Poverty Reduction through Resource Protection in Viet Nam

During the last two decades financial development institutions supported the forestry sector of developing countries in Asia mainly through mere funding of planting activities. Comprehensive land tenure security and the active participation of beneficiaries in post-planting activities were often neglected. Thus, the survival rate of seedlings  proved to be extremely low, and the success of these investments has often been questioned. Therefore, national sector institutions and donors looked for other and more efficient ways to support the forestry sector, eventually leading to high quality forest stands with the perspective of a lasting income increase for benefiting poor families.

The Project 'Afforestation in Thanh Hoa and Nghe An Provinces' is the fourth of this type co-financed by the German Kreditanstalt für Wiederaufbau (KfW) in Viet Nam [2]. Project implementation started in August 2003 and investments will be stretched over a period of six years. The grant comprises a volume of about EURO  7.7 million (US$  8.3 million) of which  49% percent will be directly channeled to deposit accounts of participating smallholders. Thus, the Project will include some 15,000 poor farm households.

The Project's general objective is to contribute to soil conservation through afforestation including the preservation of natural regeneration in two provinces, while at the same time generating additional income and capital for smallholders in remote areas. The scope includes afforestation of a total of 19,000 ha of degraded lands and respective management after planting. Project activities will take place in at least 33 communes within eight districts of the two provinces. The project concept includes an incentive system for participating farmers in the form of savings accounts. This approach was introduced, to compensate the farmers for planting and maintenance over a critical time span without forest yields and to actively protect the afforestation. Consequently, the Project will continue with this innovative approach to afforestation which started in 1995.

Each participating farmer obtains an area between 1 and 2 ha for afforestation [3]. After land use planning, the allocation of land is certified through the so-called 'Red Book Certificate' ensuring comprehensive land tenure security for the beneficiary: The farmers thereby receive the right to realize own gains out of their plots at a later stage. At the same time a deposit account will be established under the smallholder's name and the amount of US$ 200-250 (depending on species and plot size) will be credited under the farmer's name. This additional income substantially contributes to the reduction of poverty in remote areas of the provinces of Thanh Hoa and Nghe An [4]. Smallholders' responsibilities include the preparation of the plantation site, planting and maintenance of the plantation. Seedlings are provided free of charge and the provincial and district forestry authorities provide extension service on technical matters such as site mapping, planting techniques, and the use of fertilizer. The Consulting Office actively supports the investments and gives technical advice on prevailing issues.

Project implementation will follow a sequence of steps which are in detail: (i) village land use planning and respective village forest development planning, (ii) site mapping and site/species matching, (iii) production of vigorous seedlings, (iv) planting with consideration of the existing natural regeneration, (v) opening of private savings accounts for beneficiaries, and (vi) post-planting plantation management.

Judged by the physical accomplishments in the field, the quality of plantations, the generation of additional income for smallholder and the survival rate of seedlings, this approach to afforestation has been considered successful and substantially contributed to the generation of additional income of poor farm households in disadvantaged areas of Viet Nam. The fourth Project will build on the lessons learnt of the predecessor projects and thus will refine the existing guidelines and further improve the quality standards.

[1] J.-F.Kirchhoff is regular staff of GFA Terra Systems and Team leader of the Project.
[2] The series of afforestation projects in Viet Nam cofinanced by KfW started in Nov.1995 with the Afforestation Project in Lang Son and Bac Giang (the first project) and was continued with the Afforestation Project in Ha Tinh, Quang Binh and Quang Tri in June 1997 (the second project). The third project 'Afforestation in Bac Giang, Quang Ninh and Lang Son Provinces' is currently under implementation. GFA Terra Systems carried out all these projects including the fourth project.
[3] It is estimated on the average some 1.3 ha/smallholder.
[4] The average per capita income in the region is about 150 US$ per year