Vietnam promotes wood material imports from the EU

According to the Vietnam Wood and Forest Products Association (VIFOREST), wood materials imported from the EU into Vietnam have increased sharply in the first months of this year. Specifically, information from the General Department of Customs shows that in the first 4 months of 2021, imports of wood materials from the EU reached 319.19 thousand m3, with a value of USD 89.95 million, up 39.6% in volume and 58.3% in value over the same period in 2020.

Roundwood and sawn timber are the two main types of timber that Vietnam imports from the EU. In the first 4 months of this year, EU logs imported to Vietnam reached 177.59 thousand m3, worth USD 42.74 million, up 21.2% in volume and 39.5% in value over the same period last year. Also during the same period, sawn timber imports reached 130.03 thousand m3, valued at USD 43.79 million, up 76.2% in volume and 84.1% in value.

Ashwood is the most imported roundwood from the EU, accounting for 84% of total logs imported from this region in the first 4 months of 2021, with 148.85 thousand m3, worth USD 34.13 million. As for sawn timber, sawn pine was imported the most, reaching 49.26 thousand m3, with a value of USD 12.06 million, up 104.7% in volume and 132.3% in value. compared to the same period in 2020.

In regard to the market, in the first 4 months of 2021, imports of wood materials from key EU markets increased compared to the same period in 2020. In particular, the Belgian market increased by 20.5% in volume and 33.1. % in value; France increased 45.0% in volume and 70.3% in value; Germany increased 17.5% in volume and 54.3% in value; Finland increased 62.9% in volume and 90.8% in value…

In the opinion of VIFOREST, the European Union - Vietnam Free Trade Agreement (EVFTA) officially effective from August 1st, 2020 has opened up great opportunities for the export of general products and Vietnamese wood products in particular to these regions.

Not only is it a large market for Vietnam's wood exports, but the EU is also an important wood material supplier for the Vietnamese wood industry. The EU's wood source has good quality and clear origin, so the EU is considered to play an increasingly important role in supply for Vietnamese wood enterprises. Therefore, Vietnamese businesses will also benefit from wood materials imported from the EU. Wood processing businesses can increase their ability to import raw wood from the EU when they are exempt from tax.

Moreover, the EVFTA also opens up great opportunities for Vietnam's wood industry to access more EU woodworking technology, machinery and equipment, which is considered the highest level in the world at present.

As shared by Mr. Nguyen Chanh Phuong, Vice Chairman of the Ho Chi Minh Handicraft and Wood Industry Association, in the past, machinery and equipment imported from the EU were always subject to 20-30% tax. The effective EVFTA will help reduce prices, even be exempt from tax or deferred payment when businesses have the need to invest in equipment originating from Europe.