PUBLIC INFORMATION VIET NAM. Quang Ninh province, Viet Nam.

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1 Doc. Number: HK-AD 54-F-08 Page: 7 of 18 PUBLIC INFORMATION A APPROVAL Approving Certification Body: SGS HK Ltd. Date of Risk Assessment Sept 26, 13 Comments: Approved Date Approved: Sept 26, 13 B ORIGIN OF TIMBER Country: VIET NAM District FMU 1 ( Quan Lan, Cai Rong, Dong Xa) Van Don districts, Quang Ninh province, Viet Nam. ( Hong Gai) Ha Long city, Quang Ninh province, Viet Nam. FMU2- (Yen Mong,Hoa Binh) Hoa Binh Town, Hoa Binh Province, Viet Nam. (Trung Minh) Ky Son District, Hoa Binh Province, Viet Nam. FMU3- (Long son, Duong Huu) Son Dong District, Bac Giang Province, Viet Nam. FMU4- (Thuong Nong) Tam Nong District, Phu Tho Province, Viet Nam. (Minh Luong) Doan Hung District, Phu Tho Province, Viet Nam. (Giap Lai, Vo Mieu, Dich Qua) Thanh Son District, Phu Tho Province, Viet Nam. Risk Assessment Level (indicate the risk for the different levels) Risk Assessment Level (After Annex III audit, If necessary) Country District FMU Unspecified Risk Unspecified Risk District/FMU C. RESULT OF RISK ASSESSMENT Type of source e.g. natural forest or plantations and general description of the supplier 1- Logs supplied to THAI HUNG PORT JOINT STOCK COMPANY is completely harvested from the Commercial Plantation Forest with species that are allowed and encouraged to be planted by the Government of Viet Nam. 2- Logs suppliers are legally registered companies with full licence to harvest and trade in round logs. 3- Description of the suppliers: they are ranked as medium to big scale suppliers of material logs.

2 Doc. Number: HK-AD 54-F-08 Page: 8 of 18 Supplier 1: Nguyen Manh Liem. - ID number issued by provincial police of Ha Noi City date 15/02/2001. Plantation Forest, Area: ha Species: Acacia Mangium Supplier 2: Phan Van Tham ID number issued by provincial police of Hung yen date 26/04/1995. Plantation Forest, Area: ha Species: Acacia Mangium Supplier 3: Bui Van Suc ID number issued by provincial police of Hung Yen date 01/02/2008. Plantation Forest, Area: ha Species: Acacia Mangium Supplier 4: Doan Trung Quyet ID number issued by provincial police of Hung Yen date 13/04/1999. Plantation Forest, Area: ha Species: Acacia Mangium Results (Low or Unspecified Risk and motivation:

3 Doc. Number: HK-AD 54-F-08 Page: 9 of 18 SPECIFIC REQUIREMENTS FOR EACH FSC CONTROLLED WOOD CATEGORY 1. ILLEGALLY HARVESTED WOOD 1.1 The district of origin may be considered low risk in relation to illegal harvesting when all the following indicators related to forest governance are present: Finding & Evidence Result Requirements Examples of sources of information (FSC-DIR Sources of information used to assess the indicators must be listed) Unspecified risk Low Evidence of enforcement of logging related laws in the district There is evidence in the district demonstrating the legality of harvests and wood purchases that includes robust and effective systems for granting licenses and harvest FSC National Initiatives (contacts from The Royal Institute of International Affairs ( Environmental Investigation Agency ( Global Witness: ( Telapak (for Indonesia - UK Government s Department for International Development (DFID) EU FLEGT process: me/forest/initiative/index_en.htm Transparency international index ( Corruption perceptions WWF ( ELDIS ( regional and country profiles NGOs and involved stakeholders Vietnam has laws and regulations to manage forests and harvesting: Law on Forest Protection and Development of Vietnam No. 29/2004/QH11 dated on 03/12/2004; Decision No. 40/2005/QD- BNN on 07/07/2005 on regulations on logging and other forest products; and Decision No 186/2006/QĐ-TTg of Prime Minister dated 14/8/2006 on the issuance of regulations on forest management. But at this point in time there is no precise information that the organization of forest management in North East Vietnam observes good laws relating to logging, nor any information on violations in the Northern region. Vietnam has decrees, decisions, guidelines for timber harvesting and trade, such as: Decision No. 59/2005/QD-BNN on forest, controls of forest product on 10/10/2005 Document No. 33/CV-KL dated 11/01/2006 guiding the application of some provisions

4 Page: 10 of 18 permits There is little or no evidence or reporting of illegal harvesting in the district of origin There is a low perception of corruption related to the granting or issuing of harvesting permits and other areas of law enforcement related to harvesting and wood trade of Decision No. 59/2005/QD-BNN; Decree on implementation of Law on Forest Protection and Development No. 23/2006/ND-CP dated 03/03/2006; However, so far there are no documents to prove compliance in North East, Vietnam Vietnam has laws, decrees and sanctions to penalize the illegal wood exploitation such as: Decree No. 99/2009/ND-CP dated 02/11/2009 of Government on sanctioning administrative violations in forests. There is no report about illegal logging in the North East Region, but not having any documents to prove there was no illegal harvesting. Vietnam has issued anti-corruption laws relating to the grant or issue permits for harvesting, manufacturing and trading wood to local individuals / local organizations and have defined powers, responsibilities and functions of the law enforcement clearly. However, there are no documents to demonstrate the level of awareness and implementation of local individuals or local organizations. Furthermore, as well as updated information from the sources listed. International assessment of Vietnam's CPI (Based on survey results of independent studies of 13 prestigious institutions in 180 countries worldwide) was 2.9 points (< 5). Therefore the level of corruption in Vietnam is not high but also can not be ignored so can not determine the risk of Vietnam in general and Northern.

5 Doc. Number: HK-AD 54-F-08 Page: 11 of 18 Vietnam in particular 2 WOOD HARVESTED IN VIOLATION OF TRADITIONAL OR CIVIL RIGHTS 2.1 The district of origin may be considered low risk in relation to the violation of traditional, civil and collective rights when all the following indicators are present: Finding & Evidence Result Requirements Examples of sources of information (FSC-DIR Sources of information used to assess the indicators must be listed) Unspecified risk Low There is no UN Security Council ban on timber exports from the country concerned; Currently, there is no ban of the Security Council of the United Nations on wood exports from the localities of Vietnam. The Government of Vietnam have legal documents to manage the export and import of cargo, timber and other wood products in particular, such as the Decision of the Prime Minister on the management of export and import of goods E.g. This has applied to Liberia, as of July 2003 ( tm) Global Witness Vietnam government has issued licenses to export wood and wood products for Companies in provinces of Vietnam in general and Northern in particular Even, the THAI HUNG PORT JOINT STOCK COMPANY., State Vietnam also permit THAI HUNG PORT JOINT STOCK COMPANY manufacturing and import and export wood chips according to investment License No dated on 29/03/2013 by Department of Planning and Investment of Quang Ninh province, Vietnam. Low risk

6 Page: 12 of The country or district is not designated a source of conflict timber (E.g. USAID Type 1 conflict timber); The final report of the expert panel on illegal exploitation of natural resources and other forms of wealth in Democratic Republic of Congo, 2002, Annexes I and III (S/2002/1146) Error! Hyperlink reference not valid. Conflict Timber: Dimensions of the Problem in Asia and Africa. Volume I. Synthesis report. June 2003, available at: h.pdf According to USAID's latest research on Asia in general on It cannot be asserted where there is no conflict. Currently, there is no information on the problem of conflict in North East of Vietnam in particular and Vietnam in general. Vietnam is a small country in Asia. therefore Vietnam cannot be considered as no conflict wood There is no evidence of child labour or violation of ILO Fundamental Principles and Rights at work taking place in forest areas in the district concerned FSC National Initiatives and Regional Offices contacts ILO country offices Vietnam government has the legal system to protect the rights of workers, prohibit use of child labor such as: The Labor Code of the Socialist Republic of Vietnam in Based on the statistical report from the General Statistics Office, or information from labor unions, the North East region of Vietnam and Vietnam as a whole there is no evidence of child labor or violations of the basic ILO principles. Moreover, according to the ILO report, Vietnam: No evidence of child labor or violations of the fundamental principles of the ILO on a considerable scale Low risk There are recognized and equitable processes in place to resolve conflicts of substantial magnitude pertaining to traditional rights including use rights, cultural interests or traditional cultural identity in the district concerned; FSC National Initiatives and Regional Offices contacts Indigenous Peoples Organizations Local community associations in the district Risk register National Sources (e.g. records of land claims negotiation concluded or in progress, summaries of court decisions) Reference information about economic, political, social and labor on the government web sites There is no information to verify clearly the major conflicts in Vietnam and North East Vietnam. However, there is no information to confirm that Vietnam or Northern Vietnam is recognized as fair in conflict resolution. Therefore at this time can confirm that in Northern region of Vietnam it is impossible to determine the risk associated with this item.

7 Page: 13 of There is no evidence of violation of the ILO Convention 169 on Indigenous and Tribal Peoples taking place in the forest areas in the district concerned. FSC National Initiatives and Regional Offices contacts ILO country offices Reference information about economic, political, social and labor on the concerned government websites. There is no information to verify clearly this issue in Vietnam and North East of Vietnam 3 WOOD HARVESTED FROM FOREST IN WHICH HIGH CONSERVATION VALUES ARE THREATENED BY MANAGEMENT ACTIVITIES 3.1 The district of origin may be considered low risk in relation to any threat to high conservation values if: a) indicator 3.1 is met; or b) indicator 3.2 eliminates (or greatly mitigates) the threat posed to the district of origin by non-compliance with 3.1 Finding & Evidence Result Requirements Examples of sources of information (FSC-DIR Sources of information used to assess the indicators must be listed) Unspecified risk Low Forest management activities in the relevant level (ecoregion, sub-eco-region, local) do not threaten eco-regionally significant high conservation values; FSC documentation on HCVFs: Eco-region definition and information: cfm Those regions identified by Conservation International as a Biodiversity Hotspot (or) Those ecosystems and communities that are explicitly identified by Conservation International as a key component of a Biodiversity Hotspot Those forest, woodland, or mangrove ecoregions identified by World Wildlife Fund as a Global 200 Eco-region and assessed by WWF as having a conservation status of endangered or critical. If the Global 200 Eco-region According to identification and evaluation of the WWF, Vietnam identifies much of Vietnam s natural forest as threatened. However, Vietnam has legal systems to manage and protect forest and high conservation value to ensure no ecological threat to protected areas such as: Law on Forest Protection and Development of Vietnam No. 29/2004/QH11 dated on 03/12/2004. Biodiversity Law No. 20/2008/QH12 issued on 13/11/2008, circulars, decrees, decisions, aimed at improving management capacity and achieve more efficiency, improving the high conservation values, to avoid threatening the region, and conservation in sub-regional ecological zones. However, there is no documentation or information to confirm

8 Page: 14 of 18 comprises more than a single terrestrial ecoregion, an eco-region within the Global 200 Ecoregion can be considered low risk if the sub-ecoregion is assessed with a Conservation Status other than critical/endangered. awareness and execution of the law of Vietnam by related people and organizations. Those regions identified by the World Conservation Union (IUCN) as a Centre of Plant Diversity Those regions identified by Conservation International as a High Biodiversity Wilderness Area that are forests and contain contiguous forest ecosystems greater than 500 km 2. Those regions identified by the World Resources Institute as a Frontier Forest A strong system of protection (effective protected areas and legislation) is in place that ensures survival of the HCVs in the eco-region; Intact Forests Landscapes, as identified by Greenpeace ( FSC National Initiatives Signatory to the Convention on Biological Diversity and demonstrable progress towards completing a network of protected areas, such as an overall positive analysis of the latest country thematic report on Forest Ecosystems Vietnam has legal systems for management and protection of forest and high conservation values to ensure no ecological threat to protected areas such as Law on Forest Protection and Development of Vietnam No. 29/2004/QH11 dated on 03/12/2004, Biodiversity Law No. 20/2008/QH12 issued on 13/11/2008 Decision No. 186/2006/QD-TTg of the Prime Minister on on promulgate regulations on forest management or Circular Number: 57/2007/TT-BNN on 13/06/2007 amendments and supplements some contents of circular No. 99/2006/TT- BNN Department of Agriculture and Rural Development Rural dated on 06/11/2006 guide of some articles of the regulation of forest management. The legal documents, circulars, decrees, decisions exist. They are very strong sanctions, but until now, there's no evidence to demonstrate thorough execution of the

9 Page: 15 of 18 law 4 WOOD HARVESTED FROM AREAS BEING CONVERTED FROM FORESTS AND OTHER WOODED ECOSYSTEMS TO PLANTATIONS OR NON-FOREST USES 4.1. The district of origin may be considered low risk in relation to conversion of forest to plantations or non-forest uses when the following indicator is present: [Note: the change from plantations to other land uses is not considered as conversion]. Finding & Evidence Result Requirements Examples of sources of information (FSC-DIR Sources of information used to assess the indicators must be listed) Unspecified risk Low There is no net loss AND no significant rate of loss (> 0.5% per year) of natural forests and other naturally wooded ecosystems such as savannahs taking place in the eco-region in question FAO GOFC-GOLD Global Observation of Forest and Land Cover Dynamics FAO Global Forest Resources Assessment Conservation International Regional Analysis Program University of Maryland Department of Geography UNEP/GRID Division of Early Warning and Assessment SERVIR Regional Monitoring and Visualization System for Mesoamerica Congo Basin Forest Partnership and CARPE CEC Joint Research Centre According data from the Ministry of Agriculture and Rural Development there is no net loss and no significant rate of loss (> 0.5% per year) of natural forests: - Area of natural forest area at December 2009 was million ha (MARD Decision No. 2140/QĐ-BNN-KL, 9/8/10) - Area of natural forest area at December 2008 was million ha (MARD Decision No. 1267/QD-BNN-KL, 4/5/09) Annual loss of natural forest according to this data is about 0.1% Low risk INPE-PRODES Brazil s National Institute for Space Research

10 Page: 16 of 18 Hansen, M., DeFries, R., Townshend, J.R., Carroll, M., Dimiceli,C., Sohlberg, R m MODIS Vegetation Continuous Fields. College Park, Maryland: The Global Land Cover Facility. National data sources FSC National Initiatives and Regional Offices contacts 5 WOOD FROM FORESTS IN WHICH GENETICALLY MODIFIED TREES ARE PLANTED 5.1 Requirements related to wood from forests in which genetically modified trees are planted Finding & Evidence Result Requirements Examples of sources of information (FSC-DIR Sources of information used to assess the indicators must be listed) Unspecif ied risk Low The district of origin may be considered low risk in relation to wood from genetically modified trees when one of the following indicators is complied with: a) There is no commercial use of genetically modified trees of the species concerned taking place in the country or district concerned. OR b) Licenses are required for commercial use of genetically modified trees and there are no licenses for commercial use OR FAO, Preliminary review of biotechnology in forestry, including genetic modification. Forest Genetic Resources Working Paper FGR/59E. Forest Resources Development Service, Forest Resources Division, Rome, Italy. Available online: 0.HTM National and regional data sources According to FAO's latest research "Review Preliminary of biotechnology in forestry, including genetically modified organisms" no genetically engineered crops are used in commercial activities in Vietnam. Using genetically engineered plants in commercial activities took place in China. With Equipment and current techniques Conditions of Vietnam now cannot make genetically modified trees Acacia Mangium is not subject to GM Low risk c) It is forbidden to use genetically modified trees

11 Page: 17 of 18 commercially in the country concerned. 6 GENERAL Finding & Evidence Result Requirements Examples of sources of information (FSC-DIR Sources of information used to assess the indicators must be listed) Unspecified risk Low General search on the company The company search on these website: e.g. Google ttp:// 0773e00.htm 14.

12 Page: 18 of 18 ult.aspx luat.xalo.vn And found that the controlled wood forest source is unspecified risk End of report