Illustrative image. (Source: VNA)Hanoi(VNA) – The Comprehensive and Progressive Agreement for Trans-PacificPartnership (CPTPP) is expected to generate more opportunities than challengesfor Vietnam’s wood industry, according to Nguyen Ton Quyen, Vice President ofthe Vietnam Timber and Forest Product Association (VIFORES).
Apart fromtraditional markets like Japan, New Zealand, Australia and Singapore, theVietnamese wood industry has expanded sales to Canada, Peru and Chile withnoted export revenue, said the official.
Quyen cited exportturnover of more than 1 billion USD with Japan, and hundreds of millions of USdollars with Australia and New Zealand, adding that Malaysia also has demandfor Vietnamese wood.
He said after theagreement takes effect, many tariffs will be removed. Besides, wood imported bythe country and sold to other CPTPP members will also enjoy zero percent tariffs.
This will helpreduce prices and improve competitiveness of Vietnamese timber, he noted.
More importantly,tax imposed on wood processing equipment will be reduced to zero, a boon for exportprocessing businesses, the official said.
The CPTPP is alsohoped to attract more foreign direct investment (FDI) in the wood sector, hesaid, explaining that previously, investments in the Vietnamese wood sectormainly came from China but Japan has begun to invest in the country.
Quyen stressed theneed for domestic wood enterprises to improve their business administration,including technological administration, to master cutting-edge equipment.
Ha Van Kim, fromYen Son JSC which specialises in forestry product processing, said businessesshould increase their production scale and invest in equipment and machine.
He expressed hishope that interest rates will be cut by 1-2 percent to help businesses accessloans to scale up production.
The CPTPPwas officially inked in Chile on March 8 (local time).
The pactwill come into force 60 days after it is fully ratified by six of the 11members. The member countries are Australia, Brunei, Canada, Malaysia, Mexico,Japan, New Zealand, Peru, Singapore and Vietnam.-VNA
VNA
