Enhancing transparency of Vietnamese wood and wood products in the supply chain

(Chinhphu.vn) - Today (June 24), the Department of Forestry and Forestry (Ministry of Agriculture and Environment) coordinated with wood industry associations and units to organize a Seminar on Wood and Wood Products Trade between Vietnam and the United States.

Experts and managers discuss trade in wood and wood products between Vietnam and the United States - Photo: VGP/Do Huong

According to Mr. Ngo Sy Hoai, Vice President and General Secretary of the Vietnam Timber and Forest Products Association (VIFOREST), in 2024, Vietnam's wood and wood product exports to the United States will reach 9 billion USD, an increase of 24% compared to 2023. The United States is currently the largest market, consuming 55% of Vietnam's total wood and wood product exports, followed by China (12%), Japan (11%), South Korea (5%) and the European Union (4%). The main items Vietnam exports to the United States include: wooden furniture, wooden boards, wooden doors and wooden handicraft products.

On the other hand, in 2024, Vietnam imported wood and wood products from the United States to reach 316.36 million USD, an increase of 32.9% compared to 2023, accounting for 11.2% of the total import turnover of wood and wood products of the country. The three main items that Vietnam imported from the United States include: sawn timber, round timber and veneer.

Mr. Ngo Sy Hoai said that the United States requires imported wood to be legal, with regulations such as accountability under the Lacey Act, export certificates and self-certification of origin (C/O). In Vietnam, the exploitation of natural forests has been banned since 2014, the forestry industry has shifted strongly to developing sustainable plantation forests and responsible wood industry. Vietnam's wood sources currently mainly come from 3 million hectares of planted forests (mainly acacia and eucalyptus) along with 1 million hectares of rubber; the area of ​​forests certified by FSC/PEFC-VFCS continues to expand.

To date, Vietnam has 700,000 hectares of FSC/PEFC certified commercial plantations, with the goal of achieving 70% of the commercial plantation area certified by 2030. The amount of tropical timber imported into Vietnam has decreased sharply, from more than 2 million m³ (in 2015) to 700 thousand m³ (in 2024).

The Vietnam Timber Legality Assurance System (VNTLAS) has been implemented on the basis of the VPA/FLEGT signed in 2018; this system was issued in 2020, adjusted in 2024 and is currently preparing to implement VPA/FLEGT licensing. The United States is classified as a positive geographical area, a reliable source of logs and sawn timber for Vietnam. In addition, Vietnam is actively preparing to comply with the EU Deforestation Regulation (EUDR), with the timber, coffee and rubber sectors proactively improving their appraisal and providing information and evidence on geographical coordinates to meet this requirement.

Trade in timber and wood products between Vietnam and the United States not only contributes greatly in value but also brings many additional benefits - Photo: VGP/Do Huong

Mr. Ngo Sy Hoai said that Vietnam is emerging as one of the leading suppliers of wood and wood products to the United States and is also one of the largest consumers of US wood. The Lacey Act and other timber trade regulations are strictly followed by businesses on both sides. Vietnam has made great efforts to overcome concerns about the legality and sustainability of wood and wood products.

Trade in wood and wood products between Vietnam and the United States not only contributes greatly in value but also brings many additional benefits. With wood and wood products imported from Vietnam, US consumers have more choices of high-quality products, reasonable prices and guaranteed legality. The two sides have also demonstrated how to effectively resolve disputes on wood and wood products trade, typically the successful handling of the US Section 301 investigation and many other trade defense cases. This positive cooperation trend needs to continue to be maintained to bring practical benefits to both Vietnam and the United States, Mr. Ngo Sy Hoai shared.

At the seminar, Director of the Department of Forestry and Forestry Tran Quang Bao also shared that the industry is coordinating with units to soon issue new circulars related to: business classification, traceability of forest products, geographical zoning... All of these regulations are expected to be issued this month.

As a specialized state management agency, the Department of Forestry and Forest Protection is ready to accompany, participate, present and share with associations and businesses, to affirm to international partners that: Vietnam is a tropical country but has closed natural forests, does not use wood materials from natural forests for export and is completely transparent in the supply chain and legal system. The Vietnamese wood industry has signed and implemented commitments with major markets, and has a specific action plan.

Mr. To Xuan Phuc, Executive Director of the Forestry Finance and Trade Policy Program, Forest Trends, said that there are still some inaccurate concepts about Vietnam's wood industry. For example, Vietnam imports risky wood for processing and exporting to major markets, but in reality, most of the imports serve the domestic market; the import volume has decreased significantly in recent years.

Or the Vietnamese wood industry expands exports, causing damage to Vietnam's forest resources, but in reality, Vietnam has closed its natural forests. Domestic natural wood is not used for export. Exported wooden furniture is from planted forest wood, rubber, and imported wood from positive geographical areas, Mr. To Xuan Phuc shared.

To properly understand the wood processing industry, Mr. To Xuan Phuc said that relevant units need to provide information to understand that the wood industry plays an extremely important role in reducing risks and expanding the market. Management agencies and industry associations need to change their approach: Proactively approach and provide information, increase dialogue and exchange information with export markets and environmental organizations, and directly participate as members of international associations.

Do Huong

Source: https://baochinhphu.vn/tang-cuong-tinh-minh-bach-cua-go-va-cac-san-pham-go-viet-trong-chuoi-cung-ung-102250624143530959.htm