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Tuesday, July 16, 2024

Vietnam’s wood exporters to EU seen facing challenges

The Saigon Times

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HCMC – Vietnam’s wood exporting firms will encounter challenges in shipping their products to the European Union (EU) market when the EU’s new regulations banning the import of agro-products linked to deforestation are approved in the coming time.

The new regulations will require exporters of agro-products such as coffee, rubber, soybean, wood and palm to ensure that their products have not been planted in areas cleared by deforestation.

Once the EU applies the new regulations, Vietnam’s wood and wood product exports to 27 EU members will face more challenges if the wood industry fails to comply with the regulations.

Wood contributes significantly to the country’s agricultural export revenue, at US$14.7 billion in 2021.

The U.S., China, Japan, Korea and the EU are Vietnam’s five major wood buyers, with a total export value of roughly US$15.5 billion, accounting for 91% of the forestry product exports.

Vietnam now has hundreds of enterprises exporting wood and wood products to the EU, according to statistics of the Ministry of Industry and Trade.

To achieve a high export value to this major wood import market, Vietnam’s wood industry and enterprises will have to promptly invest in legal wood value chains. According to which, wood products must be legally manufactured in every phase of the wood supply chain, including material sources.

When the new regulations come into force, wood exporters will have 18 months to comply with the EU’s requirements.

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