Part 2: Incomplete forest planting projects

From 2021 to 2025, Điện Biên attracted two forest plantation projects: the project for a centralized forest plantation to serve as raw material for a biomass power plant by CME BIO MASS HOLDINGS, and the forest plantation project with a wood pellet factory and wood chip processing by a joint venture between Khoa Nguyên Construction Co., Ltd and Nhã Uyên Biomass Power Co., Ltd. These projects are located in the former four districts: Tuần Giáo, Mường Ảng, Mường Chà, and Tủa Chùa, and were approved by the provincial People’s Committee in 2022-2023.

However, to date, one of the projects has ceased operations, and the other is significantly delayed and does not meet the registered timeline.

The forest plantation project, along with the wood pellet production and wood chip processing plant in Điện Biên, was approved by the provincial People’s Committee in November 2022. The project included the construction of a wood pellet factory with a capacity of 30,000 tons per year and the development of a raw material area of 3,572 hectares in Sa Lông commune (now Na Sang commune) and Mường Lay ward, with key tree species being hybrid acacia and eucalyptus. Of this area, 1,000 hectares were leased from the state, and 2,572 hectares were developed through partnerships with local residents via cooperatives.

The project’s goal was to gradually shift from traditional production methods to a centralized model that applies technology to increase productivity and economic efficiency, creating stable jobs for local labor and contributing to the restructuring of the agricultural sector in the province.

Although the project was introduced with high expectations, the actual implementation by the investor at the local level has been minimal. The project is severely behind schedule compared to the registered plan with the provincial government. Specifically, the wood chip processing factory was expected to be completed and operational by January 2024, while the pellet production line was scheduled to begin operations by the end of 2028. The plan for developing the raw material area aimed to plant 1,000 hectares in the 2023-2024 period on land leased from the state, plant 1,290 hectares in partnership with local people from 2023-2025, and complete the remaining planting between 2026-2028.

Since approval, the investor has barely undertaken any activities on-site. At many of the province’s meetings, the Mường Chà district leadership (formerly) reported difficulties in coordination. The investor has not worked with the district once, despite local authorities making several efforts to contact them, sending invitations and scheduling meetings but receiving no responses.

Mường Tùng commune, which is now formed by merging Huổi Lèng and Mường Tùng, is the primary raw material area in the project’s plan for forest plantations and the wood pellet processing plant.

Mr. Nguyễn Quang Hợp, Chairman of the Mường Tùng commune People’s Committee, stated: “After the new commune was established, the local government conducted a thorough review of the project’s progress and implementation. However, the results show that the investor has not carried out any activities in the commune. To date, the local authorities are unsure whether the project will continue or has been halted.”

According to the Forest Protection Sub-department, the forest plantation project for the wood pellet processing plant in Điện Biên has officially ceased operations.

Similarly, the forest plantation project for raw material supply to the biomass power plant by CME BIO MASS HOLDINGS covers a total area of 65,914 hectares, with key tree species including acacia, eucalyptus, and pine. Of this, 13,353 hectares were expected to be leased from the state, and 52,561 hectares were to be developed through partnerships with local residents, with implementation scheduled for 2023-2029. However, to date, no forest planting has been initiated, and progress is far behind schedule.

The primary reason for this delay is the lack of local participation. Mr. Tòng Văn Xiêm, Head of Bon village, Mường Lạn commune, held: “The company held several meetings with the people, but 100% of households refused to participate. People prefer to use the land for coffee cultivation, a crop better suited to the natural conditions and providing higher economic returns.”

In some areas where the residents agreed to participate, the project has still not been implemented.

Mr. Tòng Văn Thiên, Head of Huổi Lỵ village, Mường Lạn commune, shared: “In 2024, the company came and some households signed up to participate, but since then, we have not received any further updates, and the people are uncertain whether the project is still ongoing.”

Regarding the delay in forest plantation projects, Mr. Nguyễn Mạnh Toàn, Deputy Director of the Forest Protection Sub-department under the Department of Agriculture and Environment stated: “The main reasons for the delay are land-related issues, poor coordination between the investors and local authorities, and the financial limitations of the investors. Furthermore, most local people lack trust, so they have not agreed to participate in the project.”

In reality, the forest plantation development policies in the province have not been as effective as expected, with many targets unmet, and people are uninterested in participating. Given this situation, relevant agencies need to conduct a comprehensive review and advise the provincial authorities on suitable adjustments. At the same time, consideration should be given to switching to other crops with higher economic value, which would both green barren land and increase income, ensuring the stability of livelihoods for the people.