1. 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

2. Overview of NR Development in Vietnam

3. Current Situation of NR Producing in Vietnam NR: 3 rd largest exported agricultural commodity behind rice and coffee in Vietnam.NR: 3 rd largest exported agricultural commodity behind rice and coffee in Vietnam. Vietnam: the 4 th NR largest exporter in the world.Vietnam: the 4 th NR largest exporter in the world. In 2008:In 2008: - NR Export: 619,300 tons = US$ 1.6 billion - NR Export: 619,300 tons = US$ 1.6 billion 2.5% of Vietnam total export turnover 2.5% of Vietnam total export turnover - Rubber planted area: 618,600 ha - Rubber planted area: 618,600 ha - NR Production: 662,900 tons - NR Production: 662,900 tons - NR Yield: 1661 kg/ha - NR Yield: 1661 kg/ha

4. 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

5. Trend of Rubber Area and Production in Vietnam, 1976 - 2008 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

6. Trend of NR productivity in Vietnam 1980-2008 2008: 1661 kg/ha

7. Area, Production and Yield of rubber plantations in Vietnam, 2006-2008 YEARhatonkg/ha 2006522,200555,4001558 2007556,300601,7001612 2008618,600662,9001661 2008/200711.2%10.2%3.0% Source: VN General Statistics Office, compiled by VRA

8. Overview of Rubber Smallholding Development in Vietnam

9. Historically Development of Rubber Smallholding in Vietnam Before 1975: Self-Investment of farmers for smallholder rubber plantations.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...)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.1996: Starting Extension Program carried out by RRIV (Rubber Research Institute of Vietnam) under the fund of the Ministry of Agriculture and Rural Development.

10. 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):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.

11. 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.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).2008: Feasibility Study for Rubber Smallholder Rubber Development under the long-term AFD (phase 2).

12. Area of Rubber Smallholding and Estates in Vietnam, 1995-2008 (ha) Source: Provincial Dept of Agriculture and Rural Development, compiled by VRA

13. Trend of Development on Rubber Smallholding and Estates in Vietnam, 2006-2008 200620072008 State-ownedAreaha299 272296 250323 276 ProductionTons396 530398 100421 251 YieldKg/ha1 6411 6901 709 SmallholdingAreaha222 928253 350295 324 ProductionTons158 870203 600241 649 YieldKg/ha1 3851 4781 585 Source: Provincial Dept of Agriculture and Rural Development, compiled by VRA 42.7%45.6%47.7% 32.2%36.2%38.2%

14. Area, production and yield of Rubber Smallholding Plantations by region in Vietnam, 2008 RegionArea (000 ha) Production (000 ton) Yield ton/ha/year Southeast 201,299206,1351628 Highlands 61,75123,1821501 South Coast 31,60212,2321183 North Coast 672-- Total 295,324241,6491585 Source: Provincial Dept of Agriculture and Rural Development, compiled by VRA

15. Area, Production and Yield of Rubber Smallholding Plantations in some Provinces of Vietnam, 2008 ProvinceHaTonsKg/ha Binh Duong 72,09080,8701558 Binh Phuoc 64,06062,8501517 Tay Ninh 44,44049,1402050 Gia Lai 23,4107,8901128 Kon Tum 15,4903,3301212 Dak Nong 14,8802,8541594 Binh Thuan 13,7108,4751436 Quang Tri 10,1207,0801498

16. Distribution of rubber plantations according to size, 2001 and 2006 <0.5ha0.5-1ha>1-2ha>2-5ha>5haTotal No of family, 2001 9,39512,53420,46412,3842,40457,185 %16.421.935.821.74.2100 No of family, 2006 19,73222,49233,77624,3725,763106,135 %18.621.231.823.05.4100 Source: Vietnam General Statistics Office, compiled by VRA

17. 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)

18. 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

19. Intercrops (groundnut) in Rubber Smallholding Plantations

20. Intercrops (groundnut and pineapple) in Rubber Smallholding Plantations

21. Intercrops (upland rice) in Rubber Smallholding Plantations

22. Intercropping combined with no-tillage technique Intercropping combined with no-tillage technique on hilly land

23. About the Vietnam Rubber Association (VRA)

24. ROLES of VRA VRA has operated in national scale since the end of 2004.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.VRA is a voluntary organization and legal entity which represents enterprises and organizations related to the rubber industry in Vietnam.

25. Main Objectives of VRA Support and Protection of Members’ Rights and InterestsSupport and Protection of Members’ Rights and Interests Trade and Development Promotion for the Vietnam Rubber IndustryTrade and Development Promotion for the Vietnam Rubber Industry Providing information on rubber market and developmentProviding information on rubber market and development Representative of Members in Coordination with Government Institutions and Supporting Organizations in VietnamRepresentative of Members in Coordination with Government Institutions and Supporting Organizations in Vietnam Representative of Members in Coordination with Rubber International OrganizationsRepresentative of Members in Coordination with Rubber International Organizations

26. Recent Support Activities of VRA and VRG for Rubber Smallholding Development

27. Participating of VRA in the Conference to improve the capacity of rubber smallholder plantations

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

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

30. Introduction of Rubber Technical Books for Planters

31. Proposed Activities of VRA to support rubber smallholders Inform the policy and regulations of Government to develop NR industry and rubber smallholder plantations.Inform the policy and regulations of Government to develop NR industry and rubber smallholder plantations. Provide information on advanced techniques and suitable planting material.Provide information on advanced techniques and suitable planting material. Notify NR prices on local and international market.Notify NR prices on local and international market. (Through the VRA’s website, distribution of books and leaflets of relevant organizations) (Through the VRA’s website, distribution of books and leaflets of relevant organizations) …..

32. 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.

33. 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.

34. Thank you for your attention Presentation compiled by VRA and VRG