22/08/2007

Ministry of Agriculture & Rural Development Strategy for Distribution of Improved Seed
by
Research Centre for Forest Tree Improvement
(RCFTI), Vietnam
Prepared January 2007 Output from CARD Project No. 058/04VIE
Strengthening Capacity in Forest Tree Seed Technologies Serving Research
and Development Activities and ex-situ Conservation

Disclaimer: The contents and opinions contained in this conceptual framework have been provided in good faith
and on the basis that endeavour has been made to be accurate and not misleading and to exercise reasonable care,
skill and judgment in providing such opinions. Neither Ensis nor any of its employees, contractors, agents or other
persons acting on its behalf or under its control accept any responsibility or liability in respect of use or
exploitation of this conceptual framework by any person.
1. Executive Summary and Recommendations

In order to overcome these challenges and be able to effectively market and distribute its seed,
RCFTI needs to implement a number of initiatives designed to target niche markets where seed

2
quality is important. The following is a summary of recommendations. More detailed
information is provided in Section 6.

Summary of recommendations
It is appreciated that marketing in to the Vietnam tree seed sector is difficult given the lack of
appreciation for genetically improved tree seed in the market place and comparatively limited
amount of seed RCFTI has available making it a minor player in the seed sector. By contrast
RCFTI has been effective in marketing its seed and other products on the international market
where the quality of its products is better understood and valued. In order to enhance the
adoption of genetically improved seed and planting material at the national level there is a need
to:
• Get certificates and registration for genetic seed source (seedling seed orchards, clone seed
orchards and seed production areas), approval of advanced genetically germplasms and
sufficiency for ability of genetic germplasm production and business.
• understand market needs - customers, competition etc.;
• raise the awareness of the value of improved material;
• quantify the value of improved seed;
• determine the demand and supply of major species used in the planting programs, and
• identify the best routes for deployment.
In order to achieve these requirements, RCFTI needs to:
o Speed up getting the certificate and registrations of advanced genetically
germplasms
o Carry out a customer analysis to provide a profile on customer needs and what
goods and services RCFTI can provide. RCFTI needs to develop its brand name so
that it is recognised as the preferred supplier of quality seed. Foster good relations
with existing stakeholders and at the same time develop new business opportunities.

be planted annually for which 245-370 tonnes of seeds are needed each year to propagate the
required seedlings (MARD 1998).

According to the decision No of 89/2005/QĐ-BNN issued by MARD in December, 2005,
certificate of seed sources must be registered. For using the seed source, all seedling seed
orchards have to be certificated by MARD while seed production areas have to be certificated
by Provincial Department of Agriculture and Rural Development. Therefore, the need to to
initiate, establish seed production sources of good genetic quality and certificate the seed
sources to support the national reforestation programs has been emphasised by MARD.

Government agencies including the Central Forest Seed Company (CFSC), RCFTI and some
provincial research centres are all involved in development of seed production sources (seed
production areas and seed orchards). CFSC has a seed production network of major plantation

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species totalling 3000 ha. Under Program 327, state forest enterprises in some provenances
were assigned to establish seed production areas of selected species. RCFTI presently has 73.8
ha of seed stands comprising 31 seed production areas and seed orchards across15 species
(Appendix I).

There are a number of issues that need to be addressed by the industry and which affect
RCFTI’s ability to be an effective distributor of seed.
• Collaboration between tree seed stakeholders in Vietnam is generally lacking. There is a
need for a clear division of tasks particularly at the government level (MARD) to minimise
the duplication and competition among stakeholders.

• The genetic and physiological quality of seed and seedlings used in the tree planting
programs is often not satisfactory. There appears to be limited awareness of the real value
of genetically improved seed among seed users, seed producers and decision-makers. Often
good germination is the only attribute considered.

seedlings
• Developing appropriate composition of forest plantation, regeneration, enrichment and
thinning
• Export and import of seed and seedlings under government regulations

Another important department of MARD involved in the 5 million ha Program is the National
Centre of Agriculture and Forestry Extension (NCAFE). NCAFE operation extends to
provincial, district and commune levels, and is represented by Agriculture and Forestry
Extension Centre in every province and city. About 70% of the districts have established an
extension station. The main functions of extension are:

• to introduce new agroforestry techniques
• to assist farmers to design and set up demonstration models
• to facilitate exchange of ideas between farmers
• to produce extension material (nursery propagation)

Central Forest Seed Company
The Central Forest Seed Company (CFSC) falls within MARD, and has been the main agency
responsible for production and supply of seed and planting material in Vietnam. CFSC has a
nation-wide mandate and operates through its seven regional seed enterprises which are located
in seven provinces/cities of Hanoi, Lang Son, Vinh Phuc, Quang Binh, Lam Dong, Quy Nhon
and Ho Chi Minh City. Currently 3000 ha of seed sources are registered with CFSC with an

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estimated production capacity of 400 tonne/year. Most recently CFSC has drafted a national
plan for the production and supply of forest seeds for the 5-million ha Program. CFSC has
several roles as a stakeholder in the seed network:

• Planning of seed demand and supply
• Supply of seed and planting material (seedlings, cuttings, tissue-culture plants)

SFEs are a major arm of DARD in the plantation forestry development within provinces. There
are currently more than 400 SFEs, with one in most districts. They manage forests totalling
more than 4.5 million ha or 41% of the forest area. The average size of a SFE is 10,000 ha.
Current role of SFEs in the seed sector is:

• Seed production from own seed sources
• Seed supplier
• Production of seedlings and cuttings
• User of seed and seedlings
• Extension service

Forest Research Institutions
MARD’s Department of Science and Technology advises the ministry on research matters and
direct research through the Forest Science Institute of Vietnam (FSIV). FSIV operates through
three research centres and seven divisions based in Hanoi, one sub-institute in Ho Chi Minh
City and eight regional research and production centres located in the provinces of Phu Tho,
Son La, Lam Dong, Vinh Phuc, Dong Nai, Gia Lai, Quang Tri and Ca Mau. FSIV’s Research
Centre for Forest Tree Improvement is a leader in tree improvement research with a long
contact with CSIRO and SAREC through regular exchanges of people, seed, training and
equipment.

Another prominent research institution is the Phu Ninh Forest Research Centre of Paper
Corporation of Vietnam. This Centre has conducted research on species/provenance selection
and established seedling and clonal seed orchards of many commercially important species.

Forest Industries
Forest industries involved in the seed sector are limited to those which invest in plantations for
production of raw material. Most are state-owned or joint ventures.

Vietnam Forest Corporation (Vinafor)

User s
Central departments
x x
Central Forest Seed Company
x x x x x
Provincial DARD
x x x x
District Agri. & Forestry Section
x x
State Forest Enterprises
x x x x x
Forest research institutions
x x x x x Forest Industries
x x x x Farmers
x x x Donor projects
x x x x

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Trees being perennial provide a virtually inexhaustible supply of readily available local cheap
seed. This situation is quite unlike that experienced in agriculture where technically it should
be easier to introduce germplasm of new annual crop varieties and quickly replace older ones.

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The temptation for nurseries to collect and use any available seed to meet planting deadlines
and customer needs is very real. Several years may pass before the adverse effects become
apparent.

c) Adoption and use of better-adapted and improved plant material
Because of RCFTI’s limited capacity to influence the tree seed sector in Vietnam, only a very
few users are aware of the potential benefit of RCFTI’s tree seed. Part of the constraint is the
lack of extension and education to promote the benefit of the seed and ability to adequately
demonstrate the superiority of seed. Only a few growers are willing to commit funds to the
higher cost of RCFTI seed compared to general market seed. Growers need to be convinced
that RCFTI’s improved tree seed are truly and consistently superior under their conditions and
worth paying the extra money. The local source, which has proven to survive are difficult to
replace with new varieties where comparisons on performance are difficult to show in the field.
To overcome this obstacle, there is a need to demonstrate the benefits of improved seed. The
following is an example of the benefits of using improved E. camaldulensis seed in Thailand.
Unimproved seed produced about 20 cubic metres of round wood/ha/year. With the adoption
of improved seed, a 20% improvement in volume yield was achieved equating to 4 cubic
metres additional yield per ha. This represented a $80/ha/year financial gain.

As is typical of tree growing, a long term strategic approach needs to be taken to establish
suitable demonstration plots as part of research activities which can be used to demonstrate to
growers the benefits. Coupled to this is the need for developing trust with stakeholders so that
they are confident that they can achieve the performance and desired results claimed by
RCFTI.


• Market research to determine market demand, species requirements, etc. This information
will assist in predicting sales targets and requirements for seed in the coming years to meet
demand.
• Position in the market where RCFTI’s seed, other germplasm and services are in demand.
How are these goods and services differentiated from competitors? What is RCFTI’s
unique selling point?
• Pricing strategy – outline RCFTI’s pricing structure and strategy in relation to competitors,
target market.
• Currently RCFTI sells about 20-30 kg of the improved seed. The seeds were distributed
from RCFTI’s store based on the stakeholder requirement. Through the seed database,
RCFTI has the capacity to generate the necessary documentation associated with seed sales
i.e. quotes, invoices etc. 13
Promoting RCFTI’s seed and services
As part of marketing, development of information and promotional material is an essential part
of promoting seed sales and links to customers. The type of awareness and promotional
initiatives depends on the type of customers. In the case of RCFTI, the market is fairly narrow
and may require person to person contact. However, it is import that RCFTI develop links
with farmers which will require a broader approach to awareness. Such promotional initiatives
should amongst other things defuse the argument about RCFTI seed being ‘too costly’ by
promoting the benefits of good quality seed. ‘Good seed does not cost it pays’.
• Set up some more demonstrations of seed source (genetic gain trials) in the main plantation
areas to demonstrate to growers the differences between seed sources to compare industry
standard seedlots compared with genetically improved sources developed by RCFTI. This
will be a key marketing tool.
• Raise awareness of the value of improved seed;
• Quantify the value of improved seed;
• Amount of seed available by species and adaptability to different environmental zones; and

well placed to benefit from its strategic advantage in having supplies of quality seed and
supporting services. Especially, the collaboration between RCFTI and Central Forest Seed
Company (CFSC) which is a commercial supplier of forest germplasms is considered as the
most important cooperation in this strategy
• Continue to develop with MARD a certification system for all seedlots to identify their
origin and authentication;
• Developed a heightened awareness amongst stakeholders of the benefits of improved seed
to include lobbying government to ensure that the best available genetic material is used for
planting;

Product development
RCFTI needs to continue to produce new improved strains of species and hybrids to meet
market demand. This work should be carried out in parallel with market intelligence. All new
‘improved seed’ must be vigorously tested against other improved seedlots and industry
standards.

Options for physical distribution of seed
Since RCFTI currently only produces about 30 kg of improved seed per year, some of which is
purely for further research of family lines, the centre stores all seed at RCFTI. However, as
seed productions increases there will be opportunity to create storage and distribution centres
linked to RCFTI at other locations depending on species and seed type. For Acacia and
Eucalyptus seeds, the seed can be stored relatively easily in temporary conditions provided
there is protection against moisture. RCFTI plans to store some seed at other strategically

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located centres across the country mainly associated with seed sources. Three main planting
centres are planned namely: Ba Vi, Quang Tri and Dong Nai. RCFTI Ha Noi will co-ordinate
all seed inquiries, distribution and documentation through the seed database tracking system.

Ba Vi - Ha Tay
2
CSO 2 2001 N
Eastern South Vietnam Forest Scientific and Production
Centre
Bau Bang - Binh
Duong
3
CSO 2 2002 N Experimental Station for Forest Tree Improvement
Ba Vi - Ha Tay
4
CSO 1.5 2002 N Dong Hoi Forestry Enterprise
Dong Hoi - Quang
Binh
5
SPA 3 1996 Y
North-Central Vietnam Forest Scientific and Production
Centre
Dong Ha - Quang
Tri
6
SPA 3 1994 Y Experimental Station for Forest Tree Improvement
Ba Vi - Ha Tay
7 A. crassicarpa
SSO 4 2002 N Provincal Department of Forestry Development
Phong Dien - Thua
Thien Hue
8
SSO 3 2001 N
North-Central Vietnam Forest Scientific and Production

North-Central Vietnam Forest Scientific and Production
Centre
Dong Ha - Quang
Tri
16
SPA 6 1994 Y Experimental Station for Forest Tree Improvement
Ba Vi - Ha Tay

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Signal
on the
map
Species
Type
of
exp.
Area
(ha)
Planted
Year
Thin
(Yes/N
o)
Predicted
mean
yield/ yr
2010
Organisation/ Centre
Location

Binh
24
CSO 5 2003 N Experimental Station for Forest Tree Improvement
Ba Vi - Ha Tay
25 P.kesiya
SSO 2 1998 Y
Lam Dong Silvicultural and Experimentation Research
Centre
Lang Hanh - Lam
Dong
26 Eucalyptus pellita
SSO 2 2002 N
Eastern South Vietnam Forest Scientific and Production
Centre
Bau Bang - Binh
Duong
27
SSO 2 2002 N Tropical Forest Centre Pleyku - Gia Lai
28 E. grandis
SSO 1.2 2003 N Tropical Forest Centre
Gia Lai
29
SSO 1.2 2002 N
Lam Dong Silvicultural and Experimentation Research
Centre
Lang Hanh - Lam
Dong

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Dong Ha - Quang
Tri
33
SPA 2.5 1993 Y Experimental Station for Forest Tree Improvement
Ba Vi - Ha Tay
34 E. camaldunensis
SPA 3 1995 Y
North-Central Vietnam Forest Scientific and Production
Centre
Dong Ha - Quang
Tri
35
SSO 5 1996 Y
Eastern South Vietnam Forest Scientific and Production
Centre
Chon Thanh - Binh
Phuoc
36
CSO 1.6 2001 N Binh Thuan Plant Breeding Centre
Ham Thuan Nam -
Binh Thuan
37
CSO 3 1993 Y Experimental Station for Forest Tree Improvement
Ba Vi - Ha Tay
38 E. tereticornis
SSO 3 2001 N The North-Central Centre for Forest Production Science Cam Lo - Quang Tri
39
SSO 3 2001 N Binh Thuan Plant Breeding Centre
Ham Thuan Nam -
Binh Thuan