The changing administration and role of forestry in the economy of Vietnam

This paper reviews the changing forestry policies in Vietnam from the 1980s to the present. The role of forestry in the economy, developments in forest industries, government programs to encourage plantation establishment, and trade progress are examined. It is concluded that while there is a shortage of timber, log prices to growers are low due to high markups along the supply chain. Government programs such as the Five Million Hectares forestry program will lead to major supply increases in the future, but improvements in timber marketing will remain critical. While forestry exports from Vietnam have increased in the last decade, this has been based mainly on traditional handicrafts. Small enterprise size and lack of advanced technology limit export competitiveness.