Representatives of Vietnamese and Malaysian firms have signed a Memorandum of Cooperation (MoC) to further develop timber trade. Photo 24hmoney.vn

KUALA LUMPUR — The timber industries of Việt Nam and Malaysia have signed a Memorandum of Cooperation (MoC) to further develop timber trade in both countries.

The signatories were the Timber Exporters’ Association of Malaysia (TEAM), the Malaysian Furniture Council (MFC), the Vietnam Timber and Forest Product Association (ViForest), the Bình Dương Furniture Association (BIFA), the Handicraft and Wood Industry Association of Đồng Nai (DOWA) and the Wood Industry Association of HCM City (HAWA).

The MoC will not only strengthen economic cooperation between the two countries but also create opportunities for Vietnamese and Malaysian manufacturers to promote their exports and imports.

CEO of the Malaysian Timber Council (MTC) Muhtar Suhaili said Malaysia is committed to further developing its timber industry sustainably.

Malaysia can benefit from Việt Nam’s higher foreign direct investment (FDI) in furniture manufacturing and access to the EU market through Việt Nam’s free trade agreements, he added.

According to Muhtar, skilled manpower and availability of local labour will be an advantage for Việt Nam, and the advantage of bordering with China will provide easier access for furniture parts and wooden panels.

The MoC is in line with the ASEAN Summit agreement in 2000 where the Initiative for ASEAN Integration (IAI) was launched to narrow the development gap and enhance ASEAN’s competitiveness as a region.

It is also expected to protect the interests of both countries against regulations that may affect the interests of their timber industries.

Malaysia’s export of timber products to Việt Nam in 2021 reached US$38.44 million while Malaysia spent $148.25 million on importing wooden products from Việt Nam.

Addressing the event, President of TEAM Chua Song Fong said Việt Nam’s timber industry has been growing strongly over the past decade and TEAM would like to capitalise on this and explore business opportunities in the country.

Meanwhile, President of MFC Khoo Yeow Chong said Malaysia wants to increase its market share in Việt Nam and the MoC can deepen investment flows for Malaysia, citing supplying furniture parts to Việt Nam as a good possibility. — VNS