The timber sector has seen a dramatic increase in the volume of its export products which are listed among the top ten revenue earners in the country.
Exports up nearly 35 percent
Since the beginning of this year, timber exports have earned more than US$1.5 billion, up nearly 35 percent over the same period last year. Current, contracts that businesses have signed are worth more than US$3 billion, a year-on-year increase of US$320 million. According to the Vietnam Timber and Forestry Products Association (Viforest), despite a slight increase in the cost of imported timber most businesses had stockpiled adequate supplies of raw materials at the beginning of the year so are not seriously affected.
After facing a number of difficulties over the last two years, many businesses are now entering a golden period similar to 7 – 8 years ago.
Viforest Vice General Secretary, Hoang Canh said that they can fulfill their yearly targets as exports to the US are expected to increase by nearly 10 percent compared to last year. In the meantime exports to other markets, such as Japan and the EU have also shown signs of picking up in both volume and value. The revenues of some businesses in the first half of this year are already equal to or even higher than for the whole of last year.
The number of visiting businesses the international timber fair held by Viforest this year is three times larger than in the previous fair. In addition, the price of timber has also risen by 3-5 percent compared to last year, said Mr Canh.
Difficulties still ahead
In 2010, according to its WTO commitments, the export tax rate on Vietnamese timber products is at 10 percent. However, only 190 out of a total of 2,500 businesses have Certificates of Competency (CoC) which are needed to export products to Japan and the US.
Since June 2010, the Lacey Act took effect and Vietnam has asked the US to assist and provide update information to help businesses. Accordingly, businesses must clarify the origin of the wood used to make products and fill in details of the chemicals used in a form provided by the US. Businesses will be fined heavily if they are found to be making false declarations.
Trinh Minh Anh, deputy head of the Office of the National Committee for International Economic Co-operation, said that the US combines trade with environmental issues and considers this prudent but in actual fact it is just another tariff barrier.
Furthermore, the boom in the timber export market has pushed up the prices of materials. The Ministry of Industry and Trade said that the price of rubber wood increased by 20-30 percent while imported wood from the US, and New Zealand also rose by 20-30 percent. Currently, Vietnamese businesses have to import 80 percent of wood based materials. In addition, they are also facing fierce competition at home from Chinese partners who are stepping up their purchases of wood
(VOVNEWS)
