Promoting fast-growing species sawlog plantations by smallholder farms: evidence from a choice experiment study in Vietnam

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Smallholders’ planting fast-growing trees for pulpwood production has substantially contributed to forest rehabilitation, wood production and rural incomes worldwide. Government incentive programs have attempted to increase the productivity and value of such plantations and enhance sawlog supply to the furniture industry. Designing effective incentive programs to encourage sawlog plantations requires a deeper understanding of smallholder preferences and socio-economic characteristics. This study examines preferences for different designs of incentive programs, including technical support, rotation length, financial subsidy, committed area and timber insurance. A scale-adjusted latent class model is used to investigate preference heterogeneity using data on 300 smallholders in the Central Highland and Northern Upland regions, representing two development stages of plantation forestry in Vietnam. The analysis identified four preference classes, which value attributes differently. Preference for sawlog plantation programs depends on individual characteristics and psychological factors such as perception of benefits, obstacles and risks. The longest rotation preferred by a significant proportion of smallholders for sawlog-oriented plantations is a medium rotation of 8-10 years. Our study further determines feasible incentive programs that meet smallholder preferences and government budget constraints, draws important policy implications for promoting the value of smallholder plantations and livelihoods.