BRIEF INTRODUCTION TO THE FORMATION, DEVELOPMENT, AND ACTIVITIES OF HUE-FOSDA

I. FORMATION AND DEVELOPMENT PROCESS

In 2015, faced with the traditional forest planting methods where woodchips for paper materials were sold at very low prices, with short business cycles (4–5 years), frequent replanting, high costs, and significant environmental impacts, forest growers came up with the idea of forming an association to apply for sustainable forest management certification. This initiative was supported by the Department of Agriculture and Rural Development and the Thua Thien Hue Provincial Government. The main objective was to produce large timber (with business cycles of 7–10 years), enabling wood products to reach international markets, increase added value, improve forest owners’ income, and align with the Forestry Restructuring Scheme toward higher added value and sustainable development—achieving three key goals: economic, social, and environmental.

With the support of the Sustainable Bamboo, Rattan, and Acacia Project (SBARP/WWF) and the purchasing commitment from Scansia Pacific Company (SP), forest households in Thua Thien Hue established a Cooperative Group under Decree No. 151/2007/NĐ-CP dated October 10, 2007 of the Government on the organization and operation of Cooperative Groups. They later moved toward establishing the Forest Owners Association under Decree No. 45/2010/NĐ-CP on the organization, operation, and management of Associations.

On September 30, 2016, the People’s Committee of Thua Thien Hue Province issued Decision No. 2329/QĐ-UBND approving the establishment of the Thua Thien Hue Sustainable Forest Development Forest Owners Association (abbreviated as HUE-FOSDA). The Association’s first Congress, held on October 17, 2016, elected a 21-member Executive Committee, including a Chairman (Mr. Vo Van Du – Deputy Director of the Department of Agriculture and Rural Development), two Vice Chairmen, four Standing Members, and fourteen Executive Members representing 14 grassroots sub-associations.
The purpose: HUE-FOSDA is a socio-professional organization of small-scale forest growers and individuals engaged in forestry activities in Thua Thien Hue Province. Membership is voluntary and open to all regardless of age, ethnicity, religion, or gender, united in the goal of certified forest planting following sustainable forest management standards that meet both national and international principles and criteria.

At its inception, HUE-FOSDA had 14 sub-associations with 241 members, managing 950.96 hectares certified under sustainable forest management. As of 2024, the Executive Committee has expanded to 40 members and established a Standing Board to manage all association activities. The number of sub-associations has increased to 40, with 1,707 forest owner members and a certified forest area of 9,272.64 hectares, all managed under the principles and criteria of the Forest Stewardship Council (FSC).

II. ACTIVITIES OF HUE-FOSDA

Main Activities

Representing and supporting forest households in certification assessment, maintaining sustainable forest management certification, and expanding membership and certified areas annually, following the “bottom-up implementation plan” approach to ensure both the inclusion of forest owners’ opinions and the practical, effective application at local levels.

Developing effective, sustainable forest management practices to produce large timber products with higher market value, increasing incomes, and improving livelihoods for forest households.

Supporting HUE-FOSDA sub-associations to establish Sustainable Forestry Cooperatives (SFCs) in order to:

• Enhance the role of sub-associations in the plantation wood value chain;
• Strengthen the management and operational capacity of sub-association executive boards;
• Diversify business models and take initiative in production and product marketing.

To date, 14 SFCs have been established and are operating effectively, with plans to establish 6 additional SFCs under the 2019 plan. The 2020 plan aimed to establish 10 new SFCs, ensuring the completion of 30 SFCs based on 30 sub-associations under HUE-FOSDA by 2020.

Main Achievements

By focusing on the value chain of large timber and FSC-certified woodchips under the Forest Stewardship Council, members have sold plantation timber at prices 15–20% higher than market rates. Improved tree species have been used, members have received technical support, and environmental awareness has significantly increased.

The transformation into Sustainable Forestry Cooperatives has shown initial success: over 200,000 environmentally friendly acacia seedlings have been produced and planted, an FSC timber processing facility has been established in Hoa Loc, and high-quality fertilizers are being supplied at reasonable prices.

HUE-FOSDA has attracted numerous organizations and projects to visit, exchange experiences, and support or sponsor its potential and strategic activities.

These results have built strong trust among forest households, attracting increasing participation from local people and communities.

III. STRATEGY OF HUE-FOSDA

1. Sustainable Forest Management linked to FSC Certification

• Achieve at least 2,000 members managing approximately 15,000 hectares of forest benefiting from sustainable forest management linked with FSC certification.

2. Develop the Thuan Thien Sustainable Forestry Cooperative

• Encourage well-performing SFCs to join as legal members of the Thuan Thien Cooperative to connect to the FSC supply chain; support the establishment of an FSC timber processing plant for export; and work toward Thuan Thien Cooperative becoming the legal entity representing FSC certification on behalf of HUE-FOSDA.
• Consolidate and Develop the Association

• Continue expanding the network of members and sub-associations according to the FSC forest plantation development scale.
• Gradually shift toward providing consultancy and technical support for sustainable forest management and community development activities, especially in forest carbon and sustainable livelihood areas.
• Build a sustainable financial foundation for the Association through consultancy services and partnership contracts with projects and programs.