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Indo Gemstone foundation for meeting EUDR requirements on traceability
A forest database is considered a critical technical

and spatial data transparency, while accelerating the digital
transformation of forest management in line with international
practices, with the overall objective of fully complying with the
EUDR, sustaining exports and promoting sustainable forestry

development and biodiversity conservation.
Vietnam will also engage with the EU and its member states
on risk assessment methods and monitoring indicators, work
with the EU’s Joint Research Centre to align forest mapping
Recognising the vast potential of the forest carbon market, databases and seek mutual recognition mechanisms for legal
the forestry sector is rolling out comprehensive measures to timber certification.
manage and effectively leverage this resource. In May 2025, the European Commission classified Vietnam
Completing the legal framework is a priority, drafting a as a low-risk country, meaning only about one percent of
decree on forest carbon absorption and sequestration services shipments or exporters are subject to checks. However,

and the national forest carbon standards. These steps are officials warned that this status depends on strict compliance
essential to ensuring transparent measurement, management and reliable, transparent data systems.
and trading of forest carbon credits in line with international The plan comes as Vietnam’s wood exports show positive
practices. signs. In January 2026, total agro-forestry-fishery exports were
As Vietnam has committed to achieving net-zero emissions estimated at US$6.51 billion, up 29.5 percent year-on-year,
by 2050, the forest carbon market is to become a key with wood and forestry products reaching US$1.72 billion, up
instrument for mobilising domestic and international resources 13 percent, according to ministry statistics.

for forest protection.
With promising initial results and systematic preparations, Vietnam’s wood and furniture export outlook
the forest carbon market is gradually establishing itself as a Vietnam’s wood industry enters 2026 with a positive growth
vital financing channel, laying the foundation for a modern, outlook as furniture demand in major markets shows signs
efficient and sustainable forestry sector. of gradual recovery.
After a period of global economic volatility improving
Vietnam to complete forest database by 2026 conditions in housing and retail markets are supporting renewed
Vietnam aims to complete provincial forest boundary databases demand for wood products and furniture.
and maps before the end of this year in a move seen as Within this context, the US continues to play a pivotal

critical to helping the timber industry adapt to the European role, while also imposing increasingly stringent requirements
Union’s anti-deforestation rules and maintain exports. on product quality and supply chain reliability.
The goal is set out in an action plan issued by the Forestry In 2025, Vietnam’s wood and wood product exports
and Forest Protection Department under the Ministry of recorded solid growth across most major markets. The United
Agriculture and Environment on adapting to the EU Deforestation States remained the largest destination, with exports reaching
Regulation (EUDR), which bans products linked to deforestation US$9.4 billion, up four percent compared with the previous
or forest degradation from entering the bloc. year, reaffirming its position as Vietnam’s primary export market.