Binh Duong – On the afternoon of August 9, 2024, at the WTC Expo International Exhibition Center in Binh Duong, the Vietnam Wood and Forest Products Association, in collaboration with Forest Trends, organized a seminar. “"Current situation and solutions to some pressing issues in Vietnam's timber industry.".
The seminar was divided into two discussion sessions. Session 1 focused on greenhouse gas emissions control in wood industry businesses. Presentations and discussions emphasized the requirements of the Vietnamese government and international organizations regarding greenhouse gas emission reduction and recommendations for wood industry businesses. Session 2 involved sharing by associations and business representatives on preparing to meet the requirements of the EUDR and the decisions of the US Department of Commerce (DOC).
In Session 1, three speakers, experts in the field of emission measurement and reduction consulting, including Mr. Nguyen Phuong Nam – General Director of KLINOVA Consulting Company, Ms. Thai Le Bao Ngan – Supply Chain Director of LEANWARES Joint Stock Company, and Ms. Nguyen Truyen – independent expert, introduced the legal framework related to greenhouse gas inventory activities. The Vietnamese government committed to achieving net-zero emissions by 2050 at COP26 and has issued a series of related decrees and circulars to implement this commitment. Accordingly, greenhouse gas inventory will become mandatory for businesses in six sectors (energy, transportation, construction, industrial processes, agriculture, forestry and land use, and waste) in Vietnam.
Therefore, businesses need to proactively gather information, collect data, conduct risk assessments, plan scenarios, and develop strategies to mitigate greenhouse gas emissions; invest in innovation and technology; and actively participate in carbon offsetting projects and industrial cooperation initiatives. The development of a green, circular economy, compliant with ESG (environmental, social, and corporate governance) standards, has become an inevitable trend in global business operations. Implementing measures to measure and reduce greenhouse gas emissions not only helps businesses comply with legal regulations but also brings economic benefits through reduced production and operating costs, while enhancing the position and brand value of businesses in the international market. Currently, Forest Trends is implementing a program to support several pioneering businesses in the wood industry in carrying out these activities, with the aim of sharing experiences widely with other businesses in the future.
In the following discussion session, Mr. Nguyen Hoang Tiep, Deputy Director of the Vietnam Forest Management Certification Office (VFCO), shared the similarities between the national forest certification systems VFCS/PEFC, PEFC CoC, and EUDR in terms of economics, society, and environment. Specifically, EUDR stipulates that goods must not be produced from materials that cause deforestation or forest degradation after December 31, 2020; the production process must comply with the laws of the host country; coordinate information for harvesting lots must be provided; and there must be a system for assessing responsibility to demonstrate compliance with the laws of the host country (land legality, legal status, production permits, environmental protection). Meanwhile, the National Forest Certification System, established by the Ministry of Agriculture and Rural Development in 2019 based on Decision No. 1288/QD-TTg of 2018 by the Prime Minister, has two main groups of standards applied to production: the VFCS/PEFC sustainable forest management standard and the PEFC Chain of Custody (CoC) standard. Therefore, based on the practical conditions in Vietnam, wood products certified with VFCS/PEFC FM will partially meet the requirements for goods produced to comply with the laws of the importing country as stipulated by the EUDR. Therefore, when implementing the EUDR, businesses need to add the EUDR requirements to their existing accountability system (DDS) to meet the EUDR requirements. Currently, PEFC has added the module “Requirements for implementing the PEFC Accountability System for Non-Deforestation Production Regulations” (PEFC EUDR DDS) to its assessment criteria.
Regarding the investigation into the scope of products and anti-circumvention of anti-dumping/countervailing duties on imported wooden cabinets from Vietnam, the Trade Remedies Department of the Ministry of Industry and Trade announced that the US Department of Commerce (DOC) has issued its final conclusion. According to the Trade Remedies Department, for shipments exported to the US between November 4, 2021, and July 17, 2024, businesses have 90 days to apply the Certificate Regime for imported wooden cabinets from Vietnam. For shipments between July 17, 2014, and August 31, 2024, businesses can obtain a certificate after the shipment has been delivered; however, this must be done before August 31, 2024. This mechanism allows Vietnamese wooden cabinet exporters to be exempt from paying anti-dumping/countervailing duties when exporting to the US.
