Vietnam has become a major exporter of wood products in the global timber market
Vietnam has great potential in wood processing and is becoming a major exporter of wood products in the global timber market. However, the local timber industry is facing a shortage of imported materials, which may affect its future exports.
The Vietnamese Wood and Forest Products Association (VIFORES) said that many foreign companies were seeking to cooperate with Vietnamese companies to promote exports to their countries. In addition, Vietnam’s exports to the European Union may soar when Vietnam and the European Union reach the Forest Law Enforcement, Governance and Trade Partnership Agreement (FLEGT-VPA). “
FLEGT-VPA aims to help improve forest management, combat illegal logging and promote trade in proven and legitimate timber products between Vietnam and the European Union and other markets. Vietnam and the European Union signed the agreement in October 2018 and are working together to bring it into force this year.
The IMM delegation, funded by the European Union and managed by ITTO, said: “Vietnam is rapidly emerging as a major participant in the international timber market. It is not only an importer of timber raw materials, but also an exporter of timber products.” The role of IMM is to use trade trends to analyze market research and independently assess the trade and market impact of VPA between EU and partner countries.
Almost all furniture imported from Vietnam by the European Union is made of wood. IMM data show that the 12-month rolling volume of EU furniture imports from Vietnam increased from 220,000 tons at the end of 2017 to 232,000 tons in November 2018. Another potentially important trend, IMM said, is that Denmark began importing large quantities of waste timber (up to 2,500 metric tons per month) from Vietnam this year for material and energy renewal.
The Comprehensive and Progressive Agreement on the Trans-Pacific Partnership, which entered into force for Vietnam on January 14, 2019, and the Vietnam-EU Free Trade Agreement, which is expected to be signed soon, will eliminate almost all import tariffs, thus providing Vietnamese timber exports and foreign companies with great potential to enter Vietnam.
In 2018, about 3200 Vietnamese timber and wood products export enterprises, including 529 foreign-invested enterprises, with a total export value of nearly 4 billion US dollars. Quyen said: “Not only foreign enterprises, but also many local enterprises have developed very well. Export orders continued until the end of the second quarter of this year. While the production of enterprises continues to improve, the global demand for Vietnamese wood products is also growing strongly, mainly in key markets such as the United States, China, Japan and South Korea.” The United States, Japan, China and South Korea have purchased more than 80% of Vietnamese timber exports.