Forest certification in Asia: The changing marketplace for value-added wood product manufacturers in China and Vietnam

Abstract

China and Vietnam have become two of the key wood manufacturers in Asia that export a large percentage of valueadded wood products globally. As regulations and environmental awareness from countries that import these products increase, manufacturers have had to establish certification practices for continued accessibility to these markets. A study based on managerial interviews and a survey with over 800 wood product manufacturing operations in China and Vietnam asked questions on how forest certification had been implemented in their business practices and what challenge had come from the adoption of these standards. These responses were analyzed to determine the contributing factors to the commitment to certification. Comparisons between China and Vietnam were used to identify country-specific factors that may influence a company's decision to obtain forest certification for its operations. Survey respondents indicated that acquiring certified raw material supply, market awareness, and certification costs were found to be the major constraints encountered in adding certified products to their sales mix. Lack of a domestic supply of certified wood was also a problem that led to a heavy reliance on imported wood at additional costs to the bottom line. Results revealed significant differences among the two countries regarding their perceptions of the benefits of certification, but showed that market benefits were the leading driver to a company's commitment to certification.