Development cooperation , 14.12.2020

Capacity building on the development of value chains of wood products industries in Vietnam


The overall objective of this ICI project is to promote sustainable and versatile use of forest resources in Vietnam by developing the value chains of wood product industries.The wood processing industry in Vietnam has increased rapidly in the past two decades. Even though the supply of timber from plantations is increasing, the wood processing industry is dependent on imported raw material. Some of the major issues behind this is the non-optimal rotation length of existing plantations and cutting of the stems in the field to logs that are too short to be utlized as sawn timber for wood product industries. The specific objectives of the project are increasing knowledge of the value chains and advanced technologies of the utilization of native and foreign plantation tree species among small-sized business and industries, increasing the effectiveness of utilization of plantation species in wood product industries and utilization of side streams, building capacity for the testing of wood material properties in research institutes and utilising the forest inventory data for the needs of the wood product sector. The programme also aims to build a network between SME companies (Vietnamese and Finnish), research institutes, authorities, and NGOs to promote versatile wood product industries and to enable a test platform for Vietnamese and Finnish companies for collaboration and pilot projects on further processing of plantation wood. As such, the project also contributes to the transition in the bilateral relations between Finland and Vietnam towards mutually beneficial and wide-based relations. The project is planned by the Natural Resources Institute of Finland with the Vietnam Academy of Forest Sciences, VAFS, and the Forest Inventory and Planning Institute (Vietnam), FIPI. Other partners will be Handicraft and Wood Industry Association of Ho Chi Minh City, HAWA, and Finnish companies KWS Timber Tech Ltd, Luxhammar Oy and Veisto Oy. The proposed project duration is 2020-2023 and budget 450 000 euros.

Funding decision  14.12.2020

450 000 €

Objectives monitored by OECD's Development Assistance Committee

  • Trade development
  • Aid to environment

Field of activity

  • Forestry development 100%

Funding channel

  • Luonnonvarakeskus
  • Vietnamin metsätieteiden akatemia
  • Metsäinventaario- ja suunnitteluinstituutti
  • Ho Chi Minhin kaupungin käsityö- ja puuteollisuusyhdistys
  • KWS Timber Tech Ltd
  • Luxhammar Oy
  • Veisto Oy



Code for the object of funding