One of the six principle objectives of FIO as manifested in the Royal Decree is : reforestation, conservation and improvement of forest for potential use for the state and under the FIO’s own initiatives.
FIO is responsible for reforestation for e reasons:
1. As being a timber concessionaire.
2. As being a lone government timber business enterprise.

     Before the declaration of government’s policy concerned with forest exploitation on 17^th January 1989, FIO held 67 timber concessions of forest throughout the country and also the share of 20 – 46 % of all provincial timber companies. And by now, due to the policy of the government, FIO has no timber concession at all. According to an agreement of the concessionaire, forest plantation has to be raised at the cost to the sum of royalty paid to the government each year. And with the permission of National Economic and Social Development Board (NESDB), FIO has also run another project of reforestation funded from her own profit. The same system of operation has been applied to all forest plantation unit by FIO, that is “SOCIO – AGRI – SIVICULTURAL SYSTEM”.
     The system, so called “Socio – agri – silvic” , is in effect of the modification of Burmese Taungya Method, where by the application of sociological development, agriculture and forestry can be tried and combined in a single operation. In FIO’s plantation, care is taken not only for the tree new forest but also for the well being of people through providing land for agriculture and other living facilities. In any unit, a new area of 1,000 rai (6.25 rai = 1 hectare) has to be provided for the new forest plantation each year. With spacing of 4 by 4 or 2 by 4 meters of forest tree planting, the area provides enough rooms for rice, maize, beans and other annual or biennial crops.
     A forest village has to be set up as apart of forest area in some unit. For each member family of village, FIO provides a piece of land 1 rai for residential purpose and another 5 rai for permanent farming. Electricity and water supply are provided free of charge for the member of the community. The authority provides transportation for the young going to and from nearby local primary school. And whenever the number of children in the village exceeds 30, a school will be set up in the village accordingly. Medical care, family planning and other activities are arranged, if necessary. At least 2 members of each family will be employed permanently by the authority while the others work rather freely in their own lots of, at least, 10 rai in the new plantation where they will pay at are paid of bht 200.- per 1 rai per year.

The project was designed to meet the need of country in :

1. Conservation and enrichment of forest resources.

2. Providing land for agriculture and / or animal husbandry for the rural people particularly those poor living in rainfed area.

3. Providing living facility and security for better living standard of people.

     This project was started in 1968 with 6 pioneer units situated in northern region of Thailand. Until now, FIO has 130units with about 2,500 families working successfully through out the country. However, under current situation, economic, social environmental conditions are rapidly changing all the time. Especially, Thai social characteristics are changing from agricultural society to agro-industrial society. Thus, establishing forest plantation with Forest Village System which is beginning to face problems; such as, standard of living, security of life and assets of forest village members, etc.
     With the approval from FIO Board of Directors in the 4/1996 meeting on 29 April, 1996, FIO had developed existing “Forest Village System Establishment” into “Forest Plantation Establishment for Rural Development”. The basic principle; villagers will join the plantation unit as member; FIO will provide forest plantation area to members, whom provide their labor force for establishing forest plantation with Agro-forest System. They will take care of that planted area continually every year. FIO will invest capital and support them the knowledge, technology, equipment, etc. The benefits eamed from plantation will be equitably shared by both sides. By doing this, members would become mutual owners, and get benefits from forest plantation.
     “Forest Plantation Establishment For Rural Development” that has been newly developed, is one of the best ways to solve land conflicts on plantation area between villagers and FIO. This is the most critical issue in establishing forest plantation in Thailand until now.
     FIO realized that degradation of environment is greatly increasing in all global regions, especially in tropical region. Although FIO is trying to establish more  plantation for economic, social and environmental sustainalbility, but in order to meet with acceptable international standard, FIO has adopted “Principles and Criteria” of Forest Stewardship Council (FSC) for its own plantation management. Under Sida (Swedish international development agency) cooperation, FIO has initiated “Sustainable Plantation Management” at Thong-pha-phum plantation in Kanchanaburi province as the first pilot project, since the end of 1998.

Statement of support for Forest Stewardship Council (FSC)
     The forest plantations – which is a part of Forest Industry Organization (FIO) – is committed to follow the Principles and Criteria (P&C) of FSC. If a Thai regional FSC standard developed and duly endorsed TPP will adhere to it.
     TPP is managing an 18,000 rai forest plantation in Kanchanaburi province. Operations at TPP has taken into consideration production, ecological and socioeconomic aspects – balancing the three.
     TPP plantation seeks co-operation with local organizations, authorities and NGOs. It is in the interest of TPP to share information and to find appropriate to plantation forest management, which will benefit the environment – and at the same time contributing to the sound progress of FIO and to regional growth.
     In case of TPP plantation seeking, and later possibly acquiring FSC certification, it is in the interest of TPP to collaborate with FSC accredited certifiers and FSC staff in the expected way.
     If TPP at a later stage is awarded a certificate, TPP will comply with the rules and regulations as stated by FSC and the accredited certifier.
     Accordingly, FIO plans to initiate next pilot project at Khao-krayyang plantation in Pitsanulok province within 1999. Also, FIO will set the objectives for being certified by FSC within mid 2000. After that, all plantations will be certified within2004 or the next 5 years. So, there is hope that all FIO Plantations will be managed toward economic, social, and environmental sustainability as being desired end result, within the very near future.