapefruit 39 40 41 42 43 44 45

Total 700 724 734 752 866 781 805

Production [ t ]

Orange 798 799 785 782 795 784 800

Lemon 159 156 160 166 161 108 178

Longan 54 33 41 26 32 35 36

Litchi 59 51 39 36 38 38 43

Banana 3,790 3,957 3,861 4,060 4,162 4,182 4,222

Pineapple 2,417 2,477 2,208 2,350 2,444 2,560 2,565

Mango 332 335 357 345 362 330 360

Peach, Plum 720 717 736 722 735 735 730

Jackfruit 73 76 96 96 93 86 95

Grapefruit 466 488 472 508 524 550 540

Total 8,868 9,087 8,755 9,090 9,345 9,409 9,569


Orange 8.6 8.5 8.5 8.2 8.2 8.0 8.0

Lemon 8.0 7.8 7.3 7.4 7.0 4.6 7.1

Longan 3.0 1.6 1.8 1.1 1.3 1.4 1.4

Litchi 4.9 4.1 3.0 2.5 2.5 3.8 2.4

Banana 21.0 20.5 19.7 20.3 20.5 20.3 20.3

Pineapple 13.4 13.5 12.0 12.7 8.5 12.8 12.7

Mango 6.9 6.8 7.0 6.5 6.7 6.0 6.2

Peach, Plum 8.6 8.5 8.6 8.4 8.4 8.4 8.3

Jackfruit 2.7 2.8 3.5 3.2 3.0 2.7 2.7

Grapefruit 12.0 12.1 11.5 12.1 12.2 12.5 12.0

Page 1 of 1

Annex 26 Fruit plantations in Hoa Binh by districts and species in 1992 and 1993

Sources:

� Provincial Forestry Department � Provincial Agricultural Department

District Species

No. of plants No. of plants

Thi xa 14,000 Litchi 139,500

Da Bac 113,500 Longan 114,700

Mai Chau 73,200 Apricot 94,300

Tan Lac 37,200 Citrus 130,000

Lac Son 46,000 Plum 62,000

Ky Son 56,800 Khaki 4,100

Luong Son 163,600 Others 68,800

Kim Boi 37,800

Lac Thuy 44,300

Yen Thuy 27,000

Total 613,400 613,400

Area, estimate ~ 2.500 ha

Page 1 of 1

Annex 27: Officially registred stocks of main animal categories by districts

Buffalo Cattle Pigs

Son La 1989 1990 1991 1989 1990 1991 1989 1990 1991

TX Son La 3,115 3,156 3,156 4,869 4,821 4,643 14,999 14,475 17,076

Quynh Nhai 4,878 5,007 4,771 1,097 1,930 966 7,927 12,084 8,351

Thuan Chau 13,282 13,699 13,260 16,048 14,577 15,072 35,930 32,708 51,895

Muong La 7,263 7,875 8,710 4,230 4,530 5,046 14,480 18,035 21,971

Song Ma 17,850 16,954 17,245 6,464 7,839 7,389 45,560 43,786 37,152

Mai Son 7,509 7,289 6,953 16,998 16,648 15,682 27,554 26,116 15,535

Bac Yen 5,172 3,874 5,626 4,414 7,658 5,015 23,914 24,744 18,851

Yen Chau 4,800 5,527 4,949 8,757 4,665 6,794 18,879 11,155 19,514

Phu Yen 11,429 7,570 7,449 7,339 6,280 5,872 31,321 30,685 28,121

Moc Chau 10,182 8,827 10,999 12,405 11,681 10,999 30,134 42,567 36,109

Total 85,480 79,778 83,118 82,621 80,629 77,478 250,698 256,355 254,575

Increase -3% -6% 2%

Buffalo Cattle Pigs

Lai Chau 1989 1990 1991 1989 1990 1991 1989 1990 1991

TX Lai Chau 661 641 598 382 351 325 4,650 4,104 4,820

Dien Bien 23,501 24,340 26,207 5,315 4,952 5,228 37,670 38,950 41,369

Tuan Giao 15,524 16,300 17,841 4,528 4,411 4,511 27,947 28,516 29,731

Phong Tho 16,453 16,958 17,127 481 495 509 24,809 25,477 25,731

Sin Ho 10,328 10,395 10,592 481 511 541 11,293 11,342 11,441

Muong Lang 7,504 8,287 8,270 944 872 875 10,194 11,298 11,486

Muong Te 4,698 4,793 4,533 1,706 1,682 1,822 8,915 8,485 10,222

Tua Chua 7,855 6,880 6,171 831 624 764 13,069 11,387 11,078

Total 86,524 88,594 91,339 14,668 13,898 14,575 138,547 139,559 145,878

Increase 6% -1% 5%

Buffalo Cattle Pigs

Hoa Binh 1989 1990 1991 1989 1990 1991 1989 1990 1991

TX Hoa Binh 1,985 1,891 1,897 915 596 389 14,894 12,528 13,066

Da Bac 7,546 6,560 6,602 3,577 2,862 2,751 16,074 16,797 17,375

Mai Chau 4,574 4,851 4,866 1,362 1,441 1,446 6,247 17,083 16,117

Tan Lac 10,635 10,983 11,568 2,297 2,540 3,113 17,326 19,027 18,669

Lac Son 14,714 15,331 16,089 5,876 6,154 6,345 35,153 35,946 34,320

Ky Son 7,258 7,385 7,471 2,369 1,902 1,859 20,702 2,605 26,602

Luong Son 8,302 8,236 8,561 3,265 2,519 3,389 14,310 13,763 14,736

Kim Boi 12,405 12,677 13,775 2,707 3,275 2,224 34,534 38,869 39,523

Lac Thuy 4,851 4,488 5,125 1,167 1,251 1,297 10,075 10,147 10,229

Yen Thuy 5,454 5,653 5,634 2,492 2,887 2,873 13,544 14,337 19,568

Total 77,724 78,055 81,588 26,027 25,427 25,686 182,859 181,102 210,205

Increase 5% -1% 15%

Region 249,728 246,427 256,045 123,316 119,954 117,739 572,104 577,016 610,658

Increase 3% -5% 7%

Vietnam ['000] 2,871 2,854 n.a. 3,202 3,121 n.a. 12,217 12,261 n.a.

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% Region 9% 9% 4% 4% 5% 5%

Provincial shares

Son La 34% 32% 32% 67% 67% 66% 44% 44% 42%

Lai Chau 35% 36% 36% 12% 12% 12% 24% 24% 24%

Hoa Binh 31% 32% 32% 21% 21% 22% 32% 31% 34%

Region 100% 100% 100% 100% 100% 100% 100% 100% 100%

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Annex 28 Assessment of supply and demand of different products

5 = very large

4 = large

3 = medium

2 = small

1 = very small

Demand Supply

Product domestic foreign Song Da W. Vietnam

SDW Vietnam actual potential actual potential

Sawnwood/Logs 4 5 5 2 3 3 4

Wood products 1 2 3 2 3 3 3

Fuelwood 5 4 0 2 4 3 4

Bamboo 2 3 2 5 4 4 4

Rattan 1 3 5 1 3 2 3

Essential oils 0 3 4 1 3 3 4

Pine resin 0 4 4 0 2 3 4

Canarium resin 0 2 1 0 1 1 2

Shellac 0 2 2 1 2 1 2

Medicinal plants 1 2 4 2 4 2 4

Food colours 0 1 5 0 3 1 3

Textile dyes 1 1 4 1 3 1 3

Rice 5 4 4 2 3 5 5

Maize 3 5 2 4 5 3 4

Cassava 4 3 2 4 3 3 3

Soy bean 2 4 2 2 4 3 4

Tea 3 4 3 3 4 4 4

Coffee 0 2 3 2 3 3 4

Cotton 2 2 2 2 2 1 1

Silk 1 2 4 1 3 2 4

Apricot 2 4 2 3 5 3 4

Plum 2 5 2 3 4 3 4

Longan 2 4 2 3 4 3 4

Litchi 2 4 4 3 4 3 4

Mango 2 4 3 3 4 3 4

Pineapple 2 3 3 3 4 4 5

Banana 3 3 3 3 4 4 5

Buffalo 2 3 0 3 4 3 4

Cattle 2 3 1 3 4 3 4

Pig 3 4 2 3 4 4 5

Goat 1 4 1 3 4 3 3

Poultry 3 5 1 3 4 3 5

Fresh milk 1 3 0 2 4 3 4

Milk products 1 4 0 2 3 3 4

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0 = no

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