Evaluation, Classification, and Land-Use Conversion of Inefficient Rubber Plantations (KTCB Stage)

1. General Principles

To avoid wasteful investment in low-performing areas, the Vietnam Rubber Group (VRG) requires all subsidiaries to inspect, evaluate, and classify immature plantations (KTCB) annually — especially those located in marginal soil or climate zones.

Management Responsibility

  • The Chairman of the Members’ Council / Board of Directors and General Director of each subsidiary are responsible for:

    • Organizing field inspections and reporting to VRG on causes and proposing solutions for low-performing plantations.

    • Facing disciplinary action if failing to review, report, or propose corrective measures before VRG’s audit teams detect issues.

    • Being accountable if unproductive plantations continue to be maintained without improvement but still proceed to tapping.


1.1. Definition of Inefficient Plantations

A low-performing immature plantation (KTCB kém hiệu quả) refers to:

  • Plantations failing to meet effective tree density, stem girth growth, or uniformity standards, or

  • Plantations where clones are unsuitable, causing extended immature periods.

Classification

  • Extended KTCB Plantations (Prolonged Stage):

    • End of KTCB period: effective tree density >350 trees/ha but growth lags by 1–2 years.

    • Maximum extension: 2 years.

    • Recommended actions: extra fertilization, fire control, pest and disease management to prepare for tapping.

  • Low-Density KTCB Plantations (Non-Extended):

    • Effective tree density between 250–350 trees/ha caused by multiple factors during the immature phase.


1.2. Definition of Unproductive Plantations

A non-viable KTCB plantation (KTCB không hiệu quả) refers to areas without potential for tapping latex as defined in Article 58.

These include:

  • Year 3: effective tree density <350 trees/ha.

  • Years 4–5: effective tree density <250 trees/ha, or

    • Stem girth below standards after 4 years with <50% of trees meeting girth requirements, or

    • Average annual girth increase <3.5 cm for 3 consecutive years, or

    • Unsuitable clones leading to poor growth and non-exploitability.

  • Extended beyond 2 years without predictable tapping date.

Unproductive areas must be reclassified and prepared for land-use conversion to ensure resource efficiency.


2. Conversion of Unproductive Rubber Areas

Article 75. Conversion for Unproductive Plantations

Conditions for Conversion

  • KTCB plantations classified as unproductive under Article 74, or

  • Mature plantations where natural disasters or pest outbreaks significantly reduce yield and profitability.

Procedure

  • Subsidiaries must submit detailed written reports to VRG, outlining:

    • Causes (objective and subjective),

    • Responsibility, and

    • Proposed conversion or treatment plan.

Conversion Objectives

  • Propose changes in production goals aligned with site conditions:

    • From latex–timbertimber–latex, or

    • Full conversion to timber or forest development purposes.

  • VRG will evaluate and approve all conversion proposals.


Chapter VI. Intercropping and Crop Rotation in Rubber Plantations

This procedure governs intercropping and rotation systems on rubber plantation land using compatible crops.

Requirements

  • Rubber remains the main crop; intercrops and rotation crops must not harm or compete with rubber trees.

  • Intercrops must not degrade soil quality or impede latex tapping and maintenance activities.

  • All tillage for intercropping must include erosion and runoff prevention measures.

Intercropping is encouraged as a sustainable practice to enhance soil fertility and maximize land use efficiency.


3. Conversion of Production Objectives

Article 77. Specific Regulations on Shifting Cultivation Goals

Purpose

To adjust farming practices and cost accounting according to the new production target and ensure alignment with economic and environmental goals.

Conditions for Conversion

Switch from latex–timber to timber–latex plantation when:

  • Latex yield no longer covers harvesting costs;

  • Effective tree density ≤250 trees/ha;

  • Required for sustainable forest management certification (e.g., FSC, PEFC).


Conversion Methods

  1. Maintain Current Rubber Trees:

    • Manage under forest care protocols, continue minimal latex collection, and harvest timber when economically viable.

  2. Enrich with Forest Trees:

    • Interplant native or large timber species between rubber rows or on vacant land to increase canopy cover and biodiversity.

    • Harvest latex and timber separately depending on maturity and market conditions.

  3. Forest Transition with Protection Focus:

    • Maintain or replant with native forest species; protect natural regeneration.

    • Harvest latex opportunistically; no timber cutting.

Authority

The VRG Board of Directors:

  • Has full decision-making power for wholly-owned subsidiaries;

  • Approves or authorizes plans for joint ventures and affiliates per VRG’s internal regulations.


Conclusion

The classification and conversion of inefficient rubber plantations ensure effective resource use, environmental sustainability, and improved land productivity.
Through restructuring toward diversified forest–rubber systems, VRG aims to align production with global sustainability standards and climate-smart agriculture goals.