German diplomat praises Vietnam’s efforts in ensuring timber legality for sustainable forestry

The diplomat made the statement on the sidelines of a forum on timber legality for sustainable forestry held in Ho Chi Minh City on Thursday.

Timber legality is very important for the European Union as it is linked to ecological, social, and economic dimensions, he said.

“I think it is a big success story here [in Vietnam] from the very beginning. It was not only the implementation, but it was also done by the government, in partnership with many representatives, different institutions, the private sector, associations, and scientists," Schmid-Kreye stated.

“This is a very important part while the VPA/FLEGT implementation process is so successful in Vietnam."

Germany has supported Vietnam from the very beginning through the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) in the timber sector.

The forest sector is one of the priority areas of German-Vietnamese bilateral cooperation.

“Overall, we have a joint portfolio of almost 100 million euros [US$117 million] in the forestry sector, comprising 33 million euros [$38 million] for technical cooperation including a bigger EU co-funded project in preparation and 65 million euros [$76 million] in committed financial cooperation projects," he said.

“We will continue our support in technical cooperation and go to the next stage or the next level of financial aid, which means that more institutions can be involved in this very important process."

He also highlighted the importance of fully implementing the VPA/FLEGT in facilitating Vietnamese wood products’ access to the European market.

“It is very important that the joint effort between public representatives, the private sector, and scientists continue to make the implementation successful, contributing to deepening the economic ties between the European Union and Vietnam,” Schmid-Kreye stated.

Cyril Loisel, First Counselor of the EU Delegation to Vietnam, told reporters that forestry sustainability has been a long-standing effort and somehow it is like crossing a river.

“We are more than halfway through," Loisel said.

“Now we need to make the final effort to get across and get on the other side, but there's been tremendous progress in establishing the legality assurance system in Vietnam in recent years."

He also shared that a preassessment of the readiness of the legality assurance system in Vietnam was conducted last year.

“I'm hoping that we will get the final steps and maybe proceed next year with the final assessment and then get to issue the FLEGT licenses,” he stressed.

The EU and Vietnam share a strong, cooperative relationship, particularly in trade, highlighted by a free trade agreement that entered into force in 2020, he said at the forum.

“A key part of this partnership is our joint commitment to ensuring the timber and timber products we trade are legal and sustainable," he said.

“This is based on the VPA/FLEGT.”

Since June 2019, significant work has been done to achieve an operational Vietnam Timber Legality Assurance System – the VNTLAS.

He underscored that the system with all its elements is crucial for a future FLEGT licensing scheme, which will ensure that only legal, verified products from Vietnam enter the EU market.

Key elements of the VNTLAS are a clear regulatory framework ensuring verification of legality along the timber supply chain, state and non-state stakeholders with the necessary competencies to exercise due diligence and verification as well as supporting IT systems or data exchange regulations.

Forum reflects growing readiness for FLEGT licencing

The Vietnam Forestry Administration (VNFOREST) and GIZ on Thursday hosted the two-day forum ‘Ensuring Timber Legality for Sustainable Forestry Development in Vietnam,’ which brought together 170 representatives, both onsite and online, from the Ministry of Agriculture and Environment, other ministries, the Embassy of Germany, the European Union Delegation, local authorities, timber companies, and other domestic and international organizations.

The forum was part of the project ‘Support to the Implementation of VPA/FLEGT in Vietnam,’ which was commissioned by the Federal Ministry of Economic Cooperation and Development of Germany (BMZ) and jointly implemented by GIZ and VNFOREST under the Ministry of Agriculture and Environment.

The event served as a crucial platform to strengthen joint efforts on timber traceability and legality, review the country's progress toward implementing the VPA FLEGT, and promote gender equality within the forestry sector.

Speaking at the forum, Tran Quang Bao, director general of the VNFOREST, said that the event was set to provide an important opportunity for government agencies, businesses, timber associations, organizations, local communities, and international partners to exchange views, share experience, and propose solutions for ensuring the legality of timber in Vietnam.

“We especially appreciate the support of the German people and government through GIZ in implementing the VPA/FLEGT, a strong example of multistakeholder cooperation and our shared commitment to building a timber industry that is legal, transparent, sustainable, and responsible,” Bao said.

Following the forum on ‘Sustainable and Legal Timber Value Chains in Vietnam’ in 2022 and another on ‘Promoting Gender Equality for Sustainable Forestry Development’ in 2023, this year’s theme ‘State of Play of Timber Legality Assurance in Vietnam' reflected the sector’s growing readiness for FLEGT licensing and to meet both domestic commitments and international requirements such as the EU Deforestation Regulation (EUDR).

Traceability of each timber product is one key element to combat continued deforestation, protect the environment, and affirm Vietnam’s reputation as one of the world’s leading timber processing hubs.

Commitments to timber traceability

Vietnam is becoming a global hub for furniture manufacturing and ranks sixth in global furniture production, following China, the U.S., Italy, Germany, and India, said Nguyen Hoai Bao, vice-president and secretary general at the Handicraft and Wood Industry Association of Ho Chi Minh City (HAWA).

Stricter regulations on sustainability from major markets pose challenges for Vietnam’s wood and furniture industry, while stringent laws such as the Lacey Act and the EU Deforestation Regulation (EUDR) make compliance a mandatory requirement for manufacturers eyeing to access major markets such as the U.S. and EU.

It is necessary for Vietnamese exporters to have a due diligence and traceability system to ensure compliance, Bao stressed.

In November 2020, HAWA and other Vietnamese wood associations, including VIFOREST, BIFA, DOWA, and FPA Binh Dinh, signed the ‘Commitment to Sustainable Development and Responsibility of the Vietnamese Wood Industry,’ as part of their efforts to promote timber traceability.

The signing was meant to meet international requirements on legal timber origin, comply with VPA/FLEGT and VNTLAS, and enhance the reputation of the Vietnamese wood industry.

Bao, the VNFOREST director general, affirmed that following directives from the government and the Ministry of Agriculture and Environment, the administration will continue to serve as a focal point and core force in implementing international agreements, commitments, and initiatives in the forestry sector.

These efforts will include reforming policies to promote a legal timber supply chain, strengthening monitoring and enforcement to ensure timber legality, engaging stakeholders to gather feedback and quickly resolve challenges, and adopting digital tools to improve transparency and support international integration.

In addition, the administration will promote the role of local communities and encourage independent monitoring to ensure fairness and objectivity in implementation.