Sustainable Forest Management Certification
Sustainable Forest Management (SFM) is an approach to organising forest protection, development and use that maintains biodiversity, productivity, regeneration capacity and ecosystem vitality, while ensuring that forests fulfil their economic, social and environmental functions now and in the future. This approach recognises forests as multifunctional ecosystems that provide timber and non-wood forest products, protect soil and water resources, store carbon, conserve habitats and sustain community livelihoods.
Sustainable forest management certification is an independent third-party assessment to confirm that the management of a defined forest area meets the requirements of the applicable standard. Certification conclusions are based on both the management system and on-site performance, through document and map reviews, field inspections of forest areas, worker interviews and stakeholder consultation. In addition to a comprehensive forest management plan, forest owners need evidence of implementation and the economic, social and environmental results achieved to demonstrate conformity with the standard.
PEFC – Programme for the Endorsement of Forest Certification is an international organisation that promotes sustainable forest management by endorsing forest certification systems that meet PEFC requirements. Assessments and certificate issuance are carried out by independent certification bodies.
Within the forest product supply chain, sustainable forest management (SFM) certification confirms that management activities in the forest area covered by the certificate meet the requirements of the applicable standard. PEFC Chain of Custody (CoC) certification confirms that a business has procedures to control material sourcing and information on certification status during procurement, processing and sales. These two types of certification complement each other, connecting sustainably managed forests with products throughout the supply chain.
Sustainable forest management requires a balance between three pillars:
Environmental sustainability
Conserve biodiversity; maintain the role of forests in protecting soil and water resources and reducing erosion; prevent forest degradation and strengthen resilience to the impacts of climate change.
Social responsibility
Respect stakeholders’ legal, customary and traditional rights; safeguard workers’ safety and rights; consult communities on activities that affect them; and resolve complaints fairly and transparently.
Economic viability
Maintain harvesting levels consistent with forest growth and regeneration capacity; ensure regeneration after harvesting; use resources efficiently; and sustain the provision of forest products and services over the long term.
1. Applicable standards and the PEFC certification framework
PEFC ST 1003:2024 – Sustainable Forest Management – Requirements sets out international requirements for sustainable forest management, providing the basis for developing and assessing forest management standards at national, regional or subnational level. These requirements are adapted to the ecological conditions, legislation, land-use rights and social context where they apply.
When applying for SFM certification under a PEFC-endorsed system, forest owners are assessed against the specific forest management standard of that system. In this framework, PEFC ST 1003 serves as the benchmark against which PEFC assesses and endorses the system’s standard. Before certification proceeds, it is therefore necessary to establish the standard’s title, applicable version and any transition requirements if the standard is being updated.
In Vietnam, VFCS/PEFC ST 1003:2019 is a reference document setting out sustainable forest management requirements developed for national conditions. Updates are published on VFCC’s standards and guidance page. According to PEFC’s announcement of 29 July 2026, the revised VFCS system has been submitted to PEFC for re-endorsement assessment. To select the correct standard when applying for certification, applicants need to check the validity of the standard version, its PEFC endorsement status and the relevant transition period.
2. Key technical requirements for sustainable forest management
Under the approach set out in PEFC ST 1003:2024, forest owners need to clearly define the areas and activities within the management scope, commit to meeting applicable requirements and assign specific responsibilities. Management must address identified risks and opportunities and be supported by adequate resources and competent personnel. Performance needs to be monitored, internally audited and reviewed by management to enable timely adjustments and improvements. The activities of workers, contractors and harvesting operators within this scope must also be controlled to meet sustainable forest management requirements.
- Legal compliance, forest and land rights, and management boundaries: Identify and document ownership, management or use rights relating to forests, trees and land, as applicable; clearly define boundaries on maps and on the ground. Identify, update and fulfil legal obligations concerning forestry, the environment, labour, taxation and trade. Establish measures to prevent, detect and address illegal logging, forest land encroachment, illegal burning and other activities that damage forest resources.
- Resource inventory and management planning: Collect and update data on area, forest type, tree species, growing stock, growth rates and natural site conditions, including soil, terrain and climate. Use this information to establish long-term objectives, harvesting levels consistent with sustaining forest resources, regeneration measures and implementation resources. The management plan needs to consider environmental, social and economic impacts. Make a summary of management objectives and principles publicly available while protecting personal information, business confidentiality and sensitive information concerning natural and cultural resources.
- Stakeholder rights and working conditions: Respect human rights and legal, customary and traditional rights relating to forests. Where required by the standard, obtain the free, prior and informed consent (FPIC) of rights holders before carrying out activities. Ensure safety during harvesting, timber extraction from felling sites to collection points and chemical use. Train workers, provide appropriate protective equipment, safeguard labour rights and prevent discrimination. Establish fair and transparent mechanisms for receiving and resolving complaints and disputes.
Six groups of requirements for forest management practices
- Maintaining forest resources and carbon storage capacity: Protect forest area, quality and values; balance harvesting with growth and regeneration to sustain forest resources and carbon sequestration and storage capacity over the long term. Review land-use history, forest conversion and degradation to determine conformity with the standard. PEFC ST 1003:2024 prohibits forest conversion to agricultural use and sets stringent conditions for other types of conversion.
- Maintaining ecosystem health and resilience: Monitor, prevent and control pests, diseases, forest fires, damage from extreme weather and adverse impacts of forestry activities. Prioritise integrated pest management, forest tending and biological measures to minimise pesticide use. Carefully manage chemicals, fertilisers and waste; prevent and respond to oil or fuel leaks and spills; and restore degraded ecosystems where feasible.
- Maintaining forest productive capacity: Ensure that forests continue to provide timber, non-wood forest products and services over the long term. Set appropriate harvesting levels and select harvesting times, techniques and regeneration measures that protect soil, retained trees and forest growth capacity after harvesting. Plan, build and maintain production infrastructure efficiently while minimising environmental impacts.
- Conserving biodiversity: Identify and protect ecologically important areas, species requiring protection and sensitive plant and animal habitats. Maintain diversity at landscape, ecosystem, species and genetic levels. Select tree species and planting material suited to natural conditions; control risks from introduced species; prohibit genetically modified trees; and ensure successful forest regeneration through natural processes or replanting.
- Maintaining protective functions and safeguarding soil and water: Map areas that protect soil and water resources and help reduce natural hazards. Control erosion, sedimentation and adverse effects on water quality and quantity. Design forest roads, bridges, collection points and drainage systems appropriately. Protect areas along rivers and streams and sites with erosion-prone or otherwise sensitive soils.
- Maintaining the socio-economic values of forests: Protect sites of historical, cultural and spiritual significance; consider the needs and livelihoods of communities living within or near forests. Create opportunities for employment, training and local economic development; value traditional knowledge and experience; and encourage equitable sharing of benefits arising from their use.
Data-driven monitoring and improvement: Results from resource inventories and the monitoring of growth, harvesting, regeneration, biodiversity and working conditions, together with community feedback and incident information, need to be used to update management plans and adjust forest management activities.
For each monitoring indicator, clearly define the method, frequency, responsible person and records to be retained. When a nonconformity is identified, forest owners need to correct the issue, identify and address its causes, and check the results to ensure that the measures taken are effective and prevent recurrence.
3. Legal requirements in Vietnam
Forest owners need to comply with the Law on Forestry and other relevant legislation in force. Obligations must be determined according to the forest type, category of forest owner and actual activities. These include preparing and implementing sustainable forest management plans, protecting forests, harvesting forest products and safeguarding stakeholder rights.
Circular 28/2018/TT-BNNPTNT on sustainable forest management and Circular 13/2023/TT-BNNPTNT amending and supplementing Circular 28 ceased to have effect on 1 July 2025, under Article 28 of Circular 16/2025/TT-BNNMT. Forest owners preparing new applications need to follow the regulations currently in force. Sustainable forest management plans approved by the competent authority before 1 July 2025 may continue to be implemented as approved, under the transitional provisions of Article 29.
Approval of a sustainable forest management plan and issuance of an SFM certificate have separate purposes, bases and procedures. The competent state authority approves the management plan in accordance with legislation, while an independent certification body assesses and issues an SFM certificate against the applicable standard and certification scheme rules. An approved management plan therefore does not mean that the forest owner holds a PEFC certificate. Certified forest owners must continue to fulfil all relevant legal obligations and procedures.
4. Distinguishing SFM certification from PEFC CoC certification
Within the PEFC system, SFM certification focuses on forest management, while CoC certification focuses on the control of materials and certification information throughout the supply chain.
Swipe horizontally to view the full comparison table.
| Aspect | SFM – Sustainable Forest Management | PEFC CoC – Chain of Custody |
|---|---|---|
| Applicants | Forest owners, forest management organisations or groups of forest owners that meet the eligibility criteria for certification. | Organisations procuring, processing, trading and supplying forest and tree based products. |
| Assessment focus | Management practices and economic, social and environmental performance within the forest area covered by the certification scope. | Controls over materials, production and trading processes, and the accuracy of PEFC claims. |
| Applicable standards | The forest management standard of a PEFC-endorsed system, subject to the applicable version and transition rules. | PEFC ST 2002:2020 for chain of custody; PEFC ST 2001:2020 for use of PEFC trademarks. |
| Evidence | Legal documents; maps; management plans; records and on-site results relating to planting, tending, harvesting, regeneration, environmental protection and social responsibility. | Supplier information and certificates; purchase and sales documents; records of material classification, input and output quantities, and controls over PEFC claims. |
Chain of custody controls
Businesses implementing PEFC CoC need to clearly define the product groups within the certification scope, check supplier information and certificate validity, and control relevant outsourced activities. Depending on material characteristics and production processes, the business selects an appropriate control method:
- Physical separation: Keep materials and products with different certification statuses separate through designated areas, separation in processing time or clear identification.
- Percentage method: Calculate the percentage of certified material in accordance with the standard to determine the certification claims that may be made for products.
- Credit method: Record and allocate the quantity of products eligible for certification claims based on eligible material inputs and the standard’s calculation rules. “Credit” here is a material accounting mechanism, not financial credit.
Businesses must also implement a Due Diligence System (DDS) under PEFC ST 2002 to collect information and assess and control the risk of materials originating from sources that do not meet PEFC requirements, such as illegal harvesting or violations of workers’ and communities’ rights.
A CoC certificate confirms a business’s ability to control its chain of custody; an SFM certificate confirms conformity of management activities at the forest. The two certificates complement each other and do not replace one another.
Use of PEFC trademarks and additional requirements
Use of the PEFC initials, logo and labels must comply with the licence and the conditions of PEFC ST 2001. Holding an SFM certificate does not mean that PEFC labels may be applied to every product processed from that forest.
Depending on the product, market and application scope, an organisation may also need to meet requirements relating to PEFC EUDR DDS, biomass under RED III or project sourcing. These requirements are considered on a case-by-case basis and do not apply to every SFM certification application.
PEFC certification helps demonstrate responsible sourcing. Organisations remain responsible for meeting legal obligations in the relevant markets; certification does not automatically generate carbon credits.
5. GIC Vietnam’s services
GIC Vietnam provides PEFC Chain of Custody (CoC) certification services for organisations procuring, processing, trading and supplying timber, paper, packaging and other forest and tree based products and materials. The service helps businesses demonstrate control over material sourcing, ensure the accuracy of PEFC claims throughout the supply chain and meet the conditions for using PEFC labels on products.
Customers seeking certification can contact GIC Vietnam to identify the type of certification, applicable standard and application scope appropriate to their operations. For sustainable forest management (SFM) certification, GIC Vietnam will review each request and confirm service availability, the applicable standard, the certificate-issuing body and the certification scope before a contract is signed.
6. Applicants and documentation to prepare
The documentation to be prepared depends on the type of certification, SFM or PEFC CoC, the form of participation and the application scope. The main categories are as follows:
- Forest owners and forest management organisations applying for SFM certification: Prepare legal documentation on forest and land ownership, management or use rights, as applicable; boundary maps; information on area, forest type, tree species, growing stock and resource condition; land-use history; and the sustainable forest management plan.
- Forest owners participating in group certification: In addition to each forest owner’s documentation, provide information on the entity representing and managing the group; a list of members and their participating forest areas; and provisions on the rights, responsibilities and commitments of the parties. The group needs internal monitoring arrangements and procedures for addressing members’ failure to meet certification scheme requirements. This form of certification may be suitable for eligible households, small forest owners or cooperatives.
- Records demonstrating SFM implementation: Forest owners or groups need to provide evidence of planting, tending, harvesting and regeneration; biodiversity conservation and soil and water protection; forest fire prevention and firefighting; chemical management, occupational safety and contractor activities. Records also need to show community consultation, receipt and resolution of complaints, performance monitoring and the handling of nonconformities.
- Businesses applying for PEFC CoC certification: Prepare a list of product groups, sites and outsourced activities within the application scope; a flow diagram showing receipt, storage, processing and sales of materials and products; supplier information and relevant certificates; purchase and sales documents; and records of input and output quantities. Chain of custody procedures, Due Diligence System (DDS) implementation records and internal audit records are also required.
Benefits of implementation and certification
- Improving forest management effectiveness: Use inventory data and monitoring results to plan, implement and adjust management activities; clearly define the responsibilities of each department, individual and organisation involved.
- Maintaining the long-term value of forests: Protect soil and water resources and conserve plant and animal habitats; strengthen forest regeneration and resilience to pests, diseases, natural disasters and climate change.
- Strengthening relationships with communities and workers: Improve information sharing and community consultation, safeguard workers’ safety and rights, and strengthen the handling and resolution of feedback, complaints and disputes.
- Supporting compliance management and traceability: Establish clear, verifiable records of forest management activities, material sources and fulfilment of relevant legal, standard and contractual requirements. For PEFC CoC, strengthen control over materials and certification information throughout the supply chain.
- Expanding market access opportunities: Provide independent assessment evidence to meet customer requirements, support participation in responsible purchasing programmes and help businesses become suppliers in forest product supply chains.
The commercial benefits of certification depend on market demand, product quality, links with buyers and the costs of implementation and maintenance. Certification helps build customer and business partner confidence, but does not guarantee higher selling prices or secured sales contracts.
The process follows the six steps below. Assessment activities are tailored to the accepted SFM or PEFC CoC scope, applicable standards and scheme rules. GIC Vietnam communicates with the customer and confirms implementation arrangements from the application stage.
1. Application & application review
The customer provides information on the legal entity, applicant category, locations and proposed certification scope. For SFM, this includes area, forest type, management rights, tree species, harvesting activities, the management plan and whether certification is individual or group-based. For CoC, it includes products, sites, material sources, processes and outsourced activities. GIC Vietnam coordinates a review of service capability, standards, the certificate-issuing legal entity, relevant accreditation or recognition scope, duration and costs before the contract is agreed.
2. Audit planning & preparation
Establish the audit programme and plan, and select a team with competence appropriate to the sector, forest type or product supply chain. For SFM, planning considers seasonality, site access, geographical dispersion, environmental and social risks, contractors and consultation topics. For CoC, planning focuses on sites, product groups, control methods and material flows. The customer is informed of the documents to be accessed, the schedule and the sampling methods.
3. Audit process
The audit team reviews documentation and verifies actual practices under the applicable scheme. Audit stages or preliminary assessments are determined by the relevant certification rules.
- For SFM: Review legal compliance, boundaries and resource data; compare the management plan with on-site planting, tending, harvesting and regeneration; examine conservation areas, soil, water, chemicals, safety and contractors; interview workers, consult stakeholders and verify group management arrangements where applicable.
- For CoC: Check suppliers, material classification, purchasing, storage, production, sales, DDS, CoC methods, outsourced activities and PEFC claims; trace samples of documentation and reconcile quantities.
The sequence includes an opening meeting, evidence collection and verification, consolidation of findings and a closing meeting.
4. Audit report & nonconformity resolution
The audit team prepares a report covering the scope, criteria, samples examined, evidence and conclusions, and identifies nonconformities and required actions. The customer makes corrections, analyses causes and implements corrective actions within the specified timeframe. Evidence is reviewed for completeness and effectiveness. Where necessary, additional checks at the forest or facility are required before the file proceeds to certification review.
5. Review & certificate issuance
The authorised function, independent of the audit activity, reviews the file and makes the certification decision. Once requirements are met, the certification legal entity identified in the contract issues a certificate specifying the appropriate standard, scope, locations, area or product groups. Validity, maintenance conditions and permitted claims are determined by the applicable scheme. Accreditation, recognition and trademark information must relate to the specific certificate. Certificate issuance does not automatically grant a licence to use trademarks for every purpose.
6. Surveillance & recertification
The organisation undergoes surveillance at the specified frequency and under the established programme to verify continuing conformity, the resolution of previous findings and the control of changes. For SFM, attention focuses on changes in area and group membership, harvesting, regeneration, environmental and social impacts, and complaints. For CoC, it focuses on suppliers, materials, quantity reconciliation, DDS, claims and trademarks. The customer reports changes affecting the scope, and recertification is carried out before expiry. Where maintenance conditions are not met, certification may be suspended, reduced in scope or withdrawn in accordance with the applicable rules.
International credibility and broad recognition
GIC is an international certification organisation accredited or recognised under relevant programmes and scopes. For PEFC certification, certificate recognition is linked to the specific issuing legal entity, accreditation scope, scheme notification or designation, and applicable standard. GICG publicly offers PEFC Chain of Custody (CoC) services, helping businesses demonstrate control over material sourcing and participate in responsible supply chains. GIC Vietnam serves as the contact point for enquiries, clarification of the service scope and confirmation of certification arrangements before implementation.
Professional, impartial and cost-effective services
GIC Vietnam provides services in accordance with stringent European and North American standards, ensuring independence, impartiality and professionalism throughout the certification assessment process. GIC also offers reasonable and competitive fees, helping businesses use their investment resources efficiently while achieving recognition against international standards.
GIC VIETNAM
🏢 Hanoi: 12F, 14 Lang Ha Building, Giang Vo Ward
☎️ Tel: 024.6275 2268 | 📱Hotline: 0984609469
📧 Email: tuandm@gicvn.vn
🏢 Ho Chi Minh City: R502, 160 Nam Ky Khoi Nghia,
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