VPA/FLEGT: New “Passport” for Vietnam Woodwork Exporters

At a press conference opened to announce the results of the 6^th round of VPA/FLEGT Agreement talks in Hanoi on April 13, 2016, Deputy Minister of Agriculture and Rural Development Ha Cong Tuan said the Vietnam timber legality assurance system (VNTLAS) is applied to not only to the EU market, but also the domestic market and other export markets.

 

He added that in this session, Vietnam and the EU also reached a consensus on applying the FLEGT licensing mechanism to timber exported to the EU. Both sides are aware of the complexity of timber traceability in producing nations and responsibility of importing nations in exercising accountability for origins of timber.

 

The two sides agreed to conclude negotiations by the end of 2016 and define the roadmap for the enforcement of the agreement after it is signed to operate the FLEGT licensing system in the shortest time.

 

This round of high-level negotiations, followed 13 technical meeting sessions and five senior negotiations held in Hanoi and Brussels, has provided a fundamental basis for wrapping up the negotiations. The next high-level negotiations (TWG7) are scheduled to take place in Brussels in early July 2016.

 

Ms Astrid Schomaker, Director for Strategy at the European Commission’s Directorate General for the Environment and Chief Negotiator for the EU, said remaining issues are just wording, that is, how to translate 200 pages of documents without making any misinterpretation or allowing any misunderstanding. After the conclusion of the negotiations by the end of 2016, there are still many things to do, from changing the legal system of Vietnam to translating the text of the agreement into 22 languages popular in the EU.

 

Carrying FLEGT certification, exported wood products will have far more prestige in the EU market, one of five major importers of Vietnamese timber and wood products. In 2015, Vietnam exported more than US$7 billion worth of forest products, including over US$700 million to the EU market, equivalent to 10 per cent of the total value.

 

She analysed that a tough part of negotiation is how to ensure the legal origin of timber used to make wooden products for export to the EU, as it is made in many different countries with many stages by many companies. Therefore, in the absence of information on the legal origin of timber, enterprises will have to take accountability to demonstrate that they have attempted to identify the source of legal logs.

 

Vietnam imports a sizeable amount of timber from countries in the region, including Laos, Thailand, Cambodia, Malaysia and China. Vietnam’s wood products are now being exported to more than 100 countries, including high-end markets that have deep awareness of environmental issues such as Europe, the United States and Japan. To meet growing demand, Vietnam needs to import timber from many countries, including countries with risk of using timber from illegal sources.

 

Deputy Minister Ha Cong Tuan of Agriculture and Rural Development said Vietnamese enterprises export wooden products to the EU mainly under the FOB format and these products are made from wood with legal origin. However, the agreement with the EU helps improve control of legal timber sources, and requires exporters to seek an FLEGT licence when it comes into force. This licence represents the confidence of both parties in the control of goods.

 

“Licensing will result in more administrative procedures, but this large market is changing and enterprises need to adapt to it,” he said, adding, “We will issue FLEGT licences online to ensure transparency and prevent people in charge from taking advantage of the licensing process.”