Linking Smallholder Plantations to Global Markets: Lessons from the IKEA model in Vietnam

12/06/2018 11:46
Linking Smallholder Plantations to Global Markets: Lessons from the IKEA model in Vietnam

Forest Trends and Vietnam Timber and Forest Products Associations (VIFORES) have finalised  the English report: “Linking Smallholder Plantations to Global Markets: Lessons from the IKEA model in Vietnam.”

This is our final product of the study on social, economic and environmental effectiveness of the model of linkage between Vietnam’s acacia planting households and companies that specialize in processing wood products for the IKEA Group—which is therefore called the IKEA linkage model. 

Following the report, companies and households participating in this model have invested in the production of large-diameter acacia timber and achieved Forest Stewardship Council (FSC) certification, which is required by IKEA for all wood products sourced in Vietnam and sold in international markets. This model has increased incomes for plantation households – who are able to sell FSC-certified timber at prices 10-18 percent higher than non-certified timber – and provided a steady supply of material inputs to processing companies. Increased recognition of land tenure for households involved in the linkage model helped reduce conflict and improve social capital and consensus in communities. Through FSC certification, environmental benefits have also been safeguarded. However, households have struggled to meet FSC certification requirements, and it remains to be seen whether the “linkage model” will be economically sustainable in the long term.

Attached please find the full report of the study we would like to share with you.

Go Viet