This chapter examines the governance failure reflected in Mekong countries’ response – or lack thereof – to the unsustainable rosewood extraction together with its illicit sourcing pattern. The high demand for timber products under the visible Chinese investments within the greater mekong basin continues to fuel illegal logging, and with it the illicit activities associated with timber trades among the Mekong countries. In the case of rosewood trade, the tremendous potential profits have rendered national regulations ineffective and thus led to the listing of eight rosewood species. China topped the list of countries reporting the greatest annual gain in forest area during 2010–2015, with the highest afforestation rate of any country in the world. In terms of monitoring arrangements, international institutions can influence national policies by employing victims of noncompliance whilst empowering domestic pro-compliance constituencies to monitor and enforce national compliance.