Wood exports exceeds the target, expected at US$ 8 billion

	Wood exports: rapid growth, great potential
	Wood product exporters ready to expand global market share

Wood exports in the first nine months increased by more than 10% over the same period last year. Photo: Nguyen Thanh

This information was shared by Mr. Nguyen Ton Quyen, Vice-chairman cum General Secretary of the Vietnam Wood and Forest Products Association at the seminar " Imports and exports of Vietnam’s wood and wooden products in the first half of 2017" on 5 October 2017 in Hanoi. According to the Ministry of Agriculture and Rural Development, by the end of September 2017, exports of wood and wooden products were estimated at US$ 5.51 billion, up 10.6% over the same period in 2016. The United States, China, and Japan were the three largest importers of Vietnam’s wood and wooden products in the first eight months, accounting for 70.3% of total export turnover.

Speaking at the seminar, Mr. To Xuan Phuc, Forest Trends Organization said: "The growth of wood exports is strongly reflected in traditional markets which are the main importers of Vietnam like the United States, Japan, China and South Korea.

However, there were signals showing potential changes of these markets in the future, mainly due to macroeconomic policies in these countries relating to development priorities and orientation, including the policy of strict control of wood imports.

The most noticeable signal can be seen in South Korea and Japan markets, which are two of the five largest markets for Vietnam’s wooden products. According to the roadmap of the South Korean’s government, by the end of 2017 South Korean importers should begin to account for the origin of the wood. This accountability will be implemented in Japan, but later (2018). The implementation of these regulations will directly affect the Vietnam’s exports to these markets.

Regarding the challenges in the expansion and development of the wood industry, Mr. Phuc stated that competition for raw materials supply was typical matter. This competition included both supplies of imported raw materials and supply of domestic raw materials.

Specifically, the Chinese government's ban on natural forest harvesting together with a policy of strict control of harvesting, trade, and export of wood materials in some countries providing natural forest wood from tropical forests have increased competitiveness on global supply, including some Vietnam’s importers.

" The competition for domestic raw material supply is extremely fierce for planted and rubberwood, between wood processing companies and wood chip processing companies, and between domestic companies and foreign companies, typically China," Mr. Phuc said.

According to some experts, increasing opportunities and reducing risks is a long-term development strategy for each wood company and the Vietnam’s wood industry in the future. Removing high-risk imported wood sourced from imported wood and replacing by 'clean' raw material sources is an urgent need.

Wood exports in 2016 reached $US 7.3 billion VCN- According to the latest information from the General Directorate of Forestry (under the Ministry of Agriculture ...

This not only meets the current requirements of Vietnam's important importers but also prepares for the Vietnam’s wood industry to meet new requirements of the markets like Japan, South Korea, and China in the future. To this end, it requires the strong commitment of the business community and the strict control mechanism of the management agencies at all level.