Sustainable forest management and forest certification: The key role of wood processing enterprises
Sustainable forest management (SFM) is becoming an inevitable trend in the current state of climate change and global sustainable development. In Vietnam, the Forestry Development Strategy has set an ambitious goal for 2030 with approximately 1 million hectares of forest certified for sustainable forest management according to international standards. This goal reflects Vietnam’s strong commitment to developing the forestry sector in a sustainable and responsible manner.
After more than a decade of implementation, especially since Vietnam collaborated with the Programme for the Endorsement of Forest Certification (PEFC) to establish the National Forest Certification System VFCS/PEFC, encouraging results have been achieved. As a result, in ugust 2024, the country has approximately 520,000 hectares of forest certified for sustainable forest management, accounting for about 13% of the total planted forest area. This figure shows great potential for expanding the area of certified forests in the coming years.
A prominent feature of Vietnam’s forestry sector is the diversity in forest management models. Currently, there are two main types of certification based on management models: individual certification and group certification. Among them, single certificates are granted to business organizations with a total area of 221,486 hectares (accounting for 42.6%), including 103,423 hectares certified by FSC and 118,423 hectares certified by PEFC/VFCS. This figure reflects the important role of the business sector in sustainable forest management.
Notably, in the group certification models, wood processing enterprises play a particularly important role. The model of cooperation between wood processing companies and groups of forest owner households accounts for the largest proportion, with a total area of 221,319 hectares (42.5%). Next is the cooperative model with 60,248 ha (11.5%) and the forest owner association model with 17,083 ha (3.2%). These figures not only reflect the crucial role of wood processing enterprises in the value chain but also highlight their importance in promoting sustainable forest management.
To effectively develop the group certification model, various forms of linkage have been researched and implemented. According to the research of Dr. Trần Lâm Đồng and his colleagues from the Vietnam Forestry Science Institute, there are two main forms of linkage: vertical linkage (between forest-growing households and enterprises) and horizontal linkage (between forest-growing households). Each form of linkage has its own advantages and is suitable for the specific conditions of the locality.
From practical implementation, five key factors have been identified to build an effective team management model. First, the group members must play a crucial role and ensure the operational resources. Secondly, the model must bring clear benefits to the participants, not only in the short term but also in the long term, such as increasing productivity and forest quality. Thirdly, there needs to be a close-knit connection within the group to share knowledge and address common issues. Fourth, the organization must be tight-knit to ensure the sustainability of the group. Finally, an effective internal monitoring and evaluation mechanism is needed.
In this context, identifying the group entity plays a crucial role, and ensuring operational resources is the top priority. This aligns with the role of wood processing enterprises, which have sufficient potential to maintain and develop the group. With their available financial resources, wood processing enterprises not only cover the costs of maintaining the group’s operations, pay for assessment and certification fees, but also provide technical support to households. Through long-term purchasing commitments and preferential pricing policies for certified wood, businesses create strong incentives for people to participate in sustainable forest management.
However, practice also shows that there are some challenges that need to be addressed. The most notable risk is when businesses no longer require certification, which could lead to the group being disbanded. Therefore, establishing a clear cooperation mechanism, diversifying partners, and enhancing the group’s self-sufficiency capacity become extremely important. With the reality that over 50% of planted forest areas are managed by small-scale forest owners, the role of wood processing enterprises becomes increasingly important. To maximize this role, it is necessary to have policies that encourage businesses to engage more deeply in sustainable forest management, enhance public-private cooperation, and establish effective risk-sharing mechanisms. These efforts will play an important role in achieving the goal of 1 million hectares of certified forests by 2030, while also ensuring sustainable development for Vietnam’s forestry sector.