Evaluation of investment efficiency in planting forest at U Minh Ha region, Ca Mau province

Abstract

The study “Evaluation of investment efficiency in planting forest at U Minh Ha region, Ca Mau Province” was conducted in 2017 on the area of four communes of U Minh district, Ca Mau province. The area of 527 hectares an of productive plantation planted in 2012 was investigated in four main models: Acacia hybrid planting on high embankment (AHHE), Acacia hybrid planting on embankment (AHE), Melaleuca leucadendra planting on
embankment (MLE) and Melaleuca cajuputi planting on embankment (MCE). Using the method of investigating the growth of trees, collecting investment costs and product prices to evaluate economic efficiency of each model. The study found that growth of plantation of all models were quite good for productivity after five years of planting, ranging from 19.8 to 47.2 m3/ha/year. Among the models, the AHHE had the highest productivity reaching ≈ 47 m3 /ha/year; next were the two models of AHE and MLE, obtaining ≈ 34 m3/ha/year and 32.8 m3/ha/year, respectively; the model of MCE had the lowest yield with 19.8 m3/ha/year. Investment efficiency of the models were quite high: the net profit value before tax of the AHHE was the most effective, ≈ 89.7 million VND/ha, followed by the AHE and the MLE models which values were 69.7 million VND/ha and 59 million VND/ha, the lowest was 35 million VND/ha for the MCE model; the ratio of the benefits and costs of the MLE model is the highest ≈ 2.34 times, the AHHE was 2.14 times while AHB and MCE were equivalently 1.9 times. Sensitivity analysis has shown that in an assumption that the reduction of 10% of wood yield and price, the net profit before tax remained at high levels, ranging from 23 million VND/ha to 61.6 million VND/ha. Two models of AHHE and MLB were quite safe with 61.6 million and 48.6 million VND/ha, respectively