Consultancy Service on Market Assessment for Processed Wood for Small Scale Wood Processing at Nam Dong and A Luoi, Thua Thien Hue

Statement of Work
USAID Green Annamites Project

Market assessment for processed wood for Small Scale Wood Processing
at Nam Dong and A Luoi, Thua Thien Hue

1.    Background

Forests play a critical role in Vietnam by protecting watersheds, preventing soil erosion, mitigating climate change, and building resilience for communities. They are also home to rare and endemic species found nowhere else in the world. Unfortunately, Vietnam’s forests, and the species that live in them, are depleting at an alarming rate due to conversion into other economic uses, as well as from activities of surrounding forest-dependent populations who lack alternative economic means. 

The USAID Green Annamites Project (the Project) supports Vietnam’s transition to climate-smart, low emission, and resilient development that protects people, landscapes, and biodiversity in Quang Nam and Thua Thien Hue provinces with three main tasks:

• Task 1- Increase application of low emission land-use practices: conserve the existing carbon sink; stop emission from small scale deforestation and degradation, and unsustainable agricultural practices; and increase carbon sequestration from restoration of degraded landscapes.
• Task 2 - Strengthen biodiversity conservation: mitigate threats to the globally significant biodiversity in central Vietnam, including poaching and activities that destroy habitats for wildlife and cause habitat fragmentation (e.g., deforestation, forest degradation, and conversion of natural forest into plantation)
• Task 3 - Increase resilience for vulnerable communities: ensure that results of activities supported under the two other components are not affected by climate change impacts. Build resilience for vulnerable communities particularly in regards to their livelihoods.

The main targets of the USAID Green Annamites Project include the improvement of livelihood for 20,000 people depending forest resources for their livelihood; the improvement the forest management for 400,000 hectares of natural forest; the mobilization of USD 20 million from public and private partners for the sustainable landscape interventions; the prevention and avoidance of the emission of 6 million tons of Carbon into the atmosphere.

The USAID Green Annamites Project (GA) is strengthening the acacia value chain for the production of large timber production. The USAID Green Annamites Project has partnered with the Forest Owner Development Association (FOSDA) of Thua Thien Hue province. With the support of the GA and FOSDA, 10 sustainable forestry cooperatives were already established in 2019 as they had been upgraded from sub-FOSDA. Among the established cooperatives, Thuong Nhat cooperative in Nam Dong district and Hong Thuong cooperative in A Luoi district were formed with 95% of the leaders and members from Co Tu ethnic minority.

Thuong Nhat cooperative has 29 members. Hong Thuong cooperative has 15 members. These two cooperatives have developed their business plans (BPs) through participatory processes.  As described in the BPs, these cooperatives intended to (1) maintain and increase Forest Stewardship Council (FSC) certified acacia forests; (2) produce high quality acacia seedlings; (3) harvest and thin acacia forests; (4) trade acacia timber; and (5) initially pre-process acacia timber.

To date, most of households in the area sell round wood for wood chip or furniture production with quite low price, approximately about VND1.0M per ton for wood chip and VND1.3-1.4M per ton for furniture production, depending on the diameter of wood and marketable time. Meanwhile, revenue of sawn timber from one tone of round large timber is of VND 2.2M (Hiep Thuan cooperative, 2019).

Thus, in discussion with FOSDA and the cooperatives, the Project found an opportunity of increasing added value from acacia value chain for communities and cooperatives, by setting up a small sawn wood facility in Nam Dong and/or A Luoi, Thua Thien Hue. Unfortunately, to date there is limited information available on raw material/wood availability and potential buyers of processed wood products in the vicinity of these two cooperatives.

To assess this opportunity, a technical and a financial assessment will need to be done. GA plans to recruit two expert consultants for this assignment: One “Forest inventory and mapping expert” and one “Wood processing/wood product marketing” expert. The two experts are expected to closely work together.

With this SOW, USAID Green Annamites Project is interested in selecting a wood processing/wood product marketing expert to conduct the market assessment for processed wood for Thuong Nhat and Hong Thuong cooperatives in Thua Thien Hue. A separate SOW and recruitment process is being done for the Forest inventory and mapping expert.

The Wood processing/ wood product marketing expert, will be a team member, work closely with the forest inventory and mapping expert and provide inputs/results for the finalization of the mission report;

2.    Objectives

The objectives of this SOW are to assess (1) identify and assess potential buyers of the sawn wood products; (2) provide input for and discuss with the forest inventory and mapping expert to complete the mission report;

3.    Scope of assessment

Assessment of potential buyers of the processed wood: Whole Thua Thien Hue province;

4.    Activities

4.0    Preparation

• ­Prepare detailed workplan and technical proposal for the mission;

4.1    Market assessment for processed wood

• ­Identify and survey all potential wood processing companies of sawn wood products in Thua Thien Hue province;
• ­Identify and compile the technical specification of sawn wood products of the surveyed potential wood processing companies;
• ­Estimate the volume/year (tons) of each type of sawn wood products that can potentially be supplied by Thuong Nhat and Hong Thuong cooperatives and the potential demand and current prices by the surveyed wood processing companies. (Collaboration with the “Forest inventory and mapping expert” is expected to complete this activity)
• ­Estimate transportation cost per ton from Thuong Nhat and Hong Thuong cooperatives to the buyers;

4.2    Recommend sawn wood options for Thuong Nhat and Hong Thuong cooperatives

• ­Based on the result of 4.1 and the result of assessment of acacia raw material and discuss with the forest inventory and mapping expert, conduct a feasibility analysis for a sawmill each of Thuong Nhat and Hong Thuong cooperative in terms of (1) markets of sawn wood products and (2) production capacity of sawmill;

5.    Deliverables

The Wood processing/ wood product marketing expert will submit the following deliverables in Vietnamese and English

• ­Detailed workplan and technical proposal for the mission
• ­Report on market assessment for processed wood

6.    Duration

The total Level of Effort (LOE) for this assignment is not exceed 13 days. The above activities are expected to be undertaken between December 2019 to February 2020.

7.    Plan of deliverables

V. LOE

Time for each activity:

VI. REQUIREMENTS

Expert: wood processing/wood product marketing expert, team member

• ­Has a university degree in wood processing/forest management;
• ­At least 5 years of field experience on wood processing/marketing/equipment and setting up sawmill;
• ­Demonstrated experience and knowledge of the acacia wood preprocessing for the furniture industry and wood marketing/survey;
• ­Excellent interpersonal and communication skills to work with Ca Tu communities and wood processing companies.
• ­Experience in reporting and presentation;

HOW TO APPLY

Interested candidates should submit:

• A cover letter
• Technical proposal;
• CV;

By December 30, 2019 to the following address: [email protected]

Only selected candidates will be contacted; no phone calls please.