Finland/MTK/AgriCord started the first projects for improving family forestry services in Vietnam by a one year pilot implementation in 2010. Experiences of the first year with support to the Thua Thien Hue province are positive. The need for support has been confirmed and the twinning partners (TTHCA and Yla-Savo Forest Management Association) are working well together. Farmers are satisfied with the improved access to forestry services. Training has improved knowledge of sustainable forest management, collective procurement of seedlings and inputs have reduced costs by 20-30% and market price information has improved the smallholders’ knowledge of the timber markets. However, longer term support is required for farmers’ to start collective marketing, which may develop into a replicable model for up-scaling. The project will continue in the initial three pilot agricultural cooperatives. The total direct outreach is 870 households. Capacity building aims at developing the agricultural cooperatives into efficient forest owners’ service organizations with the following expected achievements: • Replicable model of smallholder forest producers’ cooperation is created. • The forest producers’ organizations are feasible and financially sustainable with profitable business activities.

There are no smallholders’ forestry organizations yet in Vietnam. Forest policies are conducive for private commercial forestry and state lands are being handed over to smallholders on 50-year land use certificates. Timber furniture exports to USA and EU are booming. However, smallholders cannot capture value chain opportunities and potential profits are reduced by middlemen. The timber processing industry imports 80% of its raw materials while 90% of the smallholder timber production is sold for pulp. Smallholders would receive tangible benefits by developing effective collective services in forestry. The initial project of one year will focus on 2-3 pilot agricultural cooperatives to develop into efficient forest owners’ service organizations.