Decision No. 327/QD-TTg dated March 10, 2022 on Approving scheme for sustainable and efficient development of timber processing industry in 2021 - 2030 period

DECISION

APPROVING SCHEME FOR SUSTAINABLE AND EFFICIENT DEVELOPMENT OF TIMBER PROCESSING INDUSTRY IN 2021 - 2030 PERIOD

THE PRIME MINISTER

Pursuant to the Law on Government Organization dated June 19, 2015; the Law on Amendments to the Law on Government Organization and the Law on Local Government Organization dated November 22, 2019;

Pursuant to the Law on Forestry dated November 16, 2017;

Pursuant to the Prime Minister’s Decision No. 523/QD-TTg dated April 01, 2021 approving the Strategy for sustainable development of Vietnam’s forestry in 2021 – 2030 period, with a vision by 2050;

At the request of the Minister of Agriculture and Rural Development.

HEREBY DECIDES:

...

...

...

I. VIEWPOINTS

1. Develop the timber processing industry in a sustainable and efficient manner that focuses on value chains from forestation, harvesting, processing and consumption of forest products; ensure sources of legal timber materials used in processing and trading of timber and timber products.

2. Develop hi-tech and eco-friendly timber processing industry that produces deep-processing and high value-added products.

3. The Government shall adopt incentive mechanisms and policies for encouraging the participation of all economic sectors; mobilize all social sources to develop the timer processing industry.

II. OBJECTIVES

1. General objectives:

By 2030, develop the timber processing industry to an important economic sector; build and develop prestige brands of Vietnamese timber products in both domestic and foreign markets; strive to put Vietnam in the group of the world’s leading countries in the sector of timber and timber product production, processing and exporting.

2. Specific objectives

a) The export value of timber and forest products is expected to reach USD 20 billion and USD 25 billion by 2025 and by 2030 respectively, in which export turnover of timber and timber products is expected to reach more than USD 18,5 billion and more than USD 20,4 billion by 2025 and by 2030 respectively.

...

...

...

c) More than 80% of timber processing and storage facilities are expected to be capable of adopting advanced manufacturing technologies.

d) 100% of timber and timber products, whether exported or domestically sold, is made of legal timber materials or timber granted sustainable forest management certification.

III. TASKS

1. Develop infrastructure facilities and production scale

a) Establish 5 hi-tech forestry zones that will attract investments from timber processing enterprises and auxiliary material manufacturing enterprises.

b) Develop and expand timber processing industrial parks or clusters in provinces that have development potentials and advantages.  Selectively attract investments with giving priority to projects on production of high value-added, hi-tech and eco-friendly products which save energy, fuels and raw materials.

c) Make investment in development of auxiliary industries; give priority to manufacturing of eco-friendly auxiliary materials such as wood adhesives, and surface-coating or decorating substances; give priority to development of logistics services.

d) Establish 01 national wooden product exhibition center that meets international standards.

dd) Encourage development of centers that research and design models of timber products to meet demands, culture and taste of consumers.

...

...

...

a) Wooden furniture, including tables, chairs, beds, cabinets, kitchen cupboards, vanity tables, bookshelves, and flooring planks.

b) Outdoor wooden products, including: rocking chairs, slides, tables and chairs, outdoor bench, and patio umbrellas.

c) Man-made timber boards, including blockboard, plywood, chipboard or MDFs.

d) Products made of wood and other materials such as rattan, bamboo, flute, plastic, metal, fabric or leather, which increase beauty, durability, firmness and save timber.

dd) Wooden handicrafts, including tables, chairs, beds, cabinets, lacquer products, wooden pictures, and similar wooden products, souvenirs, and decoration handicrafts made of wood and rattan, bamboo, flute, and other materials.

e) Wood pellets and wood chips.

3. Develop timber and timber product trading market

a) Export market

- Continue maintaining and expanding export market share and proactively get trade promotion of timber and timber products in the following primary markets such as USA, Japan, Korea, EU, China, and expand into new markets having development potentials and advantages.

...

...

...

- Establish and develop “Go Viet” (“Vietnamese timber”) brand, encourage timber processing enterprises to use “Go Viet” brand so as to make contribution to increase of competitive capacity and prestige of Vietnamese timber products in both domestic and foreign markets.

- Speed up development of e-commerce, database establishment and digital transformation in production, trading, corporate management, and application of information technology to online sale or through e-commerce floors.

- Provide and establish commercial information and database on primary markets such as USA, China, EU, Korea, Japan, and other potential markets, sorted by timber products, and disseminate and promote images about Vietnamese timber and timber products.

- Organize and participate in overseas timber trade fairs, export-oriented trade fairs in Vietnam, and international timber processing conferences so as to expand export market.

b) Domestic market 

- Do research on domestic market; establish database on important wooden products in association with manners and customs as well as shopping habits of Vietnamese people; frequently disseminate information to increase public awareness of Vietnamese timber goods and services.

- Focus on promotion and development of domestic market on the basis of determining actual conditions and role of the domestic market, supply and demand trends, and the relationship between the domestic market and export market.

- Organize trade fairs and exhibitions for Vietnamese wooden products, machinery and equipment serving processing of timber and forest products for domestic consumers, and selling activities through enterprises owning prestige brands.

4. Deal with trade and technical barriers, and prevent and control trade frauds in import and export of timber and timber products

...

...

...

b) Prevent and control trade frauds in import and export of timber and timber products

- Supervise transactions and enterprises having a sudden increase in quantity of imported/exported timber and timber products compared to their capacity and production scale so as to collect information, inspect, investigate into and clarify signs of violation.

- Inspect and determine origin of, and manage some groups of products whose import or export turnover has suddenly increased, or showing risks of origin frauds or illegal transshipment.

- Collect information about products on which the anti-dumping duty is imposed by foreign countries, and predict probability that exported goods of Vietnam are placed under trade remedies by foreign countries so as to adopt appropriate measures.

IV. SOLUTIONS

1. Mechanisms and policies

a) Revise mechanisms and policies on provision of financial and land support, research and application of scientific and technological advances to manufacturing; policies for development of linkages between forestation and timber processing according to value chains of forest products, and encourage development of auxiliary industries.

b) Build and operate the Vietnam Timber Legality Assurance System (VNTLAS) in implementation of VPA/FLEGT Agreement and the Law on Forestry; review and revise regulations on VNTLAS which should be conformable with international commitments and agreements.

c) Revise regulations of law on prevention and control of crimes, smuggling, trade frauds and counterfeits; develop international cooperation in prevention and fight against crimes, smuggling, trade frauds and counterfeits; propose negotiation, conclusion or accession to treaties and international agreements.

...

...

...

a) Apply new material technologies and automation technologies to timber processing and storage, production technologies utilizing forest residues and waste, and technologies that produce high quality products.

b) Apply production and business management systems that use advanced management software programs and save human resources; apply new technologies to design of models of timber products so as to produce timber products with uniform quality and increase competitive advantage.

c) Build timber processing industry database which shall assist enterprises in selecting technologies, making investment decisions, carrying out innovation and technology transfer, and accessing concessional loans when implementing investment projects which apply new technologies to production, and tax and fee exemption and reduction.

d) Carry out technology innovation, synchronously use production equipment and technologies, improve labour productivity and specialization, formulate and consistently apply standards and technical regulations, and improve product quality.

dd) Carry out registration for protection of trademarks and brands of products as well as intellectual property rights for timber products.

e) Assist enterprises in joining linkages, carrying out cooperation and applying science and technology so as to meet technological innovation demands; assist in training in information technology, establishment and application of chain-of-custody (CoC) certifications.

g) Encourage enterprises to apply management systems meeting international standards, comprehensive quality management systems, and social accountability standard systems.

3. Human resource development

a) Innovate teaching and training programs of training institutions; attract workers to training programs which are conformable to technological innovation and ensure rights and benefits among labour forces, and provide training and retraining for 100,000 - 150,000 workers in timber processing industry.

...

...

...

4. Development of legal timber materials

a) Organize information dissemination activities to encourage people and enterprises to engage in extensive farming and enhance forest productivity and quality; manage and supervise quality of forest plant varieties and ensure that at least 95% of forest areas are planted with quality varieties which have clear origin and management documents.

b) Encourage linkages between timber processing enterprises and forest owners to establish large timber material zones, and have at least 0,5 million hectares and 1,0 million hectares of forest areas granted sustainable management certification by 2025 and 2030 respectively.

c) Efficiently implement the Scheme for planting of 1 billion trees; efficiently and sustainably manage and use existing forest areas and nearly 1,0 million hectares of rubber, in which at least 25 - 30 thousand hectares of rubber trees will be liquidated each year to provide large-sized timber and increase the timber production of planted forests to more than 27 million m³ and more than 35 million m³ by 2025 and 2030 respectively; achieve 7 - 8 million m³/year of timber production of scattered trees and rubber trees, and strive to meet at least 80% of demand for timber materials for manufacturing and processing activities.

d) Organize efficient implementation of support and incentive mechanisms and policies for investment in planting of large-sized timber trees in association with sustainable forest management and issuance of forest certification.

V. FUNDING

Funding for implementing the Scheme includes funding from state budget (both central- and local-government budget), sponsorships, aids, and other lawful sources of funding mobilized from domestic and foreign organizations and individuals in accordance with regulations of law.

- Based on their assigned tasks specified in the Scheme, relevant ministries and regulatory authorities shall formulate annual operating plans, prepare and submit cost estimates for implementing such plans to competent authorities for approval and implementation in accordance with regulations of the Law on State Budget.

- Local governments shall allocate funding from local-government budget and mobilize other lawful sources of funding for implementing the Scheme in their provinces. Funding from central-government budget shall be allocated to support disadvantaged local governments that are yet to balance their state budget in accordance with regulations of law in force.

...

...

...

1. The Ministry of Agriculture and Rural Development shall:

a) Play the role of the presiding authority in charge of organizing the Scheme implementation in conformity with national, regional and provincial forestry plans.

b) Play the leading role and cooperate with the Ministry of Industry and Trade, the Ministry of Finance, the Ministry of Labour, War Invalids and Social Affairs, and relevant ministries and regulatory authorities in doing research and amending mechanisms and policies on human resource training, investment, and taxation, simplifying administrative procedures, developing auxiliary industries and logistics, and performing tasks set out in the Scheme.

c) Play the leading role and cooperate with relevant authorities in instructing, inspecting and expediting local governments speeding up some important projects on construction and establishment of hi-tech forestry zones, timber processing industry parks/zones, forest seed and variety center; speed up expansion of scale, increase of capacity, and innovation of technologies of timber processing factories associated with centralized material zones.

d) Play the leading role in establishing and operating the Timber Legality Assurance System and regulations of relevant laws on certification of legal timber origin; building information systems and databases serving classification of timber processing enterprises.

dd) Efficiently implement the Scheme for sustainable forest management and forest certification; build, finish and efficiently operate national forest certification system so as to promote sustainable forest management and issuance of forest certifications of Vietnam; develop cooperation and association models for development of large-sized timber forests granted sustainable forest management certification and associated with forest product processing and consumption.

e) Cooperate with the Ministry of Planning and Investment in practically and efficiently implementing incentive policies and mechanisms for enterprises making investments in agriculture and rural development sector.

g) Cooperate with the Ministry of Science and Technology in assisting enterprises in upgrading and adopting new technologies for timber and forest product processing and storage.   

h) Intensify information dissemination activities, disseminate information and provide instructions for forest owners, timber processing associations and enterprises about origin of legal timber and standards for wooden products of importing countries.

...

...

...

a) Instruct local governments and enterprises to efficiently implement incentive policies and mechanisms for enterprises making investments in agriculture and rural development sector.

b) Play the leading role and cooperate with the Ministry of Agriculture and Rural Development, relevant ministries, regulatory authorities and local governments in allocating funding derived from state budget for investment and development for implementing projects on supporting enterprises making investments in agriculture and rural development sector in accordance with regulations of law on public investment and relevant laws.

c) Cooperate with the Ministry of Agriculture and Rural Development, relevant ministries, regulatory authorities and local governments in inspecting and organizing the implementation of this Scheme.

3. The Ministry of Finance shall:

a) Play the leading role and cooperate with relevant ministries and regulatory authorities in promulgating policies for public procurement in the direction of prioritizing use of wooden products made of legal timber of domestically planted forests, and manufactured in Vietnam.

b) Cooperate with the Ministry of Agriculture and Rural Development, relevant ministries, regulatory authorities and local governments in controlling import of timber and timber products to assure timber legality.

c) Balance and allocate funding for implementing the Scheme in accordance with regulations of the Law on State Budget.

4. The Ministry of Industry and Trade shall:

a) Do research and revise mechanisms and policies to develop domestic and export markets; promote and improve Vietnamese timber brands in international markets.

...

...

...

c) Cooperate with relevant ministries, regulatory authorities and local governments in preventing and fighting against trade frauds, origin frauds, and evasion of anti-dumping duty; strictly take actions against violations.

5. The Ministry of Science and Technology shall:

Play the leading role and cooperate with the Ministry of Agriculture and Rural Development and relevant ministries and regulatory bodies in:

- Making investment in research and application of high and advanced technologies to seeding and variety selection, breeding, forestation, tending, exploitation and processing of timber in order to improve productivity, quality and develop new products, improve Vietnamese timber brands; recognition of industrial designs, useful solutions for technologies in timber processing.

- Reviewing and revising national technical regulations and standards in forestry sector, building bar code system, codes and taking measures to trace origin of timber.

6. The Ministry of Labour, War Invalids and Social Affairs shall:

Cooperate with relevant ministries and regulatory authorities in proposing supporting policies for opening new training sectors for developing human resources in sectors which require workers who cannot trained by enterprises themselves.

7. Provincial-level People's Committees shall:

a) Organize dissemination of information about restricted exploitation of young forests, and development of large-sized timber forests to protect the ecological environment, create a source of large-sized timber for production, and improve planted forest efficiency.

...

...

...

c) Efficiently organize implementation of guidelines and policies of the Communist Party and the Government; implementation of policies of supporting and encouraging investment for rapid and sustainable development of the timber processing industry.

d) Encourage, support, and allocate land areas and premises for enterprises making investment in timber processing factories and facilities, centralized timber processing industrial parks/zones  

dd) Assist timber processing associations to organize trade fairs, product launch, and trade promotion, and enable these enterprises to access preferential credit capital according to regulations of law in force.

8. Timber and forest product processing associations shall:

a) Disseminate information for their members about the market to improve initiative and prevent risk; strengthen communication about legal regulations, system of accountability for legal timber of importing countries; build a good brand and image of the timber processing industry.  Cooperate with the Ministry of Industry and Trade, and the Ministry of Agriculture and Rural Development to organize an international trade fairs for Vietnamese timber processing industry on the basis of the VIFA - EXPO, develop criteria and organize trade fairs in association with honoring and voting for prestigious brands every year.

b) Strengthen linkages between members; protect legal rights of members; act as a bridge between state authorities and enterprises; strengthen solidarity and struggle with bad or false information about Vietnamese timber and forest product processing activities.

c) Cooperate with relevant ministries, regulatory authorities and local governments in doing research on investment, construction and expansion of timber processing industrial parks/zones; making investment in hi-tech forestry zones; establish and operate a national wooden product exhibition center; efficiently build and develop “Go Viet” brand.

Article 3.This Decision comes into force from the date on which it is signed.

Article 4.Ministers, heads of ministerial-level agencies, heads of governmental agencies, Chairpersons of People’s Committees of provinces and central-affiliated cities, and relevant organizations and individuals shall implement this Decision./.

...

...

...

PP. PRIME MINISTER
DEPUTY PRIME MINISTER




Le Van Thanh