COUNTRY GUIDE TO
TIMBER LEGALITY:
VIETNAM
www.tft-forests.org
ABOUT TFT
Established in 1999, TFT is a global non-profit that helps
businesses bring responsible products to market. Responsible
products improve people's lives and respect the environment
at all stages of the product lifecycle. TFT helps more than
90 members worldwide build responsible supply chains by
identifying and addressing embedded social and environmental
issues. Having established a strong record of achievement
in timber supply chains, TFT has expanded its work into
palm oil, leather and stone. TFT has offices in 15 countries
and an on-the-ground presence in many more.
www.tft-forests.org
ABOUT RAFT
Responsible Asia Forestry and Trade (RAFT) is a programme to
improve forest management and bring transparency to the timber
trade in Asia. The programme has been funded by USAID's
Regional Development Mission for Asia (RDMA) and is now funded
through the Australian Government’s Illegal Logging Regional
Capacity Building Partnership. RAFT influences the development
and implementation of the public policies and corporate practices
needed to make improvements, thereby reducing carbon dioxide
emissions from deforestation and forest degradation.
www.responsibleasia.org
1
COUNTRY GUIDE TO TIMBER LEGALITY:
VIETNAM
COUNTRY GUIDE TO
TIMBER LEGALITY: VIETNAM
CONTENTS
INTRODUCTION
2
1. BACKGROUND
1.1
1.2
1.3
1.4
Forest area and management
Vietnamese Forest User Groups
Vietnamese Government Administration
Background to Vietnamese timber legislation
2. KEY FOREST POLICIES
3
4
5
6
7
3. VIETNAMESE TIMBER PROCESSING INDUSTRY
3.1
3.2
3.3
Scale of the timber processing industry
Timber Export
Timber imports
4. RISK ASSESSMENT
8
9
10
11
5. TIMBER SUPPLY CHAIN
5.1
Stakeholders
6. CHANGES IN TIMBER LEGISLATION
13
15
7. FURTHER INFORMATION
7.1
Annex 1
9. REFERENCES AND USEFUL LINKS
18
20
2
COUNTRY GUIDE TO TIMBER LEGALITY:
VIETNAM
INTRODUCTION
Vietnam has a very dynamic forestry, timber
processing and manufacturing sector.
These industries are very important to
Vietnam’s economy and are an important
source of economic development, especially
in the rural sector1.
In 2012, the total processing capacity
in Vietnam was valued at $4.0B USD2.
Overall Vietnam’s timber processing and
furniture exporting industry registered an
average growth during 2007-2012 of 16% a
year3. Globally Vietnam is the second largest
exporter of secondary processed wood
products, with exports worth $3.6 B USD
in 20114. Recently, Vietnam ranked as the
world’s largest wood chip exporter5 with
export volumes of 5.8 M ODMT (Oven Dry
Metric Tonne) in 20126, the second largest
exporter of furniture in Southeast Asia and
the world’s sixth largest furniture exporter7.
About 55 % of Vietnamese products are
exported to the USA, European Union and
Australia, all who have recently introduced
laws that ban timber products that were
produced illegally. Importers and buyers
that place timber products on those
markets must be able to demonstrate
that timber was harvested legally. Failure
to do so can lead to prosecution, and
the penalties may include fines, seizure
of products or imprisonment8.
This document provides guidance as to how
to comply with these legislative changes for;
• Timber growers ,processors and exporters
of wood products in Vietnam,
• Importers of Vietnamese timber products
who are based in the EU, USA or Australia.
This document has two main sections;
• Background of the Vietnam’s forestry,
timber and processing industry;
• Timber supply chain: risk assessment,
legality and due care due diligence
requirements
1 General Department of Vietnam Customs 2013
2 Ministry of Agriculture and Rural Development 2013
3 Vietnam Trade Promotion Agency 2013
4 ITTO 2012
5 Viet Nam News 2012
6 Hawkins Wright 2013
7 ITTO 2012
8 EIA 2013
3
www.tft-forests.org
BACKGROUND
1.1 FOREST AREA
AND MANAGEMENT
As of 31st December 2011, it is estimated
that 13.5 M Ha of land in Vietnam are
forestland9. This constitutes 39.7% of the
total land area of Vietnam10. Of this, 10.3
M Ha are natural forest and 3.2 M Ha are
plantation forest11.The Land Law 2003,
divides forests in Vietnam into three main
types according to their function. They are:
1. Special use forest – 2.0 M Ha12; these
forests are mainly protected areas.
2. Protection forest totals 4.6 M Ha13;
Protection forests are set aside for
the protection of watersheds, soil
and the environment.
3. Production forest- ~6.8 M Ha14; of which
~4.3M Ha are natural forests and the
remaining ~2.4 M Ha are plantation
forests15. The purpose of production
forests is to produce wood and woodbased products.
Figure 1 shows the three different categories
of Vietnamese forest management.
9 GSO 2012
10 ibidem
11 ibidem
12 Vietnam Forestry Administration 2013
13 ibidem
14 ibidem
15 MARD 2012 cited in Tropenbos International Vietnam 2013
16 Vietnam Forestry Administration 2013
17 Forest Trends 2012
18 ibidem
Of the 6.8 M Ha of production forest area
in Vietnam, it is estimated that as of March
2012, only 0.03 M Ha (0.4%) of forest area
are certified as having sustainable forest
management17. Under the Vietnam’s
National Forest Development Strategy
the area of production forest targeted
to be certified as with sustainable forest
management is 30% of the total area,
or approximately 1.8 M Ha18.
FIGURE 1: ProPortion of tHree different forest
tyPe, sPeciaL use forest, Protection forest and
Production forest, by area16
sPeciaL
use forest
15%
Production
forest
51%
Protection
forest
34%
4
COUNTRY GUIDE TO TIMBER LEGALITY:
VIETNAM
BACKGROUND
1.2. VIETNAMESE FOREST
USER GROUPS
Vietnam’s 13.5 M Ha of forests are currently managed
by eight forest user groups as shown in Figure 2.
Figure 2 shows the proportion of the forest area
managed by different groups.
FIGURE 2: ProPortion of forest area managed by different
forest user grouPs19
Management Boards (MBs)
4,522,000 Ha
State-owned enterprise
(SFEs, Forest companies)
1,972,00 Ha
Other economic entities
143,000 Ha
5%
2%
16%
33%
Army
265,000 Ha
Households
3,510,000 Ha
26%
Communities
299,000
Other organisations
701,000 Ha
Peoples’ Committees
2 100 000 Ha
19 Vietnam Forestry Administration 2013
2%
1%
15%
5
www.tft-forests.org
BACKGROUND
1.3 VIETNAMESE GOVERNMENT
ADMINISTRATION
In Vietnam, there are four main levels of Government
administration. They are shown in figure 3 below with
reference to forestry administration. Figure 3 is a
schematic diagram that shows the various levels of forest
administration and their respective levels of Government
and or Committees.
FIGURE 3: tHe Various LeVeLs of forest administration and tHeir
resPectiVe LeVeLs of goVernment and or committees20
Vietnam
ProVinciaL LeVeL
ProVinciaL PeoPLes'
committee
district LeVeL
district PeoPLes'
committee
commune LeVeL
20 Nguyen Ton Quyen and Tran HuuNghi 2011
MARD
DARD: Dept. of Agriculture
and Rural Devleopment
Dept. of Forest Development
and Forest Protection
Division of Agriculture
District department
of Forest Protection
Government stafff supported
by field level forest protection
agents from the district forest
protection department
6
COUNTRY GUIDE TO TIMBER LEGALITY:
VIETNAM
BACKGROUND
1.4 VIETNAMESE
TIMBER LEGISLATION
MARD have released three circulars relating
to forest and forest products. They are the
two key documents which need to be used
by all stakeholders in Vietnam. They are:
1. Circular 35 dated May 20th 2011 on
‘guiding the implementation of timber
and non-timber forest product harvesting
and salvaging’, and
2. Circular 01 dated January 4th 2012 and
Circular 42 dated on 21st August, 2012
by MARD on document package of legal
forest products and examination of forest
product origin.
Vietnam started negotiating a Voluntary
Partnership Agreement (VPA) in 201021
with the EU and is currently developing a
“definition of legal timber”. This definition
outlines the legislative and regulatory
requirements to be systematically fulfilled
and verified to ensure legal compliance of
timber products before a FLEGT license
can be issued in a VPA partner country.
21 Europe Forest Institute 2013
Annex 1 describes the documentation
required by stakeholders in the timber
supply chain to show timber legality and
traceability. Annex 1 does not provide a
comprehensive and definitive list of what
documentation will be needed in every
situation. Each stakeholder in the supply
chain should undertake a comprehensive
risk assessment, including am up-to-date
review of legality documentation
requirements for each material source.
7
www.tft-forests.org
KEY FOREST POLICIES
2.1 VIETNAM FORESTRY
DEVELOPMENT STRATEGY
In 2007, the government of Vietnam
approved the Vietnam Forestry
Development Strategy 2006-2020 outlining
the legal and institutional framework for
the development of the forestry sector.
The main objective of the strategy is;
“to sustainably establish, manage, protect,
develop and use 16.24 million ha of land
planned for forestry; to increase the ratio of
forest cover up to 42-43% by the end of 2010
and 47% by 2020; to ensure wide participation
from various economic sectors and social
organizations in forest development and
increase their contributions to socio-economic
development, environmental protection,
biodiversity conservation and environmental
services supply; and to reduce poverty
and improve the livelihoods of rural
mountainous people” (MARD 2007:4)22.
To achieve this development, supporting
legislation, policies and regulations have
also been developed. The legislation
includes the;
• Forest protection and development Law
(2004),
• Environment Protection Law (2005 ),
• Land Law (2003)
22 23 Nguyen Ton Quyen 2011 cited in Nguyen Ton Quyen and Tran HuuNghi 2011
Vietnamese legislation for timber legality
is currently under review by the central
Government in conjunction with the EU’s
Voluntary Partnership Agreement process.
Further clarity around the specific legality
requirements of each industry stakeholder
will become available through this
process. It was not possible to provide
a comprehensive review of legality
requirements. The information provided
is not complete and there may be
some inaccuracies due to incorrect
interpretations of Government policy.
It does, however, provide a reference
based on available information. For
information about the most up to date
and complete requirements refer to:
http://tongcuclamnghiep.gov.vn/default.
aspx?&mtid=184&page=table
8
COUNTRY GUIDE TO TIMBER LEGALITY:
VIETNAM
TIMBER PROCESSING INDUSTRY
3.1 SCALE OF THE VIETNAMESE
TIMBER PROCESSING INDUSTRY
In 2012, Vietnam had ~4,000 timber
processing enterprises23. In 2011, 95% were
privately owned and the remaining 5% are
state-owned24.
Vietnam also imports a significant amount
of wood from many countries as described
in section 3.3.
FIGURE 4: Vietnam’s timber exPort industry VaLued
from 2006-201226
4.6
3.4
1.9
2006
23 Nguyen Ton Quyen 2011 cited in Nguyen Ton Quyen and Tran HuuNghi 2011
24 ibidem
2.4
2007
2.8
2008
4.0
2.6
2009
2010
2011
2012
9
www.tft-forests.org
TIMBER PROCESSING INDUSTRY
3.2 TIMBER ExPORT
Wood and wooden products are a major
export commodity in Vietnam’s economy.
During the first ten months of 2013,
the value of export of wood and wooden
products reached $4.1 B USD, ranking
as the 8th most exported commodity in
Vietnam25.
The export of wood and wooden products
from Vietnam to US, represents the third
largest export commodity in the trade
between Vietnam and US with a value of 1.8
B USD in 2012 which is a 24.7% increase as
compared to 201128.
1. Directly from timber processors to
overseas retailers or importers.
It is expected that Vietnam will be the
largest wood and wood product exporter
in South East Asia in 2013 with export
values estimated at $5.5 billion by the
end of 201329.
2. From processors to traders in Vietnam
with links to external markets.
FIGURE 5: Vietnam’s timber exPort markets
by Percentage (%) in first 9 montHs of 201227
Timber products are exported from Vietnam
through a number of ways, they are;
3. From processors to overseas companies
operating in Vietnam who then sell the
product overseas.
Figure 4 (left) shows the growth trend in
Vietnam’s timber exports over the past
seven years. From 2006 to 2012 there was
a 142% increase in growth in the value of
Vietnam’s export.
Figure 5 demonstrates that the three
main timber export markets in the first
nine months of 2012 were USA (38%),
China (16%) and Japan (15%).
2% germany
2% france
2% taiWan
otHers
12%
us
38%
JaPan
15%
25 General Department of Vietnam Customs 2013
26 Ministry of Industry and Trade 2013
27 Vietnam Trade Promotion Agency 2012
28 General Department of Vietnam Customs 2013
29 VietNam News 2013
12% soutH korea
4% uk
2% canada
2% austraLia
cHina
16%
10
COUNTRY GUIDE TO TIMBER LEGALITY:
VIETNAM
TIMBER PROCESSING INDUSTRY
3.3 TIMBER IMPORTS
In 2012 Vietnam imported $1.6 B USD
(~ 5.3 M m3) worth of timber, mostly from
Malaysia, China and the USA; however it’s
typical for up to 100 countries to supply
Vietnam with timber30. Including from
the heavily forested neighboring or close
countries such as Thailand, Myanmar,
Laos and Cambodia31. The timber imported
is a mix of products including round logs,
solid wood and composite products such
as MDF. This is due to the low supply of
domestically produced timber available.
FIGURE 6: Vietnam’s timber imPort markets in 2012 n32
Laos
tHaiLand
19%
maLaysia
19%
cHina
19%
6% neW ZeaLand
5% myanmar
3% cHiLe
2% cambodia
2% brasiL
The value of Vietnam’s timber import market
is shown in figure 7. There is a 98.6%
increase in value by 2012 as compared
to 2006. The value of Vietnam’s timber
import market was $1.5 B USD in 2012.
FIGURE 7: Vietnam’s timber imPort industry VaLued
from 2006-201233
0.755
30 Nguyen Ton Quyen and Tran HuuNghi 2011
31 ibidem
32 Ministry of Industry and Trade 2013
33 Ministry of Industry and Trade 2013
34 World Bank 2010
19%
us
Figure 6 shows the ten largest source
countries for the Vietnamese timber trade.
Vietnam’s dependency on imported
timbers is expected to increase as the
National Forest Development Strategy,
which modeled the timber supply needs
of Vietnam until 2020, estimates a deficit
of timber supply of 1.5 M m3 a year34.
38%
2006
1.016
2007
1.098
2008
1.147
1.362
1.5
0.905
2009
2010
2011
2012
11
www.tft-forests.org
RISK ASSESSMENT
4.1 RISKS
To comply with the Due Diligence
requirements of the EU TR and Australian,
importers must undertake a risk
assessment into the likelihood of illegal
wood product supply. A risk assessment is
also suggested as an important tool to show
Due Care under the US Lacey act.
As a minimum a risk assessment should
assess the following risk factors:
• Timber species: is the timber a ‘high risk’
timber? Refer to CITIES website for up to
date listing of high risk species.
http://www.cites.org/
• Legitimate timber documentation and
declaration. Is the timber documentation
you receive legitimate? This is difficult to
determine however, fraudulent behavior
is an issue within developing countries
timber trade.
• Assess the relevant countries Corruption
Perception Index to determine the risk of
corrupt practices.
http://www.transparency.org/
• Forest conversion: Is this species and
origin of timber from an area where there
are high rates of illegal forest conversion?
• Have the appropriate taxes been paid?
• Are goods sold at significantly below going
market rate?
• Is the timber being sold for cash only, or
lower price for goods without paperwork?
• Is paperwork invalid or otherwise suspect
such as does not match product ordered
or anticipated/possible country of origin?
• Is there unusual sales methods or
practices – i.e. deserted loading dock
at midnight?
• Do transactions fit description of illegal
transactions discussed in industry
publication?
• Is there an inability to get rationale
answers to questions?
• Do News articles or internet information
indicating a potential problem?
12
COUNTRY GUIDE TO TIMBER LEGALITY:
VIETNAM
RISK ASSESSMENT
4.1 RISKS
One of the most serious risks within the
Vietnamese timber supply chain is the
legality of imported timber. Countries
supplying timber to Vietnam’s imported
timber supply such as Thailand, Myanmar,
Laos and Cambodia are constantly under
scrutiny for illegal timber harvesting.
Myanmar is estimated to have exported
at least $600 million of illegal wood-based
products while Malaysia’s illegal woodbased product exports are valued at $1.3
billion in 201335. Recent reporting has
shown that Laos PDR has significant areas
of recent deforestation36, with the timber
presumably being transported to either
China or Vietnam.
As well these countries in Southeast Asia
currently have some of the highest rates of
deforestation and illegal forest clearance in
the world37.
It is estimated by UNODC (United Nations
Office on Drugs and Crime) that 30% of the
trade of wood-based products in Vietnam
in 2012 is illegal38. The total value of illegal
timber exported from Vietnam in 2012 is
estimated to be 700 M USD39.
35 UNODC 2013
36 The Economist 2013
37 Christian Nellemann 2012
38 Ibidem
39 Ibidem
Thus for imported timber or wood products
from these countries the risk of illegal
timber is higher than timber sourced
from a Vietnamese timber plantation, and
consequently there a higher level of risk
assessment and due diligence is required.
13
www.tft-forests.org
TIMBER SUPPLY CHAIN
5.1 STAKEHOLDERS
A timber supply chain as represented in
Figure 8 below.
All stakeholders in the supply chain have
a responsiblity to complete documentation
relevant to their status and provide this
documentation to the relevent upstream
or downstream stakeholders. The
documentation required is listed in Annex 1.
To manage the documentation it is
important that stakeholders in the
supply chain develop systems that update,
store and disseminate necessary legality
documentation on an as needs basis. TFT
has developed the SURE system which
allows stakeholders in the timber supply
chain to manage their documentation
systems and clearly show buyers the
legality and traceability of their products
all the way to the forest source. For more
information see www.tft-forests.org/sure/
The main stakeholders and their functions
in the supply chain are listed below.
At all stages of the timber supply chain
accurate documentation is required to
be created and originals or copies often
need to be supplied to the downstream
stakeholder/s. The supply chain is
dependent on each stakeholder undertaking
their obligation and legal requirements
to provide this information.
• timber producers: this is the forest
owner or manager, a farmer growing
trees, a community forest group, or a
timber buyer who buys timber standing
and undertakes the timber harvesting.
• timber transporters: may be at many
points along the supply chain, they may
own the timber or just transport it on
behalf of others.
• timber traders: Timber traders purchase
timber from a downstream stakeholder
and sell the timber to an upstream
stakeholder, this may occur at many
points in the supply chain. In many
instances they may be timber transporters
as well.
FIGURE 8: rePresentation of a timber suPPLy cHain
Flow of information (origin, species, value, documents)
timber Producers
>
timber Processors
>
Due diligence/ due care
exPorters
>
buyers
14
COUNTRY GUIDE TO TIMBER LEGALITY:
VIETNAM
TIMBER SUPPLY CHAIN
5.1 STAKEHOLDERS
• timber Processors: could be a company
engaged in any stage of processing
between the raw logs and the finished
product – for example, a small sawmill
or log-peeling operation, a component
maker, or a large factory that assembles
furniture. Raw material could either
originate from domestic sources in
Vietnam or imported from a third country.
• exporters: this could be a company
engaged in exports products to the US,
EU and Australia, or to other countries
for processing, manufacture or assembly
before shipment to the USA, EU
or Australia.
As an exporter, it is necessary to
understand the legality of timber
and timber sources that feed into the
processed products that is to be exported.
This can be done by mapping the supply
chain as demonstrated in Figure 9.
FIGURE 9: examPLe database to assist in maPPing tHe origin of your raW materiaL suPPLy base
Product
name
address/Location
'ACME KITCHEN TABLE'
FORTUNE FURNITURE CORP
STREET/CITY/COUNTRY
ALL SOURCES USED IN PRODUCT
A
B
C
MATERIAL TYPE
Solid wood
Veneer
Fibre board
COMPONENT
Table legs
Table top face
Table top core
SPECIES (SCIENTIFIC
& COMMON NAME)
Fraxinus excelsior
Common Ash
Acacia melanoxylon
Blackwood
Populus deltoides
Poplar
timber Processor
saWmiLL
PeeLer
comPonent maker
NAME
Super Sawmill Ltd
Ideal Veneers Company
Best Components Ltd
ADDRESS/LOCATION
street/city/country
street/city/country
street/city/country
timber Processor
mdf miLL
NAME
QualityMDF Ltd
ADDRESS/LOCATION
street/city/country
timber Processor
Wood cHiP maker
NAME
PopChip Company
ADDRESS/LOCATION
street/city/country
timber Producer
Natural Forest Concession
Plantation forest
management unit
NAME
xYZ Timbers
New Eucalyptus Corp
Farming Group
ADDRESS/LOCATION
Address/Location
Address/Location
Address/Location
Farming region
15
www.tft-forests.org
CHANGES IN TIMBER LEGISLATION:
6.1 USA, EUROPEAN UNION
AND AUSTRALIA
Developing systems to ensure legality is
becoming an important business component
for Vietnamese timber product exporters.
The below section provides practical steps
for timber processors to reduce the risk of
illegal material entering associated supply
chains and to show due care and due
diligence. These steps are in addition
to ensuring the correct documentation
as listed in Annex 1 is obtained.
Practical measures for Vietnamese timber
product manufactures to comply with EU
and Australian Timber Regulation and US
Lacey Act.
The following steps if implemented, will
provide a strong foundation to conform with
USA, EU and Australian legal requirements.
STEP 1:
buiLd a team and buiLd knoWLedge
1. The first of three key steps is to carry
out a planning meeting where various
levels of management review the EU,
US and Australian legal requirements
in regards to the potential impact on the
business (e.g. the proportion of product
to EU, US and Australian markets, and
the potential loss of revenue or litigation
due to non-conformance). This will aid
in gaining management and staff
understanding and support.
2. Appoint a project leader with senior
management experience and authority,
and create an internal audit team to
build the necessary systems and
procedures. They must all be of the
highest integrity and have complete
backing from the top of the business.
3. Develop a communications program
to utilize the expertise of stakeholders,
including customers, investors,
regulators / legislators and enforcement
agencies, staff/colleagues, competitors
and non-governmental organizations or
technical advisory organizations.
16
COUNTRY GUIDE TO TIMBER LEGALITY:
VIETNAM
CHANGES IN TIMBER LEGISLATION:
6.1 USA, EUROPEAN UNION AND AUSTRALIA
STEP 2:
maP suPPLy cHains
Build a complete understanding of the
existing supply chain, from the forest to
the final products.
Supply chain mapping should include a
component for the documentation which
is required to be developed, collected and
distributed. Refer figure 9.
STEP 3:
cHain of custody (coc) systems
To make sure that illegal and other unwanted
timber is excluded from the supply chain,
a functioning CoC system is required at
two levels, they are:
In the forest where the wood originates
and, in the processing and manufacturing
facilities.
Where CoC is not implemented at both
levels, it is not possible to verify legality
of the entire supply chain. It is understood
however, that it is not always feasible to gain
commitment from all suppliers, therefore
implementing CoC in your facilities and
targeting those suppliers with higher risk
is advised.
CoC for manufacturing factories: It is
important to review any current factory
Chain of Custody systems. A CoC system
may be accredited by a third party, such as
the Forest Stewardship Council, or the CoC
may not have any third party accreditation.
If the CoC system is not accredited and a
functioning system exists which is based
on standard accounting of purchase
orders, the system should be formalized
through development of a CoC – Standard
Operating Procedure / Handbook (TFT can
provide more details).
A CoC system needs to be able to ensure
that as a log enters the processing chain,
it and the subsequent timber products can
be identified throughout the manufacturing
process. This includes all of the timber that
ends up in the product as well as all the
timber that goes to waste. Without such
a CoC system, there is a risk that illegal /
unwanted timber could be mixed in with
sourced legal or certified timber.
The key to CoC is to demonstrate that total
volume of timber entering the factory can
be balanced with the total volume of
products leaving the factory – given known
processing systems.
17
www.tft-forests.org
STEP 4:
Wood origin controL (Woc) system
A Wood Origin Control (WOC) system can
be implemented to ensure that only legal
timber enters the manufacturing facility.
This system essentially is a documentation
management system. Annex 1 outlines the
documents that need to be collected.
It is recommended that a ‘Wood Purchasing
Policy’ is attached to the WOC, and this
is provided to all stakeholders. The policy
could include; a description of company
operations, company expectations of other
stakeholders, company business standards
and management ethics.
STEP 5:
conduct a risk assessment
Assessing the risk of illegality helps
understand where to focus efforts.
Assessing risk has two main components:
specie and country risk: This step requires
reviewing the supply chain information
gained in Step 2 and consideration of
several key questions:
– Are upstream suppliers complying
with the applicable legislation?
– Is the species listed in the IUCN
Red List or CITES list?
– Are there any known issues of illegal
harvesting in the country/area of origin?
– Are there any known environmental or
social issues surrounding the harvest
and sale of the wood species, such as
deforestation, local community injustices,
etc?
– Is the wood certified or legally verified
(e.g. SCS Legal Harvest, SGS TLTV,
SmartWood VLO or VLC)?
traceability risk: This requires reviewing
how effectively Step 3 and Step 4 ensures
the traceability of the supply chain. To assess
this, consider the following questions:
– Is the forest owner/manager where the
wood was harvested known? (See Wood
Origin Control Step 4)
– Is the supply chain information complete?
(See Wood Origin Control and Supply
Chain Map– Step 2 and Step 4)?
– Is the Chain of Custody within the
manufacturing facility effective?
(review CoC – Step 3)?
Three risk levels and their criteria are listed
below.
High Risk = There is a species or Country
risk and the raw material is not traceable.
Medium Risk = One of the two risks listed
as high risk is present.
Low Risk = There is no species or country
risk, or traceability risk.
18
COUNTRY GUIDE TO TIMBER LEGALITY:
VIETNAM
FURTHER INFORMATION
7.1 ANNEx 1
For more information and details on the USA’s Lacey Act40, Europe’s Timber Regulation41
and Australia’s Illegal Logging Act43 44 and how TFT can assist, please refer to the Generic
guide to Legality as well as the TFT website45.
42
Legend
√: The stakeholder is responsible to create the
document or keep original version of document
category
1. LegaL rigHt
to oPerate
sub-category
coPy: The stakeholder collects the document
from the relevant supplier
documentary requirements
Producing
timber
trading
timber
Proc. exPt.
timber timber
ORGAN- HOUSEIZATION46 HOLD47
ORGANIZATION
ORGANIZATION
√
√
√
√
Land use right certificate (Red book)
√
√
Enterprise registration certificate issued
by Provincial Business Registration Division
√
Forest use right.
Decision on forest, forest land lease
One of the following
documents is required Decision on forest, forest land allocation
Legal registration
√ + coPy: The stakeholder creates the document
or keeps the original version of document as well
as collecting their upstream suppliers’ documents
√
√
Decision on approving environmental impact
assessment report for the harvesting of 200ha or more
for plantation; and 50 ha or more for natural forest
√
√48
Document on accepting the environmental protection
commitment for the harvesting of less 200ha for
plantation or less than 50ha for natural forest
√
√49
One of the following types of documents is required.
1.Decision on approving environmental impact assessment
report by MARD/ Provincial People’s Committee;
Or
2. Document on accepting the environmental protection
commitment issued by District People’s Committee or
Commune People’s Committee
Fees & Taxes
2. domestic
timber
Domestic timber
documentation
√
√
Business income tax receipt
√
√
Valued-added tax receipt.
√
√
Natural resource tax receipt for round timber harvested
in domestic natural forest
√
Export -import tax receipt
√
Harvesting Design Outline
√
√
√
√
√
√
√
√
√
√
√
√
√
√50
COPY
COPY
COPY
√51
COPY
COPY
COPY
Harvesting registration
√52
COPY
COPY
COPY
Product table to register
√53
COPY
COPY
COPY
√
COPY
COPY
COPY
Packing List54
√
√
Business rates receipt
Cutting permit
ORGANIZATION
√
Business registration certificate issued
by District Business Registration Division
Regulation on
environmental
protection
HOUSEHOLD
√51
√
19
www.tft-forests.org
category
sub-category
documentary requirements
trading
timber
ORGAN- HOUSEIZATION46 HOLD47
ORGANIZATION
√
Proc. exPt.
timber timber
HOUSEHOLD
ORGANIZATION
√ + COPY
COPY
Sale Contract54
√
√
√
VAT invoice55
√
√
√
√
√
√
Sales contract;
√
√
√
Trading invoice;
√
√
√
Bill of lading (or other shipping document of equivalent
value in accordance with legal regulations);
√
√
√
Packing list of imported forest products;
√
√
√
CITES Permit of export country for the case of timber
under Appendix I, II of CITES
√
√
√
Import Permit issued by Vietnam’s Ministry of Industry
and Trade (in case of timber imported from Cambodia)
√
√
√
Certification of Origin
√
√
√
√
√
√
√
√
√
√
√
√
Monitoring Book for Input and Output
3. imPorted
timber
Producing
timber
Legal regulations on Customs clearance declaration for imported timber
custom procedures products validated by Customs
Regulations on plant Quarantine application of importing entity with validation
quarantine, one
of Vietnam’s Quarantine Authority
of the two following
documents is required: Quarantine certificate issued Vietnam’s Quarantine Authority
Monitoring Book for Input and Output
ORGANIZATION
√ + COPY
note:
if timber Processor PurcHased timber Via trader in Vietnam, tHe foLLoWing timber traders’ documents are aLso required:
– "SALES CONTRACT" WITH THE TIMBER TRADER
– “VAT INVOICE FROM TIMBER TRADERS"
– TO SHOW DUE CARE AND DUE DILIGENCE, TIMBER STAKEHOLDERS SHOULD COLLECT ALL IMPORTATION DOCUMENTS FROM THEIR UPSTREAM SUPPLIERS
aLL timber
4. exPorting
timber and
timber
Products
For round timber
with the large end
diameter >= 25cm
and length >= 1m
– Forest hammer marks and
– Minutes of placing forest hammer marks
made by residential forest rangers
Regulation on legal
export dossier
Customs clearance declaration for export timber
products made by exporter (original copy
√
Detailed Description of Goods if there are many types
of goods or goods packed differently which is made by
exporter (original copy);
√
Sales contract or other papers of equivalent legal values
(copy)
√
Permit of CITES of Vietnam for products made from
timber under Appendix II of CITES
√
√
√
√
√
√
Regulations on plant Quarantine application of exporter with validation of
Vietnam’s Quarantine Authority
quarantine, one
of the two following
documents is required: Quarantine certificate issued Vietnam’s Quarantine Authority
5. Labor and
Labor rigHts
√
√
√
√
√
√
√
Social insurance law Salary sheet showing monthly contribution to social
insurance / health insurance for labors who have a
3 month contract or greater
√
√
√
√
√
√
Health insurance law Salary sheet showing monthly contribution to unemployed
insurance for labors who have a 12 month contract or greater
√
√
√
√
√
√
Union’s law
√
√
√
√
√
√
Labor Law
Labor Contract signed between the enterprise and labor
The names of labors are listed in table of paying to “union fee”
20
COUNTRY GUIDE TO TIMBER LEGALITY:
VIETNAM
FOOTNOTES
9.1 REFERENCES
AND USEFUL LINKS
1
General Department of Vietnam Customs
2013
8
EIA 2013
http://www.eia-global.org/lacey/
2
Ministry of Agriculture and Rural
Development 2013
http://www.agroviet.gov.vn/en/Pages/
news_detail.aspx?NewsId=881&Page=1
9 / 10 / 11
GSO 2012
http://www.gso.gov.vn/default_en.aspx?tab
id=469&idmid=3&ItemID=14261
3
Vietnam Trade Promotion Agency 2013
http://www.vietrade.gov.vn/en/index.
php?option=com_content&view=article
&id=1950:strengths-of-vietnams-timberand-furniture-industry&catid=270:
vietnam-industry-news&Itemid=232
12 / 13 / 14
Vietnam Forestry Administration 2013
ttp://vietnamforestry.org.vn/mediastore/
fsspco/2013/02/04/2._De_an_tai_co_
cau_E.pdf
4
ITTO 2012
http://www.itto.int/annual_review/
15
MARD 2012 cited in Tropenbos International
Vietnam 2013
http://www.tropenbos.org/publications/for
est+land+allocation+in+viet+nam:+implem
entation+processes+and+results
5
Viet Nam News 2012
http://www.vietnamnews.vn/
Economy/224567/jury-out-on-wood-chipexports.html
16
Vietnam Forestry Administration 2013
http://vietnamforestry.org.vn/mediastore/
fsspco/2013/02/04/2._De_an_tai_co_
cau_E.pdf
6
Hawkins Wright 2013
http://www.metissue.com/web/
ArticlesDetails.aspx?archived=&Article_
ID=112&Cat_ID=76&Issue_ID=33
17 / 18
Forest Trends 2012
http://www.forest-trends.org/documents/
files/doc_3179.pdf
7
ITTO 2012
http://www.itto.int/annual_review/
19
Vietnam Forestry Administration2013
http://vietnamforestry.org.vn/
mediastore/fsspco/2013/08/09/
21
www.tft-forests.org
ForestryOfVietNam_2012_ (Mark_edit)_
Hoan_finalized_25_1_2013.pdf
20
Nguyen Ton Quyen and Tran Huu Nghi 2011
http://www.illegal-logging.info/sites/
default/files/uploads/HowVietnamis
preparedmeetlegalrequirements
timberexportmarketsweb.pdf
21
Europe Forest Institute 2013
http://www.euflegt.efi.int/portal/home/
vpa_countries/in_asia/vietnam/
22 / 23 / 24
ITTO 2012
http://www.itto.int/annual_report/
25 / 26
Nguyen Ton Quyen 2011 cited in Nguyen Ton
Quyen and Tran HuuNghi 2011
http://www.illegal-logging.info/sites/
default/files/uploads/HowVietnamis
preparedmeetlegal requirements
timberexportmarketsweb.pdf
27
General Department of Vietnam Customs
2013
http://www.customs.gov.vn/Lists/
EnglishStatistics/ViewDetails.
aspx?ID=296&Category=Scheduled%20
analysis&Group=Trade%20news%20
%26%20Analysis&language=en-US
28
Ministry of Industry and Trade 2013
http://vietnamforestry.org.vn/mediastore/
fsspco/2013/02/04/5._Tinh_hinh_XKN_go_
cua_VN_E.pdf
29
Vietnam Trade Promotion Agency 2012
http://www.vietrade.gov.vn/en/index.
php?option=com_content&view=article&id
=1617:vietnams-wooden-products-exportin-first-9-months-of2012&catid=270:vietnam-industrynews&Itemid=232
30
General Department of Vietnam Customs
2013
http://www.customs.gov.vn/Lists/
EnglishStatistics/ViewDetails.
aspx?ID=196&Category=Thematic%20
analysis&Group=Trade%20
news&language=en-US
31
VietNam News 2013
http://www.vietnambreakingnews.
com/2013/10/wood-exports-to-reach-us55-billion/#.Uoqs7MSmiuJ
32 / 33
Nguyen Ton Quyen and Tran HuuNghi 2011
http://www.illegal-logging.info/sites/
default/files/uploads/HowVietnamis
preparedmeetlegal requirements
timberexportmarketsweb.pdf
34
Ministry of Industry and Trade 2013
http://vietnamforestry.org.vn/mediastore/
fsspco/2013/02/04/5._Tinh_hinh_XKN_go_
cua_VN_E.pdf
35
The Economist: The future of Laos,
A bleak Landscape
http://www.economist.com/news/
asia/21588421-secretive-ruling-cliqueand-murky-land-grabs-spell-troublepoor-country-bleak-landscape
22
COUNTRY GUIDE TO TIMBER LEGALITY:
VIETNAM
FOOTNOTES
9.1 REFERENCES AND USEFUL LINKS
36
Ministry of Industry and Trade 2013
http://vietnamforestry.org.vn/mediastore/
fsspco/2013/02/04/5._Tinh_hinh_XKN_go_
cua_VN_E.pdf
37
World Bank 2010
http://www-wds.worldbank.org/external/
default/WDSContentServer/WDSP/IB/2010
/05/25/000334955_20100525061347/
Rendered/PDF/546440WP01P10110Box349
423B01PUBLIC1.pdf
38
UNODC 2013
http://www.unodc.org/documents/dataand-analysis/Studies/TOCTA_EAP_web.pdf
39 / 40 / 41
Christian Nellemann 2012
unep.org/pdf/RRAlogging_english_scr.pdf
42
EIA 2013
http://eia-global.org/lacey/
43
European Commission 2013
http://ec.europa.eu/environment/forests/
timber_regulation.htm
44
European Union 2010
http://ec.europa.eu/environment/forests/
pdf/EUTR_Leaflet_EN.pdf
45
Australian Government ComLaw 2012
http://www.comlaw.gov.au/Details/
C2012A00166
46
Forest Legality Alliance 2013
http://www.forestlegality.org/
47
TFT 2013
www.tft-forests.org/ttap/page.asp?p=10674
48 / 49
Only required if timber was harvested from
a plantation invested by household’s capital
50
Refer to Circular 01 dated January 4th
2012 and Circular 42 dated on 21st August,
2012 by MARD on document package of
‘legal forest products and examination of
forest product origin’
51 /52
If timber purchased from an organization
52 / 53
Only required if timber was harvested from
a plantation invested by household’s capital
54
Refer to Circular 01 dated January 4th 2012
and Circular 42 dated on 21st August, 2012 by
MARD on document package of ‘legal forest
products and examination of forest product
origin’
FURTHER INFORMATION:
EMAIL:
info@tft-forests.org
TELEPHONE:
UK OFFICE:
+44 (0) 2380 111220
UK OFFICE:
Innovation Centre
Venture Road
Chilworth
Southampton
United Kingdom
SO16 7NP
www.tft-forests.org
SWISS OFFICE:
+41 (0) 22 367 94 40
VIETNAM OFFICE:
+84 (0)8 351 22538
SWISS OFFICE:
Chemin des Brumes 4
1263 Crassier
Switzerland
VIETNAM OFFICE:
Room 702, Number 341–343,
Dien Bien Phu Street,
Binh Thanh District,
Ho Chi Minh City
Viet Nam
DISCLAIMER
This guide is intended as information only
and does not constitute legal advice from
TFT. Producers, processors and exporters
who are seeking further clarity on legislative
requirements should contact the legislative
making body, nominated representative or
professional legal advisors.