The forestry sector is a specific technical, economic sector, which plays an important role to the current and future development of Vietnam. About 25 million people are living in or near forests, particularly in mountainous regions, with many of them poor and belonging to ethnic minority groups who depend on the forests. 


The forestry sector in Vietnam contributes just over 1% of national GDP, although this figure may underestimate the true socio-economic and environmental values of the sector in terms of its contribution to national economy, to local people’s livelihoods and environmental values such as watershed and coastal protection and reduction of effects of global warming.


In Vietnam, there is a rapid growth in the wood-processing sub-sector involving both SMEs and industrial scale enterprises. The production sub-sector (economic plantations) is gaining more importance with large participation of households to meet the demand for small wood.  In many provinces in north-eastern and central coastal provinces, plantation timber becomes the main long-term incomes of many farmers.