In 2003, 81,117ha was dedicated to rubber tapping in Binh Phuoc. Today, the total area has increased to around 138,100ha, representing 48.5 per cent of all rubber farms in the southeast.

"The speed at which the rubber industry has grown in Binh Phuoc is the fastest ever seen in Viet Nam," said Pham Do Muoi, an official from the provincial Agriculture and Rural Development Department.

For the past three years, rubber prices on the global market have accelerated faster than other agriculture commodities, which has led many local farmers to switch crops in the hopes of better incomes, according to Phan Van Don, vice director of the provincial agriculture department.

Rapid development, though, has led to several problems.

Farmers have cut down cashew, coffee and longan trees to make way for rubber, and have encroached on forest areas causing environmental damage, say officials.

There were 900 separate cases of people illegally using forest land to grow rubber in the first six months of 2007, which damaged 1,782ha, according to a recent agriculture department report.

The growth trend has also given way to skyrocketing land prices and widespread speculation. Areas near urban centres now cost around VND250-300 million a hectare, while in districts like Bu Dang and Phuoc Long prices are around VND150-200 million.

Realising the high demand, some agriculture co-operatives began purchasing plots solely on land speculation.

"Some co-operatives abused the State policy on lending land for cultivation and then legalising their right to use the land," said Nguyen Van Mai, an official from the Rural Development Branch at Binh Phuoc.

Out of 5,253ha currently used by co-operatives to harvest rubber, only 1,390ha has been allocated under official land rights certificates.

There have also been cases where district chairmens’ signatures have been forged on certificates. The scammers then sell the land to innocent bystanders.

The land issue in general has caused deep public concern, which authorities are now in the process of correcting.

"Most of the directors of fake co-operatives or companies were arrested. Violators who destroyed protected forests are also being punished," said Nguyen Van Toi, director of Binh Phuoc’s Agriculture and Rural Development Department.

"We must be strict so there are no future cases and the rubber industry can grow legally and prosperously in the region."

Anh Tuan Co, one of the firms found guilty of forging a district chairman’s signature, has been prosecuted for example.

Provincial People’s Committees have also taken over from communes in allocating land to co-operatives - a measure aimed at tightening regulatory oversight in the industry.

The Agriculture and Rural Development Department has also been directed to manage the rubber development to ensure national growth targets are met without any legal hiccups.

Economic planners hope there will be 700,000ha dedicated to rubber tapping nationwide by 2010. Currently there is only 500,000ha.

"Binh Phuoc with its favourable growing conditions for rubber trees is on the way to helping meet the Government’s goal," concluded Toi.