VIETNAM NATIONAL UNIVERSITY OF FORESRY
FOREST RESOUCRES & ENVIRONMENTAL MANAGEMENT FACULTY

STUDENT THESIS
KEY FACTORS INFLUENCING THE DECISION MAKING IN LARGESIZED TIMBER PLANTATION OF LOCAL SMALL HOUSEHOLDS IN
VINH LINH DISTRICT, QUANG TRI PROVINCE

Major: Natural Resources Management
Faculty: Forest Resources and Environmental Management

Student: Luu Thi Van

Student ID: 1453092230

Class: K59 Natural Resources Management

Course: 2014 - 2018

Advanced Education Program
Developed in collaboration with Colorado State University, USA
Supervisor: Dr. Le Dinh Hai

Hanoi, October 2018


ACKNOWLEDGEMENTS
I am glad to have an opportunity to express my acknowledgements to many people involving
in the study, without whom I could not finish my study.
First and foremost, I would like to express my deep sense of gratitude to respected
supervisor Dr. Le Dinh Hai from Faculty of Economics and Business Management, Vietnam
National University of Forestry for his continuous support, patient guidance and encouragement

throughout my research project. Besides, I also want to thank to Mrs.Vo Thi Hai Hien, a lecturer
from Faculty of Economics and Business Administration for her constructive suggestion during
whole time I worked with my thesis.
In addition, I would love to thank to many local people for their contribution to this project.
Special thanks to local people in Vinh Thuy Commune, Vinh Chap Commune, Vinh Long
Commune and Vinh Ha Commune for providing helpful information and helping me at that
time I took households survey in Vinh Linh district.
The last but not least, my thanks go to my family, my dear friends for their endless love, support
and encouragement to me throughout all my life.
Hanoi, 2018

i


TABLE OF CONTENTS
Acknowledgements .................................................................................................................... i
CHAPTER 1. INTRODUCTION............................................................................................ 1
CHAPTER 2. STUDY GOAL AND OBJECTIVES ............................................................. 4
2.1

Goal of the study ........................................................................................................ 4

2.2 Objectives of the study ................................................................................................... 4
CHAPTER 3. METHODOLOGY .......................................................................................... 5
3.1 Study site .......................................................................................................................... 5
3.1.1 Quang Tri Province.................................................................................................. 5
3.1.2 Vinh Linh district ..................................................................................................... 6
3.1.3 Situation of plantation in Vinh Linh district. ........................................................ 8
3.2


Methodology ............................................................................................................... 9

Definition of large-sized timber plantation or large sized-timber .................................... 9
3.2.1. Framework of factors influencing large-sized timber with long-term rotation
of small household ........................................................................................................... 10
3.2.2

Data collection ................................................................................................... 16

a)

Secondary data collection .......................................................................................... 16

b)

Primary data collection .............................................................................................. 16

3.2.3

Data analysis ..................................................................................................... 18

CHAPTER 4. STUDY RESULTS ......................................................................................... 25
4.1 Economic efficiency comparison of small –sized timber and large-sized timber
plantation. ............................................................................................................................ 25
4.1.1. Cost-benefit analysis of small-sized timber plantation ......................................... 25
4.1.2. Cost-benefit analysis of large-sized timber plantation. ......................................... 26
4.2 Descriptive statistic on surveyed households in Vinh Linh district ......................... 28
4.2.1 Characteristic of household head ........................................................................... 28
4.2.2. Characteristic of household in Vinh Linh District. ............................................ 31
4.2.3 Plantation activities of surveyed household in Vinh Linh district ..................... 32

4.2.4 Understanding of local people about large-sized timber in Vinh Linh district. ... 35
Knowledge of local people about large-sized timber plantation ...................................... 35
Understanding of local people about policies related to large-sized timber. ................... 36
4.2.5 Support for community for large-sized timber plantation ................................. 37
4.3 Correlation analysis of factors with decision of planting large-sized timber of
households in Vinh Linh district. ...................................................................................... 37
4.4 Key divers affecting large-sized-timber planting decision of surveyed households 39
ii


CHAPTER V. DISCUSION .................................................................................................. 41
5.1 1 Economic efficiency comparison of small –sized timber and large-sized timber
plantation. ............................................................................................................................ 41
5.2 Background characteristic of respondents ................................................................. 41
5.3 Characteristics of household planting plantation in Vinh Linh district. ................. 42
5.4 Understanding of local people about large-sized timber plantation ........................ 44
5.5 Key divers affecting to the decision of local people on planting large-sized
timber ................................................................................................................................... 44
5.6 Potential suggestion which may encourage local people to shifting from plant
small-sized timer into large-sized timer with longer rotation......................................... 46
CHAPTER VI. CONCLUSION ............................................................................................ 50
CHAPTER VII. REFERENCES ............................................................................................. 1
APENDICIES ........................................................................................................................... 3

iii


LIST OF TABLES
Table 3.1:Standards to identify small-sized timber & large-sized timber of acacia
hybrid......................................................................................................................................... 9

Table 3.2:Survey sampling design in Vinh Linh District .................................................... 18
Table 3.3: Dependent variables and independent variables ............................................... 19
Table 3.4: List of dependent variable and potential independent variables ..................... 23

Table 4.1:Cost and revenue structure of small-sized timber plantation. .......................... 25
Table 4.2: Cost-benefit analysis of small-sized timber plantation ..................................... 26
Table 4.3: Cost and revenue structure of large-sized timber. ............................................ 27
Table 4. 4:Cost-benefit analysis of large -sized timber plantation ..................................... 28
Table 4.5: Descriptive Statistics of quantitative variables .................................................. 29
Table 4. 6: Relationship between gender of households head and decision on planting
large sized timber.................................................................................................................... 30
Table 4.7: Variables have strong relationship with decision of household on planting
large-sized timber in Vinh Linh district. .............................................................................. 38
Table 4.8:Key divers affecting to the decision of local people on planting large-sized
timber....................................................................................................................................... 40

Table 5.1: Economic efficiency comparison of small –sized timber and large-sized timber
plantation................................................................................................................................. 41
Table 5.2: Different between small-timber plantation and large-timber plantation ....... 42
Table 5. 3 Ranking of influential factors .............................................................................. 47

iv


LIST OF FIGURES
Figure 3.1: Potential factors effect decision of local people on planting large-sized
timber......................................................................................................................................... 6

Figure 4.1:Education level of household head in Vinh Linh district ................................. 30
Figure 4.2: Household wealth ranking at Vinh Linh district ............................................. 31

Figure 4.3: Sources of capital of households at beginning of rotation ............................... 32
Figure 4.4: Lack of capital at 4th-5th years of plantation..................................................... 32
Figure 4.5:Accessibility to the forest land ............................................................................ 34
Figure 4.6: Sources of seedlings ............................................................................................ 34
Figure 4.7: Participation of local people in FSC project..................................................... 35
Figure 4. 8: Knowledge about large sized timber forest of households in Vinh Linh
district. ..................................................................................................................................... 36
Figure 4.9 Understanding of local people about polies related to large-sized timber. ..... 36
Figure 4.10 Support from community for large-sized timber plantation ......................... 37

v


ABBREVIATION
BCR

Benefit- Cost ratio

CBA

Cost Benefit Analysis

FAO

Food and Agriculture Organization

FSC

Forest Stewardship Council


IRR

Internal Rate of Return

MARD

Ministry of Agriculture and Rural Development

NPV

Net present value

SPSS

Statistical Package for the Social Sciences

SWOT

Strengths, Weaknesses, Opportunities and Threats

VND

Vietnam Dong

WWF

Word Wild Fund

vi



CHAPTER I. INTRODUCTION
Because of unsustainable management and very high demand for conversion of forest
land into others land for social-economic development, the forest area and forest quality have
been continuously decreasing. In 1943, Vietnam had 14.3 million ha of forests, with 43% forest
cover; by the year 1990 only 9.18 million ha remained, with a forest cover of 27.2% (MARD,
2007). But from 1990 to the present, the Vietnamese government has taken many actions to
conserve nature forest and increase forest cover again. According to the database of Ministry
of Agriculture and Rural Development, total area of forest cover continuously increases from
27.2% to 41.19% in 2016.
The forest cover increasing includes all three forest categories: production, protection
(for specific ecosystem services, e.g. watershed management) and special use forests (protected
areas, conservation), but the main contribution is several million ha of newly established
plantations (Acacia, Eucalypt and Pinus) in production forest. Currently, they cover more than
3.5 Million ha, with the prospect that plantations will cover more than 4.1 Million ha by 2020
(MARD 2015). These plantation forests, with mostly fast- growing species such as Eucalypts,
Acacia, Styrax tonkinnensis, and Manglietia glauca, are mainly managed by state forest
enterprises and private forest owners who, according to recent regulations, can have the full
rights over investing and harvesting their plantation forests. In fact, a majority of 2.5 million
cubic meters annually cut in Vietnam’s plantation forests is of small-size young timber (7-8
years old) which is used mainly for pulp and paper, pit-prop, construction and wood-chip
purposes (Nguyen, 2006).
Quang Tri is a province in Central Vietnam with one city, one town and eight districts.
In general, topography of Quang Tri is very complicated including hills, mountains, lowland,
coastal sand-banks and islands. The main terrain is mountainous and hilly overlooking the sea
1


with high steep and fast flowing water which cause unpredictable flooding and landslide make
production and daily life activities of local people very difficult. Therefore, forest plantation,

especially large-size timber forest plantation is very important because it will bring many
benefits such as improving income of small households who take part in plantation activities,
reducing the impact of natural disaster and protecting soil as well as environment. Quang Tri
province has total 473,981 ha in which total forested area is 231,653 ha accounting for 48.9 %
of total land. The total area of plantation is 91,792 ha, in which 32,391 ha is plantation of small
households. Moreover, Quang Tri is one of the earliest provinces having FSC certified forest
but the certified forest area is very small compared to the total plantation forest area (Hoang et
al. 2015). There is only 861.8 ha of forest which got the certificate from FSC for sustainable
forest management in total 91.792 ha of plantation in 2014.
In recent years, many policies and projects of governance as well as international
organizations were implemented such as Decree No 744/QD-BNN-TCLN on 18 April 2014 in
Approving the Action Plan for Enhancing the productivity and value of panted production forest
for the period 2014-2020; Decision No. 38/2016/QD-TTg “Promulgating a number of policies
on forest protection and development, and supporting for investment in infrastructure
construction and assignment of public-utility tasks to agricultural and forestry companies”; or
group as a group certification project supported by WWF and IKEA to promote small
households practice long-term rotation plantation, reduce young forest exploitation and
transform form small-sized timber plantation to large-sized timber plantation with longer
rotation.
Besides that, many researches and projects related to large-sized timber plantation were
published, mentioned about different aspects of the effectiveness of planting large-sized timber
with longer- rotation like research of Nguyen Quang Ha in 2001 determined optimal rotation in
planting material forests, or research of Nguyen Nghia Bien on development of large-sized
timber plantation in 2005 and study on Reasons why farmers choose to harvest small-sized
2


timber in Yen Bai province. Research of Nguyen Thi Hoang Hai on Costs Comparison between
FSC and Non FSC Acacia Plantations in Quang Tri Province, Vietnam in 2015. The results of
those researches indicated that long-term rotation help local people have higher income, supply

industry wood for wood furniture industry and provide environment protection function.
For those reasons, I decide to conduct study on “identifying key factors influencing
large-sized timber with long-term rotation of local people in Vinh Linh distrct, Quang Tri
province, Vietnam” in order to have better understanding about long-term rotation plantation.

3


CHAPTER II. STUDY GOAL AND OBJECTIVES
2.1 Goal of the study
Analyzing key factors influencing long-term rotation plantation of local people with
Binary Logistic Model in order to provide potential suggestions in increasing large-sized timer
with long-term rotation in Vinh Linh District, Quang Tri Province.

2.2 Objectives of the study
(1) To compare efficiency of small –sized timber and large-sized timber by using Cost
Benefit Analysis
(2) To identify key factors associated with household decision of local people to plant
large-sized timer in long term rotation
(3) To provide potential suggestions which may encourage local people to shift from
plant small-sized timer into large-sized timer with longer rotation.

4


CHAPTER III. METHODOLOGY
3.1 Study site
3.1.1 Quang Tri Province
Located in the middle of the country, Quang Tri is considered as an important traffic
hub creating favorable conditions for the economic cooperation in the region, international

transport, commercial developing, service and tourism. Quang Tri is surrounded by Quang Binh
province on the North, Thua Thien Hue province on the South, Laos on the West, and East Sea
on the East. The topography of Quang Tri province is very various including hills, mountains,
lowland, coastal sand-banks and islands. Quang Tri province has an area of 4.739 km2, and
population of 626.563 people (in according to statistics in 2015) and 10 administration units
including Dong Ha city, Quang Tri town and 08 districts of Vinh Linh, Gio Linh, Trieu Phong,
Cam Lo, Hal Lang, Dakrong, Huong Hoa and Con Co island district. Dong Ha city is the
political, economic, and cultural center of the province.
Quang Tri province is located in the tropical climate zone with monsoon and affected
by West-South dry and hot wind. The average temperature is varied from 200C – 250C. The
highest temperature in hot months of 40°C in lowland and 34°C - 35°C in low mountainous
areas. The lowest temperature in the year can be reduced to 8°C - 10°C in lowland and 3°C 5°C in high mountainous areas. The average annual rainfall is varied from 2,000 — 2,700 mm
and average relative humidity is 70 - 80%.
The movement of economic and labor structures in the direction of concentrating on
advantageous industries has contributed to the increase of social labor productivity in the period
of 2006-2010 from 12.1 million VND in 2005 to 31.4 million in 2010 (calculated by the current
price), reaching the ratio of 21%/year. The growth quality of the economy has been significantly
improved. The per capita GDP (current price) in 2010 reaches 16.4 billion VND, 2 times higher
than that of 2005, which speeds up the economic development and increases the accumulation

5


for the reinvestment in the people. The ratio of poor household decreases rapidly from 28.8%
in 2006 to 12.5% in 2010. (en.vietrade.gov.vn, 2013).
3.1.2 Vinh Linh district
a) Geographic location
Vinh Linh shares broader with East Sea in the East, Huong Hoa district in the West, Gio
Linh district in the South and Le Thuy district of Quang Binh province in the North. Vinh Linh
district, Quang Tri province was chosen to be a study site of research because of following

reasons.

Figure 1: Map of Vinh Linh district
Source:

First of all, Vinh Linh district is located in the North of Quang Tri. It is representative
for almost types of topography in Quang Tri province. Secondly, forest plantation practice is
very developed in Vinh Linh. With Cam Lo and Huong Hoa district, Vinh Linh is one of three
districts have the highest area of forest plantation. In addition, Vinh Linh is one of districts have
the highest area of forest plantation got FSC certification

6


b) Natural conditions
Vinh Linh with characteristics of tropical monsoon climate with marked sign of
typhoons, floods in winter and hot dry, drought in summer; the temperature difference between
the two seasons is about 10 - 20°C. The average annual temperature about 25.2°C. The highest
temperature in summer above 34°C and lowest temperature in winter is 9°C. Average annual
precipitation is 2.400mm/year.
c) Land and land use
Since the topography is quite complex and various, Vinh Linh district has different types
of soil. Vinh Linh is located on a geological background with three main groups (Macsma,
Metamorphic and sedimentary) through the process of weathering and accretion formed many
types of soil with different properties and potential. There are five sub-areas of land and terrain.
The yellow red soil on clay and metamorphic rocks, yellowish soil on sand stone, alluvial soil
without compensation annually, Gleyic Fluvisols and reddish brown soil on basalt.
According to “Planning Report- Forest Protection and Development period 210-2020”
of Vinh Linh district. The land use state in 2020, forest holds 51.1%, agriculture land holds
28.86%, land for other purpose holds 13.90% and unused land account for 5.3%. The forest

land accounts for the highest percentage in production land, it means that plantation plays
important roles in social-economic development in Vinh Linh district.
d) Social - economic characteristics
According to People Committee of Vinh Linh district, the total population in Vinh Linh
district is 93.909 people include 2.708 people belong to Van Kieu ethnic and the polulation
density is 136 people/km2. There are 25.151 households, 19 communes, 3 towns, and 195
villages in whole Vinh Linh district. The percentage of people in labor age (from 15 to 59) in
Vinh district is 69% in which female labor account for 51.37% and male labor account for
7


48.63%. Average GDP of people in Vinh Linh district is estimated around 13.1 million
VND/person/year.
3.1.3 Situation of plantation in Vinh Linh district.
In the 1980s, many forest plantation project were launched such as PAM program
(1976-2000), Program 327 (1993 – 1998, Five Million Hectare Reforestation Program (1998 –
2010), and so on.… in Vinh Linh district. Following that, households who had allocated forest
land could receive support from projects (could be financial, silviculture training, fertilizer or
seedlings). And the results of those project turn out very good. Bare land was recovered by
plantation, livelihoods of local people were increased and living standard of local were
improved a lot.
These days, there are more than 20.000 ha of plantation, and 2.463 ha of bare land were
plan use for plantation purpose in whole Vinh Linh district. The annual harvest output increases
years by years and the average output is around 35.000m3/year. However, most of harvested
wood is used for making paper with low price compared to logs wood use for making furniture.
The average output of 1 ha of plantation range from 45-50ton with price for 1 ton of woodchip
is VND 1,000,000 , so the average revenue from 1 ha of plantation is about 45-50 VND million.
From 2007, the first time FSC project was introduced in Vinh Linh district, Vinh Thuy
is the first commune chosen to run FSC project. In 2011, 118 households belong to Vinh Thuy
commune (Vinh Linh), Trung Son (Gio Linh) became the first group of households had

certificated forest with total area of plantation got certificated were 312 ha. However, the area
of forest has the certificate still very small compare to total area of plantation in Vinh Linh
district.

8


3.2 Methodology
Definition of large-sized timber plantation or large sized-timber
Large –sized timber and small sized timber are classified by many different
purposes of use and by the difference in diameter or height of tree species.
 According to FINNISH FOREST ASSOCIATION (FFA) of Finland, there are two
grades of round wood timber for each tree species: logs and pulpwood, or small-diameter wood.
Pulpwood is derived from small-diameter trees and the crowns of large trees. Large-sized wood
of poor quality is also used as pulpwood. Pulpwood is used to manufacture pulp. Saw-timber
tree is a tree which yields at least one log, i.e., a straight four-meter stem whose minimum top
diameter is 15 cm.
 In Vietnam, we can find different standards of large-sized timber in some legal
documents
a) Standard for large-sized timber is identified as round wood have diameter equal or
larger than 15 cm in decision 744/QĐ-BNN-TCLN: Approved Action Plan Improving
Productivity, Quality, And Value Of Forests Planted Phase Manufacturing 2014-2020.
b) Or standard for specific tress species such as Acacia hybrid (A.mangium x Aauricculiformis)
Table 3.1 Standards to identify small-sized timber and large-sized timber of hybrid
acacia
Indicator

Small –sized timber

Large –sized timber


Rotation

<10 years

From 10 years

Diameter

< 15 cm

≥ 15cm ( top diameter ); length ≥2m
(Source: TCVN 11567-1:2016)

9


3.2.1. Framework of factors influencing large-sized timber with long-term
rotation of small household

Figure 3.1: Conceptual model of potential factors effect decision of local people on
planting large-sized timber

(1) Household characteristics factors.
There are many studies indicated that household characteristics such as age and sex of
household head, education level of household head can affect decision of local people in
planting forest especially long-term rotation (Zenebe Gebreegziabher at el, 2010; Bhim
Adhikari, 2003; Yusuph J. Kulindwa, 2016). Yusuph J. Kulindwa also shown family sizes have
negatively and significantly affected households’ tree planting behavior that increase the size
of a household by one person is likely to decrease the possibility of households’ tree planting

by 21%. In addition, education level is considered as a key factors for all levels of sustainable
forestry practice, and education level have positive relationship with environment awareness,
knowledge of tree planting techniques and tree planting ethusiam (Gorden et al. 1999; Simmons
et al. 2002). However, the farmers’ age, the number of years of education of the farmer, the
10


number of household members, the distance to the tree stand from the house, and household
assets and expenses were not significantly correlated with the grade of silvicultural activity in
any of the case studies in Indonesia (Markku Kanninen, 2013).
(2) Characteristics of farm and biophysical factors
Another factors making small household have difference in length of rotation (shortterm or long-term rotation is various factors related to characters of plantation farm such as area
of forest land, tenure distance from house to farm, infrastructure as well as biophysical factors
like soil types, slope, climate conditions).
Tree planting requires land, but the poorest farmers in the tropics generally have very
little ownership or access to private land, or only very small areas of land, such that they have
little choice but to plant staple food crops that provide annual returns, instead of the relatively
slow growing trees. Hence, it is often found that farmers with larger areas of land tend to plant
and manage trees more than the those with limited land (Markku Kanime, 2013).
Site conditions, including the soil characteristics and climatic conditions, affect the
success of tree planting. Not all of sites are suitable for tree planting or for all species, therefore,
it is crucial to match the species with the site conditions. On the other hand, tree planting can
often be a feasible option to make a use of marginal lands where agricultural crops are not
suitable, and in fact, tree plantations are generally relegated to such marginal lands.
(3) Silvicultural knowledge and skills
A silvicultural system is a planned program of vegetation treatment during the entire
life of a stand. Silvicultural systems typically include three basic components: intermediate
treatments (tending), harvesting, and regeneration. There are arguments between different
scientists about how knowledge affects tree planting. Despite a large body of traditional
knowledge on tree planting, there is a general lack of knowledge and skills related to tree

planting and management amongst farmers (Markku Kanninen, 2013). Smallholders in
11


Indonesia and other developing countries in the tropics often manage their timber plantations
using poor silvicultural practices with low levels of labor inputs, which lead to low quantities
and quality of timber (Harrison and Herbohn 2001b, Maturana et al. 2005). In addition, quality
of seed used, techniques of planting and tending are the concern of local people in Yen Bai,
Vietnam when they mention about silvicultural skills and knowledge of planting short- term
rotation. Most farmers/forest growers plant forests according to their own experience since
technical support from local authority is limited. It is likely that most forest growers, under
pressure of timber demand, harvest trees when they get the highest growth rate (i.e. at a
premature age) Nguyen Nghia Bien, 2006). The lack of thinning and relatively short rotation
lengths, especially in the teak case, also influences the wood quality. Longer rotations are
essential if the aim is to produce good quality logs for high-end uses, as longer rotations produce
higher diameter stems with more heart wood (Markku Kanninen, 2013).
(4) Economic factors/ Market and Timber price
The economic factors influencing decision of small household are those that impact on
investment and benefit return of timber. According to FAO (2002), production cost and log
prices are two key factors affecting long rotation Eucalypt plantation (20-40 years) in New
South Wales. The production cost is cover land prices (land prices have risen sharply where
there has been large scale planted by a number of competing players); establishment costs
(establishment costs for eucalypt plantations tend to be high because of their sensitivity to weed
competition and the lack of cost effective residual herbicides that can be legally used);
maintenance costs (because of the fire protection costs); harvesting costs (harvesting integrated
eucalypt plantations has been a little more expensive than other species because the open crown
allows a substantial understory to develop); transport costs, combination of all the costs make
Australia has relatively high plantation growing costs.

12



According to Nguyen Nghia Bien (2006), rate of recover of investment, financial status
of farmers and credit institution, market and timber price are three important factors making
small household choose harvest small-sized timber.
Rate of recover of investment
According to farmers/forest growers, growing small timber is preferred as they
can get quicker return and invest it in the next rotation (about 6-8 years long) to get
another cumulative income instead of getting only one-off income if trees are left to
grow up to large-sized timber( Nguyen Nghia Bien, 2006). However, many researches and legal
documents indicated that long-term rotation can bring more benefits for local people. If forest
growers sell wood chips or wood pulp (short-rotation) the value is only around 700,000 800,000 VND/ton. Meanwhile, if local people transform from short-rotation to longer rotation,
the diameter of tree will increase and have higher economic value. For example, D = 15 cm
have price of 1.1-1.2 million VND/m³, D = 25 cm have price of 1.8 -2 million VND/m³, D =
35 cm have price of 3 million VND/m³ (MARD, 2014). But small households often choose
harvest small sized timber (use for wood chips or woof pulp) instead of leaving tree growing
because they can get money from this product even it very low.
Financial status of farmers and credit institutions
For the viewpoint of many households, the most important of these functions is the
ability to provide for the households with basic food and cash needs (Belsky 1984, Ponce and
Bangi 1988). They need financial resources not only for investing in forest planting, but also
for covering daily basic needs. Since most forest growers are poor, shortage of financial
resources strongly affects their cutting decision. With many Filipino farmers living below the
poverty line, their ability to invest in long-term projects is strictly limited.

13


In terms of investing in commercial timber plantation, forest growers need 8-10 million
VND (USD 500 – 625) per hectare. However, forest growers usually face the following

problems:
 Access to bank loan is very limited. The state bank gives only 50 percent of the
amount

requested

if

it

is

larger

than

VND

10

million.

This

loan

undoubtedly

cannot meet the need of those who have more than one hectare of forest land.
while access to state bank loan is limited, loan from commercial/private banks is

available.

 Loan term is always shorter than forest rotation. For instance, the bank gives a
loan for 3 years while forest trees need at least 5-6 years to be good enough for wood-chip and pulp
making.

 Interest rates are still high; particularly at commercial/private banks regardless
long or short-term loan is given.
Adapted from Nguyen Nghia Bien (2006)

Market and timber price
Farmers have an incentive to manage their timber plantations only if they are relatively
sure that their efforts will benefit them in the future. If the markets are insecure or lacking,
farmers do not have any incentives for improving silvicultural management. There are two main
factors complicating the markets for small-scale wood production namely low quantity and
quality. These complicating factors, especially applying to farmers with small land areas and
poor silvicultural management skills
The timber processing industry and export of forest products have vigorously developed
in recent years (exports of wooden products increased from USD61 million in 1996 to
USD1,034 million in 2004 and up to USD1,500 million in 2005) (MRAD, 2006), making
increase in demand for large-sized timber. This change can promote small households prolong
length of plantation rotation to get higher quality and quantity of timber and get higher
economic value of plantation
14


According to the representatives of wood-processing companies, the taste and
requirements for timber products also change every day. Sometimes, these companies have to
refuse large orders from international dealers because the latter require that timber products
must be made from those timber species hardly found in local forests or elsewhere. This means

the price for timber can also vary according to demand for certain products at a particular
moment (Nguyen Nghia Bien, 2006)
(5) Social factors
Beside factors related to characteristics of household, silvicultural techniques and
economic factors; social also consider as a key diver of planting long-term rotation. Those
factors may include community support, employment, and high expectation of environmental
practices. Table below shows how social factors influencing investment in long term rotation
in New South Wales.
Social factors

Which encourage investment

Community
support

Widespread support for native Community may have unrealistic
species plantations including expectation especially with regard
conservation groups.
to full domestic processing of
pulpwood.

High expectation of
environmental
practices

Stringent environmental laws Forestry expected to fulfil higher
and codes reassure many environment
standards
than
investors.

farmers

Employment

High employment numbers in Employment costs - both numbers
forestry sector relative to other and cost may not be internationally
land uses reinforces community competitive.
support.

Or discourage investment

Risk that endangered species found
in
plantations
possible
expectation that plantation will be

Native species
habitat

reserved from harvest.
Urban forestry
perception

Opportunity to educate public (sustainable use of renewable
resource) versus other materials
and so on.

Native species plantations look
like native forest - risk of inability

to harvest or manage to optimize
timber production.

(Source: FAO- Forest Plantations Working Papers, 2002)
15


(6) Institutional and Policies.
Zenebe Gebreegziabher (2010) claimed that institutional issues, such as perception of
tenure security, tend to be more important in determining household tree planting. For example,
policy measures or interventions that enhance not only the security of existing land tenure and
support greater education of the household head would, at the same time, but also household
tree planting. Another policy that influences the most farmers’ decision is on banking credit.
Most private forest growers do not either have access or a limited access to credit. In current
banking arrangements, interest rates are still high and loan term is far too short. All these
conditions do not encourage local farmers to invest in forest plantation, especially to wait for
large-sized timber (Nguyen Nghia Bien, 2006).
3.2.2 Data collection
a) Secondary data collection
Secondary data collection is used in this study to build theoretical models of key divers
effecting decision of small households in planting large-sized timber and also have better
understand about status of forest plantation and large-sized timber plantation in Vinh Linh
district. Secondary data were collected from Communal People Committee of four communes
Vinh Thuy, Vinh Chap, Vinh Long and Vinh Ha, as well as gathered secondary information
from other reports, studies and books.
b) Primary data collection
 Questionnaire design
Questionnaire is designed base on framework of factors influencing large-sized timber
with long-term rotation of small household. Pre-testing of the questionnaire will conduct to the
elimination of the errors that associated with survey research and the response to questionnaire

pre-testing resulted in revision of questions to improve the data quality.
- Interviewing the local people (using questionnaire) and key informant people
16


- Using Participatory Rural Appraisal method (PRA)
 Sampling design
 Identifying number of sample size
Base on theoretical framework, there are 6 potential factors that influencing decision of
small household in planting long-term rotation (part 3.2.1: Framework of factors influencing
large-sized timber with long-term rotation of small household)
Applying Binary Logistic Regression Model to accessing key divers affecting decision
making of small household in long- term rotation plantation practice. Since minimum sample
size is calculated by following formula (Tabachnick & Fidell,2007):
n > 50 + 8*m
In which

n: sample size
m: number of independent variables

Therefore, total number of minimum sample size is n= 50+ 8*10 = 130.
 Sampling design
Stratified random sampling method were used to design sampling in 4 communes at
which have highest area of plantation in Vinh Linh district. The households in four communes
were chosen by two indicator are planting large-sized timber and planting small-sized timber.
Conducting a household survey in 4 representative communes is Vinh Thuy, Vinh Chap, Vinh
Long and Vinh Ha. There were 134 households including 79 households planting short-term
rotation and 55 households planting long-term rotation.
 Survey sampling design in Vinh Linh District


17


Table 3. 2: Survey sampling design in Vinh Linh District

Surveyed household in Vinh Linh district
Commune

Village

Total

Planting small-

Planting large-sized

sized timber

timber

Tan Thuy

21

10

11

Linh Hai


14

6

8

20

10

10

Chap Dong

17

14

3

Lai Binh

23

15

8

Quang Xa


14

6

8

Thong Nhat

10

8

2

Lam Truong

15

10

5

134

79

55

Vinh Thuy
Thuy Ba

Dong

Vinh Chap

Vinh Long

Vinh Ha

Total

3.2.3 Data analysis
 Descriptive statistics method

Descriptive statistic method is used to describe the basic features of the data in a study.
It provided simple summaries about the sample and the measures. Furthermore, raw data after
processing with Microsoft Excel, was used to draw graphic to provide the basic of virtually
every quantitative analysis of data.
In this research, the continuous variables were analyzed by comparing mean by the
independent –sample T-test. In case of study, the subject was divided into 2 groups, so that any
difference in responding is due to the treatment (or lack of treatment) and not to other factors.
The grouping variable would be decision of small household on planting large-sized timber (1=
planting large -sized timer; 0 = not planting large-sized timber). Test variables would be

18