Forestry businesses invest in sustainable certifications ahead of EU regulations

With the EU Deforestation Regulation (EUDR) slated for implementation in early 2026, Vietnamese forestry and wood processing businesses are investing heavily in sustainable forest management certifications to meet stringent market demands.

According to the Forestry Department at the Ministry of Agriculture and Rural Development (MARD), sustainable forest management and certification are not only global trends in forest governance but also essential requirements for the global timber and forest product market. These practices ensure sustainable forest resource management according to international standards.

In Vietnam, sustainable forest management and certification were first stipulated in the 2017 Law on Forestry. Following this, the Prime Minister issued the Project on Sustainable Forest Management and Forest Certification under Decision No. 1288/QD-TTg on October 1, 2018, which tasked MARD with establishing the Vietnam Forest Certification Scheme (VFCS).

The Department of Forestry subsequently collaborated with the Programme for the Endorsement of Forest Certification (PEFC) to issue forest certificates under the Vietnam PEFC / VFCS national system, adhering to international standards. According to the Vietnam Forestry Development Strategy for 2021-2030, the country aims to have 1 million ha of certified forests by 2030.

As of October, the Forestry Department reported there were nearly 600,000 ha of sustainably-certified forests in Vietnam, including approximately 410,000 ha with FSC certification and 183,000 ha with PEFC / VFCS certification. Nationwide, around 1.5 million households manage nearly 2 million ha of planted production forests, accounting for about 50 per cent of the country’s total planted production forest area. The remainder is managed by businesses and forestry companies.

Surveys indicate that, as of October, 300,816 ha, or 50 per cent, of the total certified forest area were certified to group-based schemes by households and individuals. The majority (approximately 220,000 ha, or 73.3 per cent) involved partnerships with wood processing companies acting as group representatives and purchasing certified wood, while the rest were certified through forest owner associations and cooperatives.

“In Vietnam, PEFC has increased the compatibility of the FSC by adapting FSC standards to Vietnamese conditions,” the Forestry Department has said. “Currently, most of the planted forests certified under FSC and VFCS provide raw materials for 1,844 companies with FSC CoC certification, producing wood products, paper, rubber, rope, and rattan.”

Vietnam developed the PEFC / VFCS national certification to align with the reputable and globally-recognized FSC certification system. Many large corporations in European and American markets, such as IKEA, OTTO, and COSTCO, have procurement strategies and policies that prioritize FSC-certified products.