December 2020 Message from Lead Consultant

IMM investment study identifies correlation between FLEGT-licensing and rising investments

In 2020, IMM commissioned a follow-up study of FLEGT impact on forest sector investment in Indonesia and Viet Nam. The study identified correlation between a rise in forest sector investment and a shift in investment from the pulp and paper towards the wood processing and furniture manufacturing sector in Indonesia during the last decade.

The 2020 study was acting on recommendations from a baseline study published in 2019, which had included all VPA implementing countries. This study had concluded that further monitoring of correlations between the FLEGT VPA process and forest sector investment should be limited to countries with an operational FLEGT-licensing system, as in other countries the scope of reforms was considered insufficient to have any identifiable impact on forest sector investment.

Acting on this second recommendation, IMM commissioned an in-depth follow-up study of FLEGT impact on forest sector investment, the investment enabling environment and forest sector resilience to economic crisis in Indonesia. Viet Nam was also included by way of comparison.

A summary of results is available here.

The full report will be published on the IMM website in January 2021.