Vietnam promotes legal timber, affirming position in the international market

On September 11 in Ho Chi Minh City, the Department of Forestry and Forest Protection under the Ministry of Agriculture and Environment, in collaboration with the German Agency for International Cooperation (GIZ), held a forum on "Ensuring timber legality for sustainable forestry development in Vietnam."

Towards the export revenue target of 23-25 billion USD

This is an important event aimed at strengthening joint efforts on timber legality and traceability, reviewing the progress of the VPA/FLEGT Agreement implementation, and promoting gender equality in the forestry industry.

In his opening remarks at the forum, Mr. Tran Quang Bao, Director General of the Department of Forestry and Forest Protection, emphasized that the wood industry plays a crucial role in the national economy. In 2024, the export turnover of timber and forest products reached USD 17.3 billion, making a significant contribution to agricultural export performance, generating jobs for over 500,000 direct workers, and providing livelihoods for millions of forest growers.

However, to realize the target of USD 23–25 billion in wood product exports and USD 5 billion in the domestic market value by 2030, the forestry industry must overcome numerous barriers. The greatest challenge comes from increasingly stringent requirements of import markets such as the EU and the U.S. regarding timber legality and traceability. This presents both pressure and opportunity for Vietnam to enhance its competitiveness and affirm its position on the global timber map.

The Director General of the Department of Forestry and Forest Protection stated that over the years, Vietnam has synchronously implemented measures to ensure a legal timber source. Notable efforts include the signing of the VPA/FLEGT Agreement with the EU and Section 301 with the U.S., as well as the establishment of a timber legality assurance system and a mechanism for raw material traceability.

At the same time, the forestry industry has been promoting sustainable forest management, issuing forest certification, and completing the legal framework from forest protection and development to processing and export. These efforts clearly demonstrate Vietnam's commitment to building a legal, transparent, responsible, and environmentally friendly wood industry.

"The forum is an important opportunity for management agencies, businesses, wood industry associations, social organizations, local communities, and international partners to exchange views, share experiences, and propose solutions to ensure a legal timber source in Vietnam," said Director General Tran Quang Bao. He also expressed his gratitude for the support of the German people and Government through the GIZ in implementing the VPA/FLEGT Agreement. This agreement is a clear testament to multilateral cooperation and the shared commitment towards a legal, transparent, sustainable, and responsible wood industry.

The Director General also called on all stakeholders to continue accompanying, sharing, and promoting initiatives to ensure a legal timber supply chain. This would not only help Vietnam expand its export markets but also contribute to fulfilling international commitments on sustainable forestry development, harmoniously balancing economic, social, and environmental goals.

Germany and the EU accompany Vietnam in building a sustainable timber system

Mr. Jens-Schmid Kreye, First Secretary of the German Embassy in Vietnam, said that under the agreement between the two governments, forestry is one of the priority areas in Germany–Vietnam bilateral cooperation, with a joint cooperation portfolio worth nearly EUR 100 million. Forestry cooperation projects focus on key areas such as sustainable forest management, forest protection, and the development of a legal and sustainable timber value chain. Thereby reflecting the shared commitment to sustainable development and climate action.

According to Mr. Jens-Schmid Kreye, a legal timber supply chain not only generates economic benefits but also plays a vital role in coping with climate change and preserving biodiversity. With its large wood processing industry, Vietnam is acting as a key global link in ensuring transparency and legality from supply to market.

"A legal supply chain not only brings benefits to the national economy but also contributes to global efforts in responding to the climate crisis and biodiversity loss. Vietnam's gradual establishment of a robust timber legality assurance system also reflects its strong commitment to climate action, with the forestry industry serving as a pillar for achieving net-zero emissions by 2050," said Mr. Jens-Schmid Kreye.

He affirmed that Germany will continue to support Vietnam in implementing the VPA/FLEGT Agreement through training, capacity building, knowledge transfer, and digital tool development. This will lay the foundation for Vietnam to complete its Timber Legality Assurance System (VNTLAS) and move towards FLEGT licensing.

According to Mr. Cyril Loisel, First Counsellor of the Delegation of the European Union to Vietnam, since 2019, Vietnam has developed the VNTLAS, which serves as the foundation for future FLEGT licensing.

The EU highly appreciates the participation of stakeholders and reaffirms its commitment to accompanying Vietnam in this process. However, much work remains to be done to move towards FLEGT licensing, particularly steps such as expanding training for customs officers, forest rangers, and enterprises; piloting inspection procedures at border gates; establishing interdisciplinary coordination mechanisms; and finalizing the enterprise classification system and information technology connecting customs, forest rangers, and VNFOREST. From 2026, Vietnam is expected to pilot FLEGT licensing for some export shipments.

Mr. Cyril Loisel added that the EU is currently implementing the regulation on deforestation-free products (EUDR). The experience gained from VPA/FLEGT will serve as an important foundation for Vietnam to meet global requirements, build a reputable wood industry, and strengthen international partnerships.

"Vietnam is heading in the right direction on developing a comprehensive and reliable timber legality system. We look forward to commitments and initiatives from all stakeholders to jointly move towards FLEGT licensing,” Mr. Loisel emphasized.

The project 'Support to the implementation of VPA/FLEGT in Viet Nam' has been carried out from October 2021 to September 2025, with EUR 4.3 million (VND 129 billion) in non-refundable aid from the German Government. Its objective is to support stakeholders in completing the legal and institutional framework, as well as operations, to synchronize the Vietnam Timber Legality Assurance System (VNTLAS) with the Agreement's requirements.