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49
Schweiz. Z. Forstwes. 157 (2006) 2: 49–56
Introduction
The use of non-timber forest products (NTFPs) is often consid-
ered to support forest conservation and to offer a higher and
more valuable income source for the poor than timber exploi-
tation (M
AHAPATRA & TEWARI 2005, ARNOLD & RUIZ-PÉREZ 2001,
W
UNDER 2001). It lies in the nature of NTFPs, however, that
they are easily subject to overexploitation, especially when
they become economically more attractive through an in-
creased market demand, locally added value, or improved
market conditions. Also, despite such altered conditions, NTFP
producers are usually still faced with low returns due to weak
organisational structures at community level, leaving them
with little market power (B
HATTACHARYA & HAYAT 2004). The
economically driven unsustainable resource management
of NTFPs, both in the sense of ecological and socio-economic
sustainability, is moreover triggered by weak legal frame-
works on property rights, harvesting and trading issues as
well as ineffective implementation practices through local for-
est services. Also a lack of understanding of specific market
mechanisms of NTFPs impedes the promotion of sustainable
NTFP development, including well-adapted legal regulations
(T
EDDER et al. 2002). However, if the markets are known, stable
and more remunerative to producers, the combination of
conservation and local rural development through sustain -
able management, domestication and cultivation can be
effective.
This paper contributes to the discussion of local rural devel-
opment through NTFPs. It focuses on NTFP market abilities,
resource management and ways to improve local livelihood
conditions for poor households. It presents an analysis of the
market situation of relevant NTFPs, including their resource
management, and identifies whether these NTFPs can signifi-
cantly contribute to the rural development of two studied vil-
lages in the northern uplands of Vietnam.
Importance of NTFPs in Vietnam
VU VAN DUNG et al. (2002) reveal the high economic and eco-
logical value of NTFPs for at least 8.5 million forest dwellers or
10.4 percent of Vietnam’s population that live mainly in the
upland areas and belong to ethnic minority groups. However,
trade activities are in the hands of a few state and provincial
companies and various small scale traders. Several enterprises
and 1400 traditional handicraft villages in Vietnam are in-
volved in processing bamboo and rattan, which achieved an
annual export growth rate of twenty percent compared to the
general export growth rate of fifteen percent in 2003 (P
HAN
S
INH 2004). Apart from handicrafts, bamboo still accounts for
half of the domestic construction sector in rural areas (V
U VAN
D
UNG et al. 2002). The national focus of economically valuable
NTFPs lies primarily on cinnamon and Chinese medicinal herbs.
In fact, the international demand for medicinal plants is cur-
rently high with an annual growth rate of ten to fifteen per-
cent (S
WITZER et al. 2003). Also vegetables, mushrooms and
ornamental plants like orchids are considered as promising
products (M
ITTLEMAN 1997).
As the biodiversity of flora is tremendous thanks to the dif-
ferent climatic and topographic conditions in Vietnam, the
number of vascular plant species is estimated to 15 000 to
20 000 species, whereas approximately ten percent are en-
demic to Vietnam. The national IUCN Red List classifies 25 spe-
cies as critically endangered, 37 as endangered and 83 as vul-
nerable.
1
Around 3400 medicinal plant species are identified
in Vietnam, eighty percent of which occur wildly in the moun-
tainous provinces, home of ethnic minority groups (L
UU DAM
C
U 2003). Bamboo is represented with 92 species (VU VAN
D
UNG & LE VIET LAM 2004). Among the frequently used plant
species, 175 species are considered as important NTFPs in Viet-
nam (V
U VAN DUNG et al. 2002).
The double-bind challenge to conserve and protect natural
resources and to promote NTFPs for filling gaps in the house-
hold income of poor farmers is a concern of national govern-
ments, NGOs and research institutes all over the world (S
UN-
DERLIN et al. 2003). Activities in this sector were initiated by the
Vietnamese government, among others through the Law on
the Protection and Development of Forests, definitely revised
in 2004 including the ongoing process of forest land allocation
since 1991, and the Comprehensive Poverty Reduction and
Growth Strategy (2001–2010). Projects on forest conservation
and sustainable development of forests and NTFPs are imple-
mented by the national offices of Flora and Fauna Interna-
tional, WWF and Tropenbos. Various studies on NTFPs and
their market potential have recently been conducted in coop-
eration with foreign donors in Central and Northern Vietnam
(e.g. H
ILFIKER 2005, LE THI PHI et al. 2004, WETTERWALD et al.
2004, B
IEN QUANG TU 2000).
In this paper we ask whether enhanced marketing of NTFPs
allows for poverty mitigation in the long term and whether it
can be in accord with key principles of resource conservation.
Up to now, such win-win outcomes of both commercialising
NTFPs and protecting the resource base are still rare. The no-
tion that they can make valuable contributions to livelihood
improvements in specific cases (S
UNDERLIN et al. 2005) guides
our investigation of the potential of nine NTFPs, identified in
two villages of Ngo Luong commune in northern Vietnam.
Our key concerns are to give a clearer picture of the market
and ecological situation of the selected NTFPs and to seek fa-
vourable development strategies through NTFP commerciali-
sation in Ngo Luong commune. NTFPs are here understood as
all plants and mushrooms that are mainly collected from natu-
ral or enriched forests and cultivations with the exception of
timber and fuel wood.
1
UNEP 2001: State of the Environment in Vietnam 2001,
http://www.rrcap.unep.org/reports/soe/vietnam/Issues/biodiversity/
#Diversity1 and IUCN Red List of Threatened Species,
http://www.redlist.org (January 13, 2006).
Market potential and resource management of non-timber
forest products (NTFPs) in the northern uplands of Vietnam
KARIN HILFIKER, CLAUDIA ZINGERLI, JEAN-PIERRE SORG und RUEDI LÜTHI
Keywords: Non-timber forest products; natural resource management;
economic development; market; Vietnam.
FDK 892 : 71 : (596/599)
HILFIKER, K.; ZINGERLI, C.; SORG, J-P.; LÜTHI, R.: Market potential and resource management of non-timber forest products (NTFPs) in the northern uplands of Vietnam
Schweiz. Z. Forstwes. 157 (2006) 2: 49–56
50
HILFIKER, K.; ZINGERLI, C.; SORG, J-P.; LÜTHI, R.: Market potential and resource management of non-timber forest products (NTFPs) in the northern uplands of Vietnam
Methods
Research site
Ngo Luong commune is one of five upland communes of Tan
Lac district of Hoa Binh province (see map 1). The commune
belongs to the priority area of the Extension and Training Sup-
port for Forestry and Agriculture in the Uplands Project (ETSP)
in Hanoi, which is implemented by Helvetas Switzerland and
funded by the Swiss Agency for Development and Coopera-
tion (SDC). This paper is extracted from a one-year study init-
iated by ETSP (H
ILFIKER 2005). The commune has been selected
because of its high forest cover of 80 percent compared to the
average forest cover in Tan Lac district of 64 percent. The en-
tire forested area in Ngo Luong commune accounts for 3090
ha and is classified as natural protection forest. In 1996, forest
land has been mostly allocated to households. According to
the standards of the Ministry of Labor, Invalid and Social Af-
fairs (MoLISA) Ngo Luong commune is ranked as a poor up-
land commune with an annual income of 1.2 million VND
2
per
person. The inhabitants of Ngo Luong commune belong to
the ethnic group of Muong, one of the six poorest minority
groups in Vietnam (V
IETNAM DEVELOPMENT REPORT 2003). The
two studied villages were Luong Tren with 58 households and
the more remote Bo village with 25 households. Due to the
commune’s remoteness (one hour by car to the next commune
and another hour to commune and district market places),
trade activities of NTFPs are currently limited to few residents
and lowland middlemen owning motorbikes or lorries.
PRA, RMA and semi-structured interviews
In order to reveal the diversity, use and economic value of
NTFPs an income survey of eight households with a high de-
pendency on NTFPs was conducted in each of the two villages
in March and April 2004. The identified NTFPs were classified
into bamboo, medicinal plants, ornamental orchids, mush-
rooms, extracts and other NTFPs (see table 1). From the identi-
fied NTFPs key informants selected the ten most important
species
2
in each village through a NTFP matrix ranking. In order
to enable a final selection of the five economically most inter-
esting NTFPs in each village, further information on biology,
harvesting, semi-processing, trade and legal applications was
collected in workshops applying Participatory Rural Appraisal
(PRA) exercises. As a result, nine NTFPs (see table 2) were se-
lected to conduct an in-depth market analysis using the ap-
proach of Rapid Market Appraisal (J
OSS et al. 2004). In order
to check the correlation between household cash income and
the NTFP contribution a Spearman rank correlation test was
applied. The data set of the household incomes and NTFP con-
tributions was tested for deviation from the standard normal
distribution (Kolmogorov-Smirnov test). Semi-structured in-
2
1000 VND ≈ 0.063 $, October 20, 2004.
NTFP
group
Number
of species
Part Use with
number of
NTFPs
Specific use
C T
Medicinal
plants
61 Bark 3 3 C: As daily tea or occasional mix against sleeping
difficulties, cough, headache, stomach ache,
accouchement and menstruation inconveni-
ences.
T: At rather lower intensity to end consumers in
the surroundings near Ngo Luong commune or
at higher extent to middlemen processing and
carrying the product to middlemen in the urban
areas or at the Chinese border.
Entire plant 0 6
Herb 0 1
Leaf 2 1
Rhizome 2 5
Shrub without
rhizome
10 1
Stem 11 3
String 6 1
Unidentified 6
Bamboo 10 Shoots 4 3 C: Food, house/cattle shelter/hedge building,
occasionally for handicrafts.
T: Food, construction (foundation, scaffold),
paper industry, handicrafts.
Culms 10 3
Sheaths 0 1
Ornamen-
tal orchids
3 Entire plants 3 3 C: Mostly stored until customers are present.
T: ornamentation.
Mushroom 2 Entire plants 2 2 C: Food.
T: Only in emergency situations.
Extracts 3 Fruits, seeds 1 3 C: Food.
T: Food, extract for lacquerer.
Others 2 Entire plants 2 0 C: Food for cattle, packing material.
Table 1: Overview of the NTFPs
identified by the key-inform-
ants in Ngo Luong commune.
Tabelle 1: Überblick zu den
durch Schlüsselinformanten
identifizierten NTFPs in der
Gemeinde Ngo Luong.
C = Consumption, T = Trade. Single nomination of parts for C and T for medicinal plants and others.
Multiple nomination for the remaining NTFP groups.
Map 1:
Vietnam
showing
the
research
area.
Karte 1:
Vietnam
mit For-
schungs-
gebiet.
51
Schweiz. Z. Forstwes. 157 (2006) 2: 49–56
HILFIKER, K.; ZINGERLI, C.; SORG, J-P.; LÜTHI, R.: Market potential and resource management of non-timber forest products (NTFPs) in the northern uplands of Vietnam
terviews with around 130 relevant market actors, located
mainly in the provinces of Hoa Binh and Ha Tay, were the main
method for data collection. The interviews generated detailed
information on market place, product, price and promotion as
well as tax and legal issues.
Importance of NTFPs in
Ngo Luong commune
Out of 54 households in the two studied villages, 11 house-
holds depend highly on NTFPs. NTFP dependency is medium
for 15 and low for 29. For one household NTFPs are irrelevant.
According to the income survey of the sixteen studied house-
holds, there is no significant relation between household cash
income and share of NTFP cash income (Spearman correlation
coefficient, r
s
= −0.162 with a probability, p = 0.549).The aver-
age NTFP contribution to the cash income of eight households
is higher in Bo village (16.3 percent) than in Luong Tren (9.8
percent). Regarding different NTFP types, wealthier house-
holds rather rely on bamboo products as single NTFP source,
whereas poorer households depend on three or four NTFP
types, which they mostly collect from the natural forest.
In total, 81 plant species were identified by household rep-
resentatives, whereas those in Bo village listed a broader
range of NTFPs. Table 1 gives an overview of NTFP groups,
number, part and specific use. NTFPs are used for own con-
sumption, for commercialisation or for both. The medicinal
application of certain plants traded at large scale and mainly
exported to China, like Anoectochilus setaceus, seems to be
unknown to the interviewed NTFP producers in Ngo Luong
commune.
Market situation of short-listed NTFPs
NTFPs are generally considered to have rather a gap-filling
function for the household economy than the potential to
improve livelihoods of poor people in the long term (S
UNDER-
LIN et al. 2003). Nonetheless, the understanding on market
relevant mechanisms including product chains is highly rele-
vant to identify valuable return options and to prevent the
creation of poverty traps. An increased market understanding
of NTFPs includes information on demand and offer as well as
requested quality of a specific NTFP. Furthermore, updated
knowledge on storage and locally added value is crucial to
react in a flexible way to market changes and to achieve prod-
ucts of higher quality. Another point is transparency in trans-
portation issues, such as tax regulations and informal fees. In
the following sections, these market relevant points are pre-
sented for the nine short-listed NTFPs to reveal the potential
for enhancing rural development in Ngo Luong commune.
Market demand
Table 2 presents the nine short-listed NTFPs with economic
and commercial value. It indicates that the market demand for
almost all nine NTFPs is high at the places of the contacted
final traders in northern Vietnam. In particular, the domestic
demand for bamboo shoots is increasing because of its favour-
able nutrient value. In the global context, the demand rapidly
increased at almost 25 percent during the last couple of years
(B
ISWAS & SRIKANTH 2003). As equally the international bam-
boo handicraft sector is flowering, there is a permanent de-
mand particularly for culm species with good mechanical char-
acteristics, fulfilled for example by Bambusa blumeana. Also
the domestic paper industry constantly seeks this kind of ma-
terial. A national strategy foresees meeting 85–90 percent of
the domestic demand by 2010 (H
A CHU CHU 2004). Culms of
the species Dendrocalamus asper, occurring in Ngo Luong
commune, are used by the pulp factory in Hoa Binh province
(see figure 1). However, the domestic demand for traditional
combs, made from sticks of Indosasa angustata culms, is stag-
nating or even declining as substitute products become more
appealing. On the other hand, there is a high demand for
sheaths which are used for the typical Vietnamese conical
hats, a product that is still widely worn for crop work, and
exported overseas as accessories and souvenirs.
Latin species name Plant type Product Use of end consu-
mers
Market
demand/
trend
Place of final traders or
processing units
Dendrocalamus asper
Backer ex. Heyne
Bamboo Shoot Food Very high/
increasing
Hang Da market in Hanoi
Dendrocalamus asper
Backer ex. Heyne
Bamboo Culm Paper making High/ increa-
sing
Pulp factory in Ky Son, HB
Bambusa blumeana J.A. Bamboo Culm Handicraft Very high/
increasing
Dan Hoa commune, HT
Construction Very high/
stable
Thai Ha, Trung Kinh and Kim Nguu
street in Hanoi
Indosasa angustata
Mc Clure
Bamboo Stick
(processed
culm)
Comb making Moderate/
declining
Thai Hoc commune, HD
Indosasa angustata
Mc Clure
Bamboo Sheath Hat making High/
stable
Chuong commune, HT
Aerides odorata Lour. Orchid (epi-
phyte)
Entire plant Ornamentation Very high/
increasing
La Phu and Dong La commune, HT
Drynaria fortunei
(Kuntze) J. Smith
Fern (epi-
phyte)
Rhizome East and North
Traditional Medicine
Very high/
increasing
Lan Ong street in Hanoi
Nervilia fordii (Hance)
Schlechter
Orchid (terres-
trial)
Leaf North Traditional
Medicine
Very high/
increasing
Border gate in Lang Son province
(black market to China)
Anoectochilus setaceus
Blume
Orchid (terres-
trial)
Entire plant North Traditional
Medicine
Very high/
increasing
Border gate in Lang Son province
(black market to China)
Table 2: Presentation of the nine studied product chains.
Tabelle 2: Präsentation der neun untersuchten Produktketten.
HB = Hoa Binh province, HD = Hai Duong province, HT = Ha Tay province. 1000 VND (Vietnamese
Dong) = 0.063 $ (October 20, 2004).
Schweiz. Z. Forstwes. 157 (2006) 2: 49–56
52
HILFIKER, K.; ZINGERLI, C.; SORG, J-P.; LÜTHI, R.: Market potential and resource management of non-timber forest products (NTFPs) in the northern uplands of Vietnam
Latin species name Product Product quality Economical value by final traders
at forest gate
Dendrocalamus asper Shoot Young, entire, round shaped,
bright yellow coloured and soft
1200–2000 VND/kg
boiled
7000
VND/kg boiled
Dendrocalamus asper Culm No signs of decay 185 VND/kg 280 VND/kg
Bambusa blumeana Culm Handicraft: 7–12 cm diameter,
often 5 m long, 4–6 years old
400 VND/m 1000–1400 VND/m
Construction: 4-8 cm diameter,
minimal 1.5–2 m long
400 VND/m 1000–1500 VND/m
Indosasa angustata Stick Minimal 50 cm long, 2.5 cm wide,
without pith and steamed
20 VND/stick Are processors (make
combs)
Indosasa angustata Sheath 45–50 cm long, 35 cm wide,
bright or slightly coloured,
even, without tears
30–40 VND/sheath 70–80 VND/sheath
Aerides odorata Entire
plant
Big, healthy (without broken leafs),
building flowers and new leaves
5000–7000 VND/kg 23 000–30 000 VND/kg
Drynaria fortunei Rhizome
chip
Absolutely dry, uniformly 3–5 mm,
of yellow colour, without hair
and fungi traces
4000–5000 VND/kg dry
1
12 000–20 000 VND/kg dry
Nervilia fordii Leaf Sun dried, fragrant
and deep grey or blue
40 000–50 000 VND/kg
dry
2
130 000–140 000
VND/kg dry
Anoectochilus setaceus Entire
plant
Raw and clean 40 000–50 000 VND/kg
raw
60 000–120 000 VND/kg
raw
Thanks to the improved living standard in Vietnam, orna-
mental plants start becoming prestige objects, relevant for the
NTFP species Aerides odorata collected in Ngo Luong. This spe-
cies figures on top of ornamental orchids because of its special
fragrance.
Regarding medicinal plants , the WHO estimates that more
than 80 percent of the Asian population relies on traditional
medicinal products, many of them NTFPs (S
WITZER et al. 2003).
Their use is «natural», non-narcotic, shows no side-effects and
is especially affordable for the poor.
3
A medicinal NTFP with
effects on kidneys and blood circulation is the rhizome of Dry-
naria fortunei. It is one of the most traded species in Nghia
Trai, a village with traditional medicinal activities southeast of
Hanoi (J
HA 2001). In contrast, Nervilia fordii and Anoectochilus
setaceus only experience a demand from neighbour countries,
especially China.
Product supply
Apart from two NTFPs, the short-listed NTFPs in Ngo Luong
commune only contribute to a low extent to the trade volume
of the identified final traders in northern Vietnam. In 2003,
the estimated supply for sticks made one tenth of the annual
required quantity of the processors in Thai Hoc commune of
Hai Duong province (see map 1). In the same year the supply
proportion of Aerides odorata from Ngo Luong commune was
one twentieth at the nursery places in Hoai Duc district. Most
of this species grows abundantly in two other upland districts
of Hoa Binh province (Tan Lac and Mai Chau).
Product price and quality
With the exception of paper culms and sticks the final traders
of the selected NTFPs achieved relatively high product prices
per unit in 2003 (see table 3). Underlying seasonal fluctuations,
bamboo shoots are more expensive at the beginning and the
end of the shoot sprouting period in late April and early Octo-
ber. A significant price rise of up to 40 percent takes place
around Tet holiday (the Vietnamese New Year) caused by the
seasonal supply shortage in winter and an increased customer
demand. Also demand driven are value increases for construc-
tion culms in January to February and August to November, and
for Aerides odorata in June to September because of its flower-
ing time. The strong annual price fluctuations of bamboo
sheaths are usually caused by specific weather conditions.
Apart from paper culms, each NTFP shows certain quality
requirements. A quality check usually takes place by middle-
men and only rarely at the forest gate in Ngo Luong com-
mune. The locally added value of bamboo shoots, the rhizome
of Drynaria fortunei and the ornamental orchid by the NTFP
producers in Ngo Luong commune is not much considered,
which partially explains the relative big difference of product
price between forest gate and final trader (see table 3).
Storage and locally added value
Out of the nine short-listed NTFPs only bamboo sticks are ad-
equately semi-processed in the locality. All others are proc-
essed by middlemen, such as those from Dong Phuong Yen
and Ha Dong (see figure 1), who intensively clean and store
them by applying special methods. Bamboo shoots are for ex-
ample pickled in salt water or air dried in order to increase
storage time and product value. Culms for handicrafts and
construction are classified into different diameter classes ac-
cording to their end use, short-cut and maximally stored for
one month in Dan Hoa commune. In the adjacent commune
Chuong My, sheaths are used for hat making, further sold or
stored in completely dry conditions or under sulphur ventila-
tion for two or three years. Cultivators in Hoai Duc district
keep orchids in nurseries equipped with multi-level frames
and a black cover permeable to air and limited to sunlight.
Depending on the species, orchids are put on the convenient
substrate and provided with nutrients. Vegetative reproduc-
tion is also applied. The rhizome of Drynaria fortunei is sliced
into chips, mostly sun dried and its hair is burned away in
Nghia Trai village. The leaves of Nervilia fordii are sun dried to
3
Malaisamy, A; Ravindran, C. 2003: Medicinal plants: where do we
stand globally? Website: http://www.techno-preneur.net/new-timeis/
ScienceTechMag/May03/globally.htm (January 13, 2006).
Table 3: Market relevant features of the nine NTFPs.
Tabelle 3: Marktrelevante Merkmale der neun NTFPs.
1
Product prices refer to 2003. Mostly sold as raw product for 500–800 VND/kg raw.
2
Mostly sold as raw product for 2,000 VND/ kg raw.
Price
fluctuation
20–30%
–
–
20%
–
Max. 50%
Max. 50%
Stable
Stable
Stable
53
Schweiz. Z. Forstwes. 157 (2006) 2: 49–56
HILFIKER, K.; ZINGERLI, C.; SORG, J-P.; LÜTHI, R.: Market potential and resource management of non-timber forest products (NTFPs) in the northern uplands of Vietnam
Figure 1: Contacted market places in Northern Vietnam.
Abbildung 1: Besuchte Marktplätze im nördlichen Vietnam.
increase the storage time, and further processed by Chinese
traders or pharmaceutical companies. The most convenient
storage method for the raw plants of Anoectochilus setaceus
is to expose them on the ground without touching each other,
and to slightly humidify them from time to time.
Transportation, tax regulations and informal fees
NTFP producers in Ngo Luong commune mainly transport
their commodities in nylon bags by motorbike, which has es-
pecially negative impacts on the appearance of ornamental
orchids. Lorries are seldom rented as the capacity is hardly at-
tained and rents are usually unaffordable. Middlemen from
the lowlands transfer culms, sheaths, sticks and partially shoots
on lorry, but the bad road conditions in the rainy season limits
the access to the commune. Communal transfer fees were
50 000–70 000 VND/lorry in 2003.
Despite the regulation on resource and value added tax for
bamboo shoots and culms issued in the tax document Provincial
People’s Committee Hoa Binh, No. 1024/QD/UB from 9 July
2003, its implementation is not yet transparent. For instance,
bamboo sheaths are officially excluded from taxes. Neverthe-
less, tax collectors from the local offices request fees to the same
extend as for culms. The short-listed medicinal and ornamental
NTFPs are not subject to taxes according to the tax document.
This disagrees with the Ordinance on Royalty, amended on 28
April 1998, and the Law on Value Added Tax from 1 January
1999. According to these edicts resource and value added tax
would make together 10% of the economic value of forest
products (V
U VAN DUNG et al. 2002). Forest rangers and police at
district level rather claim informal fees for overloading and for
missing permission letters in cases of shoot and sheath transport
than for resource exploitation and trade.
Overall, the market analysis of nine short-listed NTFPs re-
veals that all of them are not only subsistence products but
show a market demand beyond Ngo Luong commune. They
could have the potential to contribute to an improvement of
the livelihoods of poor households, especially if methods for
locally added value are applied and more consideration given
to quality. Locally processed NTFPs are crucial for asking high-
er prices from the middlemen and for establishing solid trade
networks that benefit the local NTFP producers.
Resource management in
Ngo Luong commune
The question of how to improve rural development in Ngo
Luong commune through the short-listed NTFPs has not only
an economic but also an ecological dimension. When NTFPs
become economically more valuable they are often subject to
overexploitation. It is therefore necessary to have an idea of
relevant issues such as current availability, harvested part, re-
generation ability, domestication and cultivation opportuni-
ties, access and property rights as well as legal framework and
its implementation when designing strategies for promoting
a specific NTFP. The current resource management situation in
Ngo Luong commune is presented with respect to bamboo,
medicinal and ornamental products.
Bamboo products
Bamboo stands of Indosasa angustata, Dendrocalamus asper
and Bambusa blumeana accounted for 1.7 percent of the com-
mune area (P
HAN HONG HUNG 2004). Thereby, Indosasa angus-
tata showed the widest distribution in 2003 although its avail-
ability was strongly declining until 1999 as a result of the cus-
tomer demand for sticks. At that time, farmers started to cul-
tivate the species in their allocated land in order to ensure the
economically interesting resource. Cultivation efforts for the
also economically interesting Bambusa blumeana are absent,
however, as seeds and the knowledge on appropriate vegeta-
tive propagation are missing. Despite the partial shoot trade
of the cultivated Dendrocalamus asper, its clusters are cur-
rently largely over–aged, which can be explained by missing
market channels for culm products. Culms of the other two
species are exploited at any time correlating with customers’
demand or own needs. Sheaths of Indosasa angustata are usu-
ally picked up in June. According to the specific shoot sprout-
ing seasons, shoots of Indosasa angustata are harvested at an
intensity of around 65 percent from February to April and
those of Dendrocalamus asper from June to August. Consider-
ing the national legal framework on bamboo exploitation,
only the situation for culms is stipulated in Decision 08/2001/
TTg (V
U VAN DUNG et al. 2002). In Ngo Luong commune itself,
HILFIKER, K.; ZINGERLI, C.; SORG, J-P.; LÜTHI, R.: Market potential and resource management of non-timber forest products (NTFPs) in the northern uplands of Vietnam
Ngo Luong
(research site)
Tan Lac
(district capital)
Ky Son
(pulp factory)
Dong Phuong Yen/
Ha Dong
(bamboo shoot
assembly markets)
Hoai Duc
(orchid nurseries)
Hanoi
(orchids, bamboo shoots,
construction culms,
medicinal plants)
Chuong My
(hat making
village)
Dan Hoa
(culm classification
regarding utilisation)
Lang Son
(one border gate for
exporting medicinal
plants)
Thai Hoc
(comb making
village)
Nghia Trai
(medicinal plant
processing commune)
30 km
40 km
40 km
30 km
10 km
40 km
5 km
155 km
30 km
50 km
90 km
Schweiz. Z. Forstwes. 157 (2006) 2: 49–56
54
HILFIKER, K.; ZINGERLI, C.; SORG, J-P.; LÜTHI, R.: Market potential and resource management of non-timber forest products (NTFPs) in the northern uplands of Vietnam
proprietors of cultivated bamboo stands are responsible for
the resource management. Offences are regulated through
traditional rules exercised by the village leader.
Medicinal products
A number of medicinal NTFPs occurring in Ngo Luong com-
mune are classified as threatened in the Red Book of Vietnam,
among them also the epiphytic fern Drynaria fortunei. During
the last few years its abundance particularly declined around
the settlements. Nonetheless, informants in both research
sites estimated a harvested quantity of 40 tons of raw rhi-
zome in 2003. The harvesting turn for this species takes about
three years as long as young fronds are left for regeneration.
The rhizome is mostly collected in autumn, which corresponds
with the lean season of the agricultural calendar. The product
is still freely traded although Drynaria fortunei is subject to
the Regulation on Inspection of the Transportation, Produc-
tion and Business of Timber and Forestry Products of 12 March
1999 (article 9, clause 2). Forest rangers explain the ineffec-
tiveness of the regulation with the small traded quantities for
which transportation certificates cannot be issued. Because of
their high economic value also Anoectochilus setaceus and
Nervilia fordii are illegally exploited and traded despite their
appearance as strictly forbidden plant species in Decree
48/2002/ND-CP from 22 April 2002. Anoectochilus setaceus has
already experienced an overexploitation and now occurs sel-
dom in undisturbed forest parts in Ngo Luong commune. Like-
wise, Nervilia fordii appears in a few spots although only its
single leaf is economically interesting, which appears from
May to August. Up to now, many NTFP producers in Ngo
Luong commune are unfamiliar with domestication and culti-
vation of these three medicinal plant species. However, there
is the option to cultivate Drynaria fortunei and Nervilia fordii
at household scale, as experiences in other upland villages in
northern Vietnam show (T
RAN VAN ON & NGUYEN QUOC HUY
2004). For Anoectochilus setaceus knowledge on its domesti-
cation could not be found.
Ornamental product
Not only the occurrence of medicinal NTFPs has declined in Ngo
Luong also the abundance of the epiphytic orchid Aerides
odorata has been significantly reduced with the increased mar-
ket demand. It is estimated to be even lower in Luong Tren than
in Bo village. Although resource users are familiar with sustain-
able exploitation methods, the entire orchid including its roots
is usually harvested. It is explained by the fact of the open access
regime and favourable returns for collectors. The quality of the
orchid is best when freshly harvested. The longer Aerides odo-
rata is kept in pots or attached to trees in the private home
gardens, the more its appearance aggravates. Lack of time for
adequate treatment and suitable equipment are causes for re-
duced quality. From a legal point of view, exploitation and
trade of orchids as forest products are principally forbidden.
Nevertheless, the traded quantity out of Ngo Luong commune
was estimated at one ton in 2003. Forest rangers argue that
they have monitoring difficulties, especially because ornamen-
tal orchids are traded the whole year round.
In sum, the presented NTFP species all show the typical signs
of overexploitation once market demand increases. Although
they are subject to regulation the legal frameworks usually
are not strictly implemented in remoter areas. It is thus neces-
sary that strategies to improve livelihoods through NTFP com-
mercialisation are combined with resource management con-
cepts that aim at a sustainable resource use.
Impacts of different strategies for
improving household income and rural
development in Ngo Luong commune
This paper shows that, on the one hand, the market situation
of nearly all nine NTFPs is promising. On the other hand, a
number of them are subject to overexploitation, not least be-
cause of immediate cash income needs. The combination of
weakly implemented resource management linked with open
access regimes for NTFPs from the natural forest does neither
protect the resources nor benefit the livelihoods of the poor.
However, the current returns to NTFP producers in Ngo Luong
commune could be enhanced as soon as product quality and
storage period were significantly improved. In the following,
options for win-win situations and basic conditions are out-
lined.
Focus on NTFP promotion through intensification
and diversification
An intensification of NTFP management promises to lead to
higher returns if access to market and credit, property rights,
labour force, time of appropriate maturity and knowledge of
small-scale businesses are guaranteed (S
UNDERLIN et al. 2005).
In Ngo Luong commune, a trade intensification of the orna-
mental orchid species Aerides odorata could improve liveli-
hoods thanks to the annual high market demand and the op-
portunity to cultivate and multiply it through vegetative re-
production. Building a nursery in Ngo Luong commune would,
on the one hand, positively affect the conservation of its re-
source basis in the natural forests, as long as the poor house-
holds mainly depending on this resource take part in such a
project. On the other hand, it would provide an ensured in-
come in the long run. This strategy requires an adaptation of
the legal framework regarding extraction and trade of culti-
vated orchid species, extension trainings on storing orchids
and vegetative reproduction as well as a simplified access to
credit calling for a business plan preferably elaborated by an
interest group of poorer households.
Investing in different NTFPs with complementary seasonal
availability and market demand is a further opportunity to
ensure household income throughout a year. Indeed, such a
diversification is given in Ngo Luong commune. Bamboo
shoots of Indosasa angustata are harvested in spring. Shoots
of Dendrocalamus asper and sheaths of Indosasa angustata
are collected in summer and the rhizome of Drynaria fortunei
is gathered in autumn. If Bambusa blumeana were widely cul-
tivated in the commune, culms could be advantageously ex-
ploited in winter and spring. Such a strategy allocates labour
throughout the year and distributes the economic and eco-
logical risks among several NTFPs. However, availability of la-
bour, material and credit is currently limited to few well-off
households. With support programmes such as the Hunger
Eradication and Poverty Reduction Programme established in
1998 poorer households should have received improved access
to investment opportunities.
Both cases promoting an intensification and diversification
likely offer similar cost-benefit schemes. With regard to resource
conservation, a win-situation is achieved as soon as nobody has
no longer an incentive to collect these products from the natu-
ral forests. Cultivation is one promising option. It requires, how-
ever, to address all interested households, and to ensure that
they have access to credit and technical trainings. Planning of
cultivation projects at provincial or national level should re-
spond to the natural occurrence of NTFPs. For example, Aerides
odorata should be kept in nurseries in the uplands of Hoa Binh
province. Otherwise, unorganised or mass cultivations could
55
Schweiz. Z. Forstwes. 157 (2006) 2: 49–56
HILFIKER, K.; ZINGERLI, C.; SORG, J-P.; LÜTHI, R.: Market potential and resource management of non-timber forest products (NTFPs) in the northern uplands of Vietnam
lead to supply surplus causing market over-saturations and
rapid price declines ending up in a lose-win situation.
In terms of market understanding, a trade with several
NTFPs supports the extension of trade networks and the infor-
mation acquisition of new and promising NTFPs or processing
methods. Concerning small-scale business activities, the focus
on one NTFP and its promotion allows for a better under-
standing of entrepreneurial mechanisms, and likely leads to
market specialization, which could open the access to nation-
al and international markets.
NTFP producers are demand driven or market drivers
As NTFP traders have easier access to credits and market infor-
mation as well as a better knowledge of transportation, stor-
age and locally added value, they often bring NTFP producers
in a relationship of dependence likely in form of advances
(B
ELCHER & KUSTERS 2004). In Ngo Luong commune, NTFP pro-
ducers are demand driven as they were mostly unfamiliar with
market demands, quality requirements and opportunities for
storing or adding value locally. In addition, they face incon-
veniences to access local markets. The principal concern is how
to transform the farmers in Ngo Luong commune to market
drivers or at least to actors with more market power. The
establishment of forest learning groups is a first step to train
farmers on team activities and acquiring information on mar-
ket, product, resource management, financial and legal issues.
It requires collaboration among local authorities, extension
offices and the target audience. These activities should be sup-
ported by national programmes, which aim to improve rural
development through enhanced issues such as legal frame-
work, infrastructure, access to market information, funding
and training opportunities. However, the power of decision
should be given to NTFP producers in order to enable efficient
reactions on the local and often volatile NTFP markets.
Conclusion
This paper discussed options to improve rural development
through promoting specific valuable NTFPs and conserving its
natural resource basis in the two villages in Ngo Luong com-
mune. Such win-win situations can be basically achieved
through NTFPs which have ensured markets, provide high re-
turns, are cultivable and follow clear and correctly implement-
ed legal regulations on exploitation and trade. Promotions of
NTFP cultivation only show advantages regarding conserva-
tion as long as all on the NTFP depending villagers have no
need to collect it from the natural forests. This requires to
have access to credit and funding, extension trainings on mar-
ket mechanism, cultivations, sustainable resource manage-
ment and small-scale businesses. In the case that NTFPs are
considered an effective way to improve local livelihoods, com-
munities and village organisations need to be supported by a
well-informed extension service and international donors that
draw on detailed market and environmental analyses of the
promoted NTFPs.
Summary
Fairly all selected NTFPs of the upland commune Ngo Luong in
northwest Vietnam reveal a high market potential including
opportunities for sustainable resource management. In order
to achieve win-win situations at the research site, management
of specific NTFPs through intensification or diversification ap-
plied by single households or interest groups is discussed. Apart
from better management practices the NTFP producers’ posi-
tion within the market chain should be strengthened by calling
for extension trainings on marketing relevant features. These
findings base on investigations of household income, NTFP ex-
traction and market chains of economically valuable NTFPs.
Résumé
Produits forestiers non ligneux sur les hautes
terres du nord du Vietnam: potentiel commer-
cial et aménagement des ressources
Le potentiel commercial de la plus grande partie des produits
forestiers non ligneux étudiés dans la commune de montagne
de Ngo Luong est élevé et les opportunités de gestion durable
de la ressource sont réelles. Dans le but de dégager des situa-
tion profitables aux différents acteurs du site de recherche, des
options d’intensification ou de diversification au niveau de sim-
ples ménages ou de groupes d’intérêt sont discutées dans le cas
de quelques produits forestiers non ligneux. En outre, la posi-
tion des producteurs dans la chaîne de commercialisation pour-
rait être renforcée en faisant appel à des actions de vulgarisa-
tion dans des domaines relevant du marché. Les résultats obte-
nus sont basés sur des recherches concernant le revenu des
ménages, ainsi que la récolte et la filière de commercialisation
de produits forestiers non ligneux présentant un intérêt
économique.
Zusammenfassung
Nichtholzprodukte im nördlichen Berggebiet
von Vietnam: Marktpotenzial und Ressourcen-
management
Nahezu alle neun ausgewählten Nichtholzprodukte (NTFPs)
der Berggemeinde Ngo Luong im Nordwesten Vietnams wei-
sen ein hohes Marktpotenzial auf, welches überdies Mög-
lichkeiten für ein nachhaltiges Ressourcenmanagement bein-
haltet. Bezüglich gewinnbringender Lösungen sowohl für die
Vermarktung von NTFPs als auch für deren nachhaltige Nut-
zung wird in diesem Aufsatz auf die Möglichkeit der Inten-
sivierung und Diversifizierung der Nutzung von NTFPs durch
einzelne Haushalte oder Interessengruppen hingewiesen.
Nebst verbesserten Managementpraktiken sollte aber auch die
Position der NTFP-Produzenten innerhalb der Marktkette
gestärkt werden. Dies verlangt eine bessere Information sowie
Trainingseinheiten zu marktrelevanten Merkmalen der NTFPs.
Diese Ergebnisse stützen sich auf die Auswertung von Daten
zum Haushaltseinkommen, zur NTFP-Entnahme aus dem Wald
und zur Marktkette von ökonomisch wertvollen NTFPs.
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Acknowledgement
This paper results from an internship study (Hilfiker 2005), supported
by the Extension and Training Support for Forestry and Agriculture
in the Uplands Project (ETSP) in Hanoi, implemented by Helvetas
Switzerland and funded by the Swiss Agency for Development and
Cooperation (SDC). The views expressed are not necessarily those
of Helvetas and SDC. Thanks for creating favourable conditions in
Hoa Binh province are addressed to Mr. Nguyen Truong Giang, ETSP
Provincial Coordinator, and Mr. Dinh Van Duc, Vice Director of
Department of Agricultural and Rural Development. Similarly, thanks
are addressed to the commune authority and all informants in Ngo
Luong commune as well as the contacted stakeholders during
market analysis in northern Vietnam. We are also thankful to Ngu-
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research period.
Authors
K
ARIN HILFIKER, Forest Engineer ETH, Meienweg 8, 4800 Zofingen.
E-mail: k.hilfiker@gmx.ch.
Dr. phil. C
LAUDIA ZINGERLI, Chair of Forest Policy and Forest Econom-
ics, Swiss Federal Institute of Technology (ETH), ETH Zentrum, CHN,
8092 Zürich. E-mail: claudia.zingerli@env.ethz.ch.
Dr. sc. nat. J
EAN-PIERRE SORG, Groupe de foresterie pour le dévelop-
pement, Swiss Federal Institute of Technology (ETH), ETH Zentrum,
CHN, 8092 Zürich. E-mail: jean-pierre.sorg@env.ethz.ch.
R
UEDI LÜTHI, Technical Advisor, Extension and Training Support for
Forestry and Agriculture in the Uplands Project (ETSP), 218 Doi Can,
Ba Dinh, Hanoi, Vietnam. E-mail: sfsp_rl@hn.vnn.vn.
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