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Analysis of Acacia hybrid timber value chains: A case study of woodchip and furniture production in central Vietnam

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  • Tham, La Thi
  • Darr, Dietrich
  • Pretzsch, Jürgen

Abstract

Small-scale producers currently manage approximately half of the plantation forest area in Vietnam; and 80% of the plantation wood is processed into woodchips. To promote higher value uses of the plantation wood, the Vietnamese government has released a number of policies that aim at stimulating the domestic industry, especially the production of furniture and the development of timber value chains (VCs). This paper compares the financial and economic performance of three typical Acacia hybrid timber VCs, comprising woodchip, non-FSC furniture, and FSC-certified furniture in Thua Thien Hue province, central Vietnam. Data were collected from the interviews with 26 key informants, 30 timber producers, eight timber traders, one woodchip, and one furniture processing and exporting company. Results describe main actors in the analyzed timber VCs, their characteristics, functions, profits, and added value. The total added value is 26.3 USD/m3 in the woodchip VC, 557.2 USD/m3 for non-FSC furniture, and 663.7 USD/m3 for FSC-certified furniture. Our comparative analysis also shows that the woodchip VC is financially profitable. However, regarding economic aspects, its performance is lowest, while the FSC-certified furniture VC contributes fundamentally to economic development. This research proves useful for generalization in terms of the analytical framework and the phenomenon of interactions between economic, social, and environmental aspects. The approach of transition towards high added value products, which is expressed in our paper, can further be applied in other comparable contextual cases searching for sustainable utilization of timber and forest-based products at large. A main theoretical proposition is proposed (P1) Stakeholders/VCs that face uncertainty or high competition in terms of essential resources and/or markets can enhance their financial performance through vertical and horizontal coordination.

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  • Tham, La Thi & Darr, Dietrich & Pretzsch, Jürgen, 2021. "Analysis of Acacia hybrid timber value chains: A case study of woodchip and furniture production in central Vietnam," Forest Policy and Economics, Elsevier, vol. 125(C).
    • Handle: RePEc:eee:forpol:v:125:y:2021:i:c:s1389934121000071
    DOI: 10.1016/j.forpol.2021.102401
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    3. Zubizarreta, Mikel & Arana-Landín, Germán & Wolff, Sarah & Egiluz, Ziortza, 2023. "Assessing the economic impacts of forest certification in Spain: A longitudinal study," Ecological Economics, Elsevier, vol. 204(PA).
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    5. Cochard, Roland & Gravey, Mathieu & Rasera, Luiz Gustavo & Mariethoz, Grégoire & Kull, Christian A., 2023. "The nature of a ‘forest transition’ in Thừa Thiên Huế Province, Central Vietnam – A study of land cover changes over five decades," Land Use Policy, Elsevier, vol. 134(C).

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