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Smuggled wooden logs were seized by Customs officers at Sai Gon port. Photo: Thu Hoa.

Mr. Do Trong Kim, the Deputy Director of the Vietnam Forest Protection Department said that there were currently 4,800 enterprises participating in the supply chain of wood. The export and import operation of forest products continuously occurs. The annual average value of imported wood is around $US 1.5-1.7 billion, with approximately 4.5 million m3 of wood, equivalent to 20-25% of the total wood and wooden products import in Vietnam.

In 2015, Vietnam imported wood had a turnover of $US 7.1 billion and it is expected to reach about $US 7.6 billion in 2016. For domestic wood, the exploitation of 14 million m3 of wood with an area of forests of 3.886 million hectares basically meets domestic consumption and export.

Mr. Hoang Lien Son, of the Forestry Economics Research Centre (FERC), under the Institute of Vietnam Forestry Science said that according to statistics from the General Department of Vietnam Customs, in the period 2013-2015, Vietnam imported 413 types of wood from 118 countries. The imported goods included wooden logs and sawn wood.

According to the analysis of Mr. Do Trong Kim, in general, State management agencies has strictly controlled imported wood for export production, but there have been many perpetrators using illegal resources of wood to process and export. Illegal wood is often smuggled through auxiliary border gates, trails and crossings.

According to the Forest Protection Department, from 2014 to the end of September 2016, in 56 provinces and cities, there were more than 400 types of wood imported into these provinces and cities. The functional authorities have detected 516 illegal cases of imported wood with a volume of 1,772 m3. In fact, the number of violated cases of imported wood has decreased over the years, but the quantity of smuggled wood has fluctuated. In particular, in 2015, smuggled wood was seized at the highest volume, with nearly 1 million m3 of smuggled wood, nearly doubling the volume of 2014, and 3 times as much as the smuggled wood in the first 9 months of 2016.

According to Mr. Hoang Lien Son, of the Forestry Economics Research Centre (FERC), under the Institute of Vietnam Forestry Science, the majority of violated wood seized was identified wood. Of which, there were 10 types of wood with the highest rate of violation including white oak, ironwood green, large sandalwood, and red wood, etc.

At the workshop, delegates focused on analyzing and supplementing the identification name of wood imported into Vietnam; criteria for classification of wood; risk management criteria; management of imported wood after the VPA/FLEGT agreement took effect; management coordination among the Forest Protection Agency, Customs Force and Border Guard Force to prevent smuggling of wood.

According to the analysis of the delegates at the workshop, the import of wood has also faced many challenges and risks. In the context of global integration, Vietnam's wood industry is a part of the international supply chain. Therefore, Vietnam needs to comply with international rules, including transparency, legal certification of origin of wood and raw materials, which is an urgent need for businesses to export to the major markets.

Therefore, in the near future, the State agencies need to carry out classification of imported wood and identify the name of each type of wood. Imported wood is divided into 2 groups: risky group and non-risky group. All types of wood imported into Vietnam must be implemented by declaration. For risky wood from countries at a high risk, in addition to the license, the companies must enclose legal documents for exploitation to import wood into Vietnam.

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Besides, the proper appreciation of the opportunities and identification of the risks, including the risk of imported wood, the risk of market and the risk of imported raw materials will help State agencies to effectively manage imported and exported wood for businesses to clearly understand and build the appropriate direction for the development of the wood industry in the context of global integration.