Illustrative image (Source: VNA)Though exports of Vietnam’s wood and furnitureproducts have seen strong growth since the beginning of US-China trade tensions,the country has also faced major pressure in the US.
Tran Le Huy, Vice Chairman and General Secretary of theForest Product Association of Binh Dinh province, said the trade tensions have broughtabout new challenges for Vietnam, especially relating to fraud in origin due toChinese companies exporting wood products to Vietnam for local labelling before shippingto the US.
The prevention and settlement of trade fraud in aneffective and timely manner is therefore vital for Vietnam’s wood sector, Huystressed.
Meanwhile, Do Xuan Lap, Chairman of the Vietnam Timberand Forest Product Association, said it has proposed that ministries andsectors direct specialised agencies to conduct snap inspections of enterprises suspectedof fraud.
Huy suggested that a connection channel be set up between wood associations andmanagement agencies to report signs of fraud, so that timely intervention can bemade.
Such measures would not only prevent fraud in exports tothe US but also enhance the transparency and prestige of Vietnam’s woodenproducts in markets like the EU, Japan, and the Republic of Korea, he said.
As part of efforts to control the origin of raw materials for export, Vietnam issuedDecree No 102/2020-ND-CP detailing regulations on the timber legality assurancesystem.
Each year, Vietnam imports 2-2.5 million cubic metresof wood from Africa, certain countries in South America, and Laos, Cambodia,and Papua New Guinea, which is equal to 40-50 percent of its total importedlogs and sawnwood.
To Xuan Phuc from Forest Trend said it is necessary to apply policies andpractical measures to reduce the risks in importing wood materials.
Bui Chinh Nghia, Vice Director of the VietnamAdministration of Forestry, said that along with the application of the timberlegality assurance system,businesses should also design their own risk-reduction solutions.
In order to implement Decree No 102, the Vietnam Timberand Forest Product Association proposed that ministries and sectors directrelevant agencies to require wood material importers, apart from strictly declaring information in line withregulations, to provide supplementary documents such as the exploitation licencesof the producers or the operational registration of wood processing facilities,the export licences of exporters, and certificates of origin.
According to representatives from wood processing firms, the majority ofimporters of Vietnamese furniture request that raw materials come from plantedforests and licensed sources. Therefore, in the future, Vietnam should striveto have 100 percent of input materials licensed, they said./.
VNA
