1. SHARING RESULTS FROM PEER LEARNING WORKSHOP WITH TIMBER PROCESSING BUSSINESSES IN BÌNH ĐỊNH Presented by: NGUYỄN DIỄN - VCCI Đà Nẵng Hanoi | August 2015

2. PEER LEARNING WORKSHOP FOR TIMBER PROCESSING BUSINESSES Quy Nhon, 26 June 2015 Organized by: VCCI Đà Nẵng and CED Participants: Representatives from VNFOREST Forest Protection Department Timber Processing Associations from Bình D ươ ng, HCMC, Binh Dinh 50 businesses from HCMC, Binh Duong, Phu Yen, Binh Dinh, Quang Nam and Danang.

3. PRESENTATIONS AT THE WORKSHOP Mr. Vu Anh Minh – (Deputy Director of CED) provided updates on the project activities, assessments and follow-up work with media and other partners. The roles of media, achievements and challenges during implementation were also identified. Ms. Nguyen Tuong Van – (Head of standing office for FLEGT and Lacey, VNFOREST) presented key contents of VPA and what businesses should acknowledge and prepare for when a VPA is signed. The potential impacts experienced by businesses, proposed FLEGT licensing steps and processes were discussed.

4. PRESENTATIONS AT THE WORKSHOP Mr. Le Vy – (Vice Chairman of Binh Dinh Timber Production Association) presented some of the challenges that can be experienced when a VPA is signed. A variety of solutions and recommendations were also identified and explained in further detail. Ms. To Kim Lien – (CED director) presented the potential for corporate social responsibilities (CSR) within the timber industry. Applications to timber businesses were made, in order to gain a better understanding of the concept of CSR.

5. MAIN ISSUES CONCERNED BY BUSINESSES & ASSOCIATIONS From the discussions, the opinions and views from the following representatives were taken into consideration:  Timber Processing Association  Timber Production Association Binh Dinh  HAWA from HCMC  Representatives From Different Businesses Total: 20 opinions, inputs, recommendations and concerns were expressed during the workshops

6. Should we continue to negotiate VPA? Time? Costs associated with getting licenses? Product using other materials (metal, plastic, veneer ? Legality of all materials Implementation? Timber legality, environment, tax, labor? Land issues? What if FLEGT license is not accepted? Who grants licenses? Where it is located? Apply directly for licenses or online? Shipment-based or enterprise-based licenses?

7. RECOMMENDATIONS FROM BUSINESSES When a VPA is signed and the system is in place, it should be tested immediately three months after signing (no answer yet) Businesses should submit receipts as proof (no answer yet) Vietnam should build up its own system to ensure the legality of the timber used (no answer yet) There should be recognition and proof of timbers from: - Rubber trees -Tràm - Xà cừ - Acacia from domestic plantations (legal timbers) (c)

8. RECOMMENDATIONS FROM BUSINESSES Businesses should be classified as ‘category I’ at first Should integrate FLEGT and C/O granting Submit FLEGT license after custom clearance Apply technology to the licensing system (apply online) Equal status during negotiations

9. QUESTIONS/ISSUES FROM BUSINESSES Should we continue to negotiate VPA? Shipment-based or business-based licenses? Should the FLEGT license be granted before or after custom clearance? Who grants the licenses? What happens if FLEGT licenses are not accepted by authorities from the EU? Should Licenses be applied online or direct?

10. THE QUESTIONS/ISSUES THAT VNFOREST FOCUS ON What will happen with products that have mixed materials? FLEGT licenses can only be applied to timber materials. Should all businesses be classified as group A (1) at first? Verifications on environment, labor, tax, and land issues? If businesses have FSC, will they also need FLEGT licenses? The integration of FLEGT and certificates of origins (C/O)? Effective implementation? Other questions and concerns that have not been addressed yet