Forestry product export 2019 hits all-time high

A wooden furniture production line for export (Photo: VietnamPlus)

Permanent Deputy Minister of Agriculture and Rural Development Ha Cong Tuan said forestry sector maintained a high growth of over 5 percent this year, with forestry product export reaching 11.3 billion USD, up about 20 percent from 2018 – a record in the history of the sector.

With the above export turnover, the sector is expected to post a trade surplus of about 8 billion USD, making important contributions to trade surplus in agriculture and rural development.

Tuan said it is the result of the active restructuring of the industry. Many forest areas have changed dramatically from extensive to intensive farming, linking to create value chains.

In October, earnings from agro-forestry-fisheries export was estimated at 3.6 billion USD, up nearly 17 percent month-on-month. Of which, 1.4 billion USD was from farm produce, about 1.05 billion USD from forestry products, 834 million USD from aquatic products and 55 million USD from animal husbandry.

On a 10-month calculation, forestry product export hit 9.04 billion USD, up 18.8 percent and accounting for 27.2 percent of the total.

According to the Vietnam Administration of Forestry (VNFOREST), the total forestry plantation reached 192,000ha in 11 months of this year, with an output of over 18 million cu.m, or 93 percent of the 2019 target, marking an annual increase of more than 5 percent. The whole year’s output is estimated at 19.5 million cu.m, meeting the target.

About raw materials for wood processing for export, rubber wood exploitation hit 22,000ha during 11 months, or around 4.75 million cu.m.

During the remaining two months of this year, 2019 export contracts have been completed. Based on statistics for the past years, the export value will also hit record for the period.

It is also time for countries to import many outdoor and indoor furniture products, laying a foundation for the industry to affirm that forestry product export could reach 11 billion USD in 2019.

It is a significant figure for the forestry sector, contributing to promoting the development of other relevant fields such as forest protection and plantation, processing, market development, said VNFOREST Director General Nguyen Quoc Tri.

With production capability and experience, Vietnam is leading Southeast Asia, ranks second in Asia and fifth globally in terms of wood and wooden furniture exports. Its forestry products are exported to over 140 countries and territories, mostly the US, Japan, China, the EU and the Republic of Korea, accounting for more than 80 percent of the total.

The country is home to over 4,500 wood and forestry product processing firms, over 1,800 of them are directly involved in export. Together with foreign-invested counterparts, they shaped up a strong wood processing industry with various brands and designs, contributing to navigating international markets.

In the near future, the sector is expected to further boost export on the back of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPP). Almost countries to the CPP committed to eliminating tariff on wood and wooden furniture imported from Vietnam after the deal took effect.

Among the remaining 10 countries to the CPP, Vietnam’s wood industry boasted strong markets such as Japan, New Zealand, Australia and Singapore, among others. In recent years, the industry also had close ties with Canada, Peru and Chile with massive export turnover.

Zero tax on wooden furniture will offer Vietnam a competitive edge to cut prices.

With the CPTPP, foreign direct investment will further expand, with more Japanese investors coming to Vietnam to seek opportunities./.