The wood industry moves to green to improve competitiveness
New requirements from the international market are making the competitiveness of the wood industry no longer located in each enterprise but dependent on the entire raw material chain.
Race by data and traceability
Vietnam's wood processing and export industry is entering a new stage of development, in which international market requirements are no longer only focused on product quality and cost, but increasingly emphasize the legality of raw materials, traceability, sustainable forest management, greenhouse gas emission reduction and transparency of the entire supply chain.
According to MSc Bui Thi Nha Trang - Manager of the Sustainable Standards Certification Department of Control Union Vietnam, the global market no longer buys a wood product, but is buying a chain of data to prove the legality, sustainability and carbon footprint of that product.
Global forestry trade is shifting from a "trust-based" model to a "evidence-based" model. Claims of legal origin or sustainable development will no longer be convincing if not supported by data, traceability records and independent verification results from recognized assessment organizations.
For Vietnamese businesses, this is both a challenge and an opportunity. Businesses that actively invest in supply chain management systems, data digitization and apply international standards will have many advantages in accessing high-value markets, while improving their reputation and long-term competitiveness.
International certification programs, traceability systems, carbon footprint inventory of products according to ISO 14067 and carbon credit projects should not be seen as individual compliance requirements. These are components of a modern, transparent management ecosystem, helping businesses demonstrate sustainable development capacity, meet market requirements and enhance brand value.
“Building sustainably managed raw material areas, promoting digital transformation in supply chain management, expanding inventory and verification of greenhouse gas emissions, and developing high-quality carbon credit projects will contribute to improving the competitiveness of the entire wood industry. Not only creating conditions to access high-value markets, these solutions also open up opportunities to form new business models, in which the value of forests is recognized not only through timber production but also through ecosystem services and carbon absorption capacity” - Ms. Trang recommended.
Linking businesses and forest growers
The competitiveness of the wood industry is no longer decided by individual businesses but increasingly depends on the quality and sustainability of the raw material chain.
According to Assoc. Prof. Dr. Ly Tuan Truong - Director of the Institute of Wood Industry and Interior Design (Forestry University), many businesses have invested in developing raw material areas, signed contracts with forest growers or supported sustainable forest management certificates. However, practice shows that these links are unsustainable, still frequently affected, even broken when raw material prices fluctuate, when traders offer higher prices or when businesses face market difficulties. This reflects that the relationship between businesses and forest growers is still mainly based on short-term commercial transactions, and strategic partnerships have not been formed.
Another gap pointed out by Assoc. Prof. Dr. Ly Tuan Truong is the role of research institutes and universities. Although this is a place to create new varieties, technical processes, processing technologies, quality standards and high-quality human resources, research results are still mainly limited to individual transfer activities, have not become a permanent component in the operation of the raw material chain, and knowledge has not become an "input" of the value chain.
The core reason why the current timber raw material chain is still unsustainable is not because of the lack of businesses, lack of forest growers or lack of research institutions, but because we have not built a mechanism for stakeholders to create value and share value. It is time for us to consider shifting from the thinking of developing the raw material supply chain to building a co-creating value ecosystem, in which businesses, forest growers, research institutions, the State and intermediary organizations participate in the process of creating, sharing and reinvesting value" - Assoc. Prof. Dr. Ly Tuan Truong emphasized.
Vietnam's sustainable timber raw material chain in the future will not only be built by better planted forests or more modern factories, but also by trust between stakeholders, benefit sharing, the spread of knowledge and the power of data.
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