Completion Report of JICA Expert
1. Nameof expert: Shohei NATSUDA
2. Nameof the Project: The Rehabilitation of NaturalForestin Degraded Watershed
Area in the North of Vietnam
3. Job Title: Rural Economic Analysis
4. Period of dispatch: From November 24, 2004to December 23, 2004
5. Employerof the expert: Sanyu Consultants Inc.
6. Equipment provision: None
7. Activities and achievement of the mission
(1) Activities of the mission
This mission has established an analytical method for examining economic feasibility of techniques, which will be applied for production activities by the residents in the target area, and if the techniques can contribute to promoting the 661 Program especially through the on-farm trial. Technical transfer of the method to the counterpart (C/P) was also carried out.
The expert developed models of ongoing activities in the on-farm trial and calculated indexes of the profitability, after the survey of the costs and benefits. A household survey was conducted in order to grasp the size of household economy at the same time, and affordability study on scale of the activities was carried out. Methods of modeling economic analysis and household survey are transferred to C/P through activities and a workshop in the field.
(2) Achievement of the mission
The expert arranged cash flows of costs and benefits on 41 cases, and calculated their B/C and IRR. The cases consist of 37 species in seven planting activities and four cases of fish and livestock farming in the on-farm trial. Discussion with C/P, who are the members of a working group organized in the on-farm trial, in the Forestry Economic Research Division of Forest Science Institute of Vietnam (FSIV) and in Hoa Binh Province was held on each and every stage: design of the model, collection of information, development of the model, and study on the result in order to make the model close to the real state and transfer the skill to the C/P.
1) Target Activities of Economic Analysis
Now, 13 activities are ongoing or planning in the On-farm Trials, which is carried out in 4 villages, Dzung, Ke, Lon, and Cap. In these activities, “Beekeeping” and “Construction of compost tank” were omitted from this analysis because members of the working group did not have experience of beekeeping to make a plan, and main benefit of the compost tank was getting clean environment and the estimation of benefit by money was hard. Namely, the target activities of this economic analysis were limited to 11 activities. And also, “Cow and buffalo raising” is focused on cow raising as simplification.
A) Forest plantation [Lon, Cap]
B) Enrichment planting in community forest [Dzung, Ke]
C) Enrichment planting in individual forest [Ke, Lon]
D) Establishment of forest garden [Lon]
E) Planting of Taiwanese bamboo [Dzung, Cap]
F) Improvement of home garden [Dzung, Ke, Lon, Cap]
G) Convert fallow upland into forest garden [Dzung]
H) Fish farming in gabion [Dzung, Ke]
I) Cow raising [Dzung, Ke, Lon, Cap]
J) Pig raising [Dzung, Ke, Lon, Cap]
K) Goat raising [Dzung, Ke, Cap]
In activities of tree plantation (No.1-7), 18 species of trees are applied in the field but do bau, pear, and than thuong were left out from the analysis as the shortage of information about the benefit. Though canarium by seed and dracontomelum were planted in Planting of Taiwanese bamboo (No.5), these trees were ignored for simplification, and number of the planting was very small in comparison with planting number of Taiwanese bamboo.
Kinds of tree, which was planted in the activities, are shown in above table. The model of the activity for the economic analysis was formulated on each kind of trees in the activities. The number of cases in forest tree is 24. Fruit tree has 8 cases and others have 5 cases. Total number of the cases for the model in the tree plantation is 37.
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