7.1 General
7.2 Market aspects and research: Vietnam
7.3 Market aspects and research: Laos
Indochina's forests are a
very valuable source of a wide range of NWFPs. However, active
measures to conserve and restore the resource base are urgently
needed.
Where large natural forests still do exist, conservation must take first priority. The conservation of these forests is important not only because of the crucial environmental services they provide, such as watershed protection, soil stabilization, and climate regulation, but in the first place because of their role as repositories of biological and genetical diversity. The forests of Indochina are the source of the wild ancestors of many important cultivated crops and hence of potentially genetic impute required for the maintenance or improvement of their productivity. They also harbour a host of plant and animal species whose benefits to humanity have not even begun to be explored.
In barren and degraded areas large reforestation programmes are being carried out, particularly in Vietnam. Indigenous tree species and NWFPs could play a larger role in these programmes than they presently do. A specific focus on the needs of rural households is warranted because it is here that dependence on the materials and income provided by NWFPs is most direct.
In this context, it should be noted that both the degradation of NWFPs and also their development can cause hardship for the groups most dependent on the forest for their everyday lives.
It is
therefore imperative that steps to enhance the role of NWFPs in
forestry are accompanied by the formalization and enforcement of
traditional forest dwellers' rights and the participation of all
rural communities in the control and management of the local
forest and its NWFP resources.
A wide range of NWFPs are
collected or cultivated either for use in the home market or for
export. A large part of the trade goes unregistered.
Export
Several decades ago Vietnam, together with the other countries of Indochina, enjoyed a special position in the world market as a supplier of NWFPs. Now, Vietnam is re-establishing trade links with the world market at large.
At present world market prices for raw materials, such as spices and essential oils, are generally low as a result of structural oversupply from producer countries and the current recession in North America and Europe.
On the other hand, the growing demand for natural products in the industrialized countries has opened new markets for specific products. As regards labour intensive products for which world demand is strong, such as pine resin, Vietnam has the advantage of comparatively cheap labour.
In general focusing on relatively small quantities of high-value products is recommended rather than on large volumes of a small range of products. In particular, it would be wise to try to avoid direct competition with (the giant) China.
There is considerable potential for marketing a wider range of products already identified and for developing new commercial and industrial uses as well as for finding new forests products. Traditional forest-dwellers, with their vast repositories of knowledge which they have accumulated regarding the exploitation of their forest environment, can act as guides to identify 'new' products and their useful properties.
One of the most fruitful areas to which indigenous knowledge can contribute, and indeed has already contributed, is the medicinal use of forest species. Pharmaceuticals is also a promising sector for further development, because Vietnam possesses very competent research units in this field, notwithstanding a severe lack of equipment and literature, for instance at the University of Hanoi. Other potential commodities based on traditional products include pesticides and insect repellents.
In addition, new industrial uses are still being found for forest products originally exploited for other purposes. To be able to take advantage of new possibilities, the active gathering of market intelligence is needed. Representatives of the trade in Vietnam should closely monitor developments in the major consumer markets and by bringing 'new' raw materials to the attention of manufacturers in the overseas market, explore the chances to enlarge the basis of exports.
In a country short of foreign exchange earnings, finding export markets is obviously an urgent need. Nevertheless the potential of the home market of 65 million people should not be overlooked. For numerous NWFPs for which it would be hard to find export markets (e.g. edible oils, forest honey), a good market either already exists or can be established within the country. In addition, the development of products for the home market contributes to the national economy in terms of import substitution.
Harvesting
Less wastage in the process of extraction and better regeneration of many NWFPs can be achieved by the development and application of improved harvesting techniques. Improved storage would result in less spoilage of raw materials, before they reach the processing stage.
Processing and quality control
A very large part of primary processing of NWFPs - pressing, distillation, drying - is carried out by small cottage industries in the countryside. Credit facilities to upgrade these production units are direly needed. Assistance given to small scale forest-based industries, as well as to the primary producers - collectors and cultivators - should also be directed at achieving consistent grading which meets buyers specifications (the example of the Enteroil company has been given in paragraph 5.1 on essential oils).
Market development for small scale manufacturers would be furthered by government agencies and trade associations promoting their products, supplying market information, and assisting in the development of products marketed to changing consumer preferences.
Research
Strengthening the NWFP-sector will demand considerable research effort. Vietnam possesses competent scientific institutes, such as the Centre for Natural Resources and Environmental Studies (CRES), the Institute of Ecological Economy and several branches of the University of Hanoi.
It is
recommended to reinforce these and other institutes and bring
them in to carry out research to the benefit of strengthening the
NWFP-sector. A first step to reinforce these institutes might be
to help them upgrade their libraries.
In Laos NWFPs are much
collected for the domestic market, but all taken together they
also form one of the major export commodities of the country. A
very large part of the export goes unregistered. Much of what has
been said in paragraph 7.2 in relation to Vietnam also applies to
Laos.
Laos has a disadvantage because, being landlocked, it has comparatively high transport costs. However, it has a potentially strong position for the export of those products, which grow in the wild or under light forest management, because of its still relatively abundant natural forest resources.
Processing
The present capacity for processing NWFPs is small in Laos. It is recommended to stimulate the establishment of small-scale NWFP processing industries in the producing areas and assist existing operations with achieving consistent grading. Also, in Vientiane a centre where quality control can be carried out is direly needed.
Research
In Laos much research also needs to be carried out before a successful attempt can be made to develop the economic potential of the NWFP-sector in the country.
In October
1991, a small NWFP-branch was established within the Department
of Forestry in Vientiane. Strengthening the research capacity of
this branch of the Department of Forestry, as well as the
research and monitoring capacity of other institutions, both on
the national and the provincial level, should be given first
priority.