The Central Highlands (also known as Tay Nguyen) is not only a strategical region in terms of economic, political, security and environmental issues, but also the forefront of the fight against deforestation. The region’s forests represent over 22% of the national cover and stock one of the country’s highest carbon biomass. They are also one of the most important biodiversity hotspot in the region, the Southern Annamites Mountain Rain Forest ecoregion. In recent decades, government policies have led to significant changes in the regions’ socioeconomic structure, including in terms of demographics, economic activities and exploitation of natural resources. At present, the region’s rate of deforestation is among the highest of the country.
The Central Highlands accounts for over 90% of Vietnam’s coffee production. Besides, the region has also seen increases in other crop commodities and perennial fruit trees, such as pepper, cashews and avocado, and short-term subsistence crops, such as maise, cassava and bean. While the agricultural sector has a high economic potential, it is also associated with the use of heavy agrochemicals and unsustainable irrigation systems. Other deforestation drivers include logging and over-exploitation of forest products and other commercial and development activities.
Furthermore, the Central Highlands is the second most disadvantaged region of Vietnam. Indigenous households remain entrenched in poverty, and there is a persistent welfare gap between ethnic and non-ethnic groups. Expansion of permanent crops pushes subsistence farming from marginalised farmers into more remote and forested areas. This hinders the poorest households, especially ethnic minorities, from connecting to markets and benefitting from more sustainable and profitable practices. Another cause of agricultural expansion is the significant forest loss. According to the Ministry of Agriculture and Rural Development, the region has lost 41% of its forest cover over the past three decades. To curb this trend, in 2016, the Prime Minister ordered a total ban on clearing natural forest in the Central Highlands.
The EU and other countries are developing measures aimed at curbing deforestation and forest degradation driven by the expansion of agricultural land used to produce specific commodities, namely cattle, cocoa, coffee, palm oil, soya and wood. In addition, consumers increasingly want to know that goods and products they buy are produced without harming people or the environment. To that end, they might rely on public or private certification and licensing schemes that show adherence to sustainability standards.
However, certification and licensing schemes often exclude the people with the greatest needs, such as small-scale farmers and indigenous communities. This is because they usually burden commodity producers with proof, and smallholders rarely have the skills and resources needed to achieve certification. At the same time, certification does not always lead to a better price for producers. This means there is no guarantee of compensation for an investment in certification.
Small-scale producers can also struggle to meet sustainability standards if their land is not zoned for legally planting crops, if administrative procedures are complex, or if official monitoring and law enforcement are not fairly or evenly directed. These are issues that only the government and local authorities can address.
