The Conference on the Wood Processing, Export, and Forestry Products Industry for Q3 2024

Bình Dương – On the morning of August 9, 2024, at the WTC Expo Binh Duong International Exhibition Center, the Ministry of Agriculture and Rural Development, in coordination with the Binh Duong Provincial People's Committee and the Vietnam Timber and Forest Products Association, organized the “Conference on the Wood Processing, Export, and Forestry Products Industry for Q3 2024”.

At the conference, Mr. Tran Quang Bao (Director General of the Forestry Department) and Mr. Bui Chinh Nghia (Director General of the Forest Protection Department) – representatives of the Ministry of Agriculture and Rural Development, along with Mr. Ho Truc Thanh – Deputy Director of the Department of Agriculture and Rural Development of Binh Duong Province, co-chaired the event with Mr. Do Xuan Lap, Chairman of the Vietnam Timber and Forest Products Association (VIFOREST).

During the report on the situation of processing, export, and import of forestry products in the first seven months of 2024, and the key tasks and solutions for the last months of 2024, Mr. Trieu Van Luc, Deputy Director of the Forestry Department, stated that in the first seven months of 2024, the Forestry Department, in collaboration with the Forest Protection Department, the Department of Finance, and other agencies, advised the Ministry of Agriculture and Rural Development to issue or present a number of legal documents and regulations related to ensuring consistency and coherence in the legal system, in line with international treaties or agreements that Vietnam is a member of, simplifying administrative procedures, and addressing issues that do not align with practical realities. Additionally, the Forestry Department has worked with relevant authorities and ministries to implement measures to address difficulties, promote products, and expand markets, helping businesses minimize losses caused by unfavorable developments in international markets, such as the protective tariffs imposed by South Korea and the U.S. Department of Commerce (DOC).

Also at the conference, Mr. Do Xuan Lap, Chairman of VIFOREST, shared the challenges in wood processing and export in the early months of 2024 and proposed solutions for the remainder of the year. Due to changes in the global economic and political situation, particularly following the U.S. election, Vietnamese enterprises continue to face numerous lawsuits related to discriminatory practices in anti-dumping and countervailing investigations by the U.S., anti-dumping tariffs imposed by South Korea, and Japan’s new carbon credit trading system. The EU’s EUDR regulation, which will come into effect in December 2024, also poses a significant barrier, making it difficult for wood and wood product exporters to comply.

A representative from the research group of timber and forest product associations, Dr. To Xuan Phuc, Executive Director of the Timber Trade Policy Program at Forest Trends (USA), reported on the situation of Vietnam’s risky wood imports in the first half of 2024. According to customs statistics, imported logs and sawn wood are crucial to Vietnam’s wood industry, with annual imports reaching 4-5 million cubic meters (roundwood equivalent). These imports come from both positive and non-positive (or risky) supply sources. Imported wood from positive supply sources (60-70%) is primarily used for export-oriented processing in the form of finished products, with a portion consumed domestically. Imported wood from risky sources (30-40%) is mostly used for domestic consumption. Since 2023, imports from both sources have declined, but imports from risky geographic regions remain relatively high. This continues to negatively impact the industry, especially in the export sector. Reducing risky wood imports plays an important role in directly contributing to the sustainable development of the wood industry.

Other regulatory agencies, such as the Trade Remedies Department (Ministry of Industry and Trade) and the General Department of Customs, also participated in the meeting and directly responded to questions raised by delegates regarding difficulties and remaining issues in business operations, such as import-export procedures, tax refunds, and wood origin certification.

The conference materials are available for your reference at link or QR code