Economic feasibility of a sustainable production forest management system in Xaibouathong forest management area, Khammouan province, Lao PDR

Figures & data

Table 1. Sequence of forest management operation with 15 years cutting cycle.

Years	Main activities
n − 2	Forest management plan development
n − 1	Timbers harvesting plan development includes pre-harvesting inventory and preparation of logging map.
n − 1 to n	Tree marking incorporating direction of felling.
n	Logging operation including timbers sale and benefit sharing.
n + 1	Post harvesting inventory with sampling intensity of at least 5% of all tree that were cut using random sampling technique.
n + 15	Timber stocking survey of 5% sampling intensity using systematic-line-plots to determine the status of forest regeneration, stocking and NTFPs.

Remarks: n = actual harvesting time.

Table 2. The cost of the implementing forest management activities.

PFA Management Activity Cost	Costs (USD)	Unit	References
Forest management inventory	6.08	USD/ha	Presidential Decree no. 003 (2012), Section 7.1.1
Pre-harvesting inventory	48.64	USD/ha	Presidential Decree no. 003 (2012), Section 7.1.2
Tree marking inventory	6.08	USD/ m^3	Presidential Decree no. 003 (2012), Section 7.1.4
Post harvesting	48.64	USD/ha	Presidential Decree no. 003 (2012), Section 7.1.5
Logging cost in central and southern regions
Prohibited species	60.00	USD/ m^3	MOIC no. 0167 (2010)
Controlled species	40.00	USD/ m^3	MOIC no. 0167 (2010)
Forest regeneration Fee
Prohibited species	12.16	USD/ m^3	Presidential Decree no. 003 (2012), Section 7.5.1
Controlled species I and II	8.51	USD/ m^3	Presidential Decree no. 003 (2012), Section 7.5.1
Controlled species III	6.08	USD/ m^3	Presidential Decree no. 003 (2012), Section 7.5.1
Logs measuring and grading fee
Prohibited species	3.65	USD/ m^3	Presidential Decree no. 003 (2012), Section 7.2.1
Controlled species	2.43	USD/ m^3	Presidential Decree no. 003 (2012), Section 7.2.2
Logs transport permit fee
Prohibited species	2.43	USD/ m^3	Presidential Decree no. 003 (2012), Section 7.3.1
Controlled species	1.22	USD/ m^3	Presidential Decree no. 003 (2012), Section 7.3.2

Source: GOL, 2012.

Table 3. Timber species and volumes (15 years) of the three Sub-FMAs.

No	Scientific Name	Kengchone Sub-FMA		Phakong Sub-FMA		Sivilai Sub-FMA
		Total (m^3)	Average per year(m^3)	Total (m^3)	Average per year(m^3)	Total (m^3)	Average per year(m^3)
1	Afzelia xylocarpa	0.00	0.00	0.00	0.00	157.76	10.52
2	Diospyros embryoteris	0.00	0.00	19.01	1.27	59.10	3.94
3	Xylia kerrii	222.93	14.86	50.29	3.35	58.34	3.89
4	Sindora siamensis	0.00	0.00	52.38	3.49	143.98	9.60
5	Anisoptera rostusta	428.06	28.54	0.00	0.00	50.10	3.34
6	Parashoea stellata	112.82	7.52	0.00	0.00	130.71	8.71
7	Dipterocarpus turbinatus	2,187.38	145.83	95.09	6.34	502.52	33.50
8	Vatica cinerea	398.53	26.57	117.37	7.82	367.64	24.51
9	Xylia dolarifomis	435.30	29.02	34.51	2.30	0.00	0.00
10	Lagerstromia florribunda	1,742.25	116.15	298.87	19.92	2,063.22	137.55
11	Peltophorum dasyrachis	0.00	0.00	41.40	2.76	0.00	0.00
12	Eugeinia compongensis	0.00	0.00	14.51	0.97	0.00	0.00
13	Albissia codoratisima	366.39	24.43	89.26	5.95	206.34	13.76
14	Irvingia cambodiana	332.45	22.16	164.71	10.98	220.06	14.67
15	Dialium cochinchinensis	108.83	7.26	34.66	2.31	109.47	7.30
16	Cassia siamea	345.29	23.02	0.00	0.00	0.00	0.00
17	Castanopsis Annamonsis	343.22	22.88	81.07	5.40	346.40	23.09
18	Tetrameles nudiflora	272.98	18.20	0.00	0.00	0.00	0.00

Source: DoF 2012.

Table 4. Timber prices.

No	Local Name	Scientific Name	Species Type	For export (sawn timber) (USD/m^3)	For domestic uses (USD/m^3)
1	Mai Tekha	Afzelia xylocarpa	Prohibited I	1,708	1,015
2	Mai Langdum	Diospyros embryoteris	Prohibited I	448	280
3	Mai Deng	Xylia kerrii	Prohibited II	248	176
4	Mai Tehor	Sindora siamensis	Controlled I	230	115
5	Mai Bark	Anisoptera rostusta	Controlled I	269	114
6	Mai Hao	Parashoea stellata	Controlled I	191	114
7	Mai Gnangdong	Dipterocarpus turbinatus	Controlled I	147	99
8	Mai Xidong	Vatica cinerea	Controlled I	135	92
9	Mai Daengnam	Xylia dolarifomis	Controlled I	125	70
10	Mai Peuikhao	Lagerstromia florribunda	Controlled I	95	65
11	Mai Sakham	Peltophorum dasyrachis	Controlled II	95	56
12	Mai Hauwdong	Eugeinia compongensis	Controlled II	92	54
13	Mai Houalone	Albissia codoratisima	Controlled II	76	55
14	Mai Bok	Irvingia cambodiana	Controlled II	76	55
15	Mai Kheng	Dialium cochinchinensis	Controlled II	76	55
16	Mai Khilek	Cassia siamea	Controlled III	56	42
17	Mai Khile Mou	Castanopsis Annamonsis	Controlled III	56	40
18	Mai Phoung	Tetrameles nudiflora	Controlled III	56	40

Source: MOIC 2014.

Figure 1. Flow chart of the analytical framework.

Table 5. The flow of the costs, revenues and net benefits for the three Sub-FMAs from 2007 to 2022.

year	Kengchon Sub-FMA			Phakong Sub-FMA			Sivilai Sub-FMA			Xaibouathong FMA
	Costs	Benefits	Net Benefit	Costs	Benefits	Net Benefit	Costs	Benefits	Net Benefit	Costs	Benefits	Net Benefit
2007	26,914.14	0.00	−26,914.14	19,770.16	0.00	−19,770.16	12,842.03	0.00	−12,842.03	59,526.33	0.00	−59,526.33
2008	38,382.20	40,901.15	2,518.95	11,463.63	10,620.48	−843.15	31,207.98	47,934.17	16,726.19	81,053.81	99,455.80	18,401.99
2009	38,117.90	40,470.87	2,352.97	8,441.83	6,079.93	−2,361.90	24,722.46	28,129.54	3,407.08	71,282.19	74,680.34	3,398.15
2010	38,117.90	40,470.87	2,352.97	9,796.14	8,280.55	−1,515.59	22,395.93	23,131.28	735.35	70,309.97	71,882.70	1,572.73
2011	40,721.28	44,101.02	3,379.74	9,796.14	8,280.55	−1,515.59	22,115.39	24,492.61	2,377.22	72,632.81	76,874.18	4,241.37
2012	40,721.28	44,101.02	3,379.74	9,431.72	6,577.15	−2,854.57	22,115.39	24,492.61	2,377.22	72,268.39	75,170.78	2,902.39
2013	40,721.28	44,101.02	3,379.74	9,647.64	6,189.58	−3,458.06	25,050.76	29,207.77	4,157.01	75,419.68	79,498.37	4,078.69
2014	40,721.28	44,101.02	3,379.74	9,768.84	7,020.50	−2,748.34	25,050.76	29,207.77	4,157.01	75,540.88	80,329.29	4,788.41
2015	40,721.28	44,101.02	3,379.74	8,975.21	6,162.89	−2,812.32	25,050.76	29,207.77	4,157.01	74,747.25	79,471.68	4,724.43
2016	40,721.28	44,101.02	3,379.74	5,972.22	2,751.24	−3,220.98	28,966.34	38,601.66	9,635.32	75,659.84	85,453.92	9,794.08
2017	40,721.28	44,101.02	3,379.74	6,504.31	3,605.41	−2,898.90	27,532.79	48,869.07	21,336.28	74,758.38	96,575.50	21,817.12
2018	40,721.28	44,101.02	3,379.74	6,504.31	3,605.41	−2,898.90	26,019.74	43,094.66	17,074.92	73,245.33	90,801.09	17,555.76
2019	34,937.71	34,492.89	−444.82	6,504.31	3,605.41	−2,898.90	26,019.74	43,094.66	17,074.92	67,461.76	81,192.96	13,731.20
2020	33,170.23	30,547.32	−2,622.91	5,926.60	3,128.91	−2,797.69	26,019.74	43,094.66	17,074.92	65,116.57	76,770.89	11,654.32
2021	32,999.26	30,473.32	−2,525.94	5,868.91	2,869.83	−2,999.08	23,268.35	30,149.90	6,881.55	62,136.52	63,493.05	1,356.53
2022	19,543.27	11,226.20	−8,317.07	7,912.04	4,768.90	−3,143.14	11,479.28	5,780.59	−5,698.69	38,934.59	21,775.69	−17,158.90

Table 6. The benefit-cost analysis of xaibouathong FMA.

Discount rate	Benefit-cost analysis	Kengchone sub-FMA	Phakong sub-FMA	Sivilai sub-FMA	Xaibouathong FMA
10%	NPV (US$)	−10,922.75	−37,885.22	44,382.12	−4,425.85
	BCR	0.97	0.56	1.22	0.56
	IRR	NC*	NC*	65.15%	0.65%
12.50%	NPV (US$)	−12,157.28	−35,213.64	36,309.93	−11,060.09
	BCR	0.96	0.55	1.20	0.56
	IRR	NC*	NC*	65.15%	0.09%
15%	NPV (US$)	−13,314.12	−33,081.66	29,944.11	−16,451.07
	BCR	0.95	0.54	1.19	0.56
	IRR	NC*	NC*	65.15%	0.09%

Note: *Not Computable.

Figure 2. The major factors affecting the NPV of the three (3) Sub-FMAs.

Government of Lao PDR. 2012. Presidential decree on fees and service cost no. 003. Vientiane Capital (in Laos).

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Department of Forestry 2012. Report on the assessment of forest cover and land use during 1992–2010. Vientiane Capital.

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Ministry of Industry and Commerce. 2014. Notice on Royalty of the Logs at Landing II and the Royalty for logs export to foreign countries for 2013–2014. Vientiane Capital.

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