Sustainable forest plantation under FSC standards

In the former Quang Binh region, a modern wood pellet factory that uses plantation timber as a raw material has helped local residents protect and sustainably develop their forests. According to Vu Quang Sang, Director of BVN Quang Binh Investment Joint Stock Company: “When investing in building this factory, we considered long-term benefits for forest growers in the area. Our goal is to produce in association with forest protection, sustainable development, and improved income for farmers.”

Long-term goals

According to Director Vu Quang Sang, the factory was built with a total investment of approximately VND 500 billion to produce wood pellets for export to Japan, Europe, and other markets. Once operational, the factory’s expected to have a capacity of approximately 200,000 tons per year, requiring around 1,000 tons of raw materials daily.

“Although we faced many difficulties at the beginning, we implemented multiple solutions to accelerate the project and bring the factory into operation soon. Our long-term goal is to support forest growers in implementing certification for plantation forests so that the raw material areas meet domestic and international requirements, serving the export of forest products,” Sang added.

To achieve this goal, during the investment and construction phase, the company simultaneously conducted raw material surveys to gradually develop documentation for FSC-certified forests. To ensure efficiency, the company established an FSC Committee (under the Business Department) with a team of experienced forestry engineers to support forest growers.

The FSC Committee actively promoted awareness through training workshops on FSC certification for residents and local officials, helping them understand the long-term benefits of certified forests. This certification is not only a “passport” enabling local people to produce standard raw materials for export-oriented enterprises but also a means to ensure a stable income.

According to forestry engineer Nguyen Trong Dai, Head of the Business Department and FSC Committee, the committee’s staff conducted surveys and mapping of forest areas owned by organizations and individuals in Bo Trach, Le Thuy, and Quang Ninh districts of the former Quang Binh province to prepare and register for FSC certification. “Initially, forest growers were hesitant about FSC certification, but once they realized its practical benefits, their participation increased significantly, creating strong momentum,” Dai shared.

Thanks to prompt, practical solutions, the company successfully developed 11,000 hectares of FSC-certified plantation forests in a short period. It is expected that by the end of this year, an additional 3,000 hectares will be certified, bringing the total to 14,000 hectares.

Vu Quang Sang stated: “Forest growers with FSC certification who sell raw materials to the factory not only enjoy favorable purchasing conditions and higher prices than the market but also receive an additional VND 500,000 per hectare after harvest. This policy encourages and motivates growers to follow FSC principles and expand their certified areas. We aim to increase the FSC-certified plantation area to 17,000 hectares within the next five years.”

Toward FSC-certified forests

Duong Dinh Ba, a resident of Ray Hamlet, Hoan Lao Commune, Quang Tri, cheerfully shared that since the factory began operations, local farmers and forest growers have enjoyed significant advantages. “Previously, if storms or tornadoes damaged our forests, we could only sell the wood cheaply as firewood or wood chips. But now, with the factory, whatever we collect can be sold,” he said.

“If the trees are broken, we just cut and transport them to the factory and can sell them right away. We used to worry every storm season, but now we feel much more at ease. This also encourages people to continue developing plantation forests. Once we get FSC certification, our income will increase even more,” Ba added happily.

According to Ba, his family owns 5 hectares of acacia forest. Recently, they harvested and sold 1 hectare (after 4.5 years of planting) to the factory, yielding nearly 150 tons of raw material. “With a price of VND 1.1 million per ton, my family earned about VND 150 million. The total cost per hectare, including seedlings, fertilizer, planting, care, harvesting, and transportation, was around VND 40 million, so we made a profit of about VND 110 million per hectare,” he said.

Similarly, Duong Van Nam from Hoan Lao Commune, who owns 15 hectares of forest (about 5 hectares ready for harvest), said he had coordinated with the factory to implement FSC certification. According to Nam, the factory’s support and encouragement for FSC-certified forest growers represent a significant advancement. “Once the factory guarantees product purchasing at market prices, it becomes a major driving force for developing the local forest economy,” he said.

“That is also the key to increasing the value of forests. The factory serves as a reliable partner for farmers to invest in intensive forest cultivation following proper technical procedures, achieving higher productivity and yield, thereby improving income and creating legitimate wealth through forestry,” Nam added.

Located in Phu Dinh Commune (formerly known as Bo Trach Commune), the factory provides a geographic advantage for residents in the area. Previously, the Bo Trach District (formerly) was already known for its economic plantation forests in the hilly region, with nearly 22,000 hectares of economic forests. After the local administrative restructuring, the new Bo Trach Commune government has implemented various measures to help residents develop plantation forests, focusing on high-quality seedlings and FSC-certified forests.

According to Do Manh Tai, Chairman of the Bo Trach Commune People’s Committee, the commune currently has nearly 5,000 hectares of plantation forests, serving as a “satellite” raw-material area close to the factory, creating favorable conditions for sustainable forest-based economic development. “With its hilly terrain, Bo Trach Commune prioritizes forestry development with certified plantation forests. This is also a strength for improving household economies and helping people prosper,” Tai said.

The BVN Quang Binh factory was built with advanced technology and an automated production system that converts planted timber into high-quality pellets for export. On average, the factory produces and exports about 180,000 tons of premium wood pellets annually.

* $1 = VND 26.355 - Source: Vietcombank.