POLICY ANALYSIS OF HYBRID ACACIA PRODUCTION: CASE STUDY IN THUA THIEN HUE PROVINCE

Acacia species is the main tree species grown in forest plantation in Thua ThienHue province. This study has used Policy Analysis Matrix (PAM) as the main researchframework to analyze the profitability and the effects of intervention policies on theprofitability of acacia production in order to provide information, which can be used toassist in planting and expanding of acacia forest, to policy-makers and farmers. The resultsshowed that the acacia plantation is profitable but higher-profit model of intensivecultivation was almost twice as profitable as the extensive one. Results in PAM showed thatAcacia production offers both private and social efficiency. No indication of market failurewas found. The policies intervention was a tariff of 6.5% on imported fertilizer. Acaciaproduction generally has the protection of the government and efficient use of domesticresources. However, it also bore the tax burden with respect to the input (fertilizer). Acaciaproducts are comparative products in the market. Policy-makers and other forestrydevelopment programs should support farmers in cultivating the intensive model andlowering the interest rate for planting and expanding acacia forest.Keywords: PAM, Acacia production, profitability, Thua Thien Hue.