This study was conducted to analyze the current profitability of Acacia production and the input use efficiency, as well as the degree of government intervention in acacia production. This will help to provide policy-makers with necessary information on making and revising policy in reforestation and give farmer guidelines for making the right decision in the expansion of Acacia forest plantation. | JOURNAL OF SCIENCE, Hue University, Vol. 67, No. 4A, 2011 POLICY ANALYSIS OF HYBRID ACACIA PRODUCTION: CASE STUDY IN THUA THIEN HUE PROVINCE Ho Thanh Ha and Nguyen Thi Thuong College of Agriculture and Forestry, Hue University Abstract. Acacia species is the main tree species grown in forest plantation in Thua Thien Hue province. This study has used Policy Analysis Matrix (PAM) as the main research framework to analyze the profitability and the effects of intervention policies on the profitability of acacia production in order to provide information, which can be used to assist in planting and expanding of acacia forest, to policy-makers and farmers. The results showed that the acacia plantation is profitable but higher-profit model of intensive cultivation was almost twice as profitable as the extensive one. Results in PAM showed that Acacia production offers both private and social efficiency. No indication of market failure was found. The policies intervention was a tariff of on imported fertilizer. Acacia production generally has the protection of the government and efficient use of domestic resources. However, it also bore the tax burden with respect to the input (fertilizer). Acacia products are comparative products in the market. Policy-makers and other forestry development programs should support farmers in cultivating the intensive model and lowering the interest rate for planting and expanding acacia forest. Keywords: PAM, Acacia production, profitability, Thua Thien Hue. 1 Introduction According to the Wood Resource Quarterly report 2009, Vietnam has become a major exporter of wood chips in a short period of time. The woodchip export, of which a majority is Acacia, has steadily gone up in the past five years. In 2002, the country exported only 150,000 metric tons of wood chips and was a marginal supplier at the time. In 2008, it became the fourth largest exporter of hardwood chips in the world, with an estimated volume of two million tons being
