Exporting wood and wood products in 2023 is unlikely to reach the set target.
According to data reported by the Vietnam Wood and Forest Products Association, in October 2023, wood and forest product exports reached 1.28 billion USD, down 0.2% compared to October 2022. Of which, export turnover of wood and wood products reached 1.2 billion USD, up 5.7% compared to September 2023, but down 0.9% compared to October 2022; The remaining 0.08 billion USD is from non-timber forest products.
EXPORTS OF WOODEN PRODUCTS ARE STILL DOWN DOWN
In the wood industry group, wood chip and pellet exports in October 2023 brought in 410 million USD, down slightly compared to the same period last year. Meanwhile, export turnover of wood products reached 790 million USD, up 4% compared to September 2023 and up 0.3% compared to October 2022.
Accumulated in the first 10 months of 2023, the total export turnover of wood and forest products reached 11.65 billion USD, down 19.3% over the same period last year. Of which, non-timber forest product exports brought in 0.85 billion USD and exports of wood products reached 10.8 billion USD, down 19.9% over the same period in 2022.
"While the export of raw wood, pellets and wood chips brought in 3.5 billion USD, up 4% over the same period last year; the export turnover of wood products in 10 months only reached 7.3 billion USD. , down 22.4% over the same period in 2022. In the wood products group, the main exports belong to the following items: wooden chairs reaching 2.23 billion USD (down 12% over the same period last year); wood and flooring reached 1.45 billion USD (down 14.5%)".
Vietnam Timber and Forest Products Association.
According to the Timber and Forest Products Association, due to reduced aggregate demand due to the impact of inflation and tightened monetary policy in many large wood consuming markets, export turnover of the wood industry has continuously declined since the beginning of the year. 2023.
However, currently, many businesses in the wood industry have returned orders, serving the year-end furniture shopping season of the world market. Indicators show that the recovery is reflected in the export turnover of many wood products and exported wood products, which increased sharply again in September and October 2023, contributing to narrowing the decrease in the first 10 months of the year. 2023.
Specifically, export turnover of wooden frame chairs in September 2023 increased by 19.6% compared to September 2022; in October 2023, an increase of 21% compared to October 2023. Exports of wood, boards and flooring reached 148 million USD in September 2023, an increase of 38.2% compared to September 2022; reaching 152 million USD in October 2023, an increase of 37% compared to October 2022. In particular, wood chip exports in October 2023 increased by up to 30% compared to October 2022.
Although there are signs of positive recovery, the export turnover of wood and wood products in recent months has grown positively, but due to a deep decline in export turnover in the first half of the year, it is difficult to reach the export target. out at the beginning of the year.
In 2022, the export of wood and forest products will reach a record of nearly 17 billion USD, so in early 2023, the Government assigned a target for the entire industry: exporting wood and forest products over 17 billion USD, of which wood and wood products reached 16 billion USD. However, with the results of the first 10 months of 2023, the Vietnam Timber and Forest Products Association estimates that the export turnover of wood and forest products for the whole year 2023 will only reach 15 billion USD, of which wood and wood products will reach about 13 billion USD. .6 billion USD to 14 billion USD.
WOODEN INDUSTRY ENTERPRISES NEED TO EARLY ADAPT TO EUDR
The EU will officially apply the Anti-Deforestation Regulations (EUDR) in December 2024, this will be an issue that will greatly impact the export of wood and wood products in the future.
Dr. To Xuan Phuc, Director of Forest Trends Organization in Vietnam, said that in 2022, Vietnam will export nearly 700 million USD of wood and wood products to the EU. Vietnamese wood products exported to the EU are mainly sourced from domestically grown forest wood and imported wood materials from low-risk sources with sustainability certificates such as from the EU and the United States.
Vietnam is currently implementing a policy of closing natural forests and strictly controlling activities converting natural forests to other uses, so the natural forest area has not changed significantly. Furthermore, buyers in the EU have been applying many voluntary sustainable production and consumption standards for wood products, such as products with FSC sustainable forest management certification.
Vietnam and the EU have signed the VPA/FLEGT Agreement, committing that all wood products exported to the EU are legal and do not cause deforestation. Currently, Vietnam is actively legislating and building the VNTLAS timber legality assurance system to control the entire supply chain, including both domestic and export supply chains. Therefore, according to Dr. To Xuan Phuc, it is unlikely that Vietnam will be classified as high risk of deforestation by the EU if sufficient evidence is provided to prove this.
"If wood industry enterprises do not comply with the EUDR, they will have to pay a fine (maximum 4% of the enterprise's total revenue in the previous year in the EU), confiscate money and goods in violating transactions, and be banned. Participate within 12 months in public procurement packages or activities using public budget, or even temporarily ban the enterprise from bringing that product into the EU market if the violation is serious.
Dr. To Xuan Phuc, Director of Forest Trends Vietnam.
Before (EUDR) officially takes effect, the European Commission (EC) will evaluate and classify countries exporting wood and wood products to the EU. Countries classified as high risk will be subject to annual inspections of 9% of businesses and 9% of imported shipments. In contrast, only 1% of businesses importing from countries classified as low risk are inspected (no physical inspection of goods is required).
In addition to the mandatory annual inspection rates mentioned above, import control agencies may conduct unscheduled investigations when they discover or are reported by a third party to signs of violations.
When the EU authority determines that an enterprise does not comply with the regulations of the EUDR or that the products being traded or exported to the EU market do not comply with the EUDR, the authority will require the enterprise or business owner to comply. remedial measures.
Dr. To Xuan Phuc said that wood with FLEGT certification generally meets the requirements for product legality. However, Vietnam is currently unable to grant FLEGT licenses for shipments exported to the EU because the system is not ready to operate. The EU is one of Vietnam's most important export markets. Therefore, the role of businesses in implementing EUDR is decisive for the EU's risk assessment and classification process in a favorable direction for the Vietnamese wood industry.
"Wood industry enterprises need to proactively review their current supply chains, identify risks and then take measures to minimize these risks," Dr. To Xuan Phuc recommended, while also suggesting It is recommended that businesses need to coordinate closely with relevant parties in the chain, especially the network of traders and farmers (those who supply input materials to businesses), to meet the requirements of the EUDR. , including requirements for traceability to the location of the forested land plot.
According to EUDR, to prove that the product satisfies both the conditions of not causing deforestation and being legal, before putting the product into circulation in the EU market, businesses need to submit a supply chain appraisal commitment (due diligence statement). ) and will be responsible before the law for all information in this Commitment. Therefore, businesses should prioritize building raw material supply chains with sustainable certification.
"Associations can preside over the development of industry overview reports to provide information on the current state of production, raw material areas, supply chains, and linkages in production with forest resources. ... and share information widely with relevant parties so that they can update objective information about the industry, including risks related to deforestation as well as forest restoration and management efforts. sustainable forest management", Mr. Phuc recommended.
