The document summarizes Vietnam's negotiations with the EU on a Voluntary Partnership Agreement (VPA) and Timber Legality Assurance System (TLAS) under the Forest Law Enforcement, Governance and Trade (FLEGT) process. Key points include: 1) Vietnam and the EU have held several negotiation rounds and technical meetings to develop annexes on issues like legality definitions, supply chain controls, and an assurance system. 2) The TLAS would verify compliance with Vietnamese laws through a two-level process and reconcile timber quantities throughout the supply chain. 3) Upon verification that a timber shipment complies with the TLAS, Vietnam's FLEGT Licensing Authority would issue a

1. VPA/FLEGT Negotiation
Process between
Viet Nam and EU

2. Contents
1. Negotiation background: rationales,
negotiation contents, organizational
structure of FLEGT/VPA negotiation of Viet
Nam;
2. Results of negotiation;
3. Future roadmap;
4. Additional support needed for Vietnam
during VPA/FLEGT implementation stage.

3. Rationales
• For commercial purpose: Maintain and expand export
markets as: EU, the US, Australia, Canada, Japan;
• Encouraging responsible business, increasing
competitive capacity for VN timber processing
enterprises for the reason that they are verified and
issued FLEGT license by Vietnamese agencies so due
diligence under the 995 regulation is not necessary;
• For the implementation of deep international integration
policy: Improve institution, legislation, procedures,
standards in compliance with international regulations;
• Promoting sustainable forest management and combat
climate change

4. Negotiation contents
1. List of products under VPA
2. Timber legality definition
3. Supply chain controls
4. Timber legality assurance system (TLAS)
5. FLELGT licensing
6. Independent monitoring

5. Organizational structure of FLEGT/VPA negotiation of
STERRING COMMITTEE (SOM)
MARD Vice Minister (head)
(MOFA, MOJ, MOIT, MOF/Customs, Timber
Association)
NEGOTIATION TEAM (TWG)
(MARD, MOFA, MOJ, MOIT, MOF/Customs)
Working Group
on timber legality
definition
Working group
on timber
legality
assurance system
(TLAS)
Standing
Office
Working group
on VPA text
Viet Nam
Stakehol
-der
consulta
-tion
(P/S,
CSO)

6. Results of negotiation
• Two sides held 22 video conferences (VC), 7
technical meetings (JEM) and 3 high level
negotiation rounds (TWG);
• Majority of technical annexes have been
negotiated. Annexes 1, 2, 3, 4, 5, 8 and 9 have
been basically agreed.
• VN has sent VPA text to EU for consideration

7. Results of negotiation
SOM 1, 5/ 2010 TWG 1, 11/2010
TWG 2, 11/2011 TWG 3, 11/2012
VC 18, 12/2013

8. List of products under VPA
• EU agreed with VN proposal to include 12 HS
codes in Chapter 44 ( with 4 digits) and 3 sub
HS in chapter 94 ( with 8 digits). In total, 23
group of goods ( with 6 digits), 113 items (8
digits) are under VPA
• Group of goods 940306 (other wood
furniture/outdoor furniture) is considered to
include in the annex 1A
• Sub Annex 1B on timber and timber products
prohibited from export under Vietnamese
laws still need to discuss.

9. Legality Definition (VPA Annex II)
PRINCIPLES
Principle 1 Compliance with regulations on land use, forest utilization and
environmental management for domestic timber exploitation.
Principle 2 Compliance with regulations on confiscated timber.
Principle 3 Compliance with regulations on timber imports.
Principle 4 Compliance with regulations on timber transportation and trade.
Principle 5 Compliance with regulations on timber processing.
Principle 6 Compliance with regulations on export.
Principle 7 Compliance with regulations on tax and on labour.
Organisations – Principles 1 to 7
Households – Principles 1 to 7

10. TLAS: Main documents and components
►VPA Annex II: Legality Definition
►VPA Annex IV: FLEGT Licensing System
►VPA Annex V: Timber Legality Assurance System
►VPA Annex VI: Independent Evaluation
Independent Evaluation
LEGALITY DEFINITION
According to the laws and
regulations of Viet Nam
• Principles
• Criterion
• Verifiers
• Legal references
VERIFICATION SYSTEM
Verification of compliance and
supply chain control
• Verifiers
• Verification process & methods
• Verification agencies (Level 1 & 2)
• Legal references for verification
FLEGT
Licensing
System
Organisations Households

11. Two main aspects…
1) Verification
of compliance
“Economic units” Purpose: To ensure
compliance with the
legality requirements by
households and
organizations
2) Supply
chain control
“Products” Purpose: To ensure the
legality of timber origin,
and that timber of
unknown origin does not
enter the supply chain

12. Verification of compliance – building blocks…

13. Self-Compliance of organizations and households
with the legality definition and regulations
Compliance with
regulations on
timber imports,
customs, business
registration,
labour and tax…
Compliance with
regulations on
land use, forest
utilization and
environmental
management for
domestic timber
exploitation…
Compliance with
regulations on
timber trans-portation
and
trade, business
registration,
labour and tax…
Compliance with
regulations on
timber processing,
buisiness
registration,
labour, and tax…
Compliance with
regulations on
export, business
registration,
labour, and tax…
Timber
importers
Domestic
timber
producers
Timber
traders and
transporters
Wood
processors
and
manufacturers
Exporters

14. Verification Level 1: Verification by sectors (ministries and
departments) responsible for each area of compliance acccording
to their procedures for appraising, approving and checking
Compliance with
regulations on timber
imports, customs,
business registration,
labour and tax…
Compliance with
regulations on land
use, forest utilization
and environmental
management for
domestic timber
exploitation…
Compliance with
regulations on timber
trans-portation and
trade, business
registration, labour
and tax…
Compliance with
regulations on timber
processing, buisiness
registration, labour,
and tax…
Compliance with
regulations on
export, business
registration, labour,
and tax…
Timber
importers
Domestic
timber
producers
Timber traders
and
transporters
Wood
processors and
manufacturers
Exporters

15. Verificatio
n Data-base
Verification Level 2: VNFOREST / Forest Protection
Ve r i f i c a t i o n L e v e l 1
Timber
importers
Domestic
timber
producers
Timber
traders and
transporters
Wood
processors
and
manufacturers
Exporters
Compliance with
regulations on timber
imports, customs, business
registration, labour and
tax…
Compliance with
regulations on land use,
forest utilization and
environmental
management for domestic
timber exploitation…
Compliance with
regulations on timber trans-portation
and trade,
business registration,
labour and tax…
Compliance with
regulations on timber
processing, buisiness
registration, labour, and
tax…
Compliance with
regulations on export,
business registration,
labour, and tax…
Periodic
documentary
checks and
spot checks
by forest
rangers

16. Supply chain control principles
►Annual
forest
inventory
► Annual
harvest
inventory
► Harvested
volume
► Log list and
identification
number/mark
► Input – output
monitoring
report
► Conversion
factor and
balance report
►Legal trade
dossier
► Transport
document
► Input – output
monitoring report
► Balance
report
Reconciliation
of timber
quantities
Reconciliatio
n
Timber
importers
Domestic
timber
producers
Timber
traders and
transporters
Wood
processors and
manufacturers
Exporters
Reconciliatio
n
Reconciliatio
n
Supply chain

17. TLAS – System of verification of compliance and supply chain control
FLEGT VPA in Viet
Nam POSTER 3
Component 1: Verification of compliance
Timber
importers
VNFOREST / Forest Protection Department
Domestic timber
producers
V E R I F I C A T I O N L E V E L 2
Timber traders
and transporters
Wood processors
and manufacturers
Exporters
Compliance with timber import,
customs, business registration,
and tax regulations etc.
Compliance with land
allocation, forest management,
harvesting, environment and
resource tax regulations etc.
Compliance with trans-portation,
primary processing,
business registration, labour
and tax regulations etc.
Compliance with timber
processing, business
registration, labour and tax
regulations etc.
Compliance with export,
customs, business registration,
and tax regulations etc.
V E R I F I C A T I O N L E V E L 1
Verification by relevant sectors responsible for each area of compliance acccording to their own procedures for issuing papers and inspection: MARD,
MONRE (land allocation and environment), MPI (business registration), MOF (tax and customs), MOLISA (labour standards), MOIT (import licenses) etc.
Verificatio
n Data-base
FLEGT
Licensing
►Annual forest
inventory
► Annual
harvest inventory
► Harvested
volume
► Log list and
identification
► Input – output
Monitoring report
► Conversion
factor and balance
report
►Legal trade
dossier
► Transport
document
► Input – output
Monitoring report
► Balance report
Component 2: Supply chain control
Reconciliatio
n of timber
quantities
Reconciliatio
n
Reconciliatio
n
Reconciliatio
n
Documentar
y checks
and spot
checks by
forest
rangers

18. Wood product
manufacturers
and exporters
EU
Importers
Verification of
compliance with
Timber Legality
Assurance System
Viet Nam
FLEGT
Licensing
Authority
(CITES)
Overview of
FLEGT
Licensing
System
Competant
Authorities in
EU Countries
Export
consignmen
t
Verification
Data Base
Documentary
and site
verfication
License
application
License
issuing
Customs
Authorities

19. Key points about the FLEGT Licensing System
• Viet Nam’s FLEGT Licensing Authority is intended to
be the CITES Management Authority.
• The verification of compliance with the TLAS is a
process which takes places throughout the timber
supply and processing chain.
• FLEGT licensing is the final step in the process which
takes place at the time of export.
• Data on the verification of compliance with the TLAS
will be maintained on a central data-base.
• The FLEGT Licensing Office will access the data-base
to check that the applicant is in compliance with TLAS.

20. • If there is no aspect of non-compliance, the
FLEGT License will be issued.
• A separate FLEGT License will be issued for
each individual export shipment.
• VN is considered there will be 01 original FLEGT
License that will accompany the export
shipment or 5 copies .
• FLEGT Licenses provide automatic access to EU
markets, in conformity with the EU Timber
Trade Regulation (EUTR).

21. Future negotiation roadmap
• Both sides showed strong efforts and
commitments to conclude VPA negotiation
end of 2014.
• 3-4 VC meetings, 3 JEM meetings and 2 TWG
meetings will be organized from now to end of
the year.
• Location: Hanoi (JEM 8, 9 and TWG 4) and
Brussels (JEM 10 and TWG 5)

22. Additional supports needed for
Vietnam to implement VPA
• To institutionalize VPA commitments to national
legislations (Decrees/circulars guidelines for verification
system and FLEGT licensing system, rubber harvesting …)
• To prepare manuals for verification and licensing systems
for each groups (GoV, Industry, Household).
• To increase capacity for stakeholders who are involving in
supply chain for their compliance with VPA
• To set up databases for verification and FLEGT licensing
agencies from provincial to central level.
• To conduct impact survey on deferent target groups may
be potentially affected by VPA

23. Thank you!
Mr. Tran Le Huy
FPA Binh Dinh
Email: tranlehuy50@gmail.com