Reporting Vietnam wood export in 2018: A year in review and the trend in 2019 , a product research cooperation between associations and the Organization timber Forest Trends launched the following key messages:

Message 1. Exports high, growth at 2 figures, this represents strong growth dynamics of the sector.

2018, exports of wood products in Vietnam reached US $ 8.476 billion, an increase of 14.5% (equivalent to US $ 1.07 billion) compared with 2017. Three group turnover of commodities with large growth most include tablets, wood chips and plywood / wooden. 2018, the export value increased by nearly 2 times pellets, wood chips increased 1.2 times, plywood / laminated wood increased by 1.7 times. Turnover of this commodity group 3 higher in 2018 compared with US $ 741.9 million of the 2017 turnover, accounting for 69% of the growth figures in the export of all commodities in 2018.

Messages 2. timber industry is taking steps to move positively in input raw materials. Specifically, imported wood materials 'clean' increase, the wood originated downside risk.

Total imports of wood products in Vietnam in 2018 reached 2.34 billion dollars, up 7.6% compared to 2017. Three groups of commodities imported most important include logs, lumber and boards . 2018, the value of imports this commodity 3 groups of about $ 2.2 billion, accounting for nearly 93.6% of the total value of imports of all wood products imported into Vietnam in the same year.

Message 3. Despite strong growth, some sectors still exist hindering the sustainable development of the sector

The elements that make up the sustainability of the sector has not shown on aspects of export categories and sources of wood raw material inputs in the export product. Specifically, exports of goods of heading raw wood, especially wood chips, logs, sawn timber still has a large proportion, about 2.19 billion US dollars, accounting for nearly 25% of total exports wood items. 2018, the amount of wood chips for export to nearly 10.4 million tons of dry (BDT), turnover was $ 1.34 billion. Both output and exports showed rapid growth of industry efforts to limit exports chips make large wood resource for processing is limited. Although round and sawn timber export is declining very strong (56% reduction compared to 2017), the export volume is still relatively large (about 173 400 m3 of sawn timber exports in 2018). Vietnam continues to export logs and lumber in the context of the industry has to import raw wood shows the dynamics in the country is still not strong enough to retain the service resource intensive processing. In addition, some companies in the industry are continuing to export certain species of sawn timber tropical forests are imported from countries with poor forest governance.

4. The Government message FLEGT VPA Vietnam signed with the EU a chance to expand exports; however, exports will only be sustainable if the current risk of wood sources of input materials in the supply chain are removed completely.  

Overall, the export products of Vietnam in major markets like the US, EU, Japan and South Korea meet the rules on the legality of the product. Wooden items of Vietnam into these markets often made from acacia wood, rubber, timber and plantation domestic wood imported from clean sources. However, there exists the risk of wood sources of inputs in some supply chains for export to other markets, and especially in the supply chain of timber for domestic consumption. These risks are formed by maintaining the use of natural wood species, including a number of valuable wood is imported from countries with poor forest governance. But imports of wood species from the risk reduction, in 15 countries provide the largest timber to Vietnam in 2018 with seven countries with poor forest governance. Supply from 7 countries amounted to 0.94 million m3, equivalent to 40% of roundwood imported into Vietnam in the year. In addition, about 64% of the timber exported from Vietnam are the valuable wood species originating from imported sources of risk. Government signed FLEGT VPA Vietnam expressed the Government's commitment to completely eliminate illegal timber from all supply chain, including supply chain export and domestic consumption. The maintenance / presence some valuable timber species imported from the countries with the forest governance weaknesses in the supply chain creates some risks for the timber industry in Vietnam, even a target for criticism by some global environmental organization. This makes a direct impact on the development of the industry sustainable. about 64% of the timber exported from Vietnam are the valuable wood species originating from imported sources of risk. Government signed FLEGT VPA Vietnam expressed the Government's commitment to completely eliminate illegal timber from all supply chain, including supply chain export and domestic consumption. The maintenance / presence some valuable timber species imported from the countries with the forest governance weaknesses in the supply chain creates some risks for the timber industry in Vietnam, even a target for criticism by some global environmental organization. This makes a direct impact on the development of the industry sustainable. about 64% of the timber exported from Vietnam are the valuable wood species originating from imported sources of risk. Government signed FLEGT VPA Vietnam expressed the Government's commitment to completely eliminate illegal timber from all supply chain, including supply chain export and domestic consumption. The maintenance / presence some valuable timber species imported from the countries with the forest governance weaknesses in the supply chain creates some risks for the timber industry in Vietnam, even a target for criticism by some global environmental organization. This makes a direct impact on the development of the industry sustainable. The maintenance / presence some valuable timber species imported from the countries with the forest governance weaknesses in the supply chain creates some risks for the timber industry in Vietnam, even a target for criticism by some global environmental organization. This makes a direct impact on the development of the industry sustainable. The maintenance / presence some valuable timber species imported from the countries with the forest governance weaknesses in the supply chain creates some risks for the timber industry in Vietnam, even a target for criticism by some global environmental organization. This makes a direct impact on the development of the industry sustainable.

5. The war message US- China creates advantages for Vietnam through market expansion, however, has no evidence of fraudulent trade with Vietnam is a transit country, as well as risk anti-dumping investigations, anti-subsidy from the explosion wave of investment, and this can lead to a negative impact on Vietnam's wood industry.

2018, pellets, wood chips and plywood types are 3 items under group raw wood (HS 44) with the growth rate of the largest turnover. Growth of commodity wood products, heading HS 94, was found with high added value is much smaller, only 15.5% of the total growth of the year (compared with 69% of the total increase Minister of tablets, wood chips and plywood types). This 15.5% growth is not higher than the growth rate of these commodities period 2016-2017. This shows that the strong growth in turnover in 2018 mainly in the goods of wood materials group. Current growth model is still mainly in width, through the expansion of exports of crude product, rather than to growth in depth, go on items with high added value. Strongest growth in the US is not (except for particle board) or the EU,

In 2018, exports of plywood, laminated wood from Vietnam to the US surge. Export turnover to the US this item increased 270% compared to 2017. There was some evidence that there is a commercial fraud, with all kinds of Chinese plywood imported into Vietnam, then export export to the US under the name Vietnam. Current official US government is investigating this incident. The results of the investigation could cause a negative impact to the image of Vietnam's wood industry. The growth rate of exports in the US market in 2018 is not high, plus surveys of commercial fraud, evading taxes of the US government are taking place in Vietnam shows that the war US - China is unlikely to bring benefit as some people expected. Specifically, unlike some comments that the war US - China favor the timber industry in Vietnam, still no clear evidence that this war is and will bring long-term benefits and sustainable timber industry in Vietnam. Conversely, this war give rise to a number of risks due to commercial fraud, tax evasion is turning Vietnam transit countries to avoid US tax. A potential risk of greater impact, longer is capable timber industry Vietnam suffered surveys of anti-dumping, anti-subsidy, follow the level of import tariffs excessively high and risks goods being strictly controlled than when imported into the USA.  

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