Hanoi (VNA) – 𒅌Vietnam’s wood exports this year are set to reach up to 11.5 billion USD, exceeding the industry’s own target of10.5 billion USD,a 20 percent increase compared to last year, according to the Vietnam Timberand Forest Product Association (VTFPA).

Do Xuan Lap, chairman of the VTFPA, saidVietnamese firms have been able to enter and gain footholds in numerous markets around the world,overcoming their shortcomings and limitations. Exports of wood products tothe US have seen a sharp rise this year, as well as robust growth to marketsincluding Japan, the UK, Canada, Germany and the Netherlands, said thedepartment of import-export under the Ministry of Industry and Trade. With Japan and Canadapartners in the Comprehensive and Progressive Agreement for Trans-PacificPartnership (CPTPP), the department said Vietnamese firms are starting to take advantage of the tradedeal’s reduced tariffs to penetrate these markets. As the EU-Vietnam Free TradeAgreement (EVFTA) is set to take effect in 2020, Vietnamese firms can also lookforward to similar tariff cuts and trade advantages from the EU, one of thecountry’s major exportmarkets of wood products. The department has set atarget of 12 billion USD for wood exports in 2020, saying the fast growth of largemarkets such as the US and the EU are major drivers for the industry. Nguyen Quoc Khanh, president of Ho Chi Minh City’s handicraft and wood processingbusiness association, said the country’s wood sector, which has maintained a stable growth rate for thelast two decades, isgearing up to become a leading player in Southeast Asia. Khanh said with even moretrade deals coming into effect, increased demand for Vietnamese products andlarge foreign investments flowing into the industry, Vietnam’s wood exports look likely to achievethe growth target of 20 percent next year. Industry experts said the USwould likely remain Vietnam’s largest export market in 2020. During the last ten monthsof 2019, Vietnam’swood exports to the US hit nearly 4.2 billion USD, a 34.5 percent increase from the sameperiod in 2018, and accounting for almost half of the country’s total woodexport. Such rapid growth, however,is not without risks, as Vietnamese firms can expect stricter regulations inthe future as US agencies ramp up efforts to counter trade fraud, especially inrelation to product origin. While concrete steps havebeen taken by the Vietnamese government to prevent foreign goods being falselylabelled as Made-in-Vietnam, trade authorities have warned Vietnamese firmsagainst taking part in fraudulent activities to ensure healthy growth for theindustry in the future. Experts also advised firms totake action as soon as possible to build sustainable value chains, saying theywould play a crucial part in the success of the industry. The industry’s valuechain, which includes numerous tasks from planting forests, processing andcommercialisation of wood products to export, must be linked and integrated intofirms’ long-term sustainable development strategies./.