Vietnamese wood exports have favorable conditions to enter EU when FLEGT license officially issued

VCN- After more than ayear of the Voluntary Partnership Agreement on Forest Law Enforcement, Governance and Trade in Forest Products between Vietnam and the European Union (VPA/FLEGT) takes effect, Vietnam is making efforts to legislate regulations to enable FLEGT licensing, paving the way for Vietnamese timber to "enter" into the EU and other prestigious markets.
vietnamese wood exports have favorable conditions to enter eu when flegt license officially issued Wood industry wants to move to higher segment
vietnamese wood exports have favorable conditions to enter eu when flegt license officially issued Further improving Vietnamese wood products with technology
vietnamese wood exports have favorable conditions to enter eu when flegt license officially issued US, EU markets flourish, more opportunities for Vietnamese wood
vietnamese wood exports have favorable conditions to enter eu when flegt license officially issued
The VPA/FLEGT Agreement not only increases the export value of wood products to the EU market, but also helps to improve the reputation of Vietnamese timber in many other markets. Photo: N. Thanh

Issuing the first license by the end of 2021

In October 2010, the EU adopted the EU Timber Regulation to prevent the trade in illegally harvested timber and products made from this timber. The EU Timber Regulation also requires importers and traders who import timber or timber products to enter the EU's first border gate to minimize the risk of illegal timber trade.

Currently, timber and wood products from Vietnam exported to the EU must comply with the EU Timber Regulation. This will continue until Vietnam's FLEGT licensing mechanism is in place. The EU Timber Regulation recognizes the legality of verified FLEGT timber and timber products through the control systems of several partner countries agreed in the VPA/FLEGT Agreement. Therefore, licensed timber and timber products are not subject to due diligence under the EU Timber Regulation. The VPA/FLEGT Agreement tookeffect on June 1, 2019. Currently, the Vietnamese side is working hard to prepare internal laws to quickly issue FLEGT licenses.

Speakingat the training session introducing the VPA/FLEGT Agreement for press agencies on July 16, in Hai Phong, Ms. Nguyen Tuong Van, Standing Chief of Standing Office of Steering Committee on FLEGT and Lacey (VNFOREST, the Ministry of Agriculture and Rural Development) the most important thing in the implementation of this agreement is the internalization of regulations. Vietnam proposes not to apply the agreement directly, but through the additional issuance of a Decree stipulating the "Vietnam Timber Legality Assurance System (VNTLAS)", focusing on contents such as: Controlling imported timber, organizational/business classification system, export verification, assessment of VNTLAS availability, and FLEGT licensing for the EU market.

Answering a question from Customs Newspaper on the expected time when Vietnam will issue the first FLEGT license, Ms. Van said: “At present, the Decree has been completed and is waiting for the Government's approval. If this goes well, the Decree is expected to be signed for promulgation around September 9, 2020. After the Decree comes into effect, the management of imported timber must always be applied in accordance with the provisions of the Decree, while six months later, it can classify enterprises. By early 2021, Vietnam could operate a legal timber assurance system. By experience, it is expected until the end of 2021 and early 2022 the first FLEGT license will begranted.”

Giving "favorable conditions" to enter the EU market

According to VNFOREST, the EU is an important export market for Vietnam's wood products, besides other markets such as the US, China, Japan and South Korea. In 2019, Vietnam's export turnover of wood products to the EU reached over $1.03 billion, up 15.8% compared to 2018, accounting for 9.2% of the export market share. The EU is an important market of Vietnam because the main products for consumers EU are interior and exterior wooden products of high value.

Recognizing the opportunities for wood processing and exporting enterprises from the VPA/FLEGT Agreement, Mr. Ngo Sy Hoai, Vice Chairman and General Secretary of Vietnam Timber and Forest Products Association said, in recent years, wood export to the EU market reach about $1-1.2 billion/year. This is a very important market because it includes a coalition of countries with high requirements. Vietnam mainly exports to the EU refined wooden furniture with high added value. With the VPA/FLEGT Agreement, exporting wood products to the EU cannot increase sharply, it is expected that the value will increase.

“It is notable that, in addition to affecting the export of wood products into the EU market, the signing and implementation of the VPA/FLEGT Agreement will help Vietnam's wood industry improve its reputation and gain trust in othermarkets like America andJapan," Mr. Hoai said.

In the perspective of the enterprise's preparation to take advantage of opportunities offered by the VPA/FLEGT Agreement, according to Mr. Hoai, the large enterprises that have processed and exported timber to the EU have basically met the requirements in the agreement. This agreement is essentially a synthesis and systematization of everything Vietnam's timber industry has done.

“I want to reaffirm that if we dowell with this agreement, the subjects who are most affected and also the beneficiaries the most over 3,000 processing and exporting enterprises of wood; 324 trade villages in the field of wood processing and 1.4 millionplanting forest households,” said the leader of Vietnam Association of Wood and Forest Products.

By Thanh Nguyen/Quynh Lan

Related News

Can Vietnam

Can Vietnam's Fisheries Pass the IUU Inspection in April 2024?

VCN - The upcoming fifth inspection by the European Commission (EC) on Illegal, Unreported, and Unregulated (IUU) fishing in Vietnam, set for April 2024, has prompted local authorities to intensify efforts to address existing challenges and limitations. They are prioritizing the execution of critical tasks and solutions from now until April 30, 2024, to meet the stringent requirements.
Vietnam-Indonesia trade achieves about US$ 14 billion

Vietnam-Indonesia trade achieves about US$ 14 billion

VCN – Indonesia is Vietnam's leading trading partner in Southeast Asia.
Solutions to " remove the detonator" of inflation in 2024

Solutions to " remove the detonator" of inflation in 2024

VCN - Ms. Nguyen Thu Oanh, Director of the Price Statistics Department, General Statistics Office, assessed that the main factors that could put pressure on inflation in 2024 are globally high input material prices, and Vietnam as a country importing many raw materials for production so it will affect costs and prices, putting pressure on businesses' production and thereby pushing up the prices of domestic consumer goods.
Vietnam has the potential to achieve economic growth goals in 2024

Vietnam has the potential to achieve economic growth goals in 2024

VCN - According to Prof. Dr. Hoang Van Cuong, National Assembly Deputy, Vice Rector of the National Economics University, and Member of the Budget and Finance Committee of the National Assembly, in the difficult global context, along with the existing internal strengths and the ability to harness external resources, Vietnam has opportunities to achieve the economic growth goals set for 2024.

Latest News

Huge potential for fruit and vegetable exports

Huge potential for fruit and vegetable exports

With robust export of fruits and vegetables, the industry has set a typical example for quick transformation in the context of economic difficulties to tap the potential and expand global reach.
Enterprises kick off exports in the new year

Enterprises kick off exports in the new year

VCN - Since the 10th day of the lunar calendar, many enterprises have officially resumed operations after the Tet holiday and commenced exporting goods.
Bac Lieu targets national shrimp hub status

Bac Lieu targets national shrimp hub status

With the aim of becoming a "national shrimp industry hub" and focusing on creating the "Bac Lieu clean shrimp" brand to develop a shrimp value chain, the Mekong Delta province of Bac Lieu has set developing hi-tech shrimp farming models as a primary direction.
Vietnam"s aquatic product exports expected to recover in 2024

Vietnam"s aquatic product exports expected to recover in 2024

Vietnam’s aquatic product exports in January surged 60.8% year-on-year to 730 million USD, making a positive signal for the year, according to the Ministry of Industry and Trade’s Agency of Foreign Trade.

More News

Vietnam

Vietnam's 2 hundred billion dollar trading partners

VCN - China and the United States are our country's two largest trading partners and together have a turnover of over 100 billion USD.
Optimistic signs seen in exports of garment-textile sector

Optimistic signs seen in exports of garment-textile sector

Enjoying a rise in orders, the garment and textile sector is optimistic about the completion of its target of earning 44 billion USD in export revenue set for this year.
OCOP products bring about dual benefits

OCOP products bring about dual benefits

The One Commune One Product (OCOP) Programme has no longer been a pure poverty reduction measure for rural areas, but an important boost for Vietnamese agricultural products, connecting other industries for mutual development, thus bringing dual benefits for rural areas, according to experts.
Farm exports expect breakthrough

Farm exports expect breakthrough

Vietnam's export of agricultural products recorded impressive growth in the first month of 2024 and is expected to see a breakthrough in the whole year.
First container of Ha Giang pickled daikon in 2024 exported to Japan

First container of Ha Giang pickled daikon in 2024 exported to Japan

The first container of pickled daikon in 2024 from the northern province of Ha Giang was exported to Japan on February 19 within the cooperation in the value chain linkage between Ha Giang and the Vietnam Misaki Co., Ltd.
Rice sector works on 5 billion USD export target

Rice sector works on 5 billion USD export target

Vietnam's rice exports are expected to continue their upward trajectory this year, toward a milestone of 5 billion USD in turnover.
Semiconductor industry hoped to attract half of FDI investors in Da Nang

Semiconductor industry hoped to attract half of FDI investors in Da Nang

Some potential investors are exploring investment chances in central Da Nang city, and its Hi-Tech Park and Industrial Zones Authority (DHPIZA) hopes that 50% of those FDI businesses will invest in the local semiconductor industry this year.
Vietnam’s automobile market stands 5th in Southeast Asia

Vietnam’s automobile market stands 5th in Southeast Asia

The decline in domestic automobile consumption and its drop to 5th place in Southeast Asia can be attributed to both external and internal factors, according to industry insiders.
Ninh Thuan takes grape production to next level

Ninh Thuan takes grape production to next level

Positioned as the proud owner of Vietnam's largest grape farming area spanning over 1,000ha, the southern central province of Ninh Thuan is proactively embracing modern technology across various stages of grape production and processing.
Read More

Your care

Latest Most read
Huge potential for fruit and vegetable exports

Huge potential for fruit and vegetable exports

With robust export of fruits and vegetables, the industry has set a typical example for quick transformation in the context of economic difficulties to tap the potential and expand global reach.
Enterprises kick off exports in the new year

Enterprises kick off exports in the new year

VCN - According to Ho Quoc Luc, Chairman of the Board of Directors of Sao Ta Food JSC, the company's processing plants are currently busy processing orders and preparing for the first lunar month's exports immediately after returning to work after the lon
Bac Lieu targets national shrimp hub status

Bac Lieu targets national shrimp hub status

With the aim of becoming a "national shrimp industry hub" and focusing on creating the "Bac Lieu clean shrimp" brand to develop a shrimp value chain, the Mekong Delta province of Bac Lieu has set developing hi-tech shrimp farming models as a primary direction.
Can Vietnam

Can Vietnam's Fisheries Pass the IUU Inspection in April 2024?

VCN - The fifth inspection in April 2024 represents a pivotal opportunity for Vietnam to address the EC's "yellow card" warning.
Vietnam"s aquatic product exports expected to recover in 2024

Vietnam"s aquatic product exports expected to recover in 2024

Vietnam’s aquatic product exports in January surged 60.8% year-on-year to 730 million USD, making a positive signal for the year, according to the Ministry of Industry and Trade’s Agency of Foreign Trade.
Mobile Version