International Climate Initiative (IKI) in Viet Nam

Enhancing Accountability, Timber Legality and Forest Protection through Administrative Sanctions

Forests in Viet Nam and around the world are vital habitats for biodiversity and play a critical role in carbon sequestration, helping to mitigate climate change. However, they are under serious pressure from forest degradation, illegal logging, and transboundary timber trade. Therefore, experts have been calling for stricter forest resource management; and to address this issue, the government has issued Decree No. 146/2026/ND-CP on administrative sanctions in the forestry sector.

This decree comprehensively replaces Decree No. 35/2019/ND-CP and the amendments introduced under Decree No. 07/2022/ND-CP, thereby establishing a new legal framework with several notable reforms, demonstrating a broader and more comprehensive scope than previous regulations.

One of the most prominent features of the new decree is the expansion and modernisation of its regulatory scope in line with the updated legal framework. Whereas Decree No. 35/2019/ND-CP primarily focused on conventional forestry violations such as illegal deforestation, unlawful timber harvesting, transportation and trade in forest products, the new decree introduces additional provisions relating to modern forest governance, forestry data management, responsibilities of forest management organisations, payment for forest environmental services, traceability of forest products and forest reproductive material management. For instance, there are now penalties for acts concerning forest product dossiers and traceability such as “failure to prepare forest product dossiers”, “preparing dossiers inconsistent with regulations” or “using illegal forest product dossiers”. These additions illustrate a significant shift towards supply-chain management and timber legality assurance rather than merely penalising direct exploitation activities.

Another important reform is the increase in penalties for serious or repeated violations. Compared with the old decree, the sanctioning levels under the new decree have been substantially strengthened for acts such as destruction of natural forests, exploitation of endangered, precious and rare forest species and large-scale transportation or storage of illegal forest products. For example, illegal deforestation may now incur fines amounting to hundreds of millions of Vietnamese Dong depending on the forest type, area affected and extent of damage. Violations involving endangered wildlife species are further sanctioned by confiscating exhibits and means used for the violation. In addition, remedial measures such as “mandatory reforestation” or “restoration of the original forest condition” may also be imposed.

The new decree also marks considerable progress in clarifying the responsibilities of organisations and enterprises. While earlier regulations mainly targeted individuals directly committing violations, the new decree more explicitly regulates the obligations of timber processing companies, forest owners, forest management boards and entities benefiting from forest environmental services. In particular, acts such as failure to declare, inaccurate declaration or delayed payment of forest environmental service fees are now subject to clearer and stricter sanctions. For example, the decree imposes penalties for “failure to make payments for forest environmental services in accordance with regulations” or “dishonest declaration of output or revenue serving as the basis for payment calculation”, while also requiring violators to “fully pay the outstanding amount in accordance with regulations”. This demonstrates that the state is not only concerned with direct damage to forests but also with financial accountability and obligations contributing to forest protection and development.

Another noteworthy feature is the revision of sanctioning authority and enforcement mechanisms. As local authorities often reported overlaps or ambiguities in enforcement responsibilities, there are more detailed provisions regarding the powers of forest rangers, forestry management agencies and related authorities in preparing administrative records, imposing sanctions and applying remedial measures. The decree differentiates the authority of Forest Rangers, Heads of Forest Ranger Units, Directors of Forest Protection Departments and Chairpersons of People’s Committees at different levels according to the nature of violations and applicable fines. Competent authorities are also authorised to “confiscate exhibits and means used for administrative violations”, “temporarily suspend operations” or “apply remedial measures”.

In addition, the new decree demonstrates evidence-based and supply-chain-focused management. Forest product dossiers, traceability systems, digital data management and control of legal timber supply chains are more comprehensively regulated. For example, the decree penalises acts such as “purchasing, selling, storing or processing forest products without lawful dossiers”, “altering or erasing forest product records” or “transporting forest products inconsistent with accompanying dossiers”. Some provisions further require information management, declaration and data storage to comply with legal timber management systems.

Beyond strengthening sanctions, the new decree also reflects a broader shift in governance philosophy – from isolated punishment towards integrated forest resource governance. It is designed not only to penalise violations but also to improve accountability amongst forest management stakeholders, enhance transparency in forest product supply chains and strengthen preventive measures. For example, it now includes remedial obligations such as “restoration of forest conditions”, “implementation of silvicultural measures”, “destruction of harmful exhibits” or “return of illicit profits gained through violations”.

Overall, the new decree represents an important advancement in Viet Nam’s forestry legal framework. Compared with the previous regulations, the new decree not only updates regulations to better reflect current realities but also demonstrates a strong commitment to enhancing law enforcement effectiveness, improving stakeholder accountability and promoting transparent, modern and sustainable forest governance. These reforms are expected to contribute to improving forest protection, reducing illegal logging and trade in forest products and strengthening Viet Nam’s legal preparedness for deeper international integration in the forestry sector.

 

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