In recent years, the Southeast region of Vietnam has witnessed strong growth in the wood processing industry, which continues to expand rapidly. However, current development still lacks close linkages between raw material suppliers, accessory producers, manufacturers, logistics providers, and professional design teams.
According to the Investment Planning Department of the Vietnam Rubber Group (VRG), the Group plans to establish a large-scale industrial zone dedicated to the wood processing sector. This zone will both support VRG’s member companies and serve as a growth hub for the regional wood industry, providing synchronized infrastructure and production capacity to meet future demands.
Recognizing Rubber Wood Revenue for Sustainable Growth
Currently, rubber trees are classified as fixed assets and depreciated according to accounting regulations. As a result, annual maintenance costs during the tapping stage are fully accounted for under latex production costs. This approach does not accurately reflect the business results of both latex and wood production since a portion of care expenses should be allocated to wood revenues.
Rubber wood and firewood contribute significantly to VRG’s overall business results. However, since they are not recorded as part of main business revenue, they fail to represent the true operational efficiency of the Group and its subsidiaries.
For this reason, VRG has repeatedly proposed policy adjustments to relevant ministries and authorities—requesting that rubber wood revenues from tree liquidation be recognized under sales and service revenue, making them eligible for corporate income tax incentives similar to agricultural and forestry products.
Forest Certification for Higher Value and Market Advantage
Under Decree No. 102/2020/NĐ-CP (effective September 1, 2020) on the Vietnam Timber Legality Assurance System (VNTLAS), the implementation of sustainable forest management and certification will strengthen the competitiveness of Vietnamese wood exports.
With its advantages in plantation management, care, harvesting, and processing of refined rubber wood products, VRG is positioning itself to develop an integrated, certified supply chain for sustainably sourced rubber wood products.
Initially, VRG aims to secure certifications under the Vietnam Forest Certification System (VFCS/PEFC) and sustainable enterprise accreditation for both rubber plantations and wood processing subsidiaries, while progressively moving toward FSC certification. Simultaneously, the Group continues to promote sustainable-certified rubber latex and wood products to international customers.
Sustainable Certification Expansion Across the Group
Currently, 12 VRG member rubber companies hold sustainable forest certificates (VFCS/PEFC), covering over 100,000 hectares of rubber plantations. By the end of 2022, two wood processing factories are expected to achieve PEFC-CoC certification, with annual tree liquidation areas of 2,500–4,000 hectares, producing approximately 430,000–600,000 cubic meters of roundwood, with growth expected in subsequent years.
According to VRG’s Investment Planning Department, priority will be given to allocating certified wood resources to member wood factories under a coordinated supply chain strategy. This will increase the value of certified rubber wood products and reinforce VRG’s sustainable brand image.
Moreover, VRG’s wood subsidiaries are encouraged to actively market certified wood to clients and register with the Group for access to certified timber sources, creating a distinct competitive advantage in both domestic and international markets.