Positive transformation in forestry from the SFM project

Positive changes

On the afternoon of September 15 in Quy Nhon (Gia Lai), the Central Project Management Board for Forestry Projects (Ministry of Agriculture and Environment), in cooperation with the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), held the closing workshop of the project "Scaling up sustainable forest management and forest certification in Vietnam" (SFM project).

According to Nguyen Danh Dan, Deputy Director of the Central SFM Project Management Board, forest plantations in Vietnam have mostly been harvested prematurely (4–5-year cycles) to supply woodchip and pellet factories. Meanwhile, Vietnam is the largest exporter of wood products in Southeast Asia, yet 60% of the raw wood materials for the wood processing industry must still be imported, as domestic timber has not met production demand.

Therefore, the Government of Vietnam has oriented toward scaling up sustainable forest management that is climate-friendly, diversifying species, and extending forest cycles to supply timber resources. However, in practice, the transition to sustainable forest management has not been widely implemented.

Through the SFM project, funded by the Federal Government of Germany via the Federal Ministry for Economic Cooperation and Development (BMZ) and implemented by GIZ, and assigned by the Ministry of Agriculture and Environment to the Central Project Management Board for Forestry Projects in Quang Tri, Gia Lai (formerly Binh Dinh), and Dak Lak (formerly Phu Yen), positive changes in sustainable forest management in Vietnam have been created during 2022–2025.

Over its implementation, the SFM project has established the necessary legal and institutional preconditions for shifting to sustainable forest management adapted to climate change. It has strengthened the capacity of stakeholders in the forestry sector to transition to sustainable management.

The project also strengthened service providers’ capacity, enabling them to support forest owners in long-cycle plantation management. Training content has been made available through open-source online platforms so that anyone in need can access it.

At demonstration sites, the transition to long-cycle plantations was piloted and developed into model frameworks to replicate sustainable forest management. Each demonstration site functioned as a practical classroom where participants could apply silvicultural techniques.

In addition, the project supported forest owners in developing new business models and identifying financial options necessary for the transition. It also explored cooperation with smallholder forest growers and promoted mutually beneficial agreements to encourage the shift toward sustainable forest management.

"Since implementation began, the project has advised the Ministry of Agriculture and Rural Development (now the Ministry of Agriculture and Environment) on restructuring, reforming, and improving the efficiency of agro-forestry companies. These companies have since gained greater capital incentives, clarified land-use rights and responsibilities between central and provincial levels, and accelerated restructuring and digital transformation. These changes were incorporated into Decree No. 04/2024/ND-CP issued in 2024, amending Decree 118," shared Nguyen Viet Hung, Deputy Head of the Management, Consulting, and Project Development Division under the Central Project Management Board for Forestry Projects.

Model expanded to 1,685 ha

According to Nguyen Danh Dan, during the SFM project implementation, six forest owners participated. In Quang Tri, the Ben Hai River Protection Forest Management Board and the Thach Han River Protection Forest Management Board joined. In Gia Lai (formerly Binh Dinh), Quy Nhon Forestry Co., Ltd. and Song Kon Forestry Co., Ltd. participated. In Dak Lak (formerly Phu Yen), the Dong Xuan Protection Forest Management Board and the Cau River Protection Forest Management Board joined. Each forest owner established demonstration plots for sustainable forest management with a total area of 48 ha.

The project advised stakeholders at both the central and provincial levels to improve the legal framework to promote the transition to sustainable forest management. At the provincial level, technical guidelines for large-timber plantations are being developed. Forest owners were supported to apply sustainable forest management practices on areas planned for annual activity. They received training in sawn timber production techniques and expanded demonstration models to 1,685 ha of plantations.

These training modules will be integrated into the forestry sector’s curriculum so that more stakeholders can access them. Various financial mechanisms for the transition were piloted, such as Lingzhi mushroom cultivation models, joint ventures, and sawn timber production business models. Cooperation models between smallholder forest growers and forestry companies or protection forest management boards have been signed with six partner forest owners.

"Large-timber models with higher value will generate greater returns, contributing to sustainable economic development. Longer plantation cycles and more diverse forests will enhance biodiversity, climate benefits, and human welfare," Nguyen Danh Dan emphasized.