Smallholder Decision-Making on Sawlog Production: The Case of Acacia Plantation Owners in Central Vietnam

Background and objectives: Smallholder households with a plot size of 1-5 ha manage nearly half of Vietnam's acacia plantations. They mostly harvest acacia timber after short rotation periods (5-6 years) producing woodchips with relatively low financial returns compared to potential profits from sawlog production through long rotation periods. The domestic wood production cannot yet meet the needs of the booming furniture industry for raw materials. This paper investigates factors that influence the adoption of long-rotation periods for sawlog production by small-scale plantation owners. Materials and methods: The impact of farmer and farm characteristics and the characteristics of the external environment on the probability to adopt long rotation periods is analyzed. The data were collected through focus group discussions (FGD) and a household survey to capture the wider socio-economic situation of small-scale plantation owners in central Vietnam. Findings: Results from FGDs and probit regressions show that factors that potentially constrain small-scale plantation owners from the production of sawlogs can be grouped into four themes: (1) small and fragmented land holdings, (2) high risks related to natural disasters and other biotic and abiotic hazards, (3) high production and monitoring costs, and (4) lack of knowledge and experience in plantation management. Conclusions: Potential policy approaches to promote the adoption of long rotation periods should include a package of measures that simultaneously address the constraints of smallholders and the various risks that they face.