Strict control of fraudulent trading "vital" issue for wood industry

VCN - Besides solutions such as clearly defining strategic products and markets; diversifying products from plantation timber, promoting the efficiency of the forestry development chain, the strict control of fraudulent trading is a "vital" issue for the wood industry.
New strategies required to set deeper roots for wood industry New strategies required to set deeper roots for wood industry
Vietnam aims for transparent and legal wood industry Vietnam aims for transparent and legal wood industry
Facing a series of legal risks, what should the wood industry do? Facing a series of legal risks, what should the wood industry do?
4023-2747-toan-cynh-259

Overview at the conference. Photo: Cao Cam

South Korea imposed tax, US sued

According to the latest information from the Vietnam Administration of Forestry (Ministry of Agriculture and Rural Development), in the first nine months of 2020, the export value of wood and forest products was estimated at US$8.97 billion, up 12% compared to the same period in 2019. The main export in eight months was US$7.01 billion, accounting for 89.4% of the export value of forest products of Vietnam.

Speaking at aconference of the wood industry to discuss solutions to achieve forest product export targets in 2020 onthe afternoon of September 25, in BinhDinh province, Mr. Bui ChinhNghia, Deputy Director of the General Department of Forestry said, in the last nine months, the whole industry has seen many changes, affecting the production, processing and export value of timber and forest products.

Besides the impact of the Covid-19 pandemic, the most notable issue is the impact caused by trade competition cases. Specifically, on March 1, the US Department of Commerce (DOC) officially received the petition of the United States Hard Plywood Union.

The content is the investigation and application of anti-evasion tax, anti-dumping duty and product subsidy of plywood items (HS code 4412) exported from Vietnam due to suspicion that this product originated from China.

On September 6, 2020, the DOC decided to initiate an investigation, sending a survey on the quantity and value of plywood exports to the United States to 55 Vietnamese enterprises and asked enterprises to return documents and reply to the DOC on September 24, 2020. After September 24, 2020, the DOC will select an enterprise for the mandatory investigation and conduct a preliminary investigation.

In addition, the notable case is that Korea imposed a temporary anti-dumping tax on Vietnamese plywood.

On May 26, 2020, the Korean Ministry of Economy and Finance decided to impose a temporary anti-dumping tax on plywood imported from Vietnam from 9.18% to 10.65%. The deadline for applying the tax rate is from May 29 to September 28, 2020.

Currently, the Korean side has finished the actual investigation at enterprises and will announce the official decision at the end of September 2020.

Fighting against fraud is a "vital" issue

Regarding exports of the wood industry, especially focusing on the analysis of trade fraud leading to risks of trade remedies, Mr. Do Xuan Lap, Chairman of the Vietnam Timber and Forest Products Association, said it cannot be denied that the US-China trade war has created a huge opportunity for the wood industry to expand exports, especially in strategic markets.

Export data from the General Department of Customs show that Vietnam's exports of wood products to the US increased from 43% in 2018 out of the total export turnover, increased by 50% in 2019 and 53% in the first eight months of 2020. However, opportunities also come with risks of commercial fraud.

In 2020, timber and forest product exports will confidently reachUS$12.5 billion. Photo: N.Thanh.

The US government is investigating Vietnamese plywood products exported to the US. Besides plywood, there are two items showing signs of risk, which are kitchen cabinets/bathroom cabinets made of plywood and sofas with frames made of plywood.

Specifically, in the first eight months of 2020, the export turnover of kitchen cabinets from Vietnam to the US increased by over 80%, the export turnover of sofa frames made from plywood to the US increased by over 40%.

Information from local associations also said that some Chinese enterprises are hiring legal entities of some Vietnamese enterprises to import finished products for export to the US.

"These are relatively clear signs of trade fraud. The established group of kitchen cabinets with the participation of Chinese manufacturers is an important clue and channel for exposing information the enterprises," Mr. Lap said.

In the current context, besides solutions such as clearly defining strategic products and strategic markets to support the breakthrough development of the wood industry; diversify products from plantation timber, promoting the efficiency of the forestry development chain, Mr. Lap said that strictly controllingtrade fraud is a "vital" issue for the wood industry.

In addition to the above-mentioned contents, Mr. Le Minh Thien, Chairman of BinhDinh Timber and Forest Products Association, proposed the Government, the Ministry of Agriculture and Rural Development and related agencies to allow forestry enterprises, processing and manufacturing wooden furniture and wood products enterprises approaching low interest ODA loans.

Wood industry wants to move to higher segment Wood industry wants to move to higher segment

VCN- In addition to the production values achieved in recent times, Vietnamese wood processing enterprises are paying ...

This is to help businesses have more capital to develop regional chains, link groups of households and businesses in building large timber material areas, processing wood products for export at a large scale.

By Thanh Nguyen/ Phuong Thao

Related News

Supporting industry enterprises: Learning standards, understanding opportunities

Supporting industry enterprises: Learning standards, understanding opportunities

VCN - Currently, many potential industries have "opened" opportunities for Vietnamese enterprises to enter, such as the semiconductor industry, supporting industries for the aviation sector. However, the higher the added value of the sector, the more it requires enterprises to meet international standards.
Wood industry faces many variables in key markets

Wood industry faces many variables in key markets

VCN - Vietnam's wood exports are recovering positively, but there are still many potential risks in terms of trade defense as well as policies to control wood origin in key markets.
If it is "permissive", OCOP products will not be effective for export

If it is "permissive", OCOP products will not be effective for export

VCN - According to experts, if it is "permissive" in recognizing OCOP products, only caring about beautiful designs and packaging without paying attention to quality, transparency of environmental and social issues..., it will not be effective in exporting.
Building a Vietnamese brand associated with green and sustainable development

Building a Vietnamese brand associated with green and sustainable development

VCN - According to experts, in the current context, branding becomes more urgent, helping to increase endogenous resources for businesses, helping businesses move towards strong development, gradually reaching further in the domestic and world markets.

Latest News

Many factors affecting tuna exports in the last months of the year

Many factors affecting tuna exports in the last months of the year

VCN - Tensions between Israel and Iran escalate, tuna businesses are worried, they may have to stop export orders to the Israeli market in the last months of the year.
Vietnam still dominates Philippine rice import

Vietnam still dominates Philippine rice import

Vietnam continues to assert its dominance as the top rice exporter to the Philippines, with 2.91 million tonnes shipped as of the late October, or over 79% of the Philippines' total rice imports, according to the Vietnam Trade Office in the Philippines.
Vietnam cements ties with partners to engage in global semiconductor, AI industries

Vietnam cements ties with partners to engage in global semiconductor, AI industries

By boosting cooperation with reputable partners across the globe, Vietnam is taking steps to gain a foothold in the world’s semiconductor and artificial intelligence (AI) industries.
Aquatic exports expected to rise in year-end despite challenges

Aquatic exports expected to rise in year-end despite challenges

Aquatic exports is expected to surge in the remaining months of this year, as the year-end festive season comes, despite many challenges in the international markets, according to insiders.

More News

Trade Defense: The Key to Success for Vietnamese Businesses

Trade Defense: The Key to Success for Vietnamese Businesses

VCN - From losses and near bankruptcy, many domestic enterprises have recovered thanks to timely application of trade defense measures. Trade defense is also an effective shield for Vietnamese enterprises against a series of lawsuits from importing countries, thereby maintaining advantages and developing on "away grounds".
Lao Cai Customs sees a triple-digit surge in export-import turnover

Lao Cai Customs sees a triple-digit surge in export-import turnover

VCN - Updated from the beginning of the year to October 24, total import and export turnover through Lao Cai Customs Department increased by 102%.
Coconut is expected to become a billion-dollar export item

Coconut is expected to become a billion-dollar export item

VCN - Talking to the press at the ceremony to launch the first train carrying fresh coconuts to China, Mr. Luu Van Phi, Director of the Department of Industry and Trade of Tien Giang province, said that Vietnam's agricultural export potential, especially fresh coconuts, is expanding with the appearance of international railway transportation from Song Than station.
Plastic exporters interested in converting to recycling technology

Plastic exporters interested in converting to recycling technology

VCN - The Vietnamese plastics industry is facing major challenges in terms of plastic waste and recycling needs. Secretary General of the Vietnam Plastics Association Huynh Thi My (pictured) shared important information about the transformation in production of plastics enterprises to meet increasing export demands.
Logistics sector must embrace innovative trends to stay competitive

Logistics sector must embrace innovative trends to stay competitive

The Vietnamese logistics industry must adapt to new trends and enhance infrastructure to remain globally competitive, speakers said at an event in Ho Chi Minh City on October 31.
Vietnam’s agro-forestry-aquatic product exports likely to set new record

Vietnam’s agro-forestry-aquatic product exports likely to set new record

Vietnam’s agro-forestry-aquatic product exports are likely to achieve a record high of 62 billion USD in 2024, said Deputy Minister of Agriculture and Rural Development Phung Duc Tien.
UKVFTA greatly benefits Vietnam-UK trade: Experts

UKVFTA greatly benefits Vietnam-UK trade: Experts

The UK-Vietnam Free Trade Agreement (UKVFTA), signed into law three years ago, has clearly benefited trade cooperation between the two countries, particularly in the context of Vietnam’s exports to most other major markets declining due to geopolitical tensions and headwinds in the global economy, said experts at a conference in Hanoi on October 30.
Agricultural exports likely to exceed 60 billion USD amid challenges

Agricultural exports likely to exceed 60 billion USD amid challenges

With swift production recovery and continued growth, Vietnam's agricultural sector could potentially surpass the 60 billion USD export target, according to the Ministry of Agriculture and Rural Development (MARD).
Vietnam-Philippines trade likely to exceed 8 billion USD for first time

Vietnam-Philippines trade likely to exceed 8 billion USD for first time

With the current rising trend, trade between Vietnam and the Philippines is likely to exceed 8 billion USD for the first time to hit about 8.5 billion USD in 2024, with Vietnam’s surplus of more than 3 billion USD, according to the Vietnamese Trade Office in the Philippines.
Read More

Your care

Latest Most read
Many factors affecting tuna exports in the last months of the year

Many factors affecting tuna exports in the last months of the year

VCN - In recent years, Israel has always been Vietnam's leading tuna export market after the US and the EU. Therefore, the recent escalation of Israel-Iran tensions is affecting Vietnam's tuna exports to this market.
Vietnam still dominates Philippine rice import

Vietnam still dominates Philippine rice import

Vietnam continues to assert its dominance as the top rice exporter to the Philippines, with 2.91 million tonnes shipped as of the late October, or over 79% of the Philippines' total rice imports, according to the Vietnam Trade Office in the Philippines.
Vietnam cements ties with partners to engage in global semiconductor, AI industries

Vietnam cements ties with partners to engage in global semiconductor, AI industries

By boosting cooperation with reputable partners across the globe, Vietnam is taking steps to gain a foothold in the world’s semiconductor and artificial intelligence (AI) industries.
Aquatic exports expected to rise in year-end despite challenges

Aquatic exports expected to rise in year-end despite challenges

Aquatic exports is expected to surge in the remaining months of this year, as the year-end festive season comes, despite many challenges in the international markets, according to insiders.
Trade Defense: The Key to Success for Vietnamese Businesses

Trade Defense: The Key to Success for Vietnamese Businesses

VCN - From losses and near bankruptcy, many domestic enterprises have recovered thanks to timely application of trade defense measures. Trade defense is also an effective shield for Vietnamese enterprises against a series of lawsuits from importing countr
Mobile Version