Remove difficulties for forest products to be ready to "catch up" when the market recovers

Difficulties piled up

Speaking at the Prime Minister's meeting with the Wood and Forest Products Association, the Vietnam Association of Seafood Processing and Exports to remove difficulties and promote the production and export of forest products and aquatic products.

On April 13, 2023, Do Xuan Lap, Chairman of Viforest, said that the forest product sector has decreased in both production and export value. In the first quarter of 2023, export of timber and forest products reached 3.1 billion USD, down 28.3%. It is expected that in 2023, the value of export turnover will only reach the equivalent of 2022.

Along with the sharp decline in orders, businesses must produce moderately, greatly affecting production and business, affecting the life of tens of millions of workers.

Facing market difficulties, Viforest has asked local businesses and wooden associations to actively expand the market and improve competitiveness; in which the product focuses on the criteria that the price must be good, suitable for tastes, has good quality and has a good after-sales policy.

At the same time, restructuring, reorganizing production, focusing on technological change, perfecting the production management system, and improving the efficiency and quality of human resources. Promote the production of products using domestic raw materials to reduce costs, and improve the competitiveness of the product.

Viforest also proposed ministries, branches and localities to prioritize support for wood and processing forest products to promote trade, and expand the market through negotiating and signing trade agreements such as Trung Trung East and South America, establishing centralized industrial clusters and zones of the wood industry and forest product processing in potential regions and localities; establishing an international and scale international trade center; development of supporting industry; development of concentrated planting material areas in the country, as well as policies on tax, insurance and credit support to create favorable conditions for businesses in the current difficult time.

In addition, Viforest proposed the Prime Minister, ministries, branches and localities to allow the formation of exhibition centers with special regional and international levels such as Hanoi and Da Nang to ensure trade promotion, as well as changing the support level in the policy of supporting trade promotion for Vietnamese enterprises to participate in international fairs, because the current support policy is still low.

“For the value-added tax refund when exporting wood and wood products, the Ministry of Finance considered the export industry as a risk industry in the tax refund due to a number of fraudulent enterprises declaring the tax price declaration. The Association proposed the Prime Minister and the Ministry of Finance consider and strictly handle businesses with mistakes. At the same time, there is a plan to settle and create conditions for timely value added tax refunds for genuine production and business enterprises,” Do Xuan said.

It is expected that in 2023, the export value will only be equivalent to 2022. Photo: Nguyen Thanh

Quickly remove difficulties for businesses

With the current difficult export situation, VIFOREST proposes to have a policy for enterprises in the wood and forest product processing industry to extend their debt due from 6 to 12 months; have a special credit package from the Bank for Social Policies for enterprises to pay wages to workers in 2023; and delay the payment of social insurance, without interest in 2023.

Facing the difficulties shared by the association, Prime Minister Pham Minh Chinh asked ministries, branches and localities to share and support businesses in a timely manner. Relevant stakeholders will make efforts to promote the spirit of self-reliance and self-reliance to overcome difficulties and overcome challenges and achieve the goal of exporting forest products of USD 17.5 billion.

In particular, the Prime Minister noted the Ministry of Agriculture and Rural Development to build, complete and submit to the Government for promulgation a number of mechanisms and policies on forestry and fishery, including regulations on the legal timber assurance system. Vietnamese law; effectively implements the provisions of the law on management and traceability of forest and aquatic products.

The Prime Minister also assigned the Ministry of Finance to assume the prime responsibility for studying policies and removing tax issues; submit to competent authorities for consideration and implementation of solutions on the exemption, reduction, extension, postponement, and extension of taxes, fees, charges, land rent and land use levy applicable to 2023.

The Prime Minister requested the State Bank of Vietnam to administer policies for banks to lend, provide capital, reduce costs, and reduce loan interest rates to support export enterprises; directing credit to production and business. Continue to implement the policy of supporting a 2% interest rate for enterprises, cooperatives and business households in the field of agriculture - forestry - fishery according to Decree No. 31/2022/ND-CP of the Government; urgently research, propose competent authorities and deploy appropriate solutions on debt restructuring, interest rate exemption and reduction, and debt extension.