Webinar: Enhancing the wood industry value chain through strengthening linkages between processing, sustainable raw material areas, and the carbon market: From the perspective of the Southeast and Mekong Delta Regions

On July 24, 2026, the EUDR Forestry Network, the Agricultural and Forestry Policy Research Network, HAWA, and Forest Trends jointly organized the webinar "Enhancing the wood industry value chain, through strengthening linkages between processing, sustainable raw material areas, and Forest Carbon markets – From the perspective of the Southeast and Mekong Delta Regions".

Speaking at the opening, Mr. Phung Quoc Man, Chairman of the Ho Chi Minh City Handicraft and Wood Industry Association (HAWA), emphasized that Vietnam's wood industry has achieved many significant milestones, exporting to 167 countries and territories and becoming the leading industry in Southeast Asia. However, he noted that a significant gap still exists between raw material area development, processing, people's livelihoods, and emission reduction targets. "We must find a sustainable linkage model to harmonize the interests of businesses, local people, and local authorities. If managed properly, raw material areas will not only ensure supply but also contribute to emission reduction and participate in Forest Carbon markets," he shared.

One of the topics that garnered significant attention at the webinar was the current state of Vietnam's plantation timber supply. According to Dr. To Xuan Phuc (Forest Trends), Vietnam currently has approximately 4.9 million hectares of plantation forest, of which about 4.1 million hectares are production forest. By May 2026, approximately 880,000 hectares of forest nationwide had received FSC or PEFC certification, laying an important foundation for the development of legal and sustainable raw material sources. However, the supply still faces many limitations, such as restricted areas of large-diameter timber forests, weak linkages between forest growers and businesses, cultivation policies that still focus on certain species, and a lack of effective connection between different stages of the processing chain.

According to Dr. Phuc, the development of large-diameter timber forests not only depends on silvicultural techniques but also must stem from market demand and appropriate raw material area planning for each type of processing. He also questioned whether revenue from Forest Carbon credits would be sufficient to incentivize people to extend forest rotation cycles and switch to growing large-diameter timber, considering this a question that requires further research and policy refinement.

The panel discussion revealed many practical perspectives from wood processing businesses. A representative from Hoang Thong Company suggested that raw material area development should start with comprehensive data on area, forest age, tree species, and intended use to enable all parties to jointly plan and invest long-term. Meanwhile, a TEKCOM representative observed that the supply chain is currently driven by extraction rather than market demand. If the forest rotation cycle is extended to 10–13 years, the value of timber could increase 2.5–3 times, creating conditions for stronger development of the deep processing industry.

Speakers also particularly emphasized the increasingly stringent traceability requirements of export markets, especially the EU. According to a representative from a Wood pellets business, establishing raw material areas with traceability down to individual forest lots will help businesses meet new regulations and enhance their competitiveness in the international market.

From a scientific perspective, Dr. Tran Lam Dong stated that Forest Carbon credits should not be seen as the primary product of plantation forests but rather as a "catalytic product" promoting the transition to large-diameter timber forest cultivation models. According to him, the added value from Forest Carbon credits, coupled with increased timber sales prices and sustainable forest management certifications, will create an economic incentive for forest growers to apply advanced silvicultural measures and improve forest quality. However, this can only succeed when processing businesses play a central role in linking, investing, and sharing benefits with forest owners.

Concluding the discussion, Mr. Ha Cong Tuan, former Permanent Deputy Minister of Agriculture and Rural Development, stated that the biggest bottleneck currently is not a lack of resources but a lack of stable linkage chains between forest-growing households, cooperatives, and businesses. According to him, policy needs to shift from a mindset of supporting individual actors to developing the entire value chain. Forest growers need to become production partners of businesses instead of merely selling timber; businesses need to participate in investing from seeds, materials, and techniques to product off-take; and cooperatives will serve as a bridge, helping reduce transaction costs and enhance the bargaining power of local people. This is also the foundation for meeting EUDR traceability requirements and effectively leveraging opportunities from Forest Carbon markets.

The opinions at the webinar unanimously agreed that developing the wood industry in the new phase is not just about expanding plantation forest areas or increasing processing capacity, but requires a multi-stakeholder linkage model among the State, businesses, forest growers, and research organizations. When raw material areas are planned according to market demand, sustainable linkage chains are formed, and new values such as Forest Carbon credits are integrated into the production model, Vietnam's wood industry will have additional impetus to enhance added value, meet international standards, and develop in a green, sustainable direction in the coming years.