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REPORT ON
TRAINING WORKSHOP ON
"EVALUATING THE IMPACT OF LATEST COMMITMENTS OF FLEGT-VPA ON
TIMBER BUSINESSES"
THE PROJECT: “PROMOTING PRIVATE SECTOR ENGAGEMENT WITH THE VOLUNTARILY
PARTNERSHIP AGREEMENT (VPA) IMPLEMENTATION PROCESS IN VIETNAM”
Da Nang, August 2017
Training workshop report CED-VCCI Da Nang, August 2017 Page 2
I. Introduction
The project “Promoting the private sector engagement with the Voluntarily Partnership
Agreement (VPA) implementation in Vietnam” is funded by FAO-UN. The project is designed
to enhance the understanding of and compliance to legal frameworks, to promote legal
production and the best management practices throughout the timber product value chain
in Vietnam, and to strengthen public-private dialogues to advance the VPA process in
Vietnam. There are two specific objectives: to increase business access to information on
legality requirements according to Vietnamese laws and regulation on Timber Legality (TL);
to strengthening public – private dialogues in advancing VPA process. The objectives will be
achieved through following activities:
 One-day launching and participatory planning workshop: 30 participants (including
association members from Da Nang, Binh Dinh, Binh Duong);
 Training materials revised for businesses and agenda for one-day business trainings;
 Network of trainers established and maintained (for support businesses, sharing
experience, online networking);
 Five one-day training courses for at least 150 business representatives;
 One regional public – private forum with 50 participants;
 One national public private forum with 70 participants;
 A comprehensive communication plan.
The training workshop “Evaluating the Impact of latest commitments of FLEGT-VPA on
timber businesses” was held by the Center for Education and Development (CED) and
Vietnam Chamber of Commercial and Industry in Da Nang (VCCI Da Nang) on 30 August
2017 in Da Nang as one of the project activities. The objective of the training workshop was
to update the latest important contents of FLEGT-VPA and discuss the impacts and solutions
for 3 items: imported timber control, organization classification, verifying the origin of the
timber and FLEGT licensing.
Training workshop report CED-VCCI Da Nang, August 2017 Page 3
II. Training workshop contents and process
The training workshop applied practical methodologies, focused on discussion, exchanges
and sharing among businesses and facilitating learning among participants through group
work and discussions. The workshop also encouraged dialogue between businesses and the
local public.
 Participants were staff from import and export departments or other relevant
positions in their companies, we also encourage participation from businesses
leaders;
 Participants from each business will have to prepare information about their
companies to share with the others and to use in group work and discussions.
Section 1. Introducing FLEGT-VPA and brief its latest important requirements
After the opening from VCCI Da Nang’s representative, participants were provided the
FLEGT-VPA - major commitments and updated latest commitments, including:
A. Introducing VPA-FLEGT
B. Major commitments
1. Imported timber control
2. Organization classification
3. Verifying the origin of the timber
4. FLEGT licensing
The main commitments were updated in detail, clearly according to the diagram below:
Training workshop report CED-VCCI Da Nang, August 2017 Page 4
(Source: Vietnam Administration of Forestry)
Figure 1. Major commitments
Imported timber control term requires importers to declare the imported timber, apply the
risk filter of the type of timber and geographical area, and provide proofs of origin of timber
if it is in high risk group (forest management certificate, exploitation license or other
alternative document).
(Source: Vietnam Administration of Forestry)
Figure 2. Diagram of the imported timber control
Training workshop report CED-VCCI Da Nang, August 2017 Page 5
Organization classification is applicable to all businesses involved in the timber supply chain
(including harvesting, importing, processing, transporting and exporting). Businesses make
their self-assessments according to the criteria set by the Ministry of Agriculture & Rural
Development. The assessment is then sent to the Provincial Forest Protection Department
for appraisal. Appraisal results are submitted to Central Forest Protection Department and
published. The Central Department developed and managed the database of organization
classification and distributed accessing to this database to related parties.
(Source: Vietnam Administration of Forestry)
Figure 3. Diagram of the procedures, methods and responsibilities for classifying
organizations
Verification for organization classificated in each category:
Category 1 Organization: Not require to verify. Businesses self-certificate on the timber
packing list.
Category 2 Organizations and Households/Individuals: Local Forest Protection Department
inspects dossier and all consignment (minimum 20% of the volume of each consignment),
vertify timber packing list.
Training workshop report CED-VCCI Da Nang, August 2017 Page 6
(Source: Vietnam Administration of Forestry)
Figure 4. Diagram of export verification – Category 1 Organizations
(Source: Vietnam Administration of Forestry)
Figure 5. Diagram of export verification – Category 2 Organizations and
Households/Individuals
Shipments exported to the EU market must have a FLEGT license before customs clearance.
The Government of Vietnam will issue legal documents regulating the responsibilities, order
Training workshop report CED-VCCI Da Nang, August 2017 Page 7
and procedures for FLEGT licensing: form of permit, information, procedures for granting,
extension, replacement, revocation, licensing dossier. The FLEGT licensing authority will
develop and manage a licensing database.
Category 1 Organizations: Export procedures are not required prior to licensing.
Category 2 Organizations: They must carry out export verification procedures before being
licensed.
(Source: Vietnam Administration of Forestry)
Figure 6. Diagram of FLEGT licensing procedure
Following a presentation of the latest commitments in FLEGT-VPA, the participants were
divided into 2 groups of 4 commitments to discuss the positive and negative impacts and
recommend solutions.
Section 2: Discussion the positive and negative impacts and solution for 3 items: imported
timber control, organization classification, verifying the origin of the timber and FLEGT
licensing (including impacts related with Economic, Society, Environment, Gender,
Administrative Procedures and Law)
The results of the discussion are summarized as follows:
Training workshop report CED-VCCI Da Nang, August 2017 Page 8
Requirement Positive effects Negative effects Solutions
Organization
Classification
Firstly, the competitiveness and
market accessing of enterprises were
improved. The production cost of
category 1 organizations will be
significantly reduced because
verification time is shorted.
Secondly, the prestige of Vietnam's
timber industry on the international
market has been improved,
strengthened and increased.
Finally, businesses are encouraged to
comply with the law, more
transparent in operation, fulfill the tax
obligations to meet the requirements
of the agreement, reduce risks.
Enterprises will also pay more
attention to the environment and the
rights of the labor.
On the business side, in the opinion of
delegates attending the workshop,
SMEs will face many difficulties in
implementing OCS without the support
and training from Government.
Specifically, SMEs will be affected by
import-export procedures, which are
difficult to compete due to limited
capacity and resources. In addition,
SMEs must face with changes in the
management of their organization. The
recruitment of seasonal workers will
become limited for this business, which
makes it more difficult to meet orders
from importers. For them, in the case of
customers or larger businesses that
require OCS capabilities, they will be
greatly impacted. Because they are not
accredited, they need to carry out many
Firstly, SMEs should have the support
and training from the Government to
gain more market access. These
enterprises also need to cooperate,
actively participate in the community
for the same aim to help each other to
meet the requirements of the
agreement. This community will also
help SMEs improve their position in the
market.
Secondly, it is necessary to apply digital
technology, online tools and internet in
management; reform administrative
procedures; reduce directly contact
between enterprises and civil servants.
Thirdly, in order to reduce the overload
of management systems, voluntary
system is required. OCS deployment
should begin only once this system has
Training workshop report CED-VCCI Da Nang, August 2017 Page 9
administrative procedures in order to
export, so the possibility of missing out
on opportunities increase when foreign
importers decide to focus on the larger
business. For category 2 organization, it
will be extremely difficult to gain
market share with category 1. Workers
are negatively affected by the decline in
the number of businesses in category 1
and the number of businesses in
category 2 is increasing due to the
inability to meet VPA requirements. In
the early days of the VPA, the
relationship between businesses and
importers would be difficult and
contradictory.
On the government side, a foreseeable
negative impact is that management
systems will overload, including
information processing systems, human
been built so that they can help reduce
the burden on the state and to help
businesses overcome their problems.
Fourthly, the inspection and verification
should clarify the content, process,
time, information and notice in a
suitable time for enterprises to know
and prepare. In addition, Government
should establish an organization to
appraise and classify enterprises,
operate in parallel with the provincial
FPD.
Training workshop report CED-VCCI Da Nang, August 2017 Page 10
resources systems to control and
enforce administrative procedures to
enforce the FLEGT-VPA. In addition, the
enterprise does not have sufficient
capacity, or SMEs do not meet
requirements of state agencies, which
make to increased corruption.
Imported timber
control
Firstly, legally timber supply
increases.
Secondly, quality control system also
increased the value of Vietnamese
timber products in the international
market, leading to a rise in other
markets outside Europe.
Finally, the verification origin has a
positive effect on consumer. This
makes them know that the product
they are using has a legal origin.
The quality control system of imported
timber makes timber supply to Vietnam
limited, leading to a shortage of timber
material used in production. Due to
strict supply control, increasing demand
for timber will push up the price, which
will lead to negative effect on the
competitiveness of domestic
enterprises.
Firstly, strengthen the provision of
information on high risk geography
areas through overseas trade staffs.
Second, the records provided to the
business should be accurate and lawful.
FPD certifies a whole contract, not
certification for each shipment to help
businesses do not take much time.
Coordination between customs, local
forest protection departments, and
other authorities will also help
businesses to confirm contracts faster
and more favorable.
Training workshop report CED-VCCI Da Nang, August 2017 Page 11
Thirdly, the Government should
support to timber importers at the
beginning into the market. Domestic
afforestation should also be
encouraged. It is necessary to assist
businesses to collaborate with countries
which have sustainable forest
management.
Fourthly, the competent authorities
must publish the form of document
proving the lawful timber of exporting
country to facilitate the actual
verification.
Fifth, the state should engage in
negotiation of legal timber standards
between countries. A common standard
will limit the risks when exporting or
importing.
Sixth, for types of the timber that have
not yet been identified, customs allow
Training workshop report CED-VCCI Da Nang, August 2017 Page 12
the business to clear and take them to
the bonded warehouse.
Finally, if Vietnam deploy the control
system well, Vietnam will be considered
a good implementation of signed
international agreement. This helps
legal documents (VPA legislation) better
align with FTAs.
Verifying the origin
of the timber and
FLEGT licensing
Verification will benefit FDI
enterprises and large enterprises that
meet VPA standards (Category 1
enterprises). This will encourage SMEs
in the country to change to meet the
criteria of being classified in category
1. With a strict process, businesses
will be more productive in their
export performance, increased their
competitiveness and market share. In
addition, the verification makes the
authorities more transparent and
Enterprises will have difficulties and
risks when seeking information of
exporting countries. Administrative
procedures and procedures for group 2
enterprises have increased, leading to
the risk of negative occurrences in
handling administrative procedures.
Along with that, the risk of late
shipment and breach of contract also
soared.
Firstly, contribute to the development
of supporting industries to modernize
agriculture and rural development.
Secondly, FLEGT certification is granted
to enterprises according to their timber
shipments, subtracting volumes when
exporting.
Thirdly, FLEGT licensing for enterprises
in one year then deduct the amount of
used timber to make favorable
conditions for businesses.
Training workshop report CED-VCCI Da Nang, August 2017 Page 13
compliant. The genuine business
enterprises will increasingly develop,
expand the market, domestic
enterprises also increased the
competitiveness compared with FDI
enterprises, accessed and expand the
European market in the long term.
Fourthly, it is necessary to build a post-
inspection mechanism to avoid the case
where the category 1 enterprises have
incorrectly declared. The government
needs to change the legal document to
be compatible with the VPA.
Finally, government agencies should
provide information about the risk filter
(types of timber and geographical area)
to enterprises. At that time, enterprises
will be more convenient when carrying
out procedures and signing contracts
with partners.
IV. Results of the workshop and training (based on participant’s assessment)
Assessment before training workshop
Assessment the knowledge of businesses in 4 areas: Imported timber control, organization
classification, verify the origin of the timber and FLEGT licensing.
The training workshop have been attended by 30 participants. There were only 15 participants
from businesses that filled out assessment form.
The assessment offers 5 levels: not known, have heard, known the basics, known fully and
proficient for all areas.
Imported timber control: The commitment includes 3 parts: Importer make the self-declaration,
applying the risk filter of the type of timber and geographical area, and providing proofs of origin
of timber if it is in high risk group (forest management certificate, exploitation license or other
alternative document). To the question about the knowledge in this commitment, 5 participants
said they did not know, 16 participants have heard, 14 participants had a basics knowledge, 8
participants known fully. Specially, there were only 1 participant who gave feedback that they
were proficient at this area.
Organization classification: The commitment includes 3 parts: Applying to all businesses involved
in the timber supply chain (including harvesting, importing, processing, transporting and
exporting); businesses make their self-assessments according to the criteria set by the Ministry of
Agriculture & Rural Development; Central Forest Protection Department develops and manages
the database of organization classification and distributes accessing to this database to related
parties. To the question about the knowledge in this commitment, 13 participants said they did
not know, 18 participants have heard, 4 participants had a basics knowledge, 10 participants
known fully and no one was proficient.
Verifying the origin of the timber: The commitment includes 4 parts: Self-declaration timber
parking list and completing timber export dossier; importer must check the documents of timber
origin (parking list and invoice); confirmation request from the Commune People's Committee in
the case of consumption of some types of timber (forest timber, timber from home gardens,
scattered trees, rubber wood), local Forest Protection Department was required to verify and
inspect at least 20% of Category 2 Organization’s shipment or households/individuals ones. To
the question about the knowledge in this commitment, 3 participants indicated they did not
know, 11 participants have heard, 22 participants had a basics knowledge, 15 participants known
fully and no one was proficient.
FLEGT licensing: The commitment includes 2 parts: Shipments exporting to Europe market are
requires a FLEGT license prior to clearance; FLEGT licensing authority/CITES Vietnam will design
software for e-licensing, database management. To the question about the knowledge in this
commitment, 6 participants indicated they did not know, 8 participants have heard, 9
participants had a basics knowledge, 6 participants known fully and only 1 participant was
proficient.
Figure 7. Result of Assessment the knowledge of FLEGT-VPA
Assessment the demand of information of businesses
To the question whether businesses are interested in contents such as legal definition for
households and organizations and how to set up and verify evidence and proof for legal timber
for each step in supply chain, internal inspection, verification of timber legality compliance of
households and organizations, including organization classification system (OCS) risk-based
assessment classification, FLEGT licensing, and independent monitoring, it can be said that most
of participants are interested in the a.m content and issues (14 participants said they are
necessary), there are 2 participants said that they are not necessary.
0 10 20 30 40 50 60
Before workshop - Not known
Before workshop - Have heard
Before workshop - Known the basics
Before workshop - Known fully
Before workshop - Proficient
Assessment the knowledge of FLEGT-VPA
Imported timber control Organization classification Verifying the origin of the timber FLEGT licensing
14 participants are interested in LD information and criteria, 12 participants are interested in
information related to FLEGT licensing, verification of business compliance of households and
organizations, OCS based on risk assessment and how they can create, verify and approve
evidence in each step of the supply chain. 12 participants are interested in internal inspection
and independent monitoring. See figure 8.
Figure 8. Result of Assessment the demand of information
Assessment the means of receiving information
Publication: 7 participants are expected to receive information on the legal definition, 4
participants are expected to receive information on verifying evidence for legal timber for each
step in supply chain, 4 participants are expected to receive information on internal inspection, 4
participants are expected to receive information verification of business compliance of
households and organizations, 4 participants are expected to receive information on FLEGT
licensing and 3 participants are expected to receive information on independent monitoring.
Social networking: 3 participants are expected to receive information on the legal definition, 3
participants are expected to receive information on verifying evidence for legal timber for each
step in supply chain, 3 participants are expected to receive information on internal inspection, 4
participants are expected to receive information verification of business compliance of
12
12
12
12
12
14
11 12 13 14
Independent monitoring
FLEGT licensing
Verification of compliance
Internal inspection
Creating and verifying evidence
Legal definition
Assessment the demandof informationof businesses
Interested
households and organizations, 3 participants are expected to receive information on FLEGT
licensing and no one is expected to receive information on independent monitoring.
Newspaper, radio, TV: 2 participants are expected to receive information on the legal definition, 2
participants are expected to receive information on verifying evidence for legal timber for each
step in supply chain, 2 participants are expected to receive information on internal inspection, 3
participants are expected to receive information verification of business compliance of
households and organizations, 1 participant is expected to receive information on FLEGT licensing
and 1 participant is expected to receive information on independent monitoring.
Website: 12 participants are expected to receive information on the legal definition, 12
participants are expected to receive information on verifying evidence for legal timber for each
step in supply chain, 12 participants are expected to receive information on internal inspection,
11 participants are expected to receive information verification of business compliance of
households and organizations, 12 participant is expected to receive information on FLEGT
licensing and 10 participant are expected to receive information on independent monitoring.
E-newsletter: 5 participants are expected to receive information on the legal definition, 4
participants are expected to receive information on verifying evidence for legal timber for each
step in supply chain, 5 participants are expected to receive information on internal inspection,
6participants are expected to receive information verification of business compliance of
households and organizations, 5 participant is expected to receive information on FLEGT licensing
and 6 participant are expected to receive information on independent monitoring.
To the question, which information channel their companies would like to receive information
and updates on VPA from, 45% want to receive information through website, about 28% want to
receive information through e-newsletters, 13% through social network and media, about 8%
want to receive through publications and printed materials and 6% want to receive through
traditional media such as television, radio and newspapers.
Figure 9. Result of Assessment the means of receiving information
VPA Readiness Assessment
The training session started with readiness assessment of companies with VPA. After this
assessment, it can be said that most of participating companies are able to comply with new
requirements from VPA (see the assessment checklist for more information).
Companies answered 13 questions designed to check their compliance possibility with FLEGT-VPA
(Please see annex 1). The form is available online and companies can use it check if they are
compliant with VAP requirements as the first step: http://flegtvpa.com/doanh-nghiep-ban-san-
sang-voi-flegt-chua.html
Assessment checklist results will be calculated according to the following results:
10 - 13 answers: Yes, you are on the right track!
6-9 answers: Yes, you have a lot of work to do to ensure your business is ready to adapt to FLEGT-
VPA!
0-5 answers: Yes, you should plan to adapt to FLEGT-VPA immediately!
With 15 assessments from participants, most of the companies are able to adapt with VPA.
Specific responses are listed below:
0 2 4 6 8 10 12 14
E-Newsletter
Website
Newspaper, radio, TV
Social media
Publication
Assessment the means of receiving information
Independent monitoring
FLEGT licensing
Verification of compliance
Internal inspection
Creating and verifying evidence
Legal definition
With the question, is your business is legally registered and licensed according to relevant laws
and regulations; 9 participants said yes and 6 participants did not answer.
14 participants said their companies fulfill all obligatory taxes and fees required by laws, only 1
participant did not answer.
12 participants said their companies are compliant with regulations and relevant environmental
requirements; 2 participants said unsure and 1 participant did not answer.
There were 12 participants that said their companies are compliant with all occupational health
and safety requirements, only 2 participants were unsure and 1 participant did not answer.
13 participants said their companies are compliant with all labor laws and regulations, only 1
participant said unsure and 1 participant did not answer.
14 participants said their companies are compliant with transport, trade, import or export
regulations, procedures and restrictions, only 1 participant did not answer.
10 participants have said their businesses have maintained their filing of trade transactions
throughout the supply chain and known their supply chain, 2 participants said they were unsure,
1 participant said no and 2 participants did not answer.
12 participants said that they know their businesses use legal timber, 2 participants said they
were unsure, 1 participant did not answer.
8 participants said that they have had access to information about your forest product supply
chains to a level that allows you to confirm and document that the material/products originate
from forest sources with low risk of legal violations or that potential risks have already been
mitigated. There, 3 participants were unsure and 2 participants said they do not have and 2
participants did not answer.
9 participants said their businesses have avoided high risk sources, including wood from countries
with sanctions imposed by the UN Security Council or the EU Council on timber imports or
exports and wood from countries or areas with prevalence of armed conflicts. 4 participants were
unsure and 1 participant said no and 1 participant did not answer.
9 participants said their businesses have a necessary and/or appropriate system of segregation or
a chain of custody system (CoC). 2 participants were unsure and 3 participants said no and 1
participant did not answer.
13 participants said that their businesses have a comprehensive record keeping systemin place. 1
participant were unsure. 1 participant did not answer.
14 participants said their businesses have maintained the records for at least 5 years. 1
participant did not answer.
Figure 10. Result of VPA Readiness Assessment
According to the assessment, there were 12 out of 15 participants who ensure their businesses is
ready to adapt to FLEGT-VPA, only 2 participant said their organizations are not ready and 1
participant did not respond. The above assessment shows that the participants in the workshop
have been prepared to comply with FLEGT-VPA requirements. However, 3 participants have not
prepared documents, invoices, information to adapt the agreement. They need to spend time
and resources to complete the procedure what is to improve the business’ rank and meet the
requirements of the FLEGT-VPA.
Assessment after training workshop
There are 12 participant filled out the assessment form after training workshop.
0 2 4 6 8 10 12 14
Business
VPA Readiness Assessment
Have a lot of work to adapt On the right track
Assessment the change in knowledge of FLEFT-VPA after workshop with 5 levels (not known,
have heard, know the basics, known fully and proficient) 4 areas: Imported timber control,
organization classification, verify the origin of the timber and FLEGT licensing.
Imported timber control: The commitment includes 3 parts: Importer make the self-declaration,
applying the risk filter of the type of timber and geographical area, and providing proofs of origin
of timber if it is in high risk group (forest management certificate, exploitation license or other
alternative document). To the question about the knowledge in this commitment, 5 participants
said they did not know, 9 participants have heard, 16 participants had a basics knowledge, 11
participants known fully.
Organization classification: The commitment includes 3 parts: Applying to all businesses involved
in the timber supply chain (including harvesting, importing, processing, transporting and
exporting); businesses make their self-assessments according to the criteria set by the Ministry of
Agriculture & Rural Development; Central Forest Protection Department develops and manages
the database of organization classification and distributes accessing to this database to related
parties. To the question about the knowledge in this commitment, 8 participants have heard, 13
participants had a basics knowledge, 15 participants known fully.
Verifying the origin of the timber: The commitment includes 4 parts: Self-declaration timber
parking list and completing timber export dossier; importer must check the documents of timber
origin (parking list and invoice); confirmation request from the Commune People's Committee in
the case of consumption of some types of timber (forest timber, timber from home gardens,
scattered trees, rubber wood), local Forest Protection Department was required to verify and
inspect at least 20% of Category 2 Organization’s shipment or households/individuals ones. To
the question about the knowledge in this commitment, 11 participants have heard, 10
participants had a basics knowledge, 24 participants known fully and 3 participants were
proficient.
FLEGT licensing: The commitment includes 2 parts: Shipments exporting to Europe market are
requires a FLEGT license prior to clearance; FLEGT licensing authority/CITES Vietnam will design
software for e-licensing, database management. To the question about the knowledge in this
commitment, 2 participants have heard, 5 participants had a basics knowledge, 15 participants
known fully and only 2 participants were proficient. See figure 11.
Figure 11. Result of Assessment the change in knowledge of FLEFT-VPA after workshop
Based on the results, the change in knowledge and understanding of the participants before and
after the workshop was significantly increased. Most of participants has a fully basic knowledge
of FLEGT-VPA. In particular, some participants deeply understood the commitments of FLEGT-
VPA.
General assessment of the training workshop (method, content, logistics, training specialists)
After the training workshop, organizer issued 12 assessment form with 5 items and 5 levels. 7
participants said that training course’s contents, training specialists and logistics are excellent, 5
participants assessed at good level. 5 participants agreed that discussion methods are excellent
and 7 participants assessed at good level.
0
5
10
15
20
25
Not known
Have heard
Known the basicsKnown fully
Proficient
Assessment the change in knowledge of FLEFT-VPA after
workshop
Imported timber control
Organization classification
Verifying the origin of the timber
FLEGT licensing
Figure 12. General assessment of the training workshop
V. Conclusions and Recommendations
The training and workshop have been successfully implemented and meet their requirements
and expectation of the participants. The group of trainers, speakers and resource persons are
diverse and provide a lot of useful updated information for businesses, provide new knowledge
and skills, and there is also a lot of sharing among businesses participants.
There are some recommendations from business participants to improve the training in the
coming months:
- Information: Providing timely information for businesses through the media, the project
website. Applying digital technology and online tools.
- Project: Updating information from the government and increase the provision of
information on risk terrain for the enterprise through project staff. Cooperating with local
partners to assist enterprises in the project area in guiding the procedures required by the
agreement. Cooperating with local agencies and partners to strengthen the capacity of
small and medium enterprises (SMEs) to meet VPA requirements.
- Training specialists: The project supports experts and training materials and provides
guidance for enterprises to prepare documentations to meet the requirements of the
0
1
2
3
4
5
6
7
8
Exellent Good
General assessmentof the training workshop
Content Method Specialist Logistic
agreement. In addition, it provides guidance of procedures for SMEs, category 2 and
newly established enterprises to meet the assessment to achieve category 1, to facilitate
this group of enterprises have the opportunity to compete and expand the market.
ANNEX
Annex 1: FLEGT Readiness Checklist
No. Question Yes No Unsure
1
You are legally registered and licensed as a business, and
approved for conducting the defined business activities with
the relevant authorities as required by law?
2
You fulfill all obligatory taxes and fees required for conducting
the defined business activities?
3
You are compliant with relevant environmental
requirements?
4
You comply with all occupational health and safety
requirements?
5
You comply with all requirements associated with legal
employment?
6
You adhere to applicable transport, trade, import or export
regulations, procedures and restrictions?
7
You know your supply chains and have the necessary
information for them. You have and maintain up-to-date
information about products the buy and sell?
8
You know the timber you are purchasing is legal, or low risk of
being illegally harvested?
9
You have access to information about your forest product
supply chains to a level that allows you to confirm and
document that the material/products originate from forest
sources with low risk of legal violations or that potential risks
have already been mitigated?
10
You avoid high risk sources, including wood from countries
with sanctions imposed by the UN Security Council or the EU
Council on timber imports or exports and wood from
countries or areas with prevalence of armed conflicts?
11
If necessary and/or appropriate, you have in place a system of
segregation or a chain of custody system (Coca)?
12 You have a comprehensive record keeping system in place?
13 You are maintaining the records for at least 5 years?
Assessment checklist results will be calculated according to the following results:
- 10 - 13 answers: Yes, you are on the right track!
- 6-9 answers: Yes, you have a lot of work to do to ensure your business is ready to adapt to
FLEGT-VPA!
- 0-5 answers: Yes, you should plan to adapt to FLEGT-VPA immediately!
Adjusted from the questionnaires from NEPCON project.
Annex 2. Workshop and Training Agenda
AGENDA
Training workshop on
"Evaluating the Impact of latest commitments of FLEGT-VPA on timber businesses"
Time: 30 August 2017
Location: VCCI Da Nang Hall, 26 Ho Nguyen Trung St – Hai Chau District – Da Nang
Participants: 30 representatives from timber industry association and Association of Timber
processing and trade enterprises (including small, medium and big enterprises) in the north,
south and central of Vietnam, Vietnam Administration of Forestry.
Time Program Performer
7h30-8h00 Welcome Organizer
8h00-8h10 Opening Speech Representative of VCCI Da Nang
8h10-8h40
Introduction workshop agenda, goals and
participants
Training Specialists, Supporters
8h40-9h10
Brief some important requirements of
FLEGT/VPA
Representative of Vietnam
Administration of Forestry
9h10-9h20 Divided groups and guided to group
discussion
Training Specialists , Supporters
9h20-9h30 Assessment before workshop All participants
9h30-9h45 Break time
9h45-11h00 Divided into 2 groups: 1) Effects and
solution of Import Timber control; 2) Effect
Training Specialists , Supporters and
Technical Consulting Experts
and Solution of Organization Classification.
11h00-12h00 Discussion presentation
Q&A
Representative of groups
12h00-13h30 Lunch time
13h30-13h40 Divided groups and guided to group
discussion
Training Specialists , Supporters
13h40-15h00 Group discussion: Effect and solution of
verify timber origin and FLEGT license
Training Specialists , Supporters and
Technical Consulting Experts
15h00-15h15 Break time
15h15-16h30 Discussion presentation
Q&A
Representative of groups
16h30-16h40 Assessment after workshop All participants
16h40-17h00 Conclusion and Closing Speech Representatives of VCCI Da Nang
and Vietnam Administration of
Forestry
Annex 3. Participants list
No Full name Position Organization Mobile Email
1 Nguyen Duck
Huy
General
Director
Vinafor Danang
Joint Stock
Company
2 Truong Phi
Cuong
Deputy
General
Director
Vinafor Danang
Joint Stock
Company
0905335065/
845113.84412
6
johnny.cuong@gmail.co
m
/johnny.cuong@viaford
n.com.vn
3 Le Trung Thao Director Vinafor Da Nang
Wood Processing
Enterprise
4 Nguyen Thi
Hoai Phuong
Department
of Planning
and
Investment
IFC Trading
Limited Company
0935 545 939 hphuong.ifcdn@gmail.c
om
5 Do Hoang
Thong
Head of
Technical
Department
Forest Products Joint
Stock Company
Danang Export
0935237859 hoangthongdfp@gmail.
com
6 Nguyen Duc
Tien
Head of Sales
and Export-
Import
Department
Cam Ha Joint
Stock Company
0901.94.1234 tien@camhafurniture.c
om
7 Huynh Van
Tuan
Export and
Import
Executive
Innovgreen Chu
Lai Limited
Company
0913677719 trathiyenli
en@innov
green.vn
8 Ngo Van Vinh ForestProducts
ExportJointStock
CompanyOf
Quang Nam
0905050757 quangdc@forexco.vn
9 Ton Nu Hanh
Thao
Head of
Exporting-
Importing
Deparment
Viet Lang Forest
Products Limited
Company
10 Dang Ngoc
Tuan
Deputy
Director
Dinh Huong
Trading And Impex
Company Limited
(84-0234)
3681.566
info@dinhhuongcorp.co
m
11 Tran Dinh
Hung
General
Affair
Manager
Dinh Huong
Trading And Impex
Company Limited
12 Le Phung Chief
Accountant
EG Investment
And Trading Joint
Stock Company
0942843948 phungleeg@gmail.com
13 Nguyen Luong
Cong
Thua Thien Hue
Wood Processing
Joint Stock
Company
0914065923 son72ptf@gmail.com
14 Huynh Thang Pisico Hue Export
Product
Processing Joint
Stock Company
0913408627
15 Pham Thai Son Official of
Planning and
Truong Son
Limited Company
0905618185 truongson@truongsonf
urniture.com
Export-
Import
Department
16 Le Hanh President Quang Ngai
Coperative
Allience
0908351229 lmhtx@quangngai.gov.v
n
19 Nguyen Dien Deputy
Director
VCCI Đa Nang
20 Dao Tien Dung Head of
Project
Management
Unit
Handicraft And
Wood
Industry
Association of
HCMC
0902551816 zung.hawa@gmail.com
21 Huynh Van
Hanh
Permanent
Vice
Chairman
Handicraft And
Wood
Industry
Association of
HCMC
22 Nguyen Phuc Secrectary
General
Binh Duong
Furniture
Association
23 Tran Le Huy Secrectary
General
Forest Products
Association of
Binh Dinh
0905 036 456 tranlehuy50@gmail.co
m
24 Cao Xuan Chief of Vietnam Timber
Thanh Office and Forest
Product
Association
25 Nguyen Tuong
Van
Deputy
Director
General
Department of
Science and
Technology -
International
Cooperation -
VNFOREST
26 Tran Hieu
Minh
Central Forest
Protection
Department
27 Vu Quoc
Vuong
Handicraft And
Wood
Industry
Association Dong
Ki
28 Nguyen Van
Anh
Consultant Freelancer
29 Hoang Lien
Son
Consultant Viện nghiên cứu
rừng….
30 Doan Thi To
Uyen
Consultant Hanoi Law
University
31 Nguyen Thi
Huong
Program
coordinator
Center for
Education and
Development
32 Nguyen Ngoc
Thang
Project
Manager
WWF-Vietnam
Annex 4. Some photos of the workshop and training course
Report vcci 31.10.17 final  eng

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Report vcci 31.10.17 final eng

  • 1. REPORT ON TRAINING WORKSHOP ON "EVALUATING THE IMPACT OF LATEST COMMITMENTS OF FLEGT-VPA ON TIMBER BUSINESSES" THE PROJECT: “PROMOTING PRIVATE SECTOR ENGAGEMENT WITH THE VOLUNTARILY PARTNERSHIP AGREEMENT (VPA) IMPLEMENTATION PROCESS IN VIETNAM” Da Nang, August 2017
  • 2. Training workshop report CED-VCCI Da Nang, August 2017 Page 2 I. Introduction The project “Promoting the private sector engagement with the Voluntarily Partnership Agreement (VPA) implementation in Vietnam” is funded by FAO-UN. The project is designed to enhance the understanding of and compliance to legal frameworks, to promote legal production and the best management practices throughout the timber product value chain in Vietnam, and to strengthen public-private dialogues to advance the VPA process in Vietnam. There are two specific objectives: to increase business access to information on legality requirements according to Vietnamese laws and regulation on Timber Legality (TL); to strengthening public – private dialogues in advancing VPA process. The objectives will be achieved through following activities:  One-day launching and participatory planning workshop: 30 participants (including association members from Da Nang, Binh Dinh, Binh Duong);  Training materials revised for businesses and agenda for one-day business trainings;  Network of trainers established and maintained (for support businesses, sharing experience, online networking);  Five one-day training courses for at least 150 business representatives;  One regional public – private forum with 50 participants;  One national public private forum with 70 participants;  A comprehensive communication plan. The training workshop “Evaluating the Impact of latest commitments of FLEGT-VPA on timber businesses” was held by the Center for Education and Development (CED) and Vietnam Chamber of Commercial and Industry in Da Nang (VCCI Da Nang) on 30 August 2017 in Da Nang as one of the project activities. The objective of the training workshop was to update the latest important contents of FLEGT-VPA and discuss the impacts and solutions for 3 items: imported timber control, organization classification, verifying the origin of the timber and FLEGT licensing.
  • 3. Training workshop report CED-VCCI Da Nang, August 2017 Page 3 II. Training workshop contents and process The training workshop applied practical methodologies, focused on discussion, exchanges and sharing among businesses and facilitating learning among participants through group work and discussions. The workshop also encouraged dialogue between businesses and the local public.  Participants were staff from import and export departments or other relevant positions in their companies, we also encourage participation from businesses leaders;  Participants from each business will have to prepare information about their companies to share with the others and to use in group work and discussions. Section 1. Introducing FLEGT-VPA and brief its latest important requirements After the opening from VCCI Da Nang’s representative, participants were provided the FLEGT-VPA - major commitments and updated latest commitments, including: A. Introducing VPA-FLEGT B. Major commitments 1. Imported timber control 2. Organization classification 3. Verifying the origin of the timber 4. FLEGT licensing The main commitments were updated in detail, clearly according to the diagram below:
  • 4. Training workshop report CED-VCCI Da Nang, August 2017 Page 4 (Source: Vietnam Administration of Forestry) Figure 1. Major commitments Imported timber control term requires importers to declare the imported timber, apply the risk filter of the type of timber and geographical area, and provide proofs of origin of timber if it is in high risk group (forest management certificate, exploitation license or other alternative document). (Source: Vietnam Administration of Forestry) Figure 2. Diagram of the imported timber control
  • 5. Training workshop report CED-VCCI Da Nang, August 2017 Page 5 Organization classification is applicable to all businesses involved in the timber supply chain (including harvesting, importing, processing, transporting and exporting). Businesses make their self-assessments according to the criteria set by the Ministry of Agriculture & Rural Development. The assessment is then sent to the Provincial Forest Protection Department for appraisal. Appraisal results are submitted to Central Forest Protection Department and published. The Central Department developed and managed the database of organization classification and distributed accessing to this database to related parties. (Source: Vietnam Administration of Forestry) Figure 3. Diagram of the procedures, methods and responsibilities for classifying organizations Verification for organization classificated in each category: Category 1 Organization: Not require to verify. Businesses self-certificate on the timber packing list. Category 2 Organizations and Households/Individuals: Local Forest Protection Department inspects dossier and all consignment (minimum 20% of the volume of each consignment), vertify timber packing list.
  • 6. Training workshop report CED-VCCI Da Nang, August 2017 Page 6 (Source: Vietnam Administration of Forestry) Figure 4. Diagram of export verification – Category 1 Organizations (Source: Vietnam Administration of Forestry) Figure 5. Diagram of export verification – Category 2 Organizations and Households/Individuals Shipments exported to the EU market must have a FLEGT license before customs clearance. The Government of Vietnam will issue legal documents regulating the responsibilities, order
  • 7. Training workshop report CED-VCCI Da Nang, August 2017 Page 7 and procedures for FLEGT licensing: form of permit, information, procedures for granting, extension, replacement, revocation, licensing dossier. The FLEGT licensing authority will develop and manage a licensing database. Category 1 Organizations: Export procedures are not required prior to licensing. Category 2 Organizations: They must carry out export verification procedures before being licensed. (Source: Vietnam Administration of Forestry) Figure 6. Diagram of FLEGT licensing procedure Following a presentation of the latest commitments in FLEGT-VPA, the participants were divided into 2 groups of 4 commitments to discuss the positive and negative impacts and recommend solutions. Section 2: Discussion the positive and negative impacts and solution for 3 items: imported timber control, organization classification, verifying the origin of the timber and FLEGT licensing (including impacts related with Economic, Society, Environment, Gender, Administrative Procedures and Law) The results of the discussion are summarized as follows:
  • 8. Training workshop report CED-VCCI Da Nang, August 2017 Page 8 Requirement Positive effects Negative effects Solutions Organization Classification Firstly, the competitiveness and market accessing of enterprises were improved. The production cost of category 1 organizations will be significantly reduced because verification time is shorted. Secondly, the prestige of Vietnam's timber industry on the international market has been improved, strengthened and increased. Finally, businesses are encouraged to comply with the law, more transparent in operation, fulfill the tax obligations to meet the requirements of the agreement, reduce risks. Enterprises will also pay more attention to the environment and the rights of the labor. On the business side, in the opinion of delegates attending the workshop, SMEs will face many difficulties in implementing OCS without the support and training from Government. Specifically, SMEs will be affected by import-export procedures, which are difficult to compete due to limited capacity and resources. In addition, SMEs must face with changes in the management of their organization. The recruitment of seasonal workers will become limited for this business, which makes it more difficult to meet orders from importers. For them, in the case of customers or larger businesses that require OCS capabilities, they will be greatly impacted. Because they are not accredited, they need to carry out many Firstly, SMEs should have the support and training from the Government to gain more market access. These enterprises also need to cooperate, actively participate in the community for the same aim to help each other to meet the requirements of the agreement. This community will also help SMEs improve their position in the market. Secondly, it is necessary to apply digital technology, online tools and internet in management; reform administrative procedures; reduce directly contact between enterprises and civil servants. Thirdly, in order to reduce the overload of management systems, voluntary system is required. OCS deployment should begin only once this system has
  • 9. Training workshop report CED-VCCI Da Nang, August 2017 Page 9 administrative procedures in order to export, so the possibility of missing out on opportunities increase when foreign importers decide to focus on the larger business. For category 2 organization, it will be extremely difficult to gain market share with category 1. Workers are negatively affected by the decline in the number of businesses in category 1 and the number of businesses in category 2 is increasing due to the inability to meet VPA requirements. In the early days of the VPA, the relationship between businesses and importers would be difficult and contradictory. On the government side, a foreseeable negative impact is that management systems will overload, including information processing systems, human been built so that they can help reduce the burden on the state and to help businesses overcome their problems. Fourthly, the inspection and verification should clarify the content, process, time, information and notice in a suitable time for enterprises to know and prepare. In addition, Government should establish an organization to appraise and classify enterprises, operate in parallel with the provincial FPD.
  • 10. Training workshop report CED-VCCI Da Nang, August 2017 Page 10 resources systems to control and enforce administrative procedures to enforce the FLEGT-VPA. In addition, the enterprise does not have sufficient capacity, or SMEs do not meet requirements of state agencies, which make to increased corruption. Imported timber control Firstly, legally timber supply increases. Secondly, quality control system also increased the value of Vietnamese timber products in the international market, leading to a rise in other markets outside Europe. Finally, the verification origin has a positive effect on consumer. This makes them know that the product they are using has a legal origin. The quality control system of imported timber makes timber supply to Vietnam limited, leading to a shortage of timber material used in production. Due to strict supply control, increasing demand for timber will push up the price, which will lead to negative effect on the competitiveness of domestic enterprises. Firstly, strengthen the provision of information on high risk geography areas through overseas trade staffs. Second, the records provided to the business should be accurate and lawful. FPD certifies a whole contract, not certification for each shipment to help businesses do not take much time. Coordination between customs, local forest protection departments, and other authorities will also help businesses to confirm contracts faster and more favorable.
  • 11. Training workshop report CED-VCCI Da Nang, August 2017 Page 11 Thirdly, the Government should support to timber importers at the beginning into the market. Domestic afforestation should also be encouraged. It is necessary to assist businesses to collaborate with countries which have sustainable forest management. Fourthly, the competent authorities must publish the form of document proving the lawful timber of exporting country to facilitate the actual verification. Fifth, the state should engage in negotiation of legal timber standards between countries. A common standard will limit the risks when exporting or importing. Sixth, for types of the timber that have not yet been identified, customs allow
  • 12. Training workshop report CED-VCCI Da Nang, August 2017 Page 12 the business to clear and take them to the bonded warehouse. Finally, if Vietnam deploy the control system well, Vietnam will be considered a good implementation of signed international agreement. This helps legal documents (VPA legislation) better align with FTAs. Verifying the origin of the timber and FLEGT licensing Verification will benefit FDI enterprises and large enterprises that meet VPA standards (Category 1 enterprises). This will encourage SMEs in the country to change to meet the criteria of being classified in category 1. With a strict process, businesses will be more productive in their export performance, increased their competitiveness and market share. In addition, the verification makes the authorities more transparent and Enterprises will have difficulties and risks when seeking information of exporting countries. Administrative procedures and procedures for group 2 enterprises have increased, leading to the risk of negative occurrences in handling administrative procedures. Along with that, the risk of late shipment and breach of contract also soared. Firstly, contribute to the development of supporting industries to modernize agriculture and rural development. Secondly, FLEGT certification is granted to enterprises according to their timber shipments, subtracting volumes when exporting. Thirdly, FLEGT licensing for enterprises in one year then deduct the amount of used timber to make favorable conditions for businesses.
  • 13. Training workshop report CED-VCCI Da Nang, August 2017 Page 13 compliant. The genuine business enterprises will increasingly develop, expand the market, domestic enterprises also increased the competitiveness compared with FDI enterprises, accessed and expand the European market in the long term. Fourthly, it is necessary to build a post- inspection mechanism to avoid the case where the category 1 enterprises have incorrectly declared. The government needs to change the legal document to be compatible with the VPA. Finally, government agencies should provide information about the risk filter (types of timber and geographical area) to enterprises. At that time, enterprises will be more convenient when carrying out procedures and signing contracts with partners.
  • 14. IV. Results of the workshop and training (based on participant’s assessment) Assessment before training workshop Assessment the knowledge of businesses in 4 areas: Imported timber control, organization classification, verify the origin of the timber and FLEGT licensing. The training workshop have been attended by 30 participants. There were only 15 participants from businesses that filled out assessment form. The assessment offers 5 levels: not known, have heard, known the basics, known fully and proficient for all areas. Imported timber control: The commitment includes 3 parts: Importer make the self-declaration, applying the risk filter of the type of timber and geographical area, and providing proofs of origin of timber if it is in high risk group (forest management certificate, exploitation license or other alternative document). To the question about the knowledge in this commitment, 5 participants said they did not know, 16 participants have heard, 14 participants had a basics knowledge, 8 participants known fully. Specially, there were only 1 participant who gave feedback that they were proficient at this area. Organization classification: The commitment includes 3 parts: Applying to all businesses involved in the timber supply chain (including harvesting, importing, processing, transporting and exporting); businesses make their self-assessments according to the criteria set by the Ministry of Agriculture & Rural Development; Central Forest Protection Department develops and manages the database of organization classification and distributes accessing to this database to related parties. To the question about the knowledge in this commitment, 13 participants said they did not know, 18 participants have heard, 4 participants had a basics knowledge, 10 participants known fully and no one was proficient. Verifying the origin of the timber: The commitment includes 4 parts: Self-declaration timber parking list and completing timber export dossier; importer must check the documents of timber origin (parking list and invoice); confirmation request from the Commune People's Committee in the case of consumption of some types of timber (forest timber, timber from home gardens, scattered trees, rubber wood), local Forest Protection Department was required to verify and inspect at least 20% of Category 2 Organization’s shipment or households/individuals ones. To the question about the knowledge in this commitment, 3 participants indicated they did not
  • 15. know, 11 participants have heard, 22 participants had a basics knowledge, 15 participants known fully and no one was proficient. FLEGT licensing: The commitment includes 2 parts: Shipments exporting to Europe market are requires a FLEGT license prior to clearance; FLEGT licensing authority/CITES Vietnam will design software for e-licensing, database management. To the question about the knowledge in this commitment, 6 participants indicated they did not know, 8 participants have heard, 9 participants had a basics knowledge, 6 participants known fully and only 1 participant was proficient. Figure 7. Result of Assessment the knowledge of FLEGT-VPA Assessment the demand of information of businesses To the question whether businesses are interested in contents such as legal definition for households and organizations and how to set up and verify evidence and proof for legal timber for each step in supply chain, internal inspection, verification of timber legality compliance of households and organizations, including organization classification system (OCS) risk-based assessment classification, FLEGT licensing, and independent monitoring, it can be said that most of participants are interested in the a.m content and issues (14 participants said they are necessary), there are 2 participants said that they are not necessary. 0 10 20 30 40 50 60 Before workshop - Not known Before workshop - Have heard Before workshop - Known the basics Before workshop - Known fully Before workshop - Proficient Assessment the knowledge of FLEGT-VPA Imported timber control Organization classification Verifying the origin of the timber FLEGT licensing
  • 16. 14 participants are interested in LD information and criteria, 12 participants are interested in information related to FLEGT licensing, verification of business compliance of households and organizations, OCS based on risk assessment and how they can create, verify and approve evidence in each step of the supply chain. 12 participants are interested in internal inspection and independent monitoring. See figure 8. Figure 8. Result of Assessment the demand of information Assessment the means of receiving information Publication: 7 participants are expected to receive information on the legal definition, 4 participants are expected to receive information on verifying evidence for legal timber for each step in supply chain, 4 participants are expected to receive information on internal inspection, 4 participants are expected to receive information verification of business compliance of households and organizations, 4 participants are expected to receive information on FLEGT licensing and 3 participants are expected to receive information on independent monitoring. Social networking: 3 participants are expected to receive information on the legal definition, 3 participants are expected to receive information on verifying evidence for legal timber for each step in supply chain, 3 participants are expected to receive information on internal inspection, 4 participants are expected to receive information verification of business compliance of 12 12 12 12 12 14 11 12 13 14 Independent monitoring FLEGT licensing Verification of compliance Internal inspection Creating and verifying evidence Legal definition Assessment the demandof informationof businesses Interested
  • 17. households and organizations, 3 participants are expected to receive information on FLEGT licensing and no one is expected to receive information on independent monitoring. Newspaper, radio, TV: 2 participants are expected to receive information on the legal definition, 2 participants are expected to receive information on verifying evidence for legal timber for each step in supply chain, 2 participants are expected to receive information on internal inspection, 3 participants are expected to receive information verification of business compliance of households and organizations, 1 participant is expected to receive information on FLEGT licensing and 1 participant is expected to receive information on independent monitoring. Website: 12 participants are expected to receive information on the legal definition, 12 participants are expected to receive information on verifying evidence for legal timber for each step in supply chain, 12 participants are expected to receive information on internal inspection, 11 participants are expected to receive information verification of business compliance of households and organizations, 12 participant is expected to receive information on FLEGT licensing and 10 participant are expected to receive information on independent monitoring. E-newsletter: 5 participants are expected to receive information on the legal definition, 4 participants are expected to receive information on verifying evidence for legal timber for each step in supply chain, 5 participants are expected to receive information on internal inspection, 6participants are expected to receive information verification of business compliance of households and organizations, 5 participant is expected to receive information on FLEGT licensing and 6 participant are expected to receive information on independent monitoring. To the question, which information channel their companies would like to receive information and updates on VPA from, 45% want to receive information through website, about 28% want to receive information through e-newsletters, 13% through social network and media, about 8% want to receive through publications and printed materials and 6% want to receive through traditional media such as television, radio and newspapers.
  • 18. Figure 9. Result of Assessment the means of receiving information VPA Readiness Assessment The training session started with readiness assessment of companies with VPA. After this assessment, it can be said that most of participating companies are able to comply with new requirements from VPA (see the assessment checklist for more information). Companies answered 13 questions designed to check their compliance possibility with FLEGT-VPA (Please see annex 1). The form is available online and companies can use it check if they are compliant with VAP requirements as the first step: http://flegtvpa.com/doanh-nghiep-ban-san- sang-voi-flegt-chua.html Assessment checklist results will be calculated according to the following results: 10 - 13 answers: Yes, you are on the right track! 6-9 answers: Yes, you have a lot of work to do to ensure your business is ready to adapt to FLEGT- VPA! 0-5 answers: Yes, you should plan to adapt to FLEGT-VPA immediately! With 15 assessments from participants, most of the companies are able to adapt with VPA. Specific responses are listed below: 0 2 4 6 8 10 12 14 E-Newsletter Website Newspaper, radio, TV Social media Publication Assessment the means of receiving information Independent monitoring FLEGT licensing Verification of compliance Internal inspection Creating and verifying evidence Legal definition
  • 19. With the question, is your business is legally registered and licensed according to relevant laws and regulations; 9 participants said yes and 6 participants did not answer. 14 participants said their companies fulfill all obligatory taxes and fees required by laws, only 1 participant did not answer. 12 participants said their companies are compliant with regulations and relevant environmental requirements; 2 participants said unsure and 1 participant did not answer. There were 12 participants that said their companies are compliant with all occupational health and safety requirements, only 2 participants were unsure and 1 participant did not answer. 13 participants said their companies are compliant with all labor laws and regulations, only 1 participant said unsure and 1 participant did not answer. 14 participants said their companies are compliant with transport, trade, import or export regulations, procedures and restrictions, only 1 participant did not answer. 10 participants have said their businesses have maintained their filing of trade transactions throughout the supply chain and known their supply chain, 2 participants said they were unsure, 1 participant said no and 2 participants did not answer. 12 participants said that they know their businesses use legal timber, 2 participants said they were unsure, 1 participant did not answer. 8 participants said that they have had access to information about your forest product supply chains to a level that allows you to confirm and document that the material/products originate from forest sources with low risk of legal violations or that potential risks have already been mitigated. There, 3 participants were unsure and 2 participants said they do not have and 2 participants did not answer. 9 participants said their businesses have avoided high risk sources, including wood from countries with sanctions imposed by the UN Security Council or the EU Council on timber imports or exports and wood from countries or areas with prevalence of armed conflicts. 4 participants were unsure and 1 participant said no and 1 participant did not answer.
  • 20. 9 participants said their businesses have a necessary and/or appropriate system of segregation or a chain of custody system (CoC). 2 participants were unsure and 3 participants said no and 1 participant did not answer. 13 participants said that their businesses have a comprehensive record keeping systemin place. 1 participant were unsure. 1 participant did not answer. 14 participants said their businesses have maintained the records for at least 5 years. 1 participant did not answer. Figure 10. Result of VPA Readiness Assessment According to the assessment, there were 12 out of 15 participants who ensure their businesses is ready to adapt to FLEGT-VPA, only 2 participant said their organizations are not ready and 1 participant did not respond. The above assessment shows that the participants in the workshop have been prepared to comply with FLEGT-VPA requirements. However, 3 participants have not prepared documents, invoices, information to adapt the agreement. They need to spend time and resources to complete the procedure what is to improve the business’ rank and meet the requirements of the FLEGT-VPA. Assessment after training workshop There are 12 participant filled out the assessment form after training workshop. 0 2 4 6 8 10 12 14 Business VPA Readiness Assessment Have a lot of work to adapt On the right track
  • 21. Assessment the change in knowledge of FLEFT-VPA after workshop with 5 levels (not known, have heard, know the basics, known fully and proficient) 4 areas: Imported timber control, organization classification, verify the origin of the timber and FLEGT licensing. Imported timber control: The commitment includes 3 parts: Importer make the self-declaration, applying the risk filter of the type of timber and geographical area, and providing proofs of origin of timber if it is in high risk group (forest management certificate, exploitation license or other alternative document). To the question about the knowledge in this commitment, 5 participants said they did not know, 9 participants have heard, 16 participants had a basics knowledge, 11 participants known fully. Organization classification: The commitment includes 3 parts: Applying to all businesses involved in the timber supply chain (including harvesting, importing, processing, transporting and exporting); businesses make their self-assessments according to the criteria set by the Ministry of Agriculture & Rural Development; Central Forest Protection Department develops and manages the database of organization classification and distributes accessing to this database to related parties. To the question about the knowledge in this commitment, 8 participants have heard, 13 participants had a basics knowledge, 15 participants known fully. Verifying the origin of the timber: The commitment includes 4 parts: Self-declaration timber parking list and completing timber export dossier; importer must check the documents of timber origin (parking list and invoice); confirmation request from the Commune People's Committee in the case of consumption of some types of timber (forest timber, timber from home gardens, scattered trees, rubber wood), local Forest Protection Department was required to verify and inspect at least 20% of Category 2 Organization’s shipment or households/individuals ones. To the question about the knowledge in this commitment, 11 participants have heard, 10 participants had a basics knowledge, 24 participants known fully and 3 participants were proficient. FLEGT licensing: The commitment includes 2 parts: Shipments exporting to Europe market are requires a FLEGT license prior to clearance; FLEGT licensing authority/CITES Vietnam will design software for e-licensing, database management. To the question about the knowledge in this
  • 22. commitment, 2 participants have heard, 5 participants had a basics knowledge, 15 participants known fully and only 2 participants were proficient. See figure 11. Figure 11. Result of Assessment the change in knowledge of FLEFT-VPA after workshop Based on the results, the change in knowledge and understanding of the participants before and after the workshop was significantly increased. Most of participants has a fully basic knowledge of FLEGT-VPA. In particular, some participants deeply understood the commitments of FLEGT- VPA. General assessment of the training workshop (method, content, logistics, training specialists) After the training workshop, organizer issued 12 assessment form with 5 items and 5 levels. 7 participants said that training course’s contents, training specialists and logistics are excellent, 5 participants assessed at good level. 5 participants agreed that discussion methods are excellent and 7 participants assessed at good level. 0 5 10 15 20 25 Not known Have heard Known the basicsKnown fully Proficient Assessment the change in knowledge of FLEFT-VPA after workshop Imported timber control Organization classification Verifying the origin of the timber FLEGT licensing
  • 23. Figure 12. General assessment of the training workshop V. Conclusions and Recommendations The training and workshop have been successfully implemented and meet their requirements and expectation of the participants. The group of trainers, speakers and resource persons are diverse and provide a lot of useful updated information for businesses, provide new knowledge and skills, and there is also a lot of sharing among businesses participants. There are some recommendations from business participants to improve the training in the coming months: - Information: Providing timely information for businesses through the media, the project website. Applying digital technology and online tools. - Project: Updating information from the government and increase the provision of information on risk terrain for the enterprise through project staff. Cooperating with local partners to assist enterprises in the project area in guiding the procedures required by the agreement. Cooperating with local agencies and partners to strengthen the capacity of small and medium enterprises (SMEs) to meet VPA requirements. - Training specialists: The project supports experts and training materials and provides guidance for enterprises to prepare documentations to meet the requirements of the 0 1 2 3 4 5 6 7 8 Exellent Good General assessmentof the training workshop Content Method Specialist Logistic
  • 24. agreement. In addition, it provides guidance of procedures for SMEs, category 2 and newly established enterprises to meet the assessment to achieve category 1, to facilitate this group of enterprises have the opportunity to compete and expand the market.
  • 25. ANNEX Annex 1: FLEGT Readiness Checklist No. Question Yes No Unsure 1 You are legally registered and licensed as a business, and approved for conducting the defined business activities with the relevant authorities as required by law? 2 You fulfill all obligatory taxes and fees required for conducting the defined business activities? 3 You are compliant with relevant environmental requirements? 4 You comply with all occupational health and safety requirements? 5 You comply with all requirements associated with legal employment? 6 You adhere to applicable transport, trade, import or export regulations, procedures and restrictions? 7 You know your supply chains and have the necessary information for them. You have and maintain up-to-date information about products the buy and sell? 8 You know the timber you are purchasing is legal, or low risk of being illegally harvested? 9 You have access to information about your forest product supply chains to a level that allows you to confirm and document that the material/products originate from forest sources with low risk of legal violations or that potential risks have already been mitigated?
  • 26. 10 You avoid high risk sources, including wood from countries with sanctions imposed by the UN Security Council or the EU Council on timber imports or exports and wood from countries or areas with prevalence of armed conflicts? 11 If necessary and/or appropriate, you have in place a system of segregation or a chain of custody system (Coca)? 12 You have a comprehensive record keeping system in place? 13 You are maintaining the records for at least 5 years? Assessment checklist results will be calculated according to the following results: - 10 - 13 answers: Yes, you are on the right track! - 6-9 answers: Yes, you have a lot of work to do to ensure your business is ready to adapt to FLEGT-VPA! - 0-5 answers: Yes, you should plan to adapt to FLEGT-VPA immediately! Adjusted from the questionnaires from NEPCON project.
  • 27. Annex 2. Workshop and Training Agenda AGENDA Training workshop on "Evaluating the Impact of latest commitments of FLEGT-VPA on timber businesses" Time: 30 August 2017 Location: VCCI Da Nang Hall, 26 Ho Nguyen Trung St – Hai Chau District – Da Nang Participants: 30 representatives from timber industry association and Association of Timber processing and trade enterprises (including small, medium and big enterprises) in the north, south and central of Vietnam, Vietnam Administration of Forestry. Time Program Performer 7h30-8h00 Welcome Organizer 8h00-8h10 Opening Speech Representative of VCCI Da Nang 8h10-8h40 Introduction workshop agenda, goals and participants Training Specialists, Supporters 8h40-9h10 Brief some important requirements of FLEGT/VPA Representative of Vietnam Administration of Forestry 9h10-9h20 Divided groups and guided to group discussion Training Specialists , Supporters 9h20-9h30 Assessment before workshop All participants 9h30-9h45 Break time 9h45-11h00 Divided into 2 groups: 1) Effects and solution of Import Timber control; 2) Effect Training Specialists , Supporters and Technical Consulting Experts
  • 28. and Solution of Organization Classification. 11h00-12h00 Discussion presentation Q&A Representative of groups 12h00-13h30 Lunch time 13h30-13h40 Divided groups and guided to group discussion Training Specialists , Supporters 13h40-15h00 Group discussion: Effect and solution of verify timber origin and FLEGT license Training Specialists , Supporters and Technical Consulting Experts 15h00-15h15 Break time 15h15-16h30 Discussion presentation Q&A Representative of groups 16h30-16h40 Assessment after workshop All participants 16h40-17h00 Conclusion and Closing Speech Representatives of VCCI Da Nang and Vietnam Administration of Forestry
  • 29. Annex 3. Participants list No Full name Position Organization Mobile Email 1 Nguyen Duck Huy General Director Vinafor Danang Joint Stock Company 2 Truong Phi Cuong Deputy General Director Vinafor Danang Joint Stock Company 0905335065/ 845113.84412 6 johnny.cuong@gmail.co m /johnny.cuong@viaford n.com.vn 3 Le Trung Thao Director Vinafor Da Nang Wood Processing Enterprise 4 Nguyen Thi Hoai Phuong Department of Planning and Investment IFC Trading Limited Company 0935 545 939 hphuong.ifcdn@gmail.c om 5 Do Hoang Thong Head of Technical Department Forest Products Joint Stock Company Danang Export 0935237859 hoangthongdfp@gmail. com 6 Nguyen Duc Tien Head of Sales and Export- Import Department Cam Ha Joint Stock Company 0901.94.1234 tien@camhafurniture.c om 7 Huynh Van Tuan Export and Import Executive Innovgreen Chu Lai Limited Company 0913677719 trathiyenli en@innov green.vn
  • 30. 8 Ngo Van Vinh ForestProducts ExportJointStock CompanyOf Quang Nam 0905050757 quangdc@forexco.vn 9 Ton Nu Hanh Thao Head of Exporting- Importing Deparment Viet Lang Forest Products Limited Company 10 Dang Ngoc Tuan Deputy Director Dinh Huong Trading And Impex Company Limited (84-0234) 3681.566 info@dinhhuongcorp.co m 11 Tran Dinh Hung General Affair Manager Dinh Huong Trading And Impex Company Limited 12 Le Phung Chief Accountant EG Investment And Trading Joint Stock Company 0942843948 phungleeg@gmail.com 13 Nguyen Luong Cong Thua Thien Hue Wood Processing Joint Stock Company 0914065923 son72ptf@gmail.com 14 Huynh Thang Pisico Hue Export Product Processing Joint Stock Company 0913408627 15 Pham Thai Son Official of Planning and Truong Son Limited Company 0905618185 truongson@truongsonf urniture.com
  • 31. Export- Import Department 16 Le Hanh President Quang Ngai Coperative Allience 0908351229 lmhtx@quangngai.gov.v n 19 Nguyen Dien Deputy Director VCCI Đa Nang 20 Dao Tien Dung Head of Project Management Unit Handicraft And Wood Industry Association of HCMC 0902551816 zung.hawa@gmail.com 21 Huynh Van Hanh Permanent Vice Chairman Handicraft And Wood Industry Association of HCMC 22 Nguyen Phuc Secrectary General Binh Duong Furniture Association 23 Tran Le Huy Secrectary General Forest Products Association of Binh Dinh 0905 036 456 tranlehuy50@gmail.co m 24 Cao Xuan Chief of Vietnam Timber
  • 32. Thanh Office and Forest Product Association 25 Nguyen Tuong Van Deputy Director General Department of Science and Technology - International Cooperation - VNFOREST 26 Tran Hieu Minh Central Forest Protection Department 27 Vu Quoc Vuong Handicraft And Wood Industry Association Dong Ki 28 Nguyen Van Anh Consultant Freelancer 29 Hoang Lien Son Consultant Viện nghiên cứu rừng…. 30 Doan Thi To Uyen Consultant Hanoi Law University 31 Nguyen Thi Huong Program coordinator Center for Education and Development
  • 34. Annex 4. Some photos of the workshop and training course