Binh Dinh wood industry 'sprints' to adapt to EUDR

According to Mr. Le Minh Thien, Chairman of the Forest Products Association of Binh Dinh (FPA Binh Dinh), the province currently has more than 350 export wood processing enterprises and facilities with about 30,000 employees participating, focusing mainly in Quy Nhon city, Hoai Nhon town, Tuy Phuoc district, and Phu Cat district. In particular, 150 enterprises are members of the Forest Products Association of Binh Dinh, operating in the fields of wood processing, supplying raw materials, machinery, equipment, chemicals, packaging, services, logistics, etc.

"Most enterprises that are members of FPA Binh Dinh apply the management systems of quality, environment, wood certificates, and corporate social responsibility, such as ISO 9001, FSC/VFCS-PEFC (CoC/FM), BSCI, SMETA, and CTPAT," Mr. Le Minh Thien said.

The EU Deforestation Regulation (EUDR) was issued to prohibit products and commodities that cause deforestation and forest degradation and do not comply with the laws of the country of harvest from being imported into or exported from the EU market.

The application date of the EUDR has been postponed by 12 months, with the new deadline for large and medium-sized companies being December 30, 2025, and for micro and small enterprises being June 30, 2026. There are seven groups of products under the control scope, including palm oil, cattle, coffee, rubber, wood, cocoa, and soy. Of which, Vietnam has three items: coffee, wood, and rubber.

"Export wood processing enterprises must have the responsibility system of explaining to ensure transparency and fully comply with EUDR requirements. The EUDR is a new challenge for export wood processing enterprises. Along with the implementation of the responsibility for explaining to ensure legal wood materials, enterprises also have to provide evidence of geographical coordinates of each forest to prove that raw wood is exploited without causing forest loss and forest degradation. The EUDR also requires enterprises to publicly report every year on the explanation system and the works done to fulfill this responsibility," Mr. Thien shared.

In order to promptly adapt to EUDR regulations, Mr. Tran Van Thanh, Director of Thien Phat Commercial Production and Construction Co., Ltd. (Hoai Nhon town, Binh Dinh), said that Thien Phat Company continuously upgraded infrastructure and equipment to meet partners' standards. Currently, the production facility of Thien Phat Commercial Production and Construction Co., Ltd. is 10.2 hectares wide with 8 factories and 15 modern wood production lines, reaching a capacity of 2,000 containers/year.

"The company develops a strict quality control process and system from input to output with 1,200 skilled employees. The company is always committed to appraising the supply chain required by the EUDR. This commitment acts as a "passport" so that the product is freely circulated in the European market. In order to complete this commitment, the business must go through a complicated and expensive process but is forced to do so," Mr. Thanh said.

Hoang Giang Co., Ltd. (Tuy Phuoc district, Binh Dinh) has just put into operation a factory manufacturing resin wicker products and completing wooden furniture products, with a capacity of 500,000 products/year and a capital investment of over USD 2.37 million, creating jobs for about 800 employees.

"The company sets a goal of reaching USD 32 million of export turnover in 2025. Besides investing in a modern machinery system, we must also comply with all the laws of Vietnam and partners, such as legal land use rights; labor issues; proving that environmental protection issues, such as environmental impact assessment and the use of pesticides, must comply with the law, etc., to meet the requirements of customers," said Phan Hong Quy, Director of Hoang Giang Co., Ltd.

"Binh Dinh has more than 167,000 hectares of planted forests, of which nearly 20,000 have FSC certification. This area contributes to removing difficulties for the demand for raw wood of export wood processing enterprises in the province," said Le Minh Thien, Chairman of FPA Binh Dinh.

FSC certification will create a competitive advantage for Vietnam's export wood products in the EU market and is an opportunity for wood products of Binh Dinh in particular and Vietnam in general to access the EU market, a potential market.