Supports to Develop Rubber
Smallholders in Vietnam
Conference on “Lessons learnt from support
programs to smallholder rubber plantations”
Phnom Penh, 24 June 2009
Dr. TRAN Thi Thuy HOA
Secretary General
The Vietnam Rubber Association
Overview of NR Development in
Vietnam
Current Situation of NR
Producing in Vietnam
• NR: 3rd largest exported agricultural
commodity behind rice and coffee in Vietnam.
• Vietnam: the 4th NR largest exporter in the
world.
• In 2008:
- NR Export: 619,300 tons = US$ 1.6 billion
2.5% of Vietnam total export turnover
- Rubber planted area: 618,600 ha
- NR Production: 662,900 tons
- NR Yield: 1661 kg/ha
Area and Production of
rubber tree in Vietnam, 2008
NORTHWEST: 4,730 ha (0.8%)
COASTAL REGION: 62,034 ha (10%)
1,178 kg/ha
/
28,517 tons (4.3%)
HIGHLANDS: 154,226 ha (24.9 %)
1,343 kg/ha / 118,661 tons (17.9%)
SOUTHEAST: 397,610 ha (64.3%)
1789 kg/ha / 515,723 tons (77.8%)
TOTAL: 518,600 ha
662,900 tons
Trend of Rubber Area and Production in
Vietnam, 1976 - 2008
700,000
2008: 618,600 ha/ 662,900 tons
600,000
2000: 412,000 ha/ 290,800 tons
500,000
1990: 221,700 ha/ 57,900 tons
1980: 87,700 ha/ 41,100 tons
400,000
Ha
Ton
300,000
200,000
100,000
0
1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008
Source: VN General Statistics Office, compiled by VRA
Trend of NR productivity in Vietnam
1980-2008
1900
2008: 1661 kg/ha
1700
1300
1100
900
700
500
19
80
19
82
19
84
19
86
19
88
19
90
19
92
19
94
19
96
19
98
20
00
20
02
20
04
20
06
20
08
kg/ha
1500
Source: VN General Statistics Office, compiled by VRA
Area, Production and Yield of
rubber plantations in Vietnam, 2006-2008
YEAR
ha
ton
kg/ha
2006
522,200
555,400
1558
2007
556,300
601,700
1612
2008
618,600
662,900
1661
2008/2007
11.2%
10.2%
3.0%
Source: VN General Statistics Office, compiled by VRA
Overview of Rubber
Smallholding Development in
Vietnam
Historically Development of Rubber
Smallholding in Vietnam
• Before 1975: Self-Investment of farmers for
smallholder rubber plantations.
• Since 1990: Government’ Policy has
encouraged to develop rubber smallholder
plantations under the Reforestation Project 327
and other Projects of Provinces (Daklak, Quang
Tri, Thua Thien Hue...)
• 1996: Starting Extension Program carried out by
RRIV (Rubber Research Institute of Vietnam)
under the fund of the Ministry of Agriculture
and Rural Development.
Historically Development of Rubber
Smallholders in Vietnam
• 1998 – 2006: The Agricultural Diversification
Project under the long-term credit of WB and
AFD to develop 30,000 ha of new planting and
17,000 ha of rehabilitation for rubber
smallholders (phase 1):
– VRG (Vietnam Rubber Group or Geruco):
Technical Assistance: Rubber Experts for 9
province, providing planting material.
– RRIV: Research for Rubber Smallholders:
testing and recommending clones and
techniques, inspection of planting material.
Historically Development of Rubber
Smallholders in Vietnam
• Since 2007: Vietnam Rubber Group (VRG) has
established joint-stock companies in the
Northeast with farmers who contribute in land
and labors. Companies ensure finance,
materials, technical assistance, processing and
marketing.
• 2008: Feasibility Study for Rubber Smallholder
Rubber Development under the long-term AFD
(phase 2).
Area of Rubber Smallholding and
Estates in Vietnam, 1995-2008 (ha)
700 000
600 000
500 000
400 000
Smallholding
ha
300 000
State-owned
200 000
100 000
0
1995
2000
2005
2006
2007
2008
Source: Provincial Dept of Agriculture and Rural Development, compiled by VRA
Trend of Development on Rubber Smallholding
and Estates in Vietnam, 2006-2008
State-owned
Smallholding
2006
2007
2008
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
Area
ha
222 928
253 350
295 324
42.7%
45.6%
47.7%
158 870
203 600
241 649
32.2%
36.2%
38.2%
1 385
1 478
Production
Yield
Tons
Kg/ha
1 585
Source: Provincial Dept of Agriculture and Rural Development, compiled by VRA
Area, production and yield
of Rubber Smallholding Plantations by region
in Vietnam, 2008
Region
Southeast
Area
(000 ha)
Production
Yield
(000 ton) ton/ha/year
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, 2008
Province
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
according to size, 2001 and 2006
<0.5ha
0.5-1ha
>1-2ha
9,395
12,534
20,464 12,384 2,404
16.4
21.9
No of
family,
2006
19,732
22,492
%
18.6
21.2
No of
family,
2001
%
35.8
>2-5ha
21.7
>5ha
4.2
Total
57,185
100
33,776 24,372 5,763 106,135
31.8
23.0
5.4
Source: Vietnam General Statistics Office, compiled by VRA
100
Managing and Supporting
Rubber 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
PB 255
PB 260
RRIV 2
RRIV 4
RRIC 121
RRIM 600
RRIV 3
Highlands
(550 – 700 m)
PB 260
RRIM 600,
RRIV 4
RRIC 121
RRIV 2, GT 1
RRIC 100
PB 235
PB 255, RRIV 3
Coastal region
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
Smallholding Plantations
Intercrops (groundnut and pineapple) in
Rubber Smallholding Plantations
Intercrops (upland rice) in Rubber Smallholding
Plantations
Intercropping combined with no-tillage
technique on hilly land
About
the Vietnam Rubber
Association (VRA)
ROLES of VRA
• VRA has operated in national scale
since the end of 2004.
• VRA is a voluntary organization and
legal entity which represents
enterprises and organizations related
to the rubber industry in Vietnam.
Main Objectives of VRA
• Support and Protection of Members’ Rights
and Interests
• Trade and Development Promotion for the
Vietnam Rubber Industry
• Providing information on rubber market and
development
• Representative of Members in Coordination
with Government Institutions and Supporting
Organizations in Vietnam
• Representative of Members in Coordination
with Rubber International Organizations
Recent Support Activities of VRA
and VRG for Rubber Smallholding
Development
Participating of VRA in the Conference to improve
the capacity of rubber smallholder plantations
Recent Support Activities of VRA and VRG
for Rubber Smallholding Development:
Feasibility Study for phase 2008-2013
• Participating in 2008 Feasibility Study for the
Smallholder Rubber Development Project
sponsored by AFD (phase 2 of Agricultural
Diversification Project, 2008-2013)
Introduction of Rubber Technical
Books for Planters
Proposed Activities of VRA to
support rubber smallholders
• Inform the policy and regulations of Government
to develop NR industry and rubber smallholder
plantations.
• Provide information on advanced techniques
and suitable planting material.
• Notify NR prices on local and international
market.
(Through the VRA’s website, distribution of
books and leaflets of relevant organizations)
• …..
Proposed Activities of VRA to
support 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
support 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 attention
Presentation compiled by VRA and VRG