Vietnam Introducing Certification for Export Products
PEFC works in Vietnam
Vietnam Introducing Certification for Export Products:
Timber, Rubber and Furniture
By Nga Ha and Ken Hickson
- Forestry plays a vital role in both social-economic development and climate change mitigation in Vietnam.
- As one of the world’s top ten wood product exporters in the world, Vietnam is committed to have 3 million hectares of its forest certified by 2030.
- PEFC has been working in Vietnam since 2014 to help progress certification for Timber, Furniture and Rubber exports.
Currently, Vietnam is one of the ten world’s largest producers of wood products (the world’s fifth-largest wood and wooden product exporter in 2018), and it exports 90% of its total furniture production mainly to the USA, Japan, EU, China & South Korea.
According to Vietnam’s forest status published by Ministry of Agriculture and Rural Development (MARD), as of 31st December 2018, the total planted forest area of Vietnam is 4,235,770 ha (equivalent to 30% of the national forest area), of which plantation area owned by smallholders is 1,544,810 ha (equal to 36% of the plantation area).
The majority of the species of planted forest is acacia and eucalyptus.
Small-scale forest owners are essential in Vietnam, yet they are facing significant challenges to access forest certification.
Smallholder inclusion to forest certification is one of PEFC’s missions. Therefore, PEFC has supported the Vietnamese government since 2014 to establish the Vietnam forest certification system (VFCS), which officially launched in 2019.
Vietnamese government has high commitments and ambitious goals when it comes to forestry certification and their own national forest certification systems. They aim for 3 million ha to be certified by 2030.
Background – PEFC in Vietnam
PEFC supports establishing a national owned forest certification, which is internationally recognized – Vietnam Forest Certification System – VFCS.
VFCS became PEFC members since last June (2019) and is going through the endorsement process. Once PEFC endorses VFCS, all its certified products will be PEFC certified.
PEFC promotes an inclusive approach to forest certification, which is favor for smallholders – the backbone of the forestry sector in Vietnam.
PEFC supports pilot projects on testing different feasible group certification models, which allow smallholders access to forest certification at a reasonable cost and technically manageable.
PEFC is focusing on supporting VFCS with communication and marketing for PEFC certified fiber related products.
PEFC is engaging closely with several big buyers to increase demand for VFCS/PEFC certified products.
PEFC is working closely with key stakeholders of a forest certification systems, particularly, certification bodies, accreditation bodies, and NGB (National Governing Bodies) to maintain the creditability of the VFCS/PEFC system and ensure its development.
The first 11,300 ha rubber plantation was VFCS SFM certified last December (2019).
PEFC and VFCO are working together to expand the area of VFCS SFM certified and increase the number of PEFC Chain of Custody Certificates issued.
PEFC is supporting VFCO both in technical and strategical development terms.
PEFC is Supporting the establishment of VFCS
PEFC started working in Vietnam since late 2014.
PEFC worked with related stakeholders, especially VNFOREST & VAFS, to introduce PEFC’s system, provide technical assistance & financial support, linkage with other external organizations to help Vietnamese government to establish their own forest certification system – VFCS.
The VFCS SFM standards and systems are adapted to the Vietnam forestry sector and met the PEFC SFM benchmark.
VFCS was established as a part of Prime Minister decision, no. 886
Vietnam Forest Certification Office – is the National Governing Body – representing and running the VFCS system. VFCO become the PEFC member in June 2019.
PEFC has worked closely with VFCO in the endorsement process. To be endorsed by PEFC Int, VFCS has gone through a scheme assessment by a third-party assessor in January 2020. The endorsement is on track, and it is expected that VFCS will be endorsed by PEFC in the middle of 2020.
VFCS is moving to the next step of its development process: ensuring the VFCS system functioning and developing, well address to the new situation & need from forest owners and companies.
Key areas that PEFC are currently focusing on:
- VFCS’s technical assistance
- Ongoing technical support for VFCO to run the system. PEFC dedicates staff to help VFCO on a regular basis.
- Marketing & communication
- PEFC has collaborated with many key stakeholders: CBs, consultancy companies, and wood fairs to promote PEFC and VFCS in Vietnam.
- Some events have been published:
https://www.pefc.org/news/vietnam-the-benefits-of-sustainable-sourcing
- PEFC recently has a new marketing office, dedicating to promote PEFC and VFCS and increase the demand for PEFC certified fiber in Vietnam and the region.
- Pilot projects of VFCS SFM
The main objective is testing different feasible models of the group certification that would allow smallholders access to VFCS/PEFC certification at a reasonable cost and manageable in terms of technical.
Several pilot projects that PEFC is involved in:
Pilot project in central Vietnam, in cooperation with Forest and Food Development Finland
The project aims to support provincial cooperative alliances of three provinces in the Central region (Thua Thien Hue, Quang Ngai & Phu Yen), to become certificate holders and support their cooperatives and members to implement VFCS SFM certification.
The project has provided various supports for cooperative members & forest growers in terms of capacity building, technical and management knowledge & practice of forest certification. Moreover, PEFC and FFD aim to help them with a good value package of forest certification, rather than just a certificate, for instance: good seedling sources, silviculture practices & techniques, harvesting & safety practices & equipment.
Due to the time limitation and project resource, there will be 1000 ha under one province, Thua Thien Hue will be ready to be VFCS certified by this July, other areas under this project are expected to enter into the next phase project.
Pilot project in Quang Tri and Yen Bai provinces
Together with VFCO, and SRI, PEFC also provides technical supports for another SFM group certification pilot project in Quang Tri and Yen Bai provinces to test another group structure of group certification for smallholders. The project applies for 1000 ha and expected to be VFCS SFM certified by the end of 2020.
Rubber sector
- Rubber is one of the most critical sector in Vietnam.
- VFCO has also focused on this sector partly thanks to the collaboration between VNFOREST and VRG, Vietnam Rubber Group, as a part of the VRG’s Sustainable development Strategy, who is disassociated with FSC since 2015, and currently on the roadmap to be re-associated.
- VFCO, VNFOREST, and PEFC have worked closely with VRG to promote VFCS SFM and PEFC CoC and PEFC Controlled Sources. The very first 11,300 ha rubber plantation of three rubber companies has been VFCS SFM certified in December 2019.
- This certified area produced about 20,000-30,000 tons of natural rubber per year, and some rubberwood- which is still limited, only about 200 ha rubber would be harvested for wood per year from these certified areas- and certified wood timber is not the target yet of VRG at this time).
- These three companies are preparing for PEFC CoC of these 11,300 ha and PEFC Controlled sources.
- Also, in 2020, VRG has a target of applying VFCS SFM for another area of 40,000 ha and another 15 PEFC CoC. The implementation is well on track.
- On the other hand, PEFC is working closely with VRG to provide them supports in terms of communications and marketing for VFCS certified product. VRG is actively involving in PEFC Rubber Cluster to facilitate market linkages between PEFC members.
Some key information of Vietnam forestry sector value and the US market.
In 2019, the total exporting value of timber and timber-related products in Vietnam reached 10.33 billion USD, which increased 22% compared to the value of 2018.
The most valued exporting product groups of Vietnam forestry sector from 2016-2019.
| Product group | Value (in USD) | |||
| 2016 | 2017 | 2018 | 2019 | |
| Woodchip | 986,850,338 | 1,072,656,296 | 1,340,083,064 | 1,687,327,066 |
| Round log & sawn log | 249,574,740 | 172,336,959 | 63,938,770 | 48,599,081 |
| All type of plywood, veneer, ect | 407,217,425 | 506,328,517 | 790,400,688 | 848,172,261 |
| Indoor & outdoor furniture | 4,540,152,673 | 5,229,886,194 | 5,365,635,325 | 6,836,091,163 |
| Other products | 615,269,556 | 422,925,695 | 916,330,818 | 910,330,504 |
The top 5 countries of exporting values: America, Japan, China, EU 28 and South Korean. The exporting value to American market increased significantly, by far higher than other exporting markets.
The USA is the most important market for Vietnam. The exporting value of timber related products to the US in 2019 was 5.1 billion USD- the highest figure for this market so far; and accounted for about 50% of the total exporting value of Vietnam in the same year. The exporting value to the US in 2019 raise 42% compared to the year 2018.
| Year | 2017 | 2018 | 2019 |
| Exporting value to US (USD) | 3,080,742,508 | 3,613,299,019 | 5,125,856,324 |
This value is contributed majorly by indoor & outdoor furniture & related furniture products, a value of 3,251,755,167 USD, in 2019.
Source: Report Vietnam import and export of timber and timber products: Status of 2019 and the trend in 2020, by VIFOREST, FPA Binh Dinh, HAWA, BIFA & Forest Trend, 2019.
http://goviet.org.vn/upload/aceweb/content/Vietnam%202019%20report.pdf
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