Large timber forest ‘thirst’ for support policies: Binh Dinh's large timber forests under great financial pressure

Overcoming obstacles to develop large timber forests

Binh Dinh currently has ​​415,347 ha of forest and forestry land, the area under forestry planning is 379,040 ha in particular. In recent years, this province has promoted sustainable forestry development, which is concretized with a scheme to develop large timber forests in the locality for the period 2016 - 2025, with a vision to 2035.

Accordingly, Binh Dinh will develop concentrated large timber forest areas, organize production associated with the value chain from forest planting to processing and product consumption. The goal is to increase the value of planted forest timber in adaptation to the EU Regulation on Deforestation-free products (EUDR).

With nearly 300 wood processing enterprises, Binh Dinh's wood industry needs 1.2 million cubic meters of raw wood each year. However, 80% of the raw material demand of Binh Dinh's wood industry depends on imported wood.

"Considering the current situation, Binh Dinh has proposed a roadmap for planting large timber forests to both increase the value of planted wood and reduce the dependence of the export wood processing industry on imported raw materials," said Le Duc Sau, Director of Binh Dinh Sub-Department of Forest Protection.

To put the goal of developing large timber forests into practice, Binh Dinh Sub-Department of Forest Protection provides businesses with ample support in implementing the procedures for investing in sustainable forest planting, consults the Department of Agriculture and Environment to submit to the provincial People's Committee and submit requests to the provincial People's Council to issue a policy to support the development of large timber forests in the locality until 2030.

According to Director Le Duc Sau, planting large timber forests associated with FSC certification not only brings high economic efficiency but also has positive impacts on the natural environment. In particular, the forest cover is maintained for decades so the land is not eroded by rain and wind.

“Encouraging the development of large timber forests is the correct direction of the province. Up to now, Binh Dinh has nearly 10,000 ha of large timber plantations, including more than 3,000 ha of Phu Tai Bio-Energy Joint Stock Company, 1,112 ha of Ha Thanh Forestry Company Limited, 2,921 ha of Quy Nhon Plantation Forest Company Limited, nearly 725 ha of Song Kon Forestry Company Limited, and the rest are owned by individuals,” he said.

Good planting procedure means immense financial pressure

Ha Thanh Forestry Company Limited (Van Canh District) is one of the pioneers in planting large timber forests in Binh Dinh. The company's forest area has been growing continuously since 2010, reaching 1,112 ha to date. The output of large timber harvested in 2024 reached approximately 5,000 tons, accounting for nearly 20% of the company's total annual timber output.

“If our financial capacity is strong enough, the company will grow the forest for 10 - 12 years before exploiting it, then the proportion of standard raw wood supplied for wood processing will increase. The company’s entire area of ​​planted forest wood has been granted FSC certification. This is a favorable condition for the company to convert many areas from small forests to large timber forests,” said Pham Ba Nghi, Director of Ha Thanh Forestry Company Limited.

According to Cai Minh Tung, Chairman of Ha Thanh Forestry Company Limited, in planting large timber forests, choosing seedlings is very important, and using tissue-cultured seedlings will be more effective. It is also necessary to apply silvicultural measures according to the correct process, the forest must be cared for promptly in the right season.

Ha Thanh Forestry Company Limited chose tissue-cultured hybrid acacia varieties instead of cuttings to improve plantation productivity. However, the use of high-quality varieties and strict adherence to silvicultural procedures have significantly increased costs, causing financial pressure in the context of limited loan capital.

“If the company cultivates large timber forests, it must limit exploitation and replant forests every year. This will reduce the company's revenue and profits, hence a lack of funding for regular expenses. Every year the company has to exploit small timber forests, even those in good locations, to generate operating funds,” said Director Pham Ba Nghi.