Minister Do Duc Duy: Forestry breaks through, exceeding ‘safe growth’ zone of 5%

There is still great potential for growth

At a working session with the forestry sector on the morning of March 6, Minister of Agriculture and Environment Do Duc Duy acknowledged that forestry is one of the three pillars of the agriculture and rural development sector. Alongside livestock and fisheries, the Minister stated that forestry still has significant potential for development.

"The forest is not merely a source of timber but also a valuable natural resource with various benefits, such as environmental protection, ecological preservation, and climate change mitigation. It is also a crucial factor in the country's sustainable development strategy," the Minister stated. He emphasized that the forestry sector should develop in a multi-value, multi-purpose direction, contributing even more to economic and social development while ensuring a sustainable living environment for future generations.

The head of the Ministry of Agriculture and Environment assessed that generations of forestry sector leaders have undertaken significant tasks, such as establishing a comprehensive legal framework covering various fields; making clear progress in production organization; gradually developing forestry into an economic sector; and achieving a large trade surplus, accounting for approximately 60% of the country's total trade surplus.

However, he also pinpointed several existing challenges and limitations, such as the forestry sector not developing in proportion to its potential; institutions and policies remaining inconsistent and not strong enough to drive sustainable growth; inadequate investment in the sector at both central and local levels; slow adoption of science and technology, failing to meet the demands of forest management, protection, and responses to climate change, natural disasters, and extreme weather conditions; and a lack of full awareness among some forest owners.

The issue of overlapping forest ownership, rooted in historical factors, has yet to be fully resolved. Meanwhile, transportation infrastructure for forest management and protection remains inadequate. There is also an ongoing conflict between converting forest land for economic development and maintaining forest coverage, alongside increasing commercial competition.

Reporting to the Minister, Deputy Minister Nguyen Quoc Tri acknowledged that many projects related to forest protection, afforestation, improving natural forest quality, nature conservation, and scientific research on forestry have not received adequate investment. Funding for forest development remains unsustainable due to the long production cycles and high risks associated with forestry. Protecting and restoring natural forests, as well as conserving biodiversity, incurs significant costs, while the economic benefits cannot be recovered in the short term.

In addition to the shortage of highly skilled personnel and the lack of adequate incentive policies for the forestry workforce and dedicated forest protection staff, Deputy Minister Nguyen Quoc Tri also highlighted the issue of fragmented management.

Across the country, there are nearly 1.2 million forest owners, with around 2,000 (mainly state-owned companies) managing 50% of the total forest area. In some areas, individual household forest owners live interspersed with state-owned forest managers, creating challenges in changing cultivation practices for the 20 million people residing in buffer zones around forests.

"Forestry planning is often adjusted due to other plans related to transportation, infrastructure, and economic development. Additionally, forestry professionals are concerned that while the government has many support and investment programs for forest management and protection, each program comes with its own policy, leading to potential overlaps," the Deputy Minister stated.

The forestry sector has been actively promoting decentralization and delegation of authority to local governments. In 2024, the Ministry advised the Government on issuing several decrees to address challenges faced by localities, particularly regarding the conversion of forest land use.

Additionally, the pilot implementation of forest plantation codes in 10 provinces has shown promising initial results. This serves as a foundation for the Ministry of Agriculture and Environment to develop a national database system for planted forests and timber traceability.

Sustainable and multi-purpose development

According to statistics from the Forestry and Forest Protection Department, the total planned forestry land area nationwide is 15.8 million hectares, of which 14.8 million hectares are forested (over 93%), with nearly 8 million hectares designated as production forest land. With an average annual production value growth of 4.7% in recent years, Minister Do Duc Duy expressed confidence that the forestry sector’s contribution will continue to increase in the coming years.

"Developing forestry into a sustainable, multi-purpose economic sector is a necessity. Forestry is not just about economic growth; it is closely linked to environmental protection, ecological conservation, and sustainable development," the Minister emphasized. He also highlighted the importance of carbon credits, describing them as a valuable resource for Vietnam and predicting that they will soon become a powerful tool in international negotiations.

Concuring with Deputy Minister Nguyen Quoc Tri, the Minister of Agriculture and Environment noted that the current forest protection contracting fee per household remains quite low, making it difficult for families to maintain a stable livelihood and remain committed to the sector. This, he pointed out, is also a significant barrier to building new rural areas in mountainous, remote, and nature reserve regions.

The Minister outlined several key tasks for the forestry sector to study and implement.

First, he emphasized the need to continue reviewing and improving legal documents, institutional policies, and regulatory frameworks, with a priority on addressing conflicts and overlaps among sectors such as land management, nature conservation, biodiversity, and forest management and development.

Second, the sector must continue its restructuring, which involves not only changing production methods but also transforming the production workforce, improving forest quality, and innovating production organization processes.

Additionally, there should be a shift in awareness and forest management practices through public awareness campaigns and training programs for local communities on the role of forests. Beyond timber harvesting, people should also explore economic models under forest canopies, such as eco-tourism and conservation-based tourism.

The Minister also directed further simplification of administrative procedures and enhanced coordination among sectors and localities to develop support mechanisms that ensure people feel secure living near forests. Additionally, he emphasized the need to study policies that encourage environmental protection and climate change adaptation, particularly the development of the carbon credit market and human resource capacity.

Reiterating the "sustainable" and "multi-purpose" approach for the forestry sector, Minister Do Duc Duy expressed hope that, in the near future, through changes in management practices, the sector will enhance processing technology, move beyond the "safe growth" zone of 5%, and soon achieve a breakthrough with double-digit growth.

The Director General of the Department of Forestry and Forest Protection, Mr. Tran Quang Bao, stated that revenue from forest environmental services (approximately VND 3,000 billion per year) has not yet been included in the production value of the forestry sector. He proposed that the statistical authorities consider incorporating this revenue to ensure a comprehensive and accurate reflection of the forest's contributions to socio-economic development.