Ensuring the traceability of legally sourced timber throughout the entire supply chain includes “using legally sourced timber, certified under the Chain of Custody (CoC)” (Vietnam Forestry Development Strategy 2021-2030, vision to 2050). To address several prominent issues, the Vietnamese Government has updated the legal framework regulating the Vietnam Timber Legality Assurance System (VNTLAS). Government Decree No. 120/2024/ND-CP (Decree 120), effective November 15, 2024, amends and supplements several articles of Government Decree No. 102/2020/ND-CP (Decree 102) regulating the VNTLAS System. The amendments and additions are intended to align with the Voluntary Partnership Agreement on Forest Law Enforcement, Governance and Trade (VPA/FLEGT) between Vietnam and the European Union (EU) and the Agreement between the Government of the Socialist Republic of Vietnam and the Government of the United States of America on the illegal logging and trade of timber.
This Policy Brief provides an updated summary of the new features of the VNTLAS System and their impact on the forestry sector, as well as highlighting some of the challenges facing various stakeholders and approaches to addressing these challenges across different aspects.
New points of Decree 120
Import timber management
- The deadline for publishing the list of timber species imported into Vietnam has been adjusted from 6 months to 1 year, with periodic publication before December 31st of each year.
- An additional case is added for a country or territory that is not part of an active geographic area when that country or territory meets the criteria specified in Clause 1 of Article 5 but has evidence of illegal logging, timber trade, or the use of forged documents as defined by the laws of the countries concerned.
- Combine Forms No. 01 (Imported Timber List), Form No. 02 (Imported Wood Product List), and Form No. 03 (Imported Timber Origin Declaration List) of Appendix I issued with Decree 102 into Form No. 01 (Imported Timber List) of Appendix I issued with Decree 120, in which:
– Add a regulation requiring declaration of information on the exporting country or territory (Section 11).
– The regulations should be amended to require that mixed wood products containing high-risk species be declared in the same way as high-risk species.
– Add regulations requiring the declaration of information about the country or territory where the exploitation takes place (Sections 12 and 13).
– Supplementing the declaration requirements for Section D in Form No. 01 for (i) non-risk species timber and timber from active geographic areas; and (ii) risk species timber or timber from non-active geographic areas, in order to enhance accountability of all timber importing enterprises.
- In cases where the timber owner submits import documents in paper form, after customs procedures are completed, the customs authority will return the import documents to the timber owner for safekeeping as per regulations, to facilitate inspection and traceability of the timber by relevant authorities when necessary.
Managing timber exports
- Adjust the criteria for verifying the origin of timber before export to be non-discriminatory. Accordingly, remove the regulation that "timber shipments originating from domestic plantations exported to markets outside the EU do not require verification.".
- In cases where the timber owner submits export timber documents in paper form, after customs procedures are completed, the customs authority will return the export timber documents to the timber owner for safekeeping as per regulations, to facilitate inspection and traceability of the timber by relevant authorities when necessary.
Business classification system
- Add the following to the business classification: businesses involved in planting, harvesting, and supplying timber from planted forests, processing, importing, and exporting timber.
- The classification period for Group I businesses will be changed every two years.
- Adding cases for reclassifying businesses from Group I to Group II:
– Businesses that fail to submit reclassification documents at least 30 days before the expiration date of their Group I business recognition.
– The business is currently classified as a Group I business but there is evidence to prove non-compliance with the classification criteria.
Amend and supplement the concept of legally sourced timber.
- The concept of legally obtained timber is removed from the definition of "processed timber." This means that processed timber seized cannot be used for commercial purposes. Currently, seized timber is governed by Government Decree No. 29/2018/ND-CP dated March 5, 2018, which stipulates the procedures for establishing state ownership of assets and handling assets under state ownership.
- The concept of legally sourced timber should be supplemented with regulations concerning compliance with relevant laws of the countries and territories where timber is harvested, transshipped, and exported to Vietnam.
- Replacing the phrase "type of wood" with "type of wood" aims to ensure clarity in terminology and address shortcomings that have arisen during the implementation of Decree 102.
FLEGT licensing
- The requirement for FLEGT licensing for temporarily imported and re-exported timber shipments, as well as confiscated processed timber, has been removed. This means that temporarily imported and re-exported timber shipments and confiscated processed timber are no longer subject to FLEGT licensing.
Project “Supporting the Implementation of the Voluntary Partnership Agreement VPA/FLEGT in Vietnam”2025-05-15_FLEGT_Policy brief Decree 120_VN
