VIET NAM

INTRODUCTION

Main non-wood forest products

The important NWFP in Viet Nam are handicrafts (from rattan and bamboo), resin, essential oils, medicines, spices, mushrooms and honey.

General information

Besides timber, the forests in Viet Nam provide a wide range of NWFP which are commonly referred to as "Special Forest Products" (Lauong Van Tien 1994). NWFP play an important subsistence role for rural households, particularly of the ethnic minorities living in upland areas where about 54 ethnic groups with around 150 subgroups have been found (Smithsonian 1991). NWFP can yield higher economic returns than the upland agriculture or the forest products of this area.

The NWFP sector (collection, cultivation, trade and processing) in Viet Nam affords employment to hundreds of thousands of people, including the inhabitants of urban areas (Lauong Van Tien 1991). NWFP exports reached US$40 million annually between 1986 and 1990 (NTFP Project Document 2000). People moving from the rural areas tend to maintain their consumption patterns in the cities and the urbanization of the population has increased the demand for NWFP.

The trade is in the hands of various state and provincial companies and a number of small private traders (NTFP Project 1999). Before 1995, the State Enterprises controlled all the marketing chains of NWFP. Currently, deregulation and more free market access for NWFP is taking place.

The lack of value-added processing reduces the incomes from NWFP. Many harvesters sell NWFP unprocessed because they either need money immediately or because of insufficient knowledge of processing techniques (NTFP Project 2000).

NWFP are domesticated by households in home gardens and agroforestry systems. Some NWFP plantations (production forest and protection forest) have been developed under the management of the State Forest Enterprises (STEs) but there is no systematic management of NWFP development in Viet Nam. Forest decline and other factors are leading in many locations to overexploitation of NWFP resources. According to the Biodiversity Action Plan (1995) about 28 percent of animal species, 10 percent of bird species and 21 percent of reptiles and amphibians, are facing extinction, while some 350 plant species are among the endangered species.

Table 1. Available NWFP species in Viet Nam in 1997 and 2000

Na= not available

Sources: *) VFFSCP (1997) and **) Chu (2000)

According to Viet Nam’s Five Million Hectare Reforestation Program (5MHRP), the Ministry of Agriculture and Rural Development (MARD) has prioritized the development of certain NWFP, grouped as follows: handicrafts (rattan, bamboo); resin and gum (pine resin, also lac); essential oils (production from cinnamon, citronella, Ocimum basilicum, peppermint, anise star, cajeput, Litsea cubeba, sassafras); medicinal plants, fruits and nuts (cashew nut, canarium, chestnut).

According to the 5MHRP plans, in 2010 Viet Nam could have more than one million hectares of NWFP plantations and other types of NWFP forests. The forest cover has been increased from 23.6 percent in 1983 to 33.2 percent in 2000 (MARD 2000). This is a result of the new reforms, which have opened opportunities for local communities to improve their forest resources and which have given them new possibilities to generate more income from NWFP. According to the Forest Strategy Group (December 2000), it has been forecast that from 2001 to 2010 Viet Nam will need 300–350 000 tonnes of rattan and bamboo; 40 000 tonnes of pine resin; 30 000 tonnes of anise flower; 5 000 tonnes of shellac; 1 000 tonnes of dipterocarpus sap and 1.5 000 tonnes of medicinal plants.

PLANTS AND PLANT PRODUCTS

Food

Canarum (Canarium pimelea) and chestnut (Castanea mollissima) grow mainly in Cao Bang and Bac Giang provinces. In Cao Bang Province there are 2 000 ha of intensively cultivated chestnut trees that can provide cash income for farmers (Huy 1996).

In the mountain areas, mushrooms (e.g. nam huong (Lentinus edodes), Jew’s ear (Auricularia auricula) and nam linh chi (Ganoderm lucidum)) are used mostly as subsistence for other food. Mushroom cultivation has become more popular both in uplands and lowlands as it has provided many farmers with new ways for income generation. There were around 100 000 households cultivating straw mushrooms (Volvariella volvacea) in Viet Nam, employing 300 000 people on a permanent basis, mainly in South Viet Nam (VFFSCP 1997). Annually more than 100 000 tonnes of mushrooms can be produced and this has attracted about 1 million households to become involved in this new profession (Thu Hanh 2001).

Table 2. Exports of mushrooms in 1995

Source: VFFSCP (1997)

The domestic demand for mushrooms is very high. For instance Ha Noi City needs 300 tonnes of fresh mushrooms annually. The whole country needs about 160 000 tonnes per year (Le Vo Dinh Tuong 2001). More than 40 per cent of the Vietnamese mushrooms are exported to the United States, Japan, Taiwan, China, the European Union, Hong Kong, Singapore, Australia and Canada (Hien Anh 2001).

Bamboo shoots are used as food. Production of bamboo shoots reached 32 500 tonnes in 1995, 30 887 tonnes in 1996 and 13 789 tonnes in 1997 (Ministry of Agricultural Rural Development Vietnam [MARD] 2000); Chu 2001).

Medicines

Around 4 000 different types of medicines ranging from traditional herbal cures to modern remedies introduced from the west are produced in Viet Nam. The low productivity and obsolete technology of the Vietnamese pharmaceutical industries can currently meet only 30 percent of the total demand, while 70 percent of the domestic demand has to be supplied by imports (VFFSCP 1997).

A study by the Medicinal Institute found that more than 2 000 trees species (238 plant families) are famed for their medicinal properties; they are common in folk medicines and should be protected. Some species under the threat of extinction are Coptis chinensis and C. quiquesecta (hoang lien), Berberis julianae and B. wallichiana (hoang lien gai), Thalictrum spp. (tho hoang lien) Mahonia bealei, M. nepalensis, M. japonica (hoang lien o ro), Asarum spp. (te tan), Aristolochia spp. (phong ky), Anoectochilus spp. (co nhung), Nervilia spp. (cay mot la), Panax spp. (tam that) (Nguyen Tap 2001).

About 300 species are harvested for domestic and commercial purposes (including domesticated medicinal trees). Valuable plants include Acathopanax spp. (ngu gia bi gai), Schefflera spp. (ngu gia bi chan chim), Polygonum multiflorum (ha thu o do), Lonicera spp. (kim ngan), Polygonatum and Disporopsis (hoang tinh), Strychnos wallichiana (hoang nan), Draceana spp. (huyet giac), Codonopsis spp. (dang sam), Artemisia annua (thanh hao hoa vang), Stephanis rotunda (binh voi) and Cibotium barometz (cau tich) (Nguyen Tap 2001). It has been estimated that 80–90 percent of the medicinal plants produced in northern Viet Nam are exported in the form of dried plants or extracts and that only 10–20 percent of the medicinal plants are consumed or processed domestically (Lecup 1996).

Table 3. Exports of medicinal plants in 1995

Source: VFFSCP (1997)

Spices (e.g. mackhen, cinnamon, anise star, Cardamom villosum, Cardamom tsaoko) are used for traditional food and some are exported to China and the overseas markets.

In Viet Nam there are three important species of cardamom (local name sa nhan, trade name wild cardamom): Amomum villosum Lour (local name sa nhan do); Amomum xanthioides Wall (local name sa nhan xanh) and Amomum longiligulare T.L.Wu (local name sa nhan tim).

More than 80 per cent of the cardamom production is gathered from the wild with the remainder being cultivated (Tu 1990). The quality of the products is, however, higher in the plantation forests since in the wild the fruits are often collected too early as the collectors are afraid that other collectors will harvest the products before them. The harvesting season is in June and July.

Cardamom is exported mainly to Asian countries (China, Japan and Hong Kong). In 1999 to 2000, Viet Nam exported about 8 000 kg of cardamom to China (Kham 2001). In 1995, 17 800 kg (US$143 880) were exported to Japan (VFFSCP 1997). In the domestic market, the fresh fruits are sold at D5 000–6 000/kg (US$0.3–0.4/kg). The price for dried fruits can be 10 times higher since 10 kg of fresh fruits is equal to 1 kg of dried fruits (ratio 1/10), from US$3.5–4.0/kg (Tu 2000).

Anise star tree (Illicium verum Hook) (trade name anise, local name hoi huong) grows mainly in Lang Son Province but is also found in other provinces such as Bac Kan, Thai Nguyen, Cao Bang, Quang Ninh. In Lang Son Province, anise has been planted in the districts of Van Lang, Van Quang, Tay Bac, Cao Loc, Binh Gia, Nam Truong Dinh and Bac Son. The area of plantations in Lang Son Province is more than 9 000 ha, the majority being in Van Quan District (7 021 ha). The district of Van Quan produced 3 000 tonnes (more than D70 billion [US$5 million]) in 2000 (Vietnam News 2001). In the past, anise plantations mostly belonged to the collectives and the SFEs. From the 1990s onwards, the collectives and the SFEs were disestablished and the anise plantations were allocated for management by households. Within the framework of the 5MHRP, some 20 000 ha of new plantations are planned.

Table 4. Production of anise, 1995 to 1999

Source: MARD (2000) and Chu (2001)

Anise flowers twice a year: from February to April (fruit from May to October) and from May to September (fruit from November and December). Harvesting fruit during the summer season provides bigger yields (Tan 1996). Due to the high quality of Vietnamese anise seeds, the Chinese producers buy Vietnamese anise in order to upgrade their quality and then re-export the blended anise to international markets.

Table 5. Exports of anise seeds in 1995

Na = not available

Source: VFFSCP (1997)

Perfumes and cosmetics

Essential oils are exported mainly to destinations in western Europe (France, the Netherlands) and Japan. There is not much domestic consumption in Viet Nam.

The average annual export of essential oils to overseas markets is around 1 600 tonnes, comprised by: cassia oil (Cinnamomum cassia): 10–15 tonnes; citronella oil (Cymbopogon citratus): 200–350 tonnes; Ocimum basilicum oil (Ocimum basilicum): 10 tonnes; peppermint oil (Mentha piperita): 15–20 tonnes; star anise seed oil (Illicium verum): 200–300 tonnes; cajeput oil (Melaleuca leucadendron): 10–12 tonnes; Litsea cubeba oil (Litsea cubeba): 10–15 tonnes; pemou oil (Fokienia hodginsii): 10–15 tonnes; sassafras oil (Cinnamomum sp.): 1 000–1 200 tonnes.

Table 6. Exports of some essential oils

Source: VFFSCP (1997)

All parts (bark, leaves, flowers, wood, roots) of Cinnamomum cassia (local name que) can be used for cassia oil production. The bark has an oil content of 4 to 5 percent (Hoang Cau 2000) and 100 kg of bark can produce 2 kg of oil and 1 000 kg leaves and branches can produce 1 kg of oil (Hoang Cau 2001).

Table 7. Production of cinnamon, 1995 to 1999

Source: MARD (2000) and Chu (2001)

Table 8. Exports of selected cinnamon products

Source: VFFSCP (1997)

Table 9. Markets for cinnamon (averages from 1994 to 1996)

Source: Statistic Department of Vietnam (1998)

The planting of Cinnamomum cassia has become more common; its management has improved since property rights have been re-established and now households are better involved in its planting. Cinnamon has been introduced to a number of provinces such as Phu Tho, Tuyen Quang, Lao Cai, Bac Kan, Ha Tinh, Quang Binh, Binh Dinh and Khanh Hoa. Cinnamon has high potential in the provinces of Cao Bang, Thanh Hoa and Quang Nam. Currently the area is 16 000 ha, which can provide more than 3 000 tonnes of bark per year (Hoang Cau 2000); 65 000 ha of cinnamon should be planted from 2000 to 2010 according to the 5MHRP.

The incense made from eaglewood (Lignum aquilariae, local name tram huong) is produced from Aquilaria crassna. Partly due to the extinction of the species in natural forests, more than 700 ha of Aquilaria crassna have been planted by farmers. Most planting areas are in Huong Khe District, Ha Tinh Province; Dong Hoi District, Quang Binh Province; Tra My and Tien Phuoc districts, Quang Nam Province; Dong Xoai District, Binh Phuoc Province.

In 1995, the export of eaglewood to Japan was 34 071 kg (US$6 046 091) (VFFSCP 1997). In 1999 and 2000 Viet Nam exported 2 000 kg of eaglewood to Japan and China (Kham 2001). The quality of Vietnamese eaglewood is acknowledged widely in world markets (Tissari 1997).

In the near future, 155 000 ha of the tung oil tree (Aleurites montana) will be planted in new areas following the 5MHRP. Currently tung oil trees have been planted mostly in Lai Chau, Hoa Binh, Quang Nam Da Nang, Lang Son and Quang Ninh provinces (Viet 1996).

Utensils, handicrafts and construction materials

Rattan and bamboo are important raw materials for the handicraft industry, which employs at least 2 to 3 million people in Viet Nam (VFFSCP 1997). According to Lan Anh (2001) the handicraft business has employed around one million unskilled workers. Each US$1 million earned from handicraft exports can generate jobs for roughly 3 000 to 4 000 workers in the handicraft villages (Thu Hanh 2001). The main destinations for finished handicraft products made from bamboo and rattan are Japan, China, Hong Kong, Taiwan, the United States and the European Union. In 1998, the value of the total forest production was US$59.0 million and of this amount the value of handicraft exports was US$37.7 million (Huan 2000).

Table 10. Value of handicraft exports, 1990 to 1995

Source: VFFSCP (1997)

The most important rattan species in Viet Nam are: Calamus tetradactylus Hance (small diameter) in the north; Calamus tonkinensis Becc (small diameter) and Calamus rudentum Warb (small diameter) nationwide; song mat (Calamus platyacanthus Warb) (large diameter) in the north and Calamus poilanei Lour (song bot) (large diameter) in the south. Species like Calamus tetradactylus Hance (may nep), Calamus tonkinensis Becc (may dang) and Calamus amarus Roxb (cay mai) have been domesticated in home gardens (Dung 1996).

Table 11. Rattan production, 1995 to 1999

Source: MARD (2000) and Chu (2001)

The value of rattan production in Viet Nam increased rapidly in the late 1980s, reaching D10 billion (US$1 million) in 1990. This favourable economic development is supposed to continue. Viet Nam is the third largest exporter of rattan in the world after Malaysia and Indonesia (around 14 percent of the world rattan trade in 1992). The value of exports ranges between US$36 million (1990) and US$12.6 million (1995). However, up to 60 percent of the raw rattan cane in Viet Nam is imported.

Table 12. Exports of selected rattan products

Source: VFFSCP (1997)

Data from the Ministry of Trade (MOT 1991) showed that 50 542 tonnes of rattan had been exported (value: US$26 352 805), mostly in the form of raw material and semi-processed products (Doan Bong 1995).

Uncontrolled rattan harvesting for many years has led to the extinction of rattan resources. In order to support the growing handicraft industry, the government is encouraging the cultivation of rattan. In Thai Binh, Hai Duong, Ha Tinh and Nam Ha provinces rattan has been planted in home gardens for centuries as a multipurpose tree. Annually farmers can produce some 1 500 to 2 000 tonnes from their home gardens.

Nowadays rattan markets have been liberalized and are operated by private traders, primary processing factories and exporters along with state-controlled export companies. Few secondary processing activities are conducted in Viet Nam for the local market and in general most of the exported products are in the primary processed form. The secondary processing in furniture and other home appliances is done usually by the importing countries (Lecup 1996). Annually some 20 000 to 40 000 people are involved in rattan exploitation and processing, which makes the industry an important contributor to employment (Dung 2001).

According to the Forest Inventory Planning Institute (FIPI) (1993), the area of both bamboo plantations and natural bamboo forests in Viet Nam is 896 391 ha and more than 200 000 ha should be planted in the near future following the 5MHRP guidelines.

Important bamboo species in Viet Nam include inter alia, Arundinaria spathiflora, Neohouzeaua dullooa and Dendrocalamus membranaceus. Neohouzeaua dulloa, Indosasa augustata, Phyllosiachys pubeacens, Dendracalamus sericeus and Dendrocalamus latifolius are harvested mostly for their shoots.

Table 13. Exports of selected bamboo products

Source: VFFSCP (1997)

Currently products made from Dendrocalamus membranaceus are exported as handicrafts to Japan, France, Argentina, Brazil and Taiwan (Salter 2000). The volume of bamboo supplied to the pulp industry is as high as 100 000 tonnes per year. Bamboo processing developed rapidly from 1990 to 1995. Nationwide, some 20 mill firms have been established (Chu 2000).

Exudates

Pine resin (Pinus merkusii) (local name thong nhua) grows in natural forest and has been planted over large areas in the provinces of Quang Ninh, Bac Kan, Thanh Hoa, Nghe An, Ha Tinh, Quang Binh, Quang Tri and Lam Dong. According to data from MARD (1992) Viet Nam has 120 000 ha of pine resin plantations. According to 5MHRP, from 2000 to 2010, some 140 000 ha of Pinus merkussi should be planted (MARD 2000).

Table 14. Volume of pine resin exploitation in Viet Nam from 1995 to 1999

Source: MARD and Chu (2001)