North Central forest value elevated by FSC certification

Recently, at the workshop “Connecting for Sustainable Forest Management” jointly organized by WWF-Viet Nam and the Quang Tri Department of Agriculture and Environment, Cam Lo Energy Pellet Factory, under Quang Tri Trading Joint Stock Corporation (Sepon Group), and the Quang Tri Association of Forest Smallholder Groups with Forest Certification signed a cooperation agreement on maintaining and developing raw material areas and supply chains for FSC-certified plantation timber products.

The event was held as part of a project implemented by WWF-Viet Nam with funding from HP Inc. The initiative aims to expand the area of FSC-certified forests while promoting the development of responsible timber supply chains in the North Central Annamites.

The initiative is considered an important step toward connecting forest growers with wood-processing enterprises, gradually establishing an integrated value chain and helping increase the economic value of plantation forests.

Building a stable and sustainable supply

Quang Tri and the North Central Annamites have significant potential to develop concentrated, long-term sources of certified timber. Many local forest owners already have experience managing forests in accordance with sustainable standards, providing a favorable foundation for maintaining and expanding FSC-certified forest areas.

Through the Improved Forest Management and Certification (IFMC) Project and the Jungle Landscape Partnership (JLP) Project on Nature Restoration and Sustainable Timber Supply Chains in Viet Nam, implemented by WWF-Viet Nam, the Quang Tri Association of Forest Smallholder Groups with Forest Certification has established a connection with the Cam Lo Energy Pellet Factory. This creates opportunities for FSC-certified forest growers to connect with businesses, supplying raw timber for production and meeting orders.

The mutually beneficial partnership is expected to move beyond a simple buyer-seller relationship toward cooperation in developing sustainable raw material areas. This means that every stage, from planting, tending and managing forests to harvesting and marketing, must ensure adequate volume, quality and legal traceability of timber.

This is also becoming increasingly important as international timber markets impose higher standards on the legality and origin of raw materials, as well as environmental and social responsibility.

Ms. Ho Thi Ngoc Ha, Deputy Director of the Cam Lo Energy Pellet Factory, said that with an annual raw material demand of around 250,000 tonnes of timber, the factory is concerned not only with securing sufficient raw materials for production but also with developing a stable and sustainable supply.

Meanwhile, some members of the association still follow short-rotation forestry practices, which affects the quality of raw materials available for processing. Therefore, the factory has prioritized purchasing FSC-certified timber from association members based on their harvesting schedules, offering preferential prices compared with equivalent non-certified products, subject to specific agreements.

Under the agreement, the two sides will proactively share information on harvesting plans, enabling the factory to develop its procurement plans accordingly. The FSC-certified timber volume targeted for procurement under the partnership is at least 20,000 tonnes per year, depending on the actual harvesting plan each year. Early information sharing will allow forest growers to better plan their harvesting activities, while giving the enterprise time to prepare raw materials that match its production needs.

Creating incentives for longer-term forest management

A notable aspect of the agreement is that the cooperation is based on the principles of openness, transparency and respect for forest growers’ decision-making rights. The factory and forest owners will discuss specific terms regarding volume, quality, specifications, purchase prices and delivery schedules. If the two sides cannot agree on purchasing and selling terms during the agreement period, member forest owners retain the right to choose other buyers.

Beyond timber procurement, the factory and the association will also develop support models to encourage forest growers to adopt longer forestry rotations, thereby improving the quality and volume of raw materials and moving toward larger-diameter timber products with greater economic, environmental and social value.

“We want forest growers to understand that the value of FSC lies not only in the ‘certificate’ itself, but also in tangible benefits: better forest management, improved productivity and quality, more stable market outlets, better access to buyers, and FSC-certified products being recognized through more appropriate prices,” Ms. Ha said.

Mr. Mai Thanh Long, Chairman of the Quang Tri Association of Forest Smallholder Groups with Forest Certification, said that a notable aspect of the agreement is that the two sides are not only seeking to maintain FSC-certified forest areas but also to link raw material areas with the consumption of FSC-certified timber products.

According to Mr. Long, having another relatively stable buyer will give forest growers greater flexibility in planning their harvesting activities. In particular, FSC-certified timber used for pellet production that meets technical requirements and traceability standards may be purchased by the factory at a higher price than equivalent non-certified timber, subject to agreement with forest owners.

“We expect the first change to be in the way people view investment in forests. When a supply chain linkage is established, growers will have greater incentives to use high-quality seedlings, apply appropriate silvicultural techniques, manage forests in accordance with standards, plan harvesting carefully and pay greater attention to timber quality rather than simply focusing on volume.

According to the leadership of the Quang Tri Association of Forest Smallholder Groups with Forest Certification, maintaining and expanding FSC-certified raw material areas is a long-term objective for the association through 2030. In the immediate term, the association and the factory aim to maintain and develop at least 3,500 hectares of FSC-certified forests in Quang Tri.

“In the coming period, the association will facilitate the participation of household forest owners and cooperatives that are interested and meet the necessary requirements. We will also develop linkage models covering seedlings, silvicultural techniques, forest management, harvesting and timber marketing,” Mr. Long emphasized.

The Improved Forest Management and Forest Certification (IFMC) Project - part of the Nature-based Solutions for Sustainable Forest Management, Forest Restoration and Biodiversity Program, is a collaborative initiative between WWF-Viet Nam, HP Inc. and local partners to promote sustainable forest management, restore ecosystems and improve livelihoods for local communities in the North Central Annamites, specifically in Hue City and Quang Tri Province.

The project forms part of the global cooperation strategy between WWF and HP Inc., aimed at scaling up solutions to conserve forest ecosystems while developing responsible supply chains in key forest landscapes around the world.