Wood exports in Vietnam to outreach 12 billion USD in 2020
|Vietnam to become sixth largest furniture exporter to the UK|
|Vietnamese steel exports to China surge 12 times in ten months|
|Exports- highlight of Vietnamese economy amidst COVID-19|
|Vietnam's wood export turnover this year is expected to reach a record high of nearly US$12.5 billion despite the impacts of the COVID-19. Photo: Nhandan.|
The information was given during the conference held by the Vietnam Timber and Forest Product Association on December 21 to enhance risk control in export and import wood products.
According to the Chairman of the association Do Xuan Lap, from January to November, the export turnover of the wood industry in Vietnam reached 11 billion USD, up 15.6% year on year. With this upward trend, the wood exportvalue are confident to hit nearly 12.5 billion USD in 2020.
The Government said the wood industry has been one of the leading sectors contributing to the increase of export turnover of the country’s agroforestry products.
However, possible risks in the timber industry may come from other countries that are investigating export markets targeting Vietnam’s export products. From the beginning of this year, the domestic industry has faced many anti-dumping lawsuits from the US and South Korea.
Phung Gia Duc, Deputy head of the Foreign Trade Defence Handling Division under the Ministry of Industry and Trade’s Department of Trade Defence said Vietnam has faced a total of 199 cases so far. In the past five years, there were 97 commercial defense investigations. The most surveyed markets are the US, India, Turkey, Australia, Canada, the EU, and the Philippines. In 2020, Vietnam is under investigation in a total of 37 cases. The investigations were related to tax evasion on plywood products and anti-dumping for MDF wood.
To avoid anti-dumping and anti-tax evasion investigations, Duc said that domestic businesses need to have knowledge about trade defense. They must understand the true nature of this tool in order to have the right responses. When
|The country earned 10.5 billion U.S. dollars from exporting wood and woodwork in 2019 with its biggest markets being the United States, Japan, and China. |
Vietnam has halted the exploitation of natural forests since 2017 and has intensified forestation as well as timber import.
In 2019, Vietnam had more than 5,000 enterprises involved in the production and processing of wood and wood-based products compared to 100 companies in 2000, according to the Vietnam Timber and Forest Product Association
exporting to a certain market, they should have information from importers. As soon as information about anti-dumping investigations is available, businesses must take action to respond. The ministry will issue warnings to support businesses. In addition, it is necessary to have controls on the value and volume of exports to that market to get the lowest tax rate.
“Information is extremely important. Getting the information early will solve many problems. Currently, the Ministry of Industry and Trade has an early warning mechanism. In the last two quarters, we continuously update wood products that are at risk of being sued,” he added.
As soon as the information about the anti-dumpinginvestigation disclosed, businesses must take action to respond and the Ministry of Industry and Trade will issue warnings to support businesses. Moreover, it is necessary to have a controller on the value and volume of exports to that market, using the information to enjoy the lowest tax rate.
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