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Export value of timber and wooden products in seven months reached more than USD 6 billion

14/08/2020

Despite difficulties due to COVID-19, the export of timber and wooden products still grew by more than 6% in the first seven months of this year, bringing in value of more than USD 6 billion.

According to Agro Processing and Market Development Authority (Ministry of Agriculture and Rural Development), the export value of timber and wooden products in July 2020 reached USD 1.05 billion, accumulated exports of timber and wooden products in the first seven months in 2020 is estimated at USD 6.09 billion, an increase of 6.2% over the same period in 2019.

The US, China, Japan and South Korea continue to be the four largest import markets for timber and wooded products of Vietnam in the first six months of 2020, accounting for 84.3% of the total export value of timber and wooden products.

In the opposite direction, the import value in July 2020 reached USD 198 million USD, the accumulated imports of timber and wooden products in the first 7 months of 2020 are estimated at nearly USD 1.31 billion, down 10.3% compared to the same period in 2019.

The Agro Processing and Market Development Authority forecasts that when the Vietnam - European Union Free Trade Agreement (EVFTA) comes into effect, an additional 17% of the total value of exports of timber and wooden products to the EU will enjoy zero tax.

In which, for goods with codes from 4401 to 4409, EU shall impose tax from 2 - 4%; Goods under code HS 4414/15/18/20/21 for which EU currently imposing a tax rate of 2.5 - 4% will enjoy zero tax immediately after the Agreement is implemented. Currently, this group of goods accounts for 10% of Vietnam's export value to the EU.

The group of goods that accounts for 7% of the total export value to the EU, including furniture used in the kitchen (HS 9403.40), furniture parts (HS 9403.90), furniture combined with other materials (HS 9403.80) with the applicable tax rate before the Agreement of 2.7 – 5.6% will be reduced to 0% when the Agreement comes into effect.

Also according to Agro Processing and Market Development Authority (Ministry of Agriculture and Rural Development), in the past 5 years, Vietnam's plywood industry has recorded a fast growth rate with an average growth rate of 31% per year. Since 2015, there have been 42 new FDI projects investing in Vietnam's plywood industry.

 

Kylie Nguyen

© 2019 Vietnam Bank for Agriculture and Rural Development No. 2 Lang Ha street, Ba Dinh district, Hanoi, Vietnam
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