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WORKSHOP

Launching and Planning for Project "Promoting private sector engagement in the

Voluntary Partnership Agreement (VPA) process and collect the consultation comments to

business training materials to implement FLEGT-VPA's requirements"

The project was funded by the FAO-EU-FLEGT

"Promoting the involvement of the private sector in the process of implementing the

Voluntary Partnership Agreement (VPA)"

Da Nang, September 23rd, 2016

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Contents 1. Introduction ......................................................................................................................... 3

2. Workshop agenda and details ............................................................................................... 3

3. Summary of discussions about the toolkits ............................................................................ 7

4. Conclusion .......................................................................................................................... 10

5. An overall assessment of the workshop............................................................................... 10

Appendix 1: Workshop Agenda .................................................................................................. 11

Appendix 2: Some photos........................................................................................................... 12

Table of Figures Figure 1: An overall assessment of the workshop.......................................................................... 11

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1. Introduction

Workshop: Launching and planning for the project, and collecting consultation comments on

business training materials to implement FLEGT-VPA's requirements in the project

framework, “Promoting private sector engagement in the VPA process”, funded by the Food

and Agriculture Organization of the United Nations (FAO).

The workshop was held by the Center for Education and Development (CED), in collaboration

with the Vietnam Chamber of Commerce and Industry in Da Nang (VCCI Da Nang) on

September 23, 2016 at Bamboo Hotel, 125 Phan Chu Trinh Street, Da Nang City. This was the

first activity of the project and the objectives of the workshop included: Discussion about

cooperation opportunities among partners in the activities of the project (the role of business

associations, VCCI and Civil Society Organizations (CSOs) in the process of licensing,

supporting and monitoring businesses); Discussion about finalization of the program and

business training materials to meet the FLEGT-VPA's requirements.

There were 25 participants representing the Timber Business Associations attending the

workshop: Binh Duong Furniture Association (BIFA), Forest Products Association of Binh Dinh

(FPA), Vietnam Rubber Association (VRA), Timber and Forest Product Association of Vietnam

(VIFORES); representatives of VCCI Da Nang, a representative group of trainers joining in the

NEPCON training; Representatives of the NEPCON project; Representatives of timber

enterprises processing and exporting in the Central region attending the NEPCON ToT training

(Hue, Quang Binh, Quang Nam, Quang Ngai); Representatives of VNGO FLEGT network and

the CSOs implementing projects related to FLEGT-VPA.

2. Workshop agenda and details

The workshop was organized on 23 September 2016, including a morning session and

an afternoon session

Morning Session: Opening, summarizing the main results of the 2014 projects,

introducing activities of the new project (2016) and discussion

Afternoon session: Introduction of Toolkit on timber legality and general

discussion(See appendix 1 for the detailed agenda)

Morning Session: Opening, summarizing the main results of the 2014-2015 projects,

introducing activities of the new project (2016-2017) and discussion.

Mr. Nguyen Dien - Deputy Director of VCCI Da Nang made opening remarks and introduced

the participants. After that, Ms. To Kim Lien - Director of CED, briefed the workshop on the

project’s planned activities and the objective of the planning workshop. Subsequently, Mr. Vu

Anh Minh, Deputy Director of CED, summarized the main results of the previous year’s project

(2014-2015) and introduced the project’s new activities (2016-2017) “Promoting private

sector engagement in the VPA process”.

The participants discussed and agreed with the project’s objectives and activities:

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The project’s main objective: To enhance the understanding of and compliance to legal

frameworks, to promote legal production and best management practices throughout the

timber product value chain in Vietnam, and to strengthen public-private dialogues to advance

the VPA process in Vietnam.

The project objectives:

Increase business access to information on legality requirements according to

Vietnamese laws and regulation on Timber Legality (TL)

Strengthening public – private dialogues in advancing the VPA process

Output 1: Increase business access to information on legality requirements according to

Vietnamese laws and regulation on Timber Legality (TL)

Activity 1.1: Project Launch and Participatory Planning Meeting

Activity 1.2: Revision of training agenda and materials for businesses

Activity 1.3: Conduct training for SMEs in the North, Central and Southern Areas

Output 2: Strengthening public – private dialogues in advancing the VPA process

Activity2.1: Regional and national dialogues

Activity2.2: Communication and outreach

Output 3: Monitoring, evaluation and visibility framework development.

Activity 3.1: Organize courtesy visits with the European Union Delegation and

Food and Agriculture Organization representatives responsible for FLEGT

activities as well as with other relevant stakeholders

Activity 3.2: Evaluation of project outputs and organization of project closure

meeting

The participants discussed and provided specific inputs for the project’s planned activities and

the possibility of cooperation between the different business associations and CED. The

participants’ discussion focused on contents and approaches for training activities,

strengthening communication, and how to design and support dialogues between businesses

and governmental agencies. The participants’ suggestions are summarized below.

Activity 1.2 and 1.3: Business training (including adjusting of NEPCON document and

organizing a pilot training course for the association’s members):

- CED will cooperate with selected Timber Associations to train businesses on VPA

requirements using NEPCON’s toolkit as a starting point. The toolkit has to be updated

based on the latest versions of VPA annexes (VNTLAS). It is planned that CED will work

with trainers trained by NEPCON’s project to develop an appropriate training agenda,

contents, and approaches for business members of the selected associations;

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- It was agreed by all participants that training for businesses should be organized to

last a maximum of one day, use Vietnamese language, and focus on the main

principles, evidence and examples, and shouldn’t focus too much on technical details,

because specialized or designated staff of businesses can learn more if needed;

- NEPCON’s toolkit only had profiles from 6 timber exporting countries (defined as high

risk countries) while Vietnam imports timber from many countries, so we have to refer

to existing profiles from the FSC to have more information on other countries;

- There is a strong need to develop a due diligence system for imported timber;

- The legal documents described in the toolkit are too lengthy and technical for

businesses; on the other hand, different businesses (different in scale and

participating indifferent parts of the supply chain) are interested in different issues (or

legal documents/requirements). Therefore, documents should provide clearer

guidance on how to use the toolkit and which types of businesses will need which kind

of tools;

- Some of the trained trainers are concerned that a one-day training course is too short

to practice the toolkit;

- Business associations and VCCI recommend dividing the target groups in businesses

(business managers/owners, sales, import-export staff) and organizing training and/or

events accordingly. For example, VCCI can train businesses about certificate of origin

(C/O) in one day. It is important to select the right participants for training;

- Some local NGOs shared their lessons and experiences on how to get businesses

interested and participating in these training events (especially SMEs and households).

They will have to cooperate with local authorities, for example, the Forest Protection

Department (FPD) will issue invitations for business training;

- The project should target business association staff, staff from businesses importing

timber and local forest rangers, and other business representatives for different

companies along the supply chain (from imported raw timber, plantations, export) like

Glasshouse Company;

- As the VPA is going to be signed soon, it is necessary to provide training for businesses

to prepare them to adapt to the signed VPA to ensure effective implementation;

- The roles of business associations should be strengthened as businesses will need

support, guidance, and representatives from their associations. It is necessary to

summarize and disseminate the key points of the VPA for businesses and guide them

to use tools designed suitably for each type and size of business (the toolkit needs to

be revised and updated accordingly).

Activity 2.1: Organize a dialogue for business and forest ranger agencies.

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- The project should organize a forum for Central and Local Forest Rangers to discuss

with associations and business representatives, a forum for law and policy makers

(e.g. Legal Department of the Ministry of Agriculture and Rural Development, Ministry

of Justice) and law enforcement officers to ensure that all related stakeholders have

the same understanding about laws and regulations related to FLEGT-VPA. This is very

important for effective implementation of the VPA in the future;

- The project should organize FLEGT-VPA dialogues between the public officers in Binh

Duong, where a lot of large enterprises processing and producing timber are located.

Activity 2.2: Promoting Communication

- Workshop participants recommended that CED should develop e-newsletters for

businesses. It is also necessary to confirm the role of VCCI and associations in the VPA

implementation process. The first edition should be released soon before all technical

details have been finalized to ensure that the Government recognizes the benefits of

cooperation with associations and CSOs, so it is time to confirm the role of these

associations and CSOs. In addition, we need to organize more dialogues between

businesses and government;

- CED will continue communication work in phase 1 and will help other organizations to

connect with the network of reporters and journalists in forestry and FLEGT related

issues.

Afternoon session: Introduction of Toolkit on timber legality and general discussion on how

the project can leverage the use of the toolkit

Ms. Duong Thi Lien (the representative of the NEPCON project) introduced the Toolkit on

Timber legality and FLEGT-VPA:

- NEPCON implemented a training needs assessment with some associations and

businesses (Rubber associations), and conducted an assessment of the toolkit with

four large businesses with FSC certification. There were four-day or two-day training

courses depending on the size and needs of the businesses. NEPCON also coordinated

with Sustainable Rural Development (SRD) to conduct tests on 90 households. The

application extent depends on the specific scale of an enterprise, whether they are

large or small, and their value chains are long or short;

- National Risk Profile (2-3 pages per country): NEPCON has profiled only six countries

while FSC has profiled between 50-60 major timber exporting countries, so there

should be a solution in consulting with FSC;

- Because of an incomplete TLAS version, the current project only approaches version

6.3;

- Problem of recordkeeping for SMEs in Vietnam;

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- Ho Chi Minh City Handicraft and Wood Industry Association (HAWA) is setting up a

due diligence system (DDS).

3. Summary of discussions about the toolkits

- Some participants also commented on the adjustment of the web toolkit interface

that looks a bit confused and suggested using the drop-down menu to select the

country and links to missing FSC national profiles. Regarding Vietnam's domestic

timber, it is too long and confusing so needs summarizing (e.g. land use rights);

- SFMI is currently developing a set of tools (based on the reference of version 6.3 of

households TLAS) and integrating a standard set FSC-COC to meet the TLAS and Due

diligence, wood control. This is a very new idea in Vietnam, sponsored by FAO, to

support businesses to use controlled timber materials;

- NEPCON toolkit is various and appropriate with multiple objects. It is agreed that a

one-day training course is enough and convenient for businesses. We should produce

a guide for enterprises’ websites or a supporting center so they can train themselves;

- We should invite 2 groups who are responsible for business governance and

export/import in order to have a positive impact;

- Businesses are concerned about technical issues and the very specific details in

procedures (e.g. NEPCON toolkit);

- SMEs’ governance is rather weak; hence, they need to be supported. At the end of

October, we will adjust and make recommendations on an appropriate toolkit for

businesses and upload this on the website;

- There are three online videos, but they are too longhand require monotonous reading,

which makes them hard to follow. Video clips should be 3-6 minutes in length. Editing

these into a more concise format, or clips that explain business practices, will help

businesses self-contact and proactively ask questions and receive feedback.

Establishing an independent support Center where VIFORES will provide support

connecting associations and business members:

- We should set up a Support/Counseling Center for businesses (with both CSO and

business associations participation) to handle questions, queries and complaints in the

future to ensure that VPA is going to be implemented effectively. This entity will use

funding from external sources instead of the state budget. An independent monitoring

unit must have the consent of the associations and use independent funds; they could

be supported by international organizations such as FAO. This idea should be further

discussed given the fact that FLEGT licensing, verification and business classification

are currently designed to be in the hands of the government (Forest Protection

Department and/or VNFOREST’s affiliations);

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- The establishment of an independent support/counseling center mentioned above,

led by VIFORES is very feasible, according to VIFORES’ representative at the workshop.

However, there are difficulties in funding and human resources as well as capacity to

handle the queries, questions, complaints and concerns of the businesses. For

example, when businesses ask about FSC or FLEGT licensed by CITES, the association’s

consultants might not provide realistic and accurate answers . This should be further

discussed and developed;

- VCCI and business associations play a role in connecting businesses with government,

consulting and advising to the government, as well as consulting for businesses about

the government’s policies. After signing the VPA, it takes a long time to prepare and

there will be many changes to the legal framework and institutional reforms. These

business associations should closely work together to keep their members updated on

policy changes;

- It is important to strengthen coordination between the associations representing the

voices of timber enterprises (4,000 enterprises) and CSOs repres enting the

communities with forest-based livelihoods (more than 1 million households and

hundreds of thousands of small processing units);

- It is necessary to have a lead agency working separately from the licensing agency to

support businesses. However, according to the experience with other agreements that

Vietnam has signed with other countries, the consultation process usually only takes

place in the negotiation stage. Then government often uses or creates some affiliated

institutions with monitoring functions, which makes true independence challenging.

CSOs currently participate in the VPA process actively and the Government is willing

to provide information as well as cooperate with them, hence we should take

advantage of this opportunity;

- We should set up a diagram (matrix) for businesses to self-direct information and

support when looking for essential information. Timber Associations are the first

places for businesses to contact, playing a role as the respondents as well as providing

guidance. They should strengthen network cooperation and assess strengths and

weaknesses to support each other. CED will further explore on how to address this

issue though technology and communications;

- CITES is currently designed to be the place for both licensing and business inquiries

and complaints. It is necessary to have an independent organization/institution to

provide support and monitoring in the future to ensure effective implementation of

the VPA. However, the establishment of the independent supporting center for

enterprises has difficulties in funding, human resources and maintaining it over the

long-term. So CSOs and business associations should continue to work and discuss on

this issue/topic;

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- Some representatives from the government stated that they are ready to answer all

business inquiries, and can generally respond within half an hour. In terms of licensing,

the administration has responsibilities providing transparency across all related tasks

of the agency, questions and answers. The responsibility of an independent assessing

agency also includes both capacity assessment and deciding whether they can afford

support.

Implementation of Monitoring Role

- One organization could hardly implement monitoring without support from the

central agencies, for example, The Vietnam Union of Science and Technology

Associations (VUSTA) and the members of Vietnam Fatherland Front. To create a

monitoring role, there must be an alliance between CSOs, the timber associations and

VCCI to undertake monitoring;

- Supporting and licensing systems must be designed to restrict direct contact between

licensing officials and businesses in order to avoid harassment. The best option is an

online system for FLEGT licensing (learning from experience of C/O licensing or

electronic customs);

- Timber Associations should be closely linked to, and advocates of, an institutional

monitoring role by collecting comments from member businesses and sending them

to negotiators to represent the voice of the business community (based on points

discussed above).

The delegates expressed the need to learn and share experience with Indonesia. They put

forward some questions:

- CED also refers to sharing experiences with the Indonesian delegation, consisting of

government representatives, associations and NGOs from 17-18 October. Although

the two governments have different governance systems as well as production

operation characteristics in the private sector, there are still some experiences that

can be learned/shared;

- Why is it taking a long time to issue FLEGT licenses since signing with Indonesia? Are

enterprises interested in FLEGT - VPA? What are the advantages and disadvantages of

FLEGT? Is Indonesia having difficulties in the implementation process?

- The association should collect current recommendations and difficulties of businesses

exporting timber to the EU, then send these to CED for documentation and to prepare

participants in advance. When organizing a sharing workshop with Indonesia, CED

should consult with both sides and prepare documents to send to the interested

associations and businesses for their information before the exchange;

- The licensing process will not be simple. Ghana and Indonesia have signed up for a

long time but they have not issued FLEGT licenses yet. Indonesia expects to release its

first FLEGT license mid-November 2016.

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4. Conclusion

Conclusions based on the comments:

- Training activities will be implemented until October when more specific details about

the annexes are available. After that we will adjust and add more information for the

toolkit and consult with businesses;

- The NEPCON Toolkit continues to be adjusted and announced to stakeholders;

- Information from VNFOREST released in October is used to design the next project;

- It is expected that there will be an experience exchange workshop with Indonesian GIZ

on 17-18 October 2016 (about 5-7 delegates, including representatives from

government agencies and Indonesian enterprises). CED will collect questions from

delegators and stakeholders and send these to Indonesia as well as prepare

documents to send to all participants before the workshop;

- After Indonesia releases the first FLEGT license, GIZ can support some representatives

from the Vietnamese associations or enterprises to visit and learn from their

experience directly;

- In order to support businesses better, CED will discuss with VCCI and associations to

make better recommendations. When the VPA is signed, there will be additional

resources to implement the ideas/proposals;

- Information and communication activities will continue after the VPA is signed and

CED will edit the information to be more accessible for businesses;

- CED has not developed the policy bulletin yet, but we have experience implementing

newsletters in project Disaster Risk Management (DRM). We will try our best to raise

funds and coordinate with partners to consider developing this idea after the VPA is

signed;

- We will update information, discussions and recommendations to VNFOREST and

other stakeholders that have not joined this workshop. This is a way to take advantage

of the current resources available. Other projects can also promote communication,

diffuse and raise awareness of stakeholders;

- In October 2016, CED will design a set of needs assessments based on the content of

the NEPCON toolkit and send these to the associations and businesses to collect

comments to help design training programs and training materials more practically

and appropriately.

5. An overall assessment of the workshop

Generally, the workshop was well rated in terms of logistics, discussion content with average

scores 4.2, 5/5. Participants also rated the documents and presentation with average scores

3.7/5. See Figure 1

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Figure 1: An overall assessment of the workshop

Appendix

Appendix 1: Workshop Agenda

Time Program Performer

07:30-08:00 Welcome Organizer

08:00-08:10 Opening Speech VCCI Da Nang Representatives

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08:10-08:30 Introduce the project, update the project activities

Mr Vu Anh Minh, Deputy Director, Center for Education and Development

08:30-10:15 Divide into groups:

Discussing the project activities (including

the role of business associations and VCCI in the licensing process, business support and monitor implementation).

Associations and Representatives from organizations

10:15-10:30 Break time

10:30-11:45 Discussion Presentation Group representatives

11:55-12:00 Closing Speech VCCI Representatives

12:00-13:30 Lunch

14:00-14:30 Presenting the Toolkit on the legality of the

timber and the training activities conducted by representatives from the project's NEPCON

Ms. Duong Thi Lien, NEPCON

Project

14:30-16:30 Discuss and finalize programs and documentation of the toolkit on the legality of timber for business training

Lecturers from Timber Association, VCCI Da Nang and CED

16:30-17:00 Summing up the program and unifying

adjustments for the final document

Everyone

Appendix 2: Some photos

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Mr. Vu Anh Minh introduces the project

Ms. To Kim Lien, Director of Center for Education and Development

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Ms. Duong Thi Lien shares about the Toolkit

Mr. Nguyen Manh Dung (VIFORES)

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Mr. Dao Cong Khanh (SFMI), Mr. Nguyen Phuc (BIFA), Mr. Tran Nam Thang (CORENAM), Ms.

Vu Thi Bich Hop (SRD), Ms. Duong Thi Lien (NEPCON) (from right to left).