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	CHAPTER 3.
	Prospects for Biofuel Production in Vietnam
	Of the country’s economic structure, agriculture still accounts for a majority with more than 12 million hectares of farmland. Output of rice, sugarcane, cassava and corn, among others, has grown considerably over the past 10 years and these plants are a potentially large source of material for biofuel production.


	3.1 Materials for Ethanol Productions
		Materials that contain starch, glucose and cellulose are key inputs for ethanol production. Each country chooses technology depending on available materials. Alcohol is made mainly from corn in the United States, sugar cane in Brazil and corn, cassava, cane and wheat in China. Given the current technological trends, Vietnam can manufacture, on an industrial scale, ethanol from starch- and glucose-rich materials.


	3.1.1 Rice Production
		Among the cereal grasses, rice paddies make up the largest proportion in terms of acreage and output. By 2005 the country had 7,326,000 hectares of land under rice cultivation, with total output amounting to 35.79 million tons, mostly in the Mekong Delta, the Red River Delta and north-central provinces. Strict weather, hydrographical and soil conditions are required for rice production. High-quality and high-yielding rice categories are used as food for humans, animals and export. The past 10 years has seen a rapid increase in rice productivity, but compared to other countries in the world, it is of average level. In 2005, the country obtained average output of 4.89 tons per hectare (up from 3.69 tons in 1995), and in particular, the Red River Delta recorded the highest level of 5.44 tons. Meanwhile, the world’s average was over 10 tons per hectare. In the future, intensive farming and new seeds will be applied to raise output and the acreage under rice cultivation will be reduced by growing other crops or converting rice fields into industrial land.


	3.1.2 Corn Production
		Corn has been increasingly grown over the past 10 years. In 2005 there was 1,043,000 hectares under corn farming with total output reaching 3.756 million tons. Average productivity nationwide was 3.76 tons/hectare/year, up by 1.4 tons against 1995. Corn farming is extensive in northeastern, northwestern, central highlands and southeastern provinces but productivity there is lower than in provinces in the Red River and Mekong deltas. Vietnam’s corn productivity is low as many other countries obtain five to 10 tons/hectare. Extensive farming is popular in many upland areas due to rocky mountain terrains, barren land and lack of water, thereby productivity is around 2.0 tons/hectare; for example, Ha Giang gets 2.08 tons/hectare, Yen Bai 2.62 tons/hectare and Lai Chau 1.57 tons/hectare. There are many areas gaining high productivity, such as Danang with 5.25 tons/hectare, An Giang with 7.8 tons/hectare, Dong Thap with 6.5 tons/hectare, and Long An with 4.53 tons/hectare. Corn is primarily used as food by upland people and as animal feed. There is only a small proportion of corn used to make processed products. In the future, new seeds and techniques should be applied to increase corn output for feeding animals.


	3.1.3 Sweet Potato Production
		Of note among the tuberous plants is sweet potato. In 2005, the country had 188,400 hectares of land under sweet potato cultivation (down by 6% against 2004), mostly in the Red River Delta, and northeastern and north-central provinces. Provinces in the Red River Delta, northeastern and north-central and Mekong Delta regions contribute a majority of the national sweet potato output. Average countrywide productivity is 7.76 tons/hectare. In particular, the Mekong Delta obtains the highest productivity in the country, at 18.9 tons/hectare, followed by the Red River Delta with 9.19 tons/hectare. A number of provinces with high productivity include Vinh Long with 27.5 tons/hectare, An Giang with 26.3 tons/hectare, and Kien Giang with 16.5 tons/hectare. An advantage is that sweet potato can be grown in arid sandy soil, adapt to different weather conditions, and be cultivated twice a year or alternately with other crops to make the most of land. Sweet potato is used for both humans and animals and its quality remains low in terms of starchy content and glucose. In the future, only high-quality and high-yielding sweet potato plants should be cultivated to feed animals or produce food as well as ethanol.


	3.1.4 Cassava Production
		Cassava, one of the country’s key short-term industrial plants, has long been grown as food for humans and animals, especially in upland provinces. Many industries are using cassava as material with 100,000 tons used annually too make confectionery, alcohol, textiles and monosodium glutamate. In recent years, cassava processing has been done on an industrial scale to produce starch for export. There are 50 cassava starch factories nationwide. The acreage of cassava in 2005 totaled 423,000 hectares, mostly in southeastern provinces (Tay Ninh, Binh Phuoc and Dong Nai), Central Highlands provinces (Kontum, Daklak and Gia Lai), south-central coast provinces (Quang Nam and Quang Ngai), the northeast (Yen Bai), the northwest (Son La) and north-central region (Thanh Hoa). Cassava output in 2005 was 6.646 million tons, more than two times over 1995. Key cassava growing areas are provinces in the southeastern, Central Highlands, south-central coast, northeastern, north-central and northwestern regions. The country’s average productivity reaches 15.7 tons/hectare, but in some areas, the figure might rise to 60-100 tons/hectare. In particular, Tay Ninh can produce 24.57 tons/hectare, Daklak 21.73 tons/hectare, Binh Phuoc 21.66 tons/hectare, Dong Nai 21.78 tons/hectare, Ba Ria-Vung Tau 18.38 tons/hectare, and Binh Duong 18.41 tons/hectare. However, there are a number of low-yielding provinces such as Thai Binh with 7 tons/hectare. Cassava farms even disappeared in some provinces, including Can Tho, Bac Ninh and Hau Giang, last year as productivity was too low to compete with other crops.
		Several high-quality, high-yielding seeds (35-50 tons/hectare) have recently been tested under a national cassava development program. Key seeds are KM 64, KM 60 and SM 937-26 and those having high-yield potential include KM 98-1, KM 98-2, KM 98-3, KM 95, KM 98-6, and KM 98-7.
		Regarding ecological requirements, cassava is a shrubby tropical plant that can be widely grown in various soil conditions and terrains. The acreage of cassava can be increased to 500,000 hectares. Areas where cassava can be planted include:
		- Northern midland provinces: acreage can be raised to 60,000 hectares, with 10,000 hectares in Lai Chau; 5,500-8,500 hectares in each of Hoa Binh, Lao Cai and Yen Bai; 4,200 hectares in Phu Tho; and the rest in Thai Nguyen, Bac Can and Lang Son.
		- North-central provinces: acreage can be expanded by 21,800 hectares, with 4,500-5,300 hectares in each of Thanh Hoa and Nghe An, and 2,000-2,800 hectares in each of the provinces from Ha Tinh to Thua Thien-Hue.
		- South-central coast provinces: acreage can be scaled up by 25,300 hectares, including 7,500 hectares in Binh Thuan and 600 hectares in Danang.
		- Central highlands provinces: acreage can be potentially expanded by 39,000 hectares, including 10,000 hectares in Gia Lai, 4,600 hectares in Kontum, 22,100 hectares in Daklak, and 3,500 hectares in Lam Dong.
		- Southeastern provinces: acreage can be increased by 15,500 hectares, including 8,000 hectares in Tay Ninh, 500 hectares in Binh Phuoc, 4,000 hectares in Dong Nai, 2,500 hectares in Ba Ria-Vung Tau, and 500 hectares in Binh Duong.
		Cassava farming can be scattered all year round to supply processing factories for 300 days/year as it is not vulnerable to natural disasters. State agencies have been paying due attention to promotion of agricultural production and transfer of farming techniques like intensive cultivation to farmers, so all these have led to increased economic value.
		The country now has no land zoning plans for cassava growing and processing, resulting in impulsive cultivation. The volatility of cassava prices causes difficulties for farmers. In recent years, countries in the region like China and Thailand have adopted policies to increase investment in large factories to produce alcoholic fuel, so there is great potential for stronger export of dried, sliced cassava. In non-concentrated growing areas, farmers can dry cassava and sell it for VND1,500-2,000/kg.

3.1.5 Sugar Cane Production

Sugar cane is a short-term industrial plant vital to the sugar industry. Since a Government program to produce one million tons of sugar was launched in 1995, a host of sugar refineries and concentrated cane growing areas have gone up. Cane can be grown in all of the country’s 64 cities and provinces. The nation now has 266,400 hectares under cane cultivation, mostly in the north-central region (Thanh Hoa and Nghe An), the south-central coast region (Phu Yen and Khanh Hoa), the Mekong Delta (Can Tho and Long An), the southeastern region (Tay Ninh and Dong Nai), and the Central Highlands (Gia Lai and Daklak). Cane acreage can be enhanced by 30-50% in many areas if proper investment in infrastructure development is made. For example, the Lam Son region in Thanh Hoa Province can expand cassava cultivation by an extra 20,000 hectares. Other provinces like Hoa Binh, Son La, Tuyen Quang and Nghe An also hold great potential for cane cultivation expansion. But they will need to mechanize land reclamation, and encourage farmers to reclaim land on the basis of State support in infrastructure development. In comparison to other industrial crops, cane is very competitive and of high economic value.

In 2005, the national cane output was put at 14.73 million tons, 1.5 times over 1995. The Mekong Delta recorded the highest output, 4.62 million tons, followed by the north-central region with 2.855 million tons, the southeastern region with 2.825 million tons, and the south-central coast region with 2.06 million tons. Key growing provinces were Thanh Hoa, Nghe An, Tay Ninh, Can Tho and Long An, where many sugar refineries are located. A large volume of molasses as a byproduct of the sugar industry can be used to make alcohol and monosodium glutamate. Statistics from the Salt and Agri-Forestry Processing Bureau (Ministry of Agriculture and Rural Development) show that by December 2003, the country had had 43 sugar refineries with an annual cane processing capacity of 82,450 tons and an annual molasses output of 592,000 tons that can be converted into some 200 million liters of ethanol.

Vietnam’s average cane productivity is 55.3 tons/hectare, compared to the region’s and world’s average of 100 tons/hectare. The highest productivity is recorded by Tra Vinh with 87 tons/hectare, followed by Soc Trang with 83.6 tons/hectare and Can Tho with 76.7 tons/hectare. There have been some research projects where cane is intensively grown to yield 150 tons/hectare. The proportion of sugar content in cane has been gradually increased. In a number of northern provinces, sugar content ranges from 12% to 14% depending on weather and crop. The use of cane for alcohol production allows for the extension of the cane crop by two more months a year, thus boosting the efficiency of sugar refineries.

In the recent past, many sugar refineries have been performing poorly and the equitization process has also led to the relocation of many refineries, leaving an adverse effect on cane farms. No sooner cane cultivation areas are fully developed than refineries are relocated, forcing farmers there to sell cane at reduced prices or slash and burn it to avoid losses. Meanwhile, some areas are home to numerous large sugar refineries, causing a shortage of cane supply which in turn give rise to competition and increased cane prices. For example, refineries in Tra Vinh, Soc Trang and Ben Tre provinces in the Mekong Delta were recently involved in a recent uncompromising race to buy cane. Cane prices shot up to a record high of VND400,000 a ton, nearly double from a year earlier. The reason is that the Mekong Delta has nine huge sugar refineries. Hiep Hoa refinery in Long An Province and Nagarjuna refinery (India) have a combined output of 1,250,000 tons a year. Meanwhile, the acreage of cane in the delta varies greatly over year since the majority of farmers lack regional planning strategies. When the acreage of cane rises, sugar prices and cane demand among sugar producers will decline. If cane farms contract, the shortage of cane will force refineries to battle for the material to keep them running. Moreover, cane farms in the Mekong Delta are not properly located; one place has an early harvest and another faces a late harvest, leading to cane shortages especially at the beginning and the end of a cane crop.

Table 11: Production of molasses at sugar refineries (Season 2005-2006)

(Figures from the Salt and Agri-Forestry Processing Bureau – Ministry of Agriculture and Rural Development)

	Companies/Refineries	Capacity (Tons of sugarcane per day)	Sugarcane output (thousand tons)	Molasses output (tons)	Selling price (VND/kg)	Volume of molasses tanks (m3)	Notes
(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)
	Countrywide	82,150	8,500	340,000
A	Northern Region	27,350	3,637	181,850
1	Lam Son	6,500	720	28,800	400	3,000	alcohol 1.8 -25 million
2	Tuyen Quang Township	700	45	1,800	300	1,000
3	Son Duong	1,000	160	8,000	350	1,000
4	Nghe An - Tate & Lyle Joint Venture	7,500	527.6	21,104	420	3,000
5	Viet Dai Joint Venture	6,000	358.2	14,328	400	3,000
6	Son La	1,000	83.5	3,340	350	1,000
7	Hoa Binh	700	75	3,000	400	1,400	alcohol
8	Song Lam	500	45	1,800	400	700	alcohol
9	Song Con	1,250	118.5	4,744	400	2,000	alcohol
B	Central Region	23,550	1,582	63,280
10	Quang Phu	2,500	142.1	5,684	400	2,000
11	Pho Phong	1,500	350	15,000
12	Binh Dinh	1,500	172	6,800	420	1,000	3.0 million
13	An Khe	2,000	201.7	8,068	400	2,000	alcohol
14	Phu Yen Industrial Park	2,500	286	11,440	400	1,000
15	Cam Ranh	6,000	226.4	9,056	400	3,000
16	Bourbon Gia Lai	1,800	92	3,680	300	1,000
17	Kon Tum	1,000	58	2,320	400	1,000	alcohol
18	Ninh Hoa	1,250	91	3,640	400	1,000
19	333 Dak Lak	700	72.1	2,884	350	1,000
20	Dak Nong	1,000	58	2,320	350	1,000
21	Phan Rang	500	36	1,440	400	1,000	alcohol
22	Tuy Hoa	1,250	60	2,400	400	2,000	alcohol 6 million
C	Southern Region	31,300	46,324	185,296
23	La Nga	2,000	243,7	9,748	400	2,800
24	Nuoc Trong	900	155.3	6,212	400	2,000
25	Hiep Hoa	2,000	384,2	15,368	400	2,000	alcohol 4.5 -6.0 million
26	Tay Ninh Raw Sugar	3,500	314.5	12,580	400	2,000
27	Bourbon Tay Ninh Joint Venture	8,000	647,8	25,912	400	5,000
28	Nagarjuna Long An	4,500	929	37,160	400	4,000
29	Soc Trang	1,800	371	14,840	350	2,000
30	Kien Giang	1,000	130	5,200	350	1,000
31	Ben Tre	1,500	254.4	10,176	350	1,000
32	Phung Hiep	1,800	324.8	12,992	350	2,000
33	Vi Thanh	1,800	395.4	15,816	350	2,000
34	Thoi Binh	1,000	160.2	6,408	350	1,000
35	Tra Vinh	1,500	322	12,880	350	2,000

Moreover, world sugar production and consumption have witnessed wide fluctuations. The June 13, 2006 issue of the Vietnam Economic Times reported that world sugar supply surpassed demand by 5.2 million tons, making sugar price hikes unlikely. Meanwhile, as a result of price subsidy policies for sugar export adopted by some EU nations, sugar prices have dropped and sugar production has no longer been a lucrative business. The use of molasses in producing fuel alcohol is a way to bring fuel production materials into full play and raise business efficiency of sugar refineries. However, to help those refineries operate efficiently, various measures should be taken to meet different conditions. During the process of going public, Lam Son Sugar Company sold shares to over 19,000 farmers, accounting for the majority of its 21,000 shareholders. The company has provided adequate quality strains and cultivating techniques, which have boosted the local sugarcane productivity to 100-120 tons per hectare with a sugar content of 13-14%.

An analysis and assessment of resource zones capable of producing alcohol shows that:

Vietnam has some potential crops capable of providing materials for alcohol production, such as rice, corn, cassava, sweet potato and sugarcane. It also has soil and weather suitable for growing these crops. Some new high-yield strains can be used extensively. The suitable soil and weather factors will facilitate the establishment of concentrated material zones.

The current crop yield is just enough for domestic consumption, falling short of an adequate supply for large-scale alcohol production. However, with an expansion of crop acreage, it may be feasible for small or medium scale production.

Given the current situation of material zones, focus should be placed on cassava and sugarcane to have acreage big enough for supplying materials to sugar factories. In addition, new high-yield and ultra high-yield strains must be introduced to cut alcohol prices. Intensive cultivation measures are important to ensure high productivity and production. Statistics indicate that focus should be placed on zones which have large acreage, high productivity and production.

Vietnam’s strategy for rural and agricultural development by 2010 forecasts that arable land can be extended by 1 million hectares at most, of which rice paddy accounts for 127,900 hectares and short-day crops 362,400 hectares. Extended areas for short-day crops of agricultural eco-systems such as the Central Highlands, the Mekong Delta and the coastal area of the southern central region are relatively concentrated. But extended areas for short-day crops of the Northeast, North Hoang Lien Son, Northwest, and the coastal area of northern central region agricultural eco-systems are dispersed. The development orientation for the seven economic zones related to material crops for alcohol production includes:

The northern mountainous midland: Intensive cultivation for rice paddy, gradually shifting part of low-yield rice fields to planting secondary and industrial crops, expanding intensive cultivation, expanding the acreage of hybrid corn to boost food production to meet the local food demand. Acreage of rice paddy fields will reach 668,900 hectares, and production, 4.1 million tons. The acreage of corn field will reach 390,000 hectares and production 1.45 million tons.

The Red River Delta: Continue intensive cultivation and increase rice productivity. The goals for 2010 are 7.2 million tons of rice, 200,000 hectares of corn and 800,000 tons of corn.

The coastal area of northern central region: Proper control of the rice acreage, shifting gradually from low-yield rice to fruit with higher economic efficiency. The goals for 2010 are 679,000 hectares of rice, 3.1 million tons of rice, 140,000 hectares of corn and 595,000 tons of corn. An industrial sugarcane zone will be set up for sugar factories in four provinces, of which Thanh Hoa and Nghe An will take the lion’s share (almost 70% of the entire zone). The cultivating area by 2010 will reach 79,100 hectares, and production, 5.9 million tons.

The coast of southern central region: For food security, continuing the shift of crops combined with better strains and intensive cultivation will stabilize and develop food production. The goals for 2010 are 516,800 hectares of rice, 2.7 million tons of rice, 70,000 hectares of corns and 257,600 tons of corn. Sugarcane will be the mainstay of the crops in the region. Effort will be made to set up material zones which have stable and large quantity production to cut costs and improve competitiveness. By 2010, the acreage of sugarcane will be 81,400 hectares, and 5.2 million tons of sugarcane is expected.

The Central Highlands: While optimizing the existing rice fields, the acreage of hybrid corn will be expanded. The goals for 2010 are 193,500 hectares of rice and 150,000 hectares of corn. By 2010, the total acreage of sugarcane in the region will reach 36,000 hectares, mostly in Gia Lai and Daklak provinces. The yield of intensive cultivated sugarcane fields will reach 70-80 tons per hectare.

The southeastern region: By 2010, the acreage of rice will reach 300,000 hectares, and rice production, 1.3 million tons. The acreage of corn will reach 150,000 hectares, and production, 601,000 tons. The yield of sugarcane fields is expected at 75 tons per hectare, and the total acreage, at 40,000 hectares.

The Mekong Delta: The growth rate of food production will reach a certain limit. The total rice acreage will be 3,898,800 hectares, and production, 19.3 million tons. About 100,000 hectares will be for corn, expecting to produce 549,000 tons of corn. The intensive cultivated sugarcane zone will include 80,000 hectares which will produce 5.6 million tons of sugarcane.

In general, the strategy for sugarcane is to focus on setting up material zones on which news strains and intensive cultivation are used. Focus will be placed on the midlands of the northern central region, the southern central region and southeastern region. Improvement and replacement of degenerate strains with high-yield ones that have high sugar content, such as ROC1, ROC10, Que Duong 11, Viet Duong and the like. Sugarcane cultivation on hills and alkaline soil will be expanded. Concentrated material zones will be set up in the neighborhood of refineries (less than 30km). Three concentrated industrial parks for sugar production, including Ninh Binh-Thanh Hoa, Quang Ngai-Binh Dinh-Phu Yen, and Tay Ninh, will be set up. By 2010, the total acreage of sugarcane nationwide will reach 356,500 hectares, and production, 20 million tons of sugarcane.

It is estimated that if the adjustment of acreage and output of seed plants, sugarcane and tuber-producing plants is successful, Vietnam will be able to produce 5 billion of liters of alcohol a year.


	3.2 Materials for Vegetable Oil Production


	3.2.1 Soybean Production
		The nationwide acreage of soybean rose from 110,000 hectares in 1990 to 124,000 hectares in 2002, posting an annual growth rate of 22.5%. In 2005, Vietnam had about 203,600 hectares of soybean, and the average yield was 1.4 tons per hectare, a jump of 6.3%. Its soybean production reached 291,500 tons, a 2.6 time increase over 1990. Of the additional 140,000 tons in the period, productivity was 70% higher, and acreage was 50% larger. Almost half of the annual soybean production is from the Red River Delta and the Northeast region.

3.2.2 Groundnut Production

The nationwide acreage of groundnut increased from 200,000 hectares in 1990 to 269,000 hectares in 2005, posting an annual growth rate of 1.5%. The northern central region had the largest cultivating area, accounting for 30% of the total groundnut acreage of Vietnam. Groundnut productivity in the 1990-200 period registered an annual growth or 4.1 %. In 2005, the average groundnut productivity reached 1.8 tons per hectare, a jump of 0.74 ton against 1990. Highest productivity was achieved in the Mekong Delta, at 2.3 tons per hectare. The production growth in the 1990-2000 period reached 5.3% a year. The growth of 90% in the period was a result of increases in both productivity (57%) and acreage (20%). Over half of the total groundnut production is from the northern central region and the southeastern region.

Table 12: Acreage, productivity and production of soybean and groundnut

Acreage: 1,000ha, Productivity: 100kg/ha, Productivity: 1,000 tons

Crop	Target	1990	1995	2000	2001	2002	2003	2004	2005
Soy bean	Acreage	110.0	121.1	124.1	140.3	158.6	166.5	183.8	203.6
	Producti-vity	7.9	10.4	12.0	12.4	12.9	13.3	13.4	14.3
	Production	86.6	125.5	149.3	173.7	205.6	219.7	245.9	291.5
Groundnut	acreage	201.4	259.9	244.9	244.6	246.7	242.8	263.7	269.9
	Producti-vity	10.6	12.9	14.5	14.8	16.2	16.7	17.8	18.0
	Production			355.	363.	400.4	406.2	469.0	485,5


3.2.3 Coconut Production
	In Vietnam, the biofuel production potential from coconut is promising as it is an oil-rich plant which is easy to grow and has a large cultivating area. Vietnam’s potential acreage for growing coconut is between 220,000-250,000 hectares, which theoretically can produce between 1.3 and 1.4 billion of coconuts a year. Technical research has proved that coconut oil is one of the most suitable materials for biofuel production.
	Coconut trees have high potential in Vietnam as they can be grown easily locally at low costs, and is able to generate high economic efficiency.

Table 13. Acreage and production of coconut

Year	Acreage (1,000ha)	Growth of acreage (Previous year=100) -%	Production (1,000 ton)	Growth of production (Previous year =100) -%
1990	212.3	102.9	894.4	97.0
1991	214.2	100.9	1,052.5	117.7
1992	204.1	95.3	1,139.8	108.3
1993	207.6	101.7	1,184.0	103.9
1994	182.5	87.9	1,078.2	91.1
1995	172.9	94.7	1,165.3	108.1
1996	181.1	104.7	1,317.8	113.1
1997	169.9	93.8	1317.6	100.0
1998	163.4	96.2	1105.6	83.9
1999	163.5	100.1	1104.2	99.9
2000	161.3	98.7	884.8	80.1
2001	155.8	96.6	892.0	100.8
2002	140.4	90.1	915.2	102.6
2003	133.6	95.2	893.3	97.6
2004	133.1	99.6	960.1	107.5
2005	132.1	99.2	972.2	101.3

A recap of the current situation of coconut production:

In 2005, the total acreage of coconut was 132,000 hectares (The General Office of Statistics), production was 972,200 tons, and the average productivity 7.35 tons of nuts per hectare.

The two largest coconut-growing regions are the Mekong Delta and the coastal area of the southern central region, with an acreage of 105,000 and 20,000 hectares, respectively. In 2003, production was 714,000 tons and 136,000 tons of nut, respectively. The acreage of coconut trees in other regions are relatively small and insignificant given industrial production requirement.

The Mekong Delta accounts for the largest acreage of coconut (78%) and biggest production (77%), followed by the coastal area of southern central region (15% and 14%, respectively). The Mekong Delta provinces having the largest coconut acreage in 2000 were Ben Tre (37,800 hectares), Ca Mau (20,100 hectares) and Tra Vinh (10,600 hectares); their production were 232,000 tons, 66,000 tons and 70,000 tons of nut, respectively. In the coastal area of the southern central region, the main growers are Binh Dinh, Phu Yen and Quang Ngai, which, in 200 had 11,500 hectares, 5,000 hectares and 2,900 hectares, respectively.

Potential for expanding coconut acreage:

Over the past three years, the demand for fresh coconut and its byproducts has increased in some regions. Coconut growers and governments at all levels have gained better knowledge of the profitability and commercial viability of coconut trees and their products.

Research based on information from various sources points out that the coconut tree has a great potential for an expansion of acreage in major coconut-growing provinces given natural and soil conditions, such as the provinces in the coastal area of the southern central region where coastal forest land, deserted land and arable land are very appropriate for coconut growing.

The coastal area of the southern central region includes Quang Nam, Binh Dinh, Phu Yen and Quang Ngai provinces. Quang Nam alone has about 200,000 hectares of hill and forest land on its west side, which can be used to grow coconut trees. In addition, an area of 15,000 hectares of coastal land can be used for the same purpose.

Table 14. Acreage of coconut trees (hectare)

No.	Region/ Province	Year
No.	Region/ Province	1996	1997	1998	1999	2000	2003
1	Red River Delta	304	286	433	418	385	421
2	Northeas		52	52	31	35	39
3	Northwest	3	3	3	2	2	2
4	Coastal area of the northern central region	2,822	2,813	2,814	2,861	2,821	2,836
5	Coastal area of the southern central region	29,766	27,442	27,389	26,892	26,121	19,732
6	Central Highlands	609	612	617	618	477	444
7	Southeastern region	10,378	7,337	7,170	7,226	5,960	5,286
8	Mekong Delta	137,226	131,313	131,037	125,460	125,544	105,153
	Nationwide	181,108	169,858	169,515	163,508	161,345	133,913



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