Following the Prime Minister’s direction, Permanent Deputy Foreign Minister Nguyen Minh Vu chaired a briefing between the Economic Diplomacy Steering Committee and Vietnam’s overseas representation agencies in the late afternoon of May 22, 2023 to assess the challenges, opportunities and implications of new policies and regulations in the markets on the timber and forest products industry and discuss solutions to support the timber industry. and forest products to promote exports and expand markets.

The meeting was attended by representatives of the Ministry of Industry and Trade, the Ministry of Agriculture and Rural Development, heads of the Vietnam Timber and Forest Products Association, the Private Sector Research and Development Committee and key associations and companies. in the timber and forest products sector.

EXPORT DROWN, LONG DEMANDS

At the meeting, Mr. Do Xuan Lap, chairman of Vietnam Timber and Forest Products Association (VIFOREST), said that the export of timber and timber products is in a very difficult environment. Data from the General Customs Department shows that export sales of timber and products to key markets like the US, Japan, Korea, China, the UK and Australia fell sharply in the first four months of 2023, from 1.5% to 39% .7%. in the same period in 2022.

Likewise, the European (EU) market has declined by 60%, there are very few new orders, although it is currently the EU season. Faced with these poor developments, the Vietnam Timber and Forest Products Association suggested focusing on three main markets: North America; UK and Europe (EU); Northeast Asian market.

Not only the decline in export sales, but the timber industry is also currently facing two trade disputes related to plywood and kitchen cabinets investigated by the US, the case has dragged on for too long.

“The plywood products investigation case has extended the ruling for the seventh time and has now lasted for three years, with serious repercussions for Vietnamese plywood companies. Even more worrying is that US shoppers are shifting to buying goods in other markets. Therefore, there is a need for “intervention and lobbying to settle the lawsuits fairly,” suggested Mr. Do Xuan Lap.

Executives at the Vietnam Timber and Forest Products Association said that in the timber industry, trade disputes arose mainly related to bypassing the country of origin – border transfer. Therefore, the government and the Ministry of Foreign Affairs have specific solutions to prevent the trend of lawsuits being filed when the supply chain for products subject to anti-subsidy and anti-dumping duties shifts to Vietnam. Price. At the same time, control source country evasion and restrict foreign investment projects (FDI) in manufacturing products subject to anti-dumping tax.

Timber industry companies asked Vietnamese missions abroad to convey messages to international partners about Vietnam’s efforts and commitments in ensuring provenance and responsiveness. Market environmental standards that contribute to the development of a sustainable wood industry

In addition, we update market information, warn against political changes that directly affect the timber industry and advise on appropriate behavioral measures. Mobilize countries to settle investigations and fair trade remedies against Vietnamese companies.

We need the role of foreign industry to save the timber industry

At the meeting, delegates agreed on an assessment of the future global economic situation, which remains difficult and has far-reaching implications for the timber and forest products industry. In the short term, there are difficulties in demand in the markets due to economic difficulties, inflation, consumer demand…

The Board of Directors for Research and Development of Private Sector and Enterprises called on the representative agencies to support product promotion and market development, especially in large markets such as the US, EU and Northeast Asia, and to connect business partners.

At the same time, wood industry enterprises are recommended to promote product diversification, conduct research to meet the needs of each market, establish deep relationships with customers, and invest in branding. Strengthening the links between companies to ensure the scale and stability of the supply chain; have a methodical and professional strategy in the promotion and development of the market.

In the long-term, companies must focus on investing and innovating in technology to meet the ever-higher standards of the markets, and do careful market and legal preparation to limit the risk of disputes. , trade protection, guarantee of origin and guarantee of origin of goods, code of legal areas of cultivation, etc. The representative agencies confirmed their willingness to accompany companies in overcoming difficulties and obstacles and to open doors for them. market expansion.

At the conclusion of the meeting, Deputy Minister Nguyen Minh Vu suggested that representative agencies and companies should pay close attention to two-way communication; Providing information such as policy adjustments, warning information and countries’ experiences in responding to the current difficult situation, to promptly advise domestic authorities to take proactive measures. Fit. Ministries and sectors support timber and forest products companies to improve their capacity and ability to respond to and meet rising trade and investment standards.

In order to increase the effectiveness of promotion and advertising, the Deputy Minister suggested that associations and companies provide specialized information to representative agencies and hold large timber fairs to bring international companies together.

In addition, the representation agencies continue to make efforts and are sensitive to assisting the timber industry in expanding and diversifying markets, particularly in potential markets with room to remain such as India, Eastern Europe and the Middle East. ; work closely with businesses to enhance prevention effectiveness, use political-diplomatic ties to support satisfactory dispute resolution and trade protection, and protect the legitimate interests of Vietnamese businesses. Masculine.

In the coming period, the Ministry of Foreign Affairs will continue to closely follow the guidance of the government and the Prime Minister and organize briefings on economic diplomacy with the participation of ministries, branches, municipalities and associations. , enterprises to promote two-way communication and timely support to solve difficulties in key industries and fields, effectively implement the Secretariat Guideline No. 15-CT/TW on Labor Economic Diplomacy for Development to 2030 and the Government Action Program for 2022 -2026 to implement Directive No. 15-CT/TW.