The US$15.5 million project was designed to improve the efficiency and sustainability of forest management while assisting the processing industry. It also aimed to boost the sales and marketing of forest products within Vietnam.

The German Government will provide US$5.18 million of non-refundable official development assistance for this phase, with Vietnam contributing US$307,000.

The phase will be implemented from 2009-11 in the northern mountain province of Yen Bai, the two central coastal provinces of Quang Binh and Ninh Thuan and the two Central Highland provinces of Dak Lak and Kon Tum.

The project will focus on the management and utilisation of forest resources in combination with consistent policy and the strengthening of institutional capacity at national and sub-national levels.

It will also deal with using financial incentives to encourage the private sector to consider forest products in economic development.

People from rural areas in selected regions and forestry offices would benefit from learning about sustainble forest management methods and advanced processing technologies.