1. Forest Certification - Essential Prerequisite for Wooden Furniture Exports Pham Hoai Duc, Forest Stewardship Council (FSC) Vietnam

2. The Wood Processing Industries Wood processing enterprises 2562 (2008) : 1,451 domestic private, 421 FDI Wood processing enterprises 2562 (2008) : 1,451 domestic private, 421 FDI Domestic enterprises mainly medium and small, old technologies, mostly contracted work (outwork) Domestic enterprises mainly medium and small, old technologies, mostly contracted work (outwork) Foreign and joint ventures: 420, mainly from Taiwan, Singapore, Malaysia, China, Denmark Foreign and joint ventures: 420, mainly from Taiwan, Singapore, Malaysia, China, Denmark Highly dependent on wood import (80%) Highly dependent on wood import (80%)

3. Some Wood Product Exporters IKEA, HCM City, capacity 620,000 c.m/yearIKEA, HCM City, capacity 620,000 c.m/year Scancom, 100% foreign investment, 3000 employees, annual sales 30-35 million US$Scancom, 100% foreign investment, 3000 employees, annual sales 30-35 million US$ Truong Thanh Furniture Corporation, Binh Duong,Truong Thanh Furniture Corporation, Binh Duong, Duc Thanh Wood Processing Joint Stock Company, Go Vap, HCM City,Duc Thanh Wood Processing Joint Stock Company, Go Vap, HCM City, Dai Thanh Wood Product Company, Quy Nhon, Binh Dinh,Dai Thanh Wood Product Company, Quy Nhon, Binh Dinh, Thanh Hoa Wood Business, HCM CityThanh Hoa Wood Business, HCM City

4. Timber Supply Plantation: 3.0 M m3 Plantation: 3.0 M m3 Natural forest: 0.20 M m3 Natural forest: 0.20 M m3 Import 2008: 1,098.0 M$; 2009: 904.8 M $ (- 18%) Import 2008: 1,098.0 M$; 2009: 904.8 M $ (- 18%) Imported = 80% timber demand, 70% certified, 30% not-certified legal Imported = 80% timber demand, 70% certified, 30% not-certified legal Main import markets of Viet Nam: Malaysia, USA, China, Indonesia, Laos, New Zealand Main import markets of Viet Nam: Malaysia, USA, China, Indonesia, Laos, New Zealand

5. Forest Product Export Main products: Woodchip, Kitchen furniture, garden furniture, sleeping room furniture, handicraft Main products: Woodchip, Kitchen furniture, garden furniture, sleeping room furniture, handicraft Markets: 120 countries, mainly USA, Japan, Korea, Australia, and EU Markets: 120 countries, mainly USA, Japan, Korea, Australia, and EU Accounting for 0.78% of the international market Accounting for 0.78% of the international market

6. Forest Product Export Value Year Value, M US$ Growth, % 2003360.2+4.8 2004608.9+69.0 20051,101.7+80.9 20061,930.4+75.3 20072,390.0+23.8 20082,780.0+16.3 20092,600.0 -- 6.5

7. Forest Certification Pressure Main international markets USA, EU, Japan require FC Main international markets USA, EU, Japan require FC EU Forest Law Enforcement, Governance and Trade (FLEGT): only certified and legal products EU Forest Law Enforcement, Governance and Trade (FLEGT): only certified and legal products Not-certified means market loss Not-certified means market loss Quy Nhon SFM &FC Workshop 6/2001: request for “internationalization” of 40 enterprises with FSC certification Quy Nhon SFM &FC Workshop 6/2001: request for “internationalization” of 40 enterprises with FSC certification

8. Customers Recently Seeking FSC- Certified Sources : GECA Standard Australia, Metro Group Hong Kong, Fabio-Indochina Engineering (HCM), Ki-Work Binh Duong, Pencil Maker Binh Duong, Levico-Legnoluce Viet Nam, Fashion Work Malaysia, Fugigate Vietnam Co. LTD GECA Standard Australia, Metro Group Hong Kong, Fabio-Indochina Engineering (HCM), Ki-Work Binh Duong, Pencil Maker Binh Duong, Levico-Legnoluce Viet Nam, Fashion Work Malaysia, Fugigate Vietnam Co. LTD

9. FSC or PEFC ? Almost all customers of Viet Nam wood product export request FSC Almost all customers of Viet Nam wood product export request FSC FSC covers all regions in the world while PEFC mostly restricts to boreal and temperate forests FSC covers all regions in the world while PEFC mostly restricts to boreal and temperate forests Only FSC system available in the region and Viet Nam Only FSC system available in the region and Viet Nam FSC National working Group exists FSC National working Group exists International donors prefer FSC International donors prefer FSC

10. Areas FSC-Certified by Regions, 1/2/2010

11. FSC Certified Forest Areas by Regions, 15/1/2010 Region Area, ha Certificates Africa5,294,49042 Asia3,249,52181 Europe56,005,024440 Latin America 10,080,978204 North America 43,886,431193 Ocean1,500,32127 Total120,016,764 987/81 countries

12. FSC in Viet Nam FSC SFM and Certification project implementation/advisory services: FSC SFM and Certification project implementation/advisory services: JICA SFM Project at Kon-plong, 2000- 2003 JICA SFM Project at Kon-plong, 2000- 2003 Ford Foundation Standard Development Project 2002-2003Ford Foundation Standard Development Project 2002-2003 WWF SFM project at Ha Nung and So Pai State Forest Enterprises, 2003-2005WWF SFM project at Ha Nung and So Pai State Forest Enterprises, 2003-2005 GTZ SFM project at Madrak and NamNung (Dak Lak) 2005-GTZ SFM project at Madrak and NamNung (Dak Lak) 2005-

13. FAO SFM Demonstration Group Certification Project at Yen Binh (Yen Bai):2007-2008FAO SFM Demonstration Group Certification Project at Yen Binh (Yen Bai):2007-2008 World Bank-Finland-Netherlands Forest Sector Development Project (household plantation FSC certification component), 2007-2010World Bank-Finland-Netherlands Forest Sector Development Project (household plantation FSC certification component), 2007-2010 Several companies are in the process of standard implementation for FSC certificationSeveral companies are in the process of standard implementation for FSC certification

14. Truong Thanh Furniture for Export

15. Thank you for your attention