Vietnamese timber exporters face increased pressure from the European Union’s new regulations on timber origin. Experts suggest that meeting these requirements could help maintain access to the EU market and expand export opportunities.

Strict requirements under VPA

Vietnam is the second country to sign a Voluntary Partnership Agreement (VPA) with the EU, a legally binding trade framework that promotes legal timber trade and forest governance. Under the agreement, exporting countries must implement a Timber Legality Assurance System (TLAS) to verify the legal origin of timber. Only timber with a FLEGT (Forest Law Enforcement, Governance, and Trade) license can enter the EU.

Initially a voluntary framework, the VPA has evolved into a mandatory standard due to the EU’s focus on sustainability. Exporters must meet strict criteria, including regulations on land and forest use, timber transport, labor, and processing.

Measures to meet EUDR compliance

To meet the EU Deforestation Regulation (EUDR), Vietnam must:

1. Establish systems to document the legal origin of timber.
2. Implement electronic tracking of forest coordinates to confirm compliance with sustainable forestry practices.

Vietnam has prepared legal frameworks and control systems to comply with these regulations. However, mechanisms for FLEGT licensing still need improvement to ensure consistency with EUDR standards.

Maintaining trade with the EU

Although the EU accounts for a smaller share of Vietnam’s timber exports compared to markets like the U.S., compliance with these regulations is critical. Meeting the EU’s standards demonstrates Vietnam’s commitment to sustainable forestry and responsible trade practices.

While some neighboring countries, such as Malaysia and Thailand, oppose the VPA, Vietnam’s adherence to the EUDR could secure its position in the EU market and potentially expand its share.

“Green production and trade are essential. Failure to comply with sustainable forest management standards could lead to boycotts in major timber-importing markets,” said Ngo Sy Hoai, deputy chair and secretary general of the Vietnam Timber and Forest Products Association.

Vietnam’s timber exporters are preparing to adapt to these new requirements, ensuring continued access to the EU market.