Supports to Develop Rubber Supports to Develop Rubber Smallholders in VietnamSmallholders in Vietnam

Conference on “Lessons learnt from support Conference on “Lessons learnt from support programs to smallholder rubber plantations”programs to smallholder rubber plantations”

Phnom Penh,Phnom Penh, 2424 June 2009June 2009

Dr. TRAN Thi Thuy HOADr. TRAN Thi Thuy HOA

Secretary GeneralSecretary General

The Vietnam Rubber AssociationThe Vietnam Rubber Association

Overview of NR Development in Overview of NR Development in VietnamVietnam

Current Situation of NR Current Situation of NR Producing in VietnamProducing in Vietnam

• NR: 3NR: 3rdrd largest exported agricultural largest exported agricultural commodity behind rice and coffee in Vietnam.commodity behind rice and coffee in Vietnam.

• Vietnam: the 4Vietnam: the 4thth NR largest exporter in the NR largest exporter in the world.world.

• In 2008:In 2008: - - NR Export: 619,300 tons = US$ 1.6 billionNR Export: 619,300 tons = US$ 1.6 billion 2.5% of Vietnam total export turnover2.5% of Vietnam total export turnover - Rubber planted a- Rubber planted area: 618,600 harea: 618,600 ha - - NR Production: 662,900 tonsNR Production: 662,900 tons - NR - NR Yield: 1661 kg/haYield: 1661 kg/ha

Area and Production of rubber tree in Vietnam, 2008

SOUTHEAST: 397,610 ha (64.3%)

1789 kg/ha / 515,723 tons (77.8%)

HIGHLANDS: 154,226 ha (24.9 %)

1,343 kg/ha / 118,661 tons (17.9%)

COASTAL REGION: 62,034 ha (10%)

1,178 kg/ha / 28,517 tons (4.3%)

NORTHWEST: 4,730 ha (0.8%)

TOTAL: 518,600 ha

662,900 tons

Trend of Rubber Area and Production in Trend of Rubber Area and Production in

Vietnam, 1976 - 2008Vietnam, 1976 - 2008

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008

Ha

Ton

2008: 618,600 ha/ 662,900 tons

2000: 412,000 ha/ 290,800 tons

1990: 221,700 ha/ 57,900 tons

1980: 87,700 ha/ 41,100 tons

Source: VN General Statistics Office, compiled by VRA

Source: VN General Statistics Office, compiled by VRA

500

700

900

1100

1300

1500

1700

1900

kg

/ha

Trend of NR productivity in VietnamTrend of NR productivity in Vietnam1980-20081980-2008

2008: 1661 kg/ha

Area, Production and Yield ofArea, Production and Yield ofrubber plantations in Vietnam, 2006-2008rubber plantations in Vietnam, 2006-2008

YEARYEAR haha tonton kg/hakg/ha

20062006 522,200522,200 555,400555,400 15581558

20072007 556,300556,300 601,700601,700 16121612

20082008 618,600618,600 662,900662,900 16611661

2008/20072008/2007 11.2%11.2% 10.2%10.2% 3.0%3.0%

Source: VN General Statistics Office, compiled by VRA

Overview of Rubber Overview of Rubber Smallholding Development in Smallholding Development in

VietnamVietnam

Historically Development of Rubber Historically Development of Rubber Smallholding in Vietnam Smallholding in Vietnam

• Before 1975: Self-Investment of farmers for Before 1975: Self-Investment of farmers for smallholder rubber plantations.smallholder rubber plantations.

• Since 1990: Government’ Policy has Since 1990: Government’ Policy has encouraged to develop rubber smallholder encouraged to develop rubber smallholder plantations under the Reforestation Project 327 plantations under the Reforestation Project 327 and other Projects of Provinces (Daklak, Quang and other Projects of Provinces (Daklak, Quang Tri, Thua Thien Hue...)Tri, Thua Thien Hue...)

• 1996: Starting Extension Program carried out by 1996: Starting Extension Program carried out by RRIV RRIV (Rubber Research Institute of Vietnam)(Rubber Research Institute of Vietnam) under the fund of the Ministry of Agriculture under the fund of the Ministry of Agriculture and Rural Development.and Rural Development.

Historically Development of Rubber Historically Development of Rubber Smallholders in VietnamSmallholders in Vietnam

• 1998 – 2006: The Agricultural Diversification 1998 – 2006: The Agricultural Diversification Project under the long-term credit of WB and Project under the long-term credit of WB and AFD to develop 30,000 ha of new planting and AFD to develop 30,000 ha of new planting and 17,000 ha of rehabilitation for rubber 17,000 ha of rehabilitation for rubber smallholders (phase 1):smallholders (phase 1):

– VRG VRG (Vietnam Rubber Group or Geruco):(Vietnam Rubber Group or Geruco): Technical Assistance: Rubber Experts for 9 Technical Assistance: Rubber Experts for 9 province, providing planting material.province, providing planting material.

– RRIV: Research for Rubber Smallholders: RRIV: Research for Rubber Smallholders: testing and recommending clones and testing and recommending clones and techniques, inspection of planting material.techniques, inspection of planting material.

Historically Development of Rubber Historically Development of Rubber Smallholders in VietnamSmallholders in Vietnam

• Since 2007: Vietnam Rubber Group (VRG) has Since 2007: Vietnam Rubber Group (VRG) has established joint-stock companies in the established joint-stock companies in the Northeast with farmers who contribute in land Northeast with farmers who contribute in land and labors. Companies ensure finance, and labors. Companies ensure finance, materials, technical assistance, processing and materials, technical assistance, processing and marketing.marketing.

• 2008: Feasibility Study for Rubber Smallholder 2008: Feasibility Study for Rubber Smallholder Rubber Development under the long-term AFD Rubber Development under the long-term AFD (phase 2). (phase 2).

Area of Rubber Smallholding and Area of Rubber Smallholding and Estates in Vietnam, 1995-2008 Estates in Vietnam, 1995-2008 (ha)(ha)

0

100 000

200 000

300 000

400 000

500 000

600 000

700 000

ha

1995 2000 2005 2006 2007 2008

Smallholding

State-owned

Source: Provincial Dept of Agriculture and Rural Development, compiled by VRA

Trend of Development on Rubber Smallholding Trend of Development on Rubber Smallholding and Estates in Vietnam, 2006-2008and Estates in Vietnam, 2006-2008

      2006 2007 2008

State-owned Area ha 299 272 296 250 323 276

  Production Tons 396 530 398 100 421 251

  Yield Kg/ha 1 641 1 690 1 709

Smallholding Area ha 222 928 253 350 295 324

  Production Tons 158 870 203 600 241 649

  Yield Kg/ha 1 385 1 478 1 585

Source: Provincial Dept of Agriculture and Rural Development, compiled by VRA

42.7% 45.6% 47.7%

32.2% 36.2% 38.2%

Area, production and yield of Rubber Smallholding Plantations by region

in Vietnam, 2008

Region Area

(000 ha)

Production

(000 ton)

Yield

ton/ha/year

Southeast 201,299 206,135 1628

Highlands 61,751 23,182 1501

South Coast 31,602 12,232 1183

North Coast 672 - -

Total 295,324 241,649 1585

Source: Provincial Dept of Agriculture and Rural Development, compiled by VRA

Area, Production and Yield of Rubber Smallholding Plantations in some

Provinces of Vietnam, 2008Province Ha Tons Kg/ha

Binh Duong 72,090 80,870 1558

Binh Phuoc 64,060 62,850 1517

Tay Ninh 44,440 49,140 2050

Gia Lai 23,410 7,890 1128

Kon Tum 15,490 3,330 1212

Dak Nong 14,880 2,854 1594

Binh Thuan 13,710 8,475 1436

Quang Tri 10,120 7,080 1498

Distribution of rubber plantations Distribution of rubber plantations according to size, 2001 and 2006according to size, 2001 and 2006

<0.5ha 0.5-1ha >1-2ha >2-5ha >5ha Total

No of family, 2001

9,395 12,534 20,464 12,384 2,404 57,185

% 16.4 21.9 35.8 21.7 4.2 100

No of family, 2006

19,732 22,492 33,776 24,372 5,763 106,135

% 18.6 21.2 31.8 23.0 5.4 100

Source: Vietnam General Statistics Office, compiled by VRA

Managing and SupportingManaging and SupportingRubber SmallholdingRubber Smallholding

• Individual rubber smallholders- Self-investment - Extension program provided by RRIV under the fund of

the Ministry of Agriculture and Rural Development- Voluntary Cooperatives by farmers- Experience from close state-owned rubber companies

• Organized rubber smallholders- Long-term loan and technical assistance of rubber

companies (Dak Lak Province)- Long-term loan and technical assistance of WB and

AFD Project (Highlands and Coastal areas, 1998-2006, 30.000 ha of new planting and 17,000 ha of rehabilitation)

2004-2005 Planting Recommendation for Rubber Smallholders by RRIV

South of Coastal region

Highlands

(550 – 700 m)

Coastal region

PB 255

PB 260

RRIV 2

RRIV 4

RRIC 121

RRIM 600

RRIV 3

PB 260

RRIM 600,

RRIV 4

RRIC 121

RRIV 2, GT 1

RRIC 100

PB 235

PB 255, RRIV 3

PB 260

PB 255

RRIM 600

RRIM 712

RRIC 100,

GT 1, RRIC 121

RRIV 4, RRIV 2, RRIV 3, PB 235

Intercrops (groundnut) in Rubber Intercrops (groundnut) in Rubber Smallholding PlantationsSmallholding Plantations

Intercrops (groundnut and pineapple) in Intercrops (groundnut and pineapple) in Rubber Smallholding PlantationsRubber Smallholding Plantations

Intercrops (upland rice) in Rubber Smallholding Intercrops (upland rice) in Rubber Smallholding PlantationsPlantations

Intercropping combined with no-tillage technique on hilly land

AboutAboutthe Vietnam Rubber the Vietnam Rubber Association (VRA)Association (VRA)

ROLES of VRAROLES of VRA

• VRA has operated in national scale VRA has operated in national scale since the end of 2004.since the end of 2004.

• VRA is a voluntary organization and VRA is a voluntary organization and legal entity which represents legal entity which represents enterprises and organizations related enterprises and organizations related to the rubber industry in Vietnam.to the rubber industry in Vietnam.

Main Objectives of VRAMain Objectives of VRA• Support and Protection of Members’ Rights Support and Protection of Members’ Rights

and Interestsand Interests• Trade and Development Promotion for the Trade and Development Promotion for the

Vietnam Rubber IndustryVietnam Rubber Industry• Providing information on rubber market and Providing information on rubber market and

developmentdevelopment• Representative of Members in Coordination Representative of Members in Coordination

with Government Institutions and Supporting with Government Institutions and Supporting Organizations in Vietnam Organizations in Vietnam

• Representative of Members in Coordination Representative of Members in Coordination with Rubber International Organizationswith Rubber International Organizations

Recent Support Activities of VRA Recent Support Activities of VRA and VRG for Rubber Smallholding and VRG for Rubber Smallholding

DevelopmentDevelopment

Participating of VRA in the Conference to improve Participating of VRA in the Conference to improve

the capacity of rubber smallholder plantationsthe capacity of rubber smallholder plantations

Recent Support Activities of VRA and VRG Recent Support Activities of VRA and VRG for Rubber Smallholding Development: for Rubber Smallholding Development: Feasibility Study for phase 2008-2013Feasibility Study for phase 2008-2013

• Participating in 2008 Feasibility Study for the Participating in 2008 Feasibility Study for the Smallholder Rubber Development Project Smallholder Rubber Development Project sponsored by AFD sponsored by AFD (phase 2 of Agricultural (phase 2 of Agricultural Diversification Project, 2008-2013)Diversification Project, 2008-2013)

Introduction of Rubber Technical Introduction of Rubber Technical Books for PlantersBooks for Planters

Proposed Activities of VRA to Proposed Activities of VRA to support rubber smallholderssupport rubber smallholders

• Inform the policy and regulations of Government Inform the policy and regulations of Government to develop NR industry and rubber smallholder to develop NR industry and rubber smallholder plantations.plantations.

• Provide information on advanced techniques Provide information on advanced techniques and suitable planting material.and suitable planting material.

• Notify NR prices on local and international Notify NR prices on local and international market.market.

(Through the VRA’s website, distribution of (Through the VRA’s website, distribution of books and leaflets of relevant organizations)books and leaflets of relevant organizations)

• …..

Proposed Activities of VRA to Proposed Activities of VRA to support rubber smallholderssupport rubber smallholders

• …..• Encourage to establish and strengthen

cooperatives of small processors and farmers.• Organize and support visits and seminars for

farmers to learn experiences of rubber cultivation.

• Recommend members to buy NR from farmers for stockpiling in case of too low prices or strongly declined demand to help farmers’ income.

Proposed Activities of VRG to Proposed Activities of VRG to support rubber smallholderssupport rubber smallholders

• Provide high quality planting material. • Train technical practices such as tapping at the Rubber

Industry College.• Buy rubber from farmers (field latex and coagulum) with

competitive prices to process and export.• Establish joint-stock companies where farmers are

shareholders and contribute in land and labors, VRG’ members ensure finance, materials, technical assistance, processing and marketing.

• Buy rubber from farmers for stockpiling in case of too low prices or strongly declined demand to help farmers’ income.

Thank you for your attentionThank you for your attention

Presentation compiled by VRA and VRG