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Legal framework ˬ

Legal framework for forest management and timber trade of Viet Nam

Forest governance

At the national level, the Ministry of Agriculture and Rural Development (MARD) is responsible for management of forest resources through the Viet Nam Administration of Forestry (VNFOREST). The VNFOREST’s Head Office covers several departments:

  • Inspection and Legislation
  • Forestry Production Development
  • Forest Development
  • Special-use and Protection Forests Management
  • Science, Technology and International Cooperation
  • Financial Planning
  • Vietnam CITES Management Authority
  • Forest Protection
  • National parks (Bach Ma, Ba Vi, Cuc Phuong, Tam Dao, Cat Tien, Yok Don)

Legal rights to harvest

Parties harvesting timber in Viet Nam must hold a valid land use title. The most important user groups entitled to harvest timber in Viet Nam are ‘State companies’ and ‘Households’, although a significant part of the national forest area is managed directly by communal People’s Committees (PC) – the lowest level of state administration in the country.

Circular 28 (MARD, 2018) specifies the requirements for the preparation of sustainable forest management (SFM) plans for three types of forests (special use forests, protection forests and production forests) based on the following 7 principles, each of them developed into criteria and indicators in Appendix I of the Circular:

  • Forest owners comply with laws and international treaties to which Vietnam is a party
  • Forest owners respect the rights of local communities and people
  • Forest owners ensure rights and working conditions of laborers
  • Sustainable forest management, protection, development and use
  • Environmental management and protection in forestry activities
  • Maintain, preserve and enhance biodiversity
  • Forests are observed, monitored and evaluated according to SFM plans

With regards to peoples’ rights, Circular 28 is applicable to forest areas that are home to many ethnic minorities (EM) peoples. It covers key technical guidance, including requirements for respecting and providing development opportunities for EM peoples during project preparation and implementation – in a way that is culturally appropriate to them. The circular expects that no direct adverse effect is caused to EM peoples. The Climate Change and Green Growth Development Policy Financing – PSIA 22 also enhances the position of EM peoples in forestry projects through meaningful consultation with, and participation of EM peoples throughout project life (World Bank 2019).

Recommended good practice for forest owners include:

  • Consultations with EM peoples in their own language, whenever possible, and in a culturally appropriate manner. Consultations should be with high-profile local people, such as opinion leaders, in addition to the community; and at different key project milestones during project cycle.
  • EM peoples are well-informed on topics and timings of meetings.
  • Disclosure of (both positive and adverse) potential effects of the Project during project preparation, in a way that is fully understandable to EM peoples.
  • Development activities that aim to benefit EM peoples, i.e. built on their real needs.
  • Grievance mechanism in place: using a traditional system which EM peoples may prefer.
  • Independent monitoring consultant who is engaged in monitoring the project activities, particularly those that potentially affect EM peoples
  • Findings from an independent report incorporated into project implementation, and shared in annual meeting with provincial DARD (World Bank 2019).

Taxes and fees

No fees or royalties based on forest area or timber volume exist as part of the Vietnamese forest/timber sector taxation system. Companies are only liable to paying value-added tax (VAT). Certain categories of products, however, are subject to export taxes, such as logs and sawnwood (25%), hoopwood, split poles and piles (5%), parquet flooring (5%), railway sleepers (20%), veneer (10%), wood charcoal (5-10%), and wood chips (2%) (Source: Viet Nam Customs).

Timber harvesting activities

There is currently a logging ban in place for all natural, protected and special purpose forests (not plantations), which prevents all logging apart from logging in planted forests, and with the exceptions of ‘salvage’ and ‘sanitation’ harvesting in both natural and planted forests.

‘Salvage harvesting’ of forest products under Vietnamese Forestry Law covers three cases:

  1. Implementation of silvicultural measures aiming to recover economic value that would otherwise be lost, in forest areas that have been damaged by wildfire, flood, severe wind, disease, insect infestation, or other natural disturbances.
  2. Collection of specimens of forest plants for scientific research purposes.
  3. Harvesting in an area where “forest repurposing” (meaning forestland conversion through ground clearance for approved building works, like an hydropower project) is carried out. Note: The term “conversion” is used in Vietnam for the conversion of a reserve or protection forests to production forests (MARD, Circular 24/2009/TT-BNN of 5 May 2009).

‘Sanitation’ harvesting aims to remove trees or plants that have fallen or are dying from natural causes or disasters, in order to minimize the risks of a disease or pest, or any fire, spreading to other nearby trees.

Previous regulations on the harvesting of timber were abolished by the Circular 27/2018/TT-BNNPTNT (16/11/2018) and the new procedures for timber harvesting activities (as per Articles 8 to 15 of this Circular) are as follows:

  • For ‘salvage harvesting’ of ordinary plant species in natural forests (Article 8), including timber and non-timber forest products (NTFPs):
  1. Harvesting documents must include:
    1. A copy of the decision on forest “repurposing” (see above) or copy of the silviculture project or scientific research program/project that has been approved
    2. The original report on location, area and volume of forest products to be harvested (using Form No. 07, Report on location, area and volume of forest products harvested).
  2. Before harvesting: the forest owner or harvester (in case the harvester is not the forest owner) shall submit the documents specified in Clause 1 of this Article (above), directly or by post, (i) to the Forest Protection Sub-department of the province where the harvesting is carried out if the forest owner is an organization, or (ii) to the local forest protection authority if the forest owner is an individual.
  3. After harvesting: the forest product owner shall make a Packing list of forest products and request the local forest protection authority to certify it.
  • For ‘sanitation harvesting’ of wood of some ordinary plant species in natural forests (Article 9):
    1. Harvesting document: an original ‘Sanitation harvesting plan’ (using Form No. 08, Plan for harvesting and salvage harvesting/sanitation harvesting).
    2. Before harvesting: same as per Article 8, Point 2 above.
    3. After harvesting: same as per Article 8, Point 3 above.
  • For the harvesting of non-wood forest plants and derivatives [NTFPs] of ordinary forest plants from natural forests (Article 10):
    1. Harvesting document: same as per Article 8, Point 1 (b) above.
    2. Before harvesting: the forest owner shall submit the document specified in Clause 1 of this Article, directly or by post, to the local forest protection authority.
    3. After harvesting: same as per Article 8, Point 3 above.
  • For ‘main harvesting’ of wood in publicly owned planted forests (Article 12):
  1. Harvesting document: a harvesting plan (Form No. 08, as above).
  2. Before harvesting: the forest owner or harvester (in case the harvester is not the forest owner) shall submit the document specified in Clause 1 of this Article, directly or by post, to the authority that has the power to approve the capital for forest planting and local forest protection authority.
  3. After harvesting: same as per Article 8, Point 3 above.
  • For ‘salvage harvesting’ of wood in planted forests whose ownership is represented by the State (Article 13)
  1. Harvesting documents: same as per Article 8, Point 1 above.
  2. Before harvesting: same as per Article 12, Point 2 above.
  3. After harvesting: same as per Article 8, Point 3 above.
  • For ‘sanitation harvesting’ of wood in planted forests whose ownership is represented by the State (Article 14)
  1. Harvesting document: same as per Article 8, Point 1 (b) above.
  2. Before harvesting: same as per Article 12 above.
  3. After harvesting: same as per Article 8, Point 3 above.
  • For the ‘main harvesting’ of wood in privately owned planted forests, or of scattered trees, including those planted under the State’s assistance policies or projects; and of non-wood forest plants and derivatives of forest plants [NTFPs] (Article 15).
  1. Procedure: the forest owner shall decide on the harvesting himself/herself.
  2. After harvesting: same as per Article 8, Point 3 above.

Third parties’ right

There are no specific legal documents that must be used in Vietnam in relation to customary rights or indigenous people’s rights. Forest-related issues, when they occur, are solved by local governments on the basis of regulations or laws such as the Land Law, and the Law on Forestry.

Trade and transport

The new ‘Regulations on the management and traceability for the origin of forest products (Circular 27,2018) provides for the constitution of different “dossiers” (sets of documents) according to the origin and destination of the forest products, which includes:

  1. Forest product origin dossiers;
  2. Dossiers for local trade and transport of forest products;
  3. Dossiers for export or transit of forest products;
  4. Forest product dossiers prepared by forest product processing or storage facilities.

As part of these provisions, two important documents are the ‘Packing list of forest products’ and the ‘Forest product entry and exit book’ (see below in ‘Key documents’).

A ‘forest product origin dossier’ includes: an original packing list certified by a local forest protection authority; a copy of the decision on forest “repurposing” (see above) or copy of the silvicultural project or scientific research program/project that has been approved (where applies); and an original report on location, area and volume of forest products to be harvested).

In particular, the required documentation for local trade and transport of forest products includes:

  • Customs declaration according to current regulations;
  • The original of the forest product packing list (Packing-list) issued by the forest owner or the foreign organization or individual exporting the forest products [i.e. the Exporter];
  • Copy of the CITES import permit issued by the Vietnam CITES Management Authority, for forest products that are listed in the CITES Appendices (where applies);
  • Documents about the origin of forest products, where applies in accordance with the regulations of the exporting country.

It is important to note that for due diligence / due care purposes under international timber regulations (like the EU TR) on further processed and re-exported products in and from Vietnam, there is no specific legal obligation for Vietnamese importers to prove or ensure that the imported forest products were legally harvested and produced, and are traceable back to, where the trees grew and the wood was harvested. 

 In order to meet customer’s requirements (like for EUTR due diligence) and country-specific regulations, these dossiers may also include other common documents such as: purchase contract, commercial invoice, phytosanitary certificates, FSC / PEFC certificates, fumigation certificate, bill of lading, certificate of origin, timber traceability lists, timber supplier lists, etc.

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