Management of wood import and export faces a series of risks

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The Forest industry sets the export target of US$ 11 billion in 2019. Photo: T.N

According to the General Department of Forestry, in the past 10 years, Vietnam’s wood and forest product processing industry has witnessed remarkable growth. Vietnam has become a supplier of wood and wooden products to more than 120 countries around the world, including high-demand markets such as the US, EU, Japan and South Korea.

As of the end of August, the export value of wood and wooden products was estimated at US $7.08 billion, up 18.6 percent compared to 2018. With this growth, export value of forestry products was estimated at $11 billion.

According to Nguyen The Cuong, representative of the Wildlife Trade Monitoring Network (TRAFFIC), the policy of closing the natural forests of the Vietnam’s Government and some other countries exporting natural wood to Vietnam in recent years has cut the volume of natural wood in the country rapidly.

Currently, Vietnam is the leading market for wood material consumption. However, when implementing customs procedures to import wood, some types of wood is declared with the different scientific names, causing difficulties for customs forces. On the other hand, legal regulations related to management, harvesting, processing and trade of wood in some countries is still limited.

In addition, resource management policies of many countries also have many inadequacies, heterogeneity and even conflicts. Forest governance in many countries is still lacking and posing risks to importing countries, including Vietnam.

Following the direction of the Prime Minister, the export wood and forest product processing industry is striving to become a spearhead industry in Vietnam's production and export, with a brand name and reputation in the international market.

Vietnam has also signed the VPA/FLEGT Agreement with the EU and built the Vietnam's timber legality assurance system (VNTLAS). Therefore, controlling timber origin is a very important requirement.

According to Ngo Minh Hai, former Deputy Director of Customs Control and Supervision Department (General Department of Vietnam Customs), there are many risks in managing import and export goods, including wood and wooden products.

Specifically, risks in customs declaration, tax declaration, the time limit for customs procedures and tax payment accounts for 85 percent of the total violations. Besides, there are risks in complying with policies on management of import and export goods, goods classification, customs value, origin and quantity of goods, etc.

“Customs forces are not trained professionally in forestry and wood identification. This is one of the great difficulties for this force,”Hai said.

Wood exports maintain steady growth VCN - From the beginning of the year until now, while exports of agricultural products have been ...

Currently, the Customs and Forrest Agencies are considered “gatekeepers” in controlling legal origin. Therefore, close coordination between these forces will make an important contribution to the implementation of the goals of the wood industry to ensure legal timber resources.