The EU-Vietnam Free Trade Agreement (EVFTA) coming into effect in 2020 is the chance for the Vietnam’s timber industry to export its products to the EU market.Market opportunities
The benefit the Vietnam’s timber industry may have from the EVFTA is the reduction or exemption of customs tariff. So, Vietnam’s timber products will become more competitive than earlier.
The EU is now the 5th biggest importer of Vietnam’s timber products. The road for Vietnam’s timber products to the EU will be larger.
The major markets for Quang Nam timber products are China, the US, Japan and Taiwan. The EU is still potential. So, the EVFTA facilitates Quang Nam timber’s entry into the EU market when the custom tariff is gradually reducing to zero percent.
It is reported that the Quang Nam’s revenue from timber products export was over USD13 million in 2019, the highest in the last ten years.
Action plansVietnam’s timber industry tries its best to have the first VPA/FLEGT licensed shipment in early 2021 in order to raise the Vietnamese timber’s competitiveness.
VPA (Voluntary Partnership Agreements) is a bilateral trade agreement between the EU and a timber-exporting country outside the EU. FLEGT (Forest Law Enforcement, Governance and Trade) aims to reduce illegal logging by strengthening sustainable and legal forest management, improving governance and promoting trade in legally produced timber.
The VPA/FLEGT license will facilitate Vietnamese timber products’ entry into Europe.
The EVFTA is also a chance for Quang Nam timber businesses to enlarge their areas of woods and meet the FSC standards. Quang Nam authorities will assess the impacts of VPA/FLEGT on Quang Nam’s timber exported products and propose proper solutions to help increase the competitiveness of the local timber products.