BMFV MANAGEMENT SYSTEM

FOR
SECURING LEGALITY AND TRACEABILITY

Nguyen Thi Thu THUY, Ph.D.

Purchasing Manager
Nghe An, April 2021

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 CONTENT
1. Background of current wood purchasing situation in
Nghe An

2. BMFV values and views on

legality and traceability

3. BMFV DD system and

implementation

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 BACKGROUND
Nghe An has the largest forestry land in Viet Nam with Plantation forest area of
180,717 ha; Bare land to be planted: 270,902 ha (Nghe PPC – 2020); Nghe An
authorities are trying to expand the forest plantation in the sustainable
management; Furthermore, Nghe An people are hard-work and majority are relying
on Forest cultivation => Big change for wood industrial business.

There are around 45 wood processing companies in the areas, mostly exporting
chips, pellets, furniture to China, Korea, Japan, US, EU countries. Forest protection
and sustainable development has not been well attentive due to unstable market,
poor cultivation investment and not well traceable system from related parties and
end-users.

Biomass Fuel Vietnam comes at the good timing with high consumption of woody
materials and proper DDS, considering the sustainable development, making the
bright perspective on economic, social and environmental development for Nghe An
Forest

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 RAW MATERIAL PROCUREMENT SCHEME

Selecting key collectors in

each province for the procurement

Forest owner

Forest owner Government-managed

forestry organization

BMFV Wood pellet manufacturing plant

Forest owner

Forest owner

Forest owner
Private forestry
organization
Forest owner

Forest owner
Selective big
Selective wood
Forest owner forestry trader
factories

4
Forest owner COPYRIGHT © BIOMASS FUEL CO., LTD. ALL RIGHTS RESERVED.
 JIA Manual & FSC CW; CoC & SBP Standards => Biomass Fuel Viet Nam DDS

Due Diligence Procedure

➢Conduct risk assessment for new area and new suppliers
➢Supplier evaluation and selection
➢Randomly and regularly visit forests and wood processing factories for traceability
➢Record all the related documents respectively to the quantity supplied up to the forest
owners
➢Take additional traceability attention on residue collection to promote the recycling and
reproduction (Exclude any possibility of imported wooden material to avoid mixing, site
visit and docs requirement)
➢Risk Minimization & Internal Audit annually to ensure appropriate implementation of the
due diligence system

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Document required for supplied material
- Land tittle (Red book, forestry book,
contract with authorities for forest
plantation…Accepted average productivity
at 120 ton/ ha)
- Packing list (Mentioned forest owner,
origin, species name, quantity…)
- Harvesting documents
- Input and output recording book

Site visit required regularly at:

- Forests
- Wood processing factories
- Wood trading companies

BMFV Material for Wood pellet

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SITE VISIT CHECK LIST

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SITE VISIT CHECK LIST
 SITE VISIT
CHECK LIST
SITE VISIT CHECK LIST
 • Random site visit (at least once every 6 months)
• Supplier assessment
• Regular site visit (at least once every 6 months –
separately with random visit)
• Site visit and checking traceable docs with
authorities
• Annual audit
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1, 2) Random site visit
3, 4) Regular site visit
5, 6) Internal audit

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Additional attention on residue’s assessment and traceability (accept only local logs in the supply
chain; Require and record all the harvesting docs up to forest owner….)
Training and capacity building for sustainable standards in supply chain
➢Workshop
➢Commitment
➢Legality certification
➢Supplier has their own policy and sustainable must be included in their contract with famers/ collectors

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 OUR SUSTAINABLE MATERIAL PLAN

We applying DDS for our legality and traceability system

We collaborate with local government and forest owners for sustainable

forest plantation. Focusing on high techs, hybrid seedlings, proper
planning and ensure the sustainable production management process.

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 • FIT Certification from JIA
• FSC CW & CoC Certification
• SBP Certification

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 Biomass Fuel Viet Nam

Thank you!

Copyright © Biomass Fuel Co., Ltd. All

Rights Reserved.