Eliminate severely illegal wood for promoting wood production

VCN – To make good use of export promotion opportunities, 2019 is an important year for the forest sector in developing mechanisms and policies to eliminate illegal wood from the supply chain, especially to control imported wood supply.
tin nhap 20190416221448
The forestry sector aims to export $US 11 billion in 2019. Photo: Nguyễn Thanh

According to the Ministry of Agriculture and Rural Development, the export value of wood and wood products in the first three months is estimated to reach $US2.3 billion, up by 15.6% over the same period in 2018. Wood and wood products is the industry with the highest trade surplus in the first quarter of 2019 among agricultural, forestry and fishery products of Vietnam with a surplus value of $US 1.02 billion.

The US, Japan, China and South Korea continue to maintain their position as key export markets with the proportion of exports accounting for 79% of the total export value of wood and wood products.

With many key exported agricultural products of Vietnam such as rice, rubber and pepper on a downward trend, why did wood and wood products experience such a huge breakthrough? Responding to this question of Customs News’s reporter, Deputy Minister of Ministry of Agriculture and Rural Development Ha Cong Tuan analysed: The production capacity of the whole industry has increased rapidly. Afforestation over the past few years has contributed to a higher supply of wood and an increase in processing and processing facilities.

“Besides that, the product quality increased quite well. Products are accessible, meeting the criteria of traceability management to help Vietnam's credibility increase. In particular, a different point of wood industry is that its market only accounted 6% of global market share. The state with the spirit of creating action, has organised many meeting to remove difficulties. As a result, basically, it has created encouragement and excitement for enterprises to invest in development", Deputy Minister Tuan said.

According to Argo Processing and Market Development Department (MARD): The Voluntary Partnership Agreement on Forest Law Enforcement, Governance and Trade (VPA/FLEGT) between Vietnam and the European Union (EU) which is valid in 2019, will be a great opportunity for wood products from Vietnam to export to the EU.

Besides that, in the world market, the trade tension of US - China has caused impacts on Vietnam's wood industry. A number of Chinese wood products are subject to new tariffs from the US that has lost its advantages for access to the US market, creating opportunities for Vietnamese substitutes. Recently, some Vietnamese enterprises have seen an increase in orders from the US.

Although US-China trade tensions bring many opportunities, however, the Argo Processing and Market Development Department indicated the trade war has also brought many challenges to Vietnam's wood industry.

The US trade agency has conducted investigation on tax frauds for a number of Chinese companies when those companies transfer a number of plywood products manufactured from China to Vietnam, taking production labels from Vietnam and then exporting them to the US.

The US trade agencies are aware of the possibility of tax evasion by Chinese businesses through the use of production labels from Vietnam. In the context of trade tension which has not shown signs of cooling down, it is likely that there will be an increase of investigations into tax for Chinese companies in 2019.

It is forecasted that in 2019, Vietnam's wood and wood products export will continue to expand. In the whole year of 2019, the export target of the entire forestry industry is set at $US11 billion.

A representative of the Argo Processing and Market Development Department assessed that 2019 will be an important year for Vietnam in developing mechanisms and policies to remove illegal timber from the supply chain, especially controlling the supply of imported wood.

Furthermore, in the process of developing these mechanisms and policies, it required close consultation with the business sector, in order to ensure that those mechanisms and policies are effective and do not incur too much costs about time and money for enterprises.

Besides that, in the future, the forestry sector should develop more new development models, with an emphasis on value created in design, trade, high-skilled labour and technological innovation.

By Thanh Nguyễn/Thanh Thuy

Related News

Electronics industry overcomes challenges to penetrate deep into global supply chain

Electronics industry overcomes challenges to penetrate deep into global supply chain

VCN - In addition to the opportunities from the investment shift in the electronics industry, Vietnamese enterprises also face many challenges in terms of capital, technology and human resources. Ms. Do Thi Thuy Huong, Executive Committee Member of the Vietnam Electronics Industry Association (VEIA), shared about the future directions for this potential industry.
EU partners no longer

EU partners no longer 'lenient', Vietnam must adapt through ESG policies

VCN - Legal and economic experts are calling for Vietnam to revamp its policies to align with stringent sustainable development requirements set by European Union (EU) partners.
Sharing responsibility for ensuring security and safety of the supply chain

Sharing responsibility for ensuring security and safety of the supply chain

VCN – Post - clearance audit is carried out in a planned, focused and key manner, avoiding widespread and ineffective inspections, thereby creating convenience for the business community and improving the effectiveness of state management of customs.
Focus on sustainable development, greening the textile industry

Focus on sustainable development, greening the textile industry

VCN - Vietnam’s textile and garment industry has made great strides in strengthening its supply chain, diversifying its markets, and developing sustainably. Mr. Vu Duc Giang, Chairman of the Vietnam Textile and Apparel Association, shared the industry’s strategy to adapt to the changing global context, as well as the export value target for 2024 that the industry is aiming for.

Latest News

MoIT sets export growth at 6% in 2025

MoIT sets export growth at 6% in 2025

The recovery of major markets such as the US and EU will be an important driving force for exports, especially in electronics, consumer goods and textiles, the MoIT said.
Vietnam's first logistics park opens in Lang Son

Vietnam's first logistics park opens in Lang Son

The Viettel Lang Son Logistics Park, the first of its kind in Vietnam, officially opened in Cao Loc district, the northern mountainous province of Lang Son, on December 11.
Vietnam’s coffee exports possibly top 5 billion USD for first time

Vietnam’s coffee exports possibly top 5 billion USD for first time

Coffee prices have increased by over 50% on average this year, enabling the export revenue to potentially surpass 5 billion USD for the first time.
Support aggregate demand to promote economic growth

Support aggregate demand to promote economic growth

VCN - Financial policy, especially fiscal policy, has played an important role in promoting aggregate demand to contribute to economic development. In the current context, when the economy is entering the final year of the 2021-2025 terms with many difficulties and challenges, it is necessary to have solutions to promote production and business, supporting economic development.

More News

Plastics demand growing, says industry association

Plastics demand growing, says industry association

The plastics industry has enjoyed impressive growth this year, driven by steady demand from the construction, packaging and consumer industries, according to the Vietnam Plastics Association.
Vietnam’s tuna exports gain larger market shares in key markets

Vietnam’s tuna exports gain larger market shares in key markets

After overcoming challenges related to tuna size regulations and market volatility, Vietnam’s tuna exports are recovering and expanding in key markets.
Efficiency in emission reduction and sustainable development for wood enterprises

Efficiency in emission reduction and sustainable development for wood enterprises

VCN - Digital transformation aimed at reducing emissions and fostering sustainable development has become an intrinsic need for businesses. This shift stems from recognizing the tangible benefits demonstrated by pioneering enterprises that have successfully implemented and achieved these initiatives.
US emerges as biggest consumer of Vietnam’s pepper

US emerges as biggest consumer of Vietnam’s pepper

Vietnam exported 235,335 tonnes of pepper, including 207,498 tonnes of black pepper and 27,837 tonnes of white pepper, in January - November to earn 1.22 billion USD, with the US being the biggest importer, according to the Vietnam Pepper and Spice Association (VPSA).
Why are seafood exports to some Middle Eastern countries blocked?

Why are seafood exports to some Middle Eastern countries blocked?

VCN - Many seafood export shipments to some Middle Eastern countries have had their documents returned by the Consular Department due to the nightmare of consular legalization procedures, leading to a blockage in exports to these markets.
Seafood exports increase competitiveness through quality

Seafood exports increase competitiveness through quality

VCN - The "wave" of orders from a number of large markets and increased consumption demand in the coming months will be the driving force to accelerate seafood exports at the end of the year. Not only racing to increase exports, Vietnamese seafood also increases its competitive advantage by focusing on product quality, seed sources, green transformation in the production process...
Textiles, footwear enterprises need support to green the supply chain

Textiles, footwear enterprises need support to green the supply chain

VCN- As one of the world's leading textile, garment and footwear exporting countries, Vietnam is facing many opportunities as well as challenges in response to strict customer regulations in "greening" production, including a number of commitments such as implementing social and environmental responsibilities and reducing emissions...
Vietnam’s seafood export hits 1 billion USD mark for October

Vietnam’s seafood export hits 1 billion USD mark for October

Vietnam's seafood industry is on a roll, with export momentum propelling it toward the 10 billion USD target for 2024, laying robust groundwork for 2025.
Opportunities for export breakthroughs through e-commerce

Opportunities for export breakthroughs through e-commerce

VCN - According to Mr. Nguyen Van Thanh (in photo), Director of the E-commerce Development Center - Department of E-commerce and Digital Economy (Ministry of Industry and Trade), developing national e-commerce programs and fostering international cooperation are key to effectively harnessing Vietnam's potential in this area, thereby enhancing competitiveness and promoting sustainable development in the global market.
Read More

Your care

Latest Most read
MoIT sets export growth at 6% in 2025

MoIT sets export growth at 6% in 2025

The recovery of major markets such as the US and EU will be an important driving force for exports, especially in electronics, consumer goods and textiles, the MoIT said.
Vietnam's first logistics park opens in Lang Son

Vietnam's first logistics park opens in Lang Son

The Viettel Lang Son Logistics Park, the first of its kind in Vietnam, officially opened in Cao Loc district, the northern mountainous province of Lang Son, on December 11.
Vietnam’s coffee exports possibly top 5 billion USD for first time

Vietnam’s coffee exports possibly top 5 billion USD for first time

Coffee prices have increased by over 50% on average this year, enabling the export revenue to potentially surpass 5 billion USD for the first time.
Support aggregate demand to promote economic growth

Support aggregate demand to promote economic growth

VCN - In recent times, the world situation has been unstable, creating many difficulties and challenges for the sustainable growth of the global economy.
Plastics demand growing, says industry association

Plastics demand growing, says industry association

The plastics industry has enjoyed impressive growth this year, driven by steady demand from the construction, packaging and consumer industries, according to the Vietnam Plastics Association.
Mobile Version