Vietnam's forestry sector grew by 8.3 percent in the first six monthsof this year, its highest-ever growth rate for a half-year period.
Thesector is expected to grow by 9 to 10 percent over the course of thefull year, according to a conference held in Hanoi on July 3 on thesector's restructuring efforts, which started two years ago.
NguyenBa Ngai, General Director of the Vietnam Administration of Forestryunder the Ministry of Agriculture and Rural Development, said therestructuring efforts helped rake in an average growth rate of 6.57percent per year in 2013 and 2014, compared with the average of 5.03percent from 2010 to 2012.
A wood chip export turnover of 2.7billion USD contributed to the sector's recent high growth rate, andshowed an increase of 8 percent over the first half of 2014, said Ngai.The percentage of finely-processed wood chips accounted for up to 85percent of the export volume, he stressed.
Still, Nguyen TonQuyen, Vice President and General Secretary of the Vietnam Wood andForest Product Association, said the wood processing industry wasunlikely to achieve the target of $7 billion in wood exports set forthis year, because of the euro's depreciation in export markets andrising electricity, petrol and oil prices.
Over the last two years the sector had planted more than 200,000ha of forest, 90 percent of which were production forests.
In Vietnam, forests are classified by function. The categories are special use, protective and production.
Theconference was also told that during the sector's restructuring, it hadfound 57 individuals or companies that were good models for positive,profitable forest economy practices.
All of these individuals andfirms earn at least 100 million VND (5,000 USD) per hectare of forestper year. They are mostly forest plantations specialising in big trees.
LeThien Phuong's forest-farming household is one example. This warveteran in Yen Bai province has a 30-ha forest on which he grows Acaciaand free-range animals in the forest. Last year, his family made 480million VND (24,000 USD) cutting trees and 250 million VND (12,500 USD)selling livestock.
Phuong said if the State allows banks toextend the term of soft loans, which are lent for a repayment period ofthree to five years, farmers will keep trees standing longer.
"Atree cut at the age of five can get a price only half of what it costsif kept until the age of 10. But people need money to repay the bankloans, so they are forced to cut their trees earlier than they'd like,"Phuong said.
Despite the rosy figures, Ha Cong Tuan, vice agriculture minister, said many forested provinces had not started restructuring.
Heordered them to ready their forestry restructuring plans before thestart of the fourth quarter this year. They were also told to actquickly to introduce good practices from other areas to their provincesand encourage local businesses to join hands with farmers to developplanted forests.
Vietnam has been recognised as one of the 21 Asia-Pacific countries with quickly growing forest cover.-VNA
Thesector is expected to grow by 9 to 10 percent over the course of thefull year, according to a conference held in Hanoi on July 3 on thesector's restructuring efforts, which started two years ago.
NguyenBa Ngai, General Director of the Vietnam Administration of Forestryunder the Ministry of Agriculture and Rural Development, said therestructuring efforts helped rake in an average growth rate of 6.57percent per year in 2013 and 2014, compared with the average of 5.03percent from 2010 to 2012.
A wood chip export turnover of 2.7billion USD contributed to the sector's recent high growth rate, andshowed an increase of 8 percent over the first half of 2014, said Ngai.The percentage of finely-processed wood chips accounted for up to 85percent of the export volume, he stressed.
Still, Nguyen TonQuyen, Vice President and General Secretary of the Vietnam Wood andForest Product Association, said the wood processing industry wasunlikely to achieve the target of $7 billion in wood exports set forthis year, because of the euro's depreciation in export markets andrising electricity, petrol and oil prices.
Over the last two years the sector had planted more than 200,000ha of forest, 90 percent of which were production forests.
In Vietnam, forests are classified by function. The categories are special use, protective and production.
Theconference was also told that during the sector's restructuring, it hadfound 57 individuals or companies that were good models for positive,profitable forest economy practices.
All of these individuals andfirms earn at least 100 million VND (5,000 USD) per hectare of forestper year. They are mostly forest plantations specialising in big trees.
LeThien Phuong's forest-farming household is one example. This warveteran in Yen Bai province has a 30-ha forest on which he grows Acaciaand free-range animals in the forest. Last year, his family made 480million VND (24,000 USD) cutting trees and 250 million VND (12,500 USD)selling livestock.
Phuong said if the State allows banks toextend the term of soft loans, which are lent for a repayment period ofthree to five years, farmers will keep trees standing longer.
"Atree cut at the age of five can get a price only half of what it costsif kept until the age of 10. But people need money to repay the bankloans, so they are forced to cut their trees earlier than they'd like,"Phuong said.
Despite the rosy figures, Ha Cong Tuan, vice agriculture minister, said many forested provinces had not started restructuring.
Heordered them to ready their forestry restructuring plans before thestart of the fourth quarter this year. They were also told to actquickly to introduce good practices from other areas to their provincesand encourage local businesses to join hands with farmers to developplanted forests.
Vietnam has been recognised as one of the 21 Asia-Pacific countries with quickly growing forest cover.-VNA
