Day 1 session 5.2 five million hectare reforestation program in vietnam
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Transcript of Day 1 session 5.2 five million hectare reforestation program in vietnam
THE FIVE MILLION HECTARE REFORESTATION PROGRAM IN
VIETNAM: AN ANALYSIS OF ITS
IMPLEMENTATION AND ITS TRANSACTION COSTS
Huong Tran Thi Thu, Manfred Zeller, Hoanh Chu Thai
Introduction
Forest tenure has been changing in Vietnam Forestry programs:
PAM (the United Nations' Food Program) Program 327 (a nationwide reforestation
program) Regional reforestation programs
1998: the Five Million Hectare Reforestation Program (5MHRP)
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Research questions
What are objectives of the 5MHRP? How has the program been implemented? What are the roles of the different stakeholders in the implementation process?
What are the incentives and disincentives for farmers in the program?
How much are the transaction costs and benefits to the farmers when they participate in the program?
How to reduce transaction costs in implementation in forestry program?
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Map of study site4
Methodology (con’t)
Sample size: 39 interviews and 15 focus group discussions Province level: 2 interviews District level: 7 interviews Commune level: 5 interviews + 5 focus group discussions Village level: 25 interviews + 10 focus group discussions
Village headman: 5 interviews Community: 10 focus group discussions Household : 20 interviews
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Methodology(con’t)
Data collection Participatory Rural Appraisal Focus group discussions (guidance of semi-structure
questionnaire and the support of Net-Map tool) Individual in-depth interviews (guidance of semi-
structure questionnaire and the support of Net-Map tool) Informal communications Observations
Data analysis Data from focus group discussions and individual in-depth
interviews was transcribed and coded by Nvivo in order to be grouped to content and thematic analysis.
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Typology of contracts in the 5MHRP7
Contract type
Name of contract Duration (year) Contract target
Protection forest
Type 1 Plantation of new forest and protection of planted forest
9 Individual household
Type 2 Zoning for protection of natural forest 5 Village community
Type 3* Zoning for regeneration and protection of natural forest
6 Individual household
Production forest
Type 4 Plantation of new forest 1 Individual household
(*): was not implemented in selected communes
Command and money flows in the 5MHRP
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Provincial People’s Committee
Provincial Projects Management Board
District Management Board of Protection Forest (MB1)
Management Board of Nature Conservation Areas (MB3)
Management Board of Da river Protection Forest (MB2)
Provincial Executive Committee
Household/Community
District Treasury
Provincial Treasury
Seedling company
District Agroforestry Extension Department
Command flow
Money flow
Transaction costs days for five communities
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Village Natural forest area (ha)
Total TCs(labor day)
TCs per ha (labor day)
Start-up costs
(% of total TCs)
Variable transaction costs (% of total TCs)
Regular meetings
Self-monitoring
Conflict resolution
Joining monitoring
and verification
Co1 179 1.317 7.4 2.9 23.4 68.4 4.0 1.3
Co2 11 76 6.9 23.1 64.5 7.4 0.0 5.0
Da1 330 690 2.1 3.8 24.9 70.8 0.0 0.5
Da2 31 263 8.5 10.3 68.1 19.0 2.4 0.2
Da3 180 226 1.3 7.0 78.4 11.6 1.9 1.1
Average 146.2 514 5.2 4.9 34.4 57.2 2.5 1.1
Transaction costs days between individual and community contracts
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Individual Community0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0.4 4.90.8
34.4
97.6
57.2
0.2 2.5
The share of transaction costs between individual and community contracts
Joining monitoring and verificationConflict resolutionSelf-monitoringRegular meetingsStart-up costs
Contract type
Benefits per hectare per year of forest management
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BenefitCommunity contract Individual contract
Value (US$) Share (%) Value (US$) Share (%)
Government monetary subsidy 6.85 17.9 66.7 16.1
NTFPs 31.48 82.1 260.5 62.7
Auxiliary trees extraction - -
88.2 21.2
Total benefit 38.3 100.0 415.4 100.0
Benefits and Costs of forest management for five communities
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Co1
Co2
Da1
Da2
Da3
- 10,000.0 20,000.0 30,000.0 40,000.0
32,500.2
4,141.5
32,047.5
7,280.3
12,309.6
22,006.8
1,372.2
9,915.2
2,993.1
1,905.2
Benefits and costs for five communities
Costs Benefits
Costs and benefits in US$
Com
mu
nit
ies
NPV per hectare per year between individual and community contracts (in US$)13
Village Community contract
Individual contract
Of which
Household planting woody trees - acacia
Household planting woody trees - bamboo
Co1 11.7 315.9 104.9 456.5
Co2 50.3 315.4 278.7 339.8
Da1 13.4 289.7 156.8 334.0
Da2 33.1 77.0 77.0 -
Da3 11.6 - - -
Average 24.0 267.4 144.4 376.8
Conclusions14
The diversity of informal institutional arrangements resulted in the big variation of transaction costs in our studied areas
The extent of transaction costs was relatively large for households. Community contract: regular meetings (34%) and self-monitoring
(57%) constituted a large proportion of the total transaction costs; Individual contract: self-monitoring (98% of total TCs) Costs for conflict resolutions and for participating in official
monitoring and verification are relatively small for households in both types of contract
The NPV per hectare per year was higher for households under individual contract than for those under the community contract
Recommendations15
High transaction costs incurred by households can become a barrier to participate in an environmental
management program might lower the real benefits obtained by households
A higher government subsidy would be needed to match the amount given out under the individual contract;
To increase the payment under individual contract to achieve a higher quality of planted forests with more woody trees
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Thank you for your attention!