Gia Lai, covering more than 1.5 million hectares, has over 650,600 hectares of forested land, equivalent to 25.2% of the Central Highlands region and 4.3% of Vietnam’s total forest area.
Of this, 478,600 hectares are natural forests and 158,700 hectares are planted forests, while 13,200 hectares are newly planted but not yet classified.
From 2021 to 2024, the province’s western region planted 33,100 hectares of forest and harvested more than 1 million cubic meters of timber, averaging 254,000 cubic meters annually. The 2020-2025 plan aims to expand plantations by 40,000 hectares, or 8,000 hectares annually.
Partnership models between forestry companies and local residents have significantly boosted plantation areas. For example, Kông Chro Forestry one- member Co., Ltd collaborates with households in Đak Song and Sró communes.
The firm invests about 9.2 million VND (USD 360) per household for seedlings, care, and guaranteed purchase of timber over a 5-7 year cycle. The company manages 600 hectares of its own forests and partners with residents on 2,000 hectares.
The model has lifted many families out of poverty. Farmer Đinh In from Blà village, Đak Song commune, now cultivates over 9 hectares of acacia, earning 50-60 million VND (USD 1,950-2,340) per hectare per cycle, far higher than cassava or corn.
Similarly, Lơ Ku Forestry Company in Kbang commune manages 1,117 hectares, including 651.4 hectares planted jointly with households. Local authorities have promoted this system by offering land-use contracts or restoring forests on voluntarily returned land.
Despite these gains, officials note weaknesses. Deputy Director of the Provincial Forest Protection Department, Trương Thanh Hà, said forest plantations remain reliant on acacia and eucalyptus, with limited diversity, low productivity, and weak value-chain linkages. Most of the province’s 288 wood facilities only saw or chip raw timber.
In contrast, Bình Định, branded Vietnam’s “wood industry capital”, has 415,700 hectares of forestry land, including 131,000 hectares of plantations. The province has developed more than 10,100 hectares of large timber forests, 12,100 hectares of FSC-certified plantations, and aims to expand large timber areas to 30,000 hectares by 2035.
Bình Định hosts over 320 processing enterprises, concentrated in Phú Tài and Long Mỹ industrial zones, with investments totaling 13 trillion VND (USD 509 million). The province targets USD 2 billion in wood exports during 2021-2030.
Officials and business leaders believe linking Gia Lai’s raw material forests with Bình Định’s processing capacity will unlock export growth.
A recent working session between the Bình Định Wood and Forest Products Association and western Gia Lai forestry companies focused on FSC certification, transparent supply chains, and investment in processing plants.
If wood processing plants are built in western Gia Lai, transport costs could drop from 400,000 VND (USD 15.70) per ton to 150,000-200,000 VND (USD 5.90-7.80), said Từ Tấn Lộc, director of Kông Chro Forestry Company. Lower costs would boost efficiency and encourage forest expansion.
Nguyễn Sỹ Hòe, Chairman of the Bình Định Wood and Forest Products Association, noted that Gia Lai, Vietnam’s second-largest province, has more than 1 million hectares of forest, including 69,600 hectares of FSC-certified plantations.
However, high logistics costs and distance from transport hubs limit competitiveness.
The Association is urging provincial leaders to invest in local sawmills, drying facilities, and internationally certified plantations; support residents in forest expansion; and improve export promotion through Quy Nhơn Port. These steps, it said, are critical to building a sustainable, high-value wood industry.