Some Vietnamese exports have been investigated for origin fraud and tax evasion, which requires tougher action from the Vietnamese Government to settle the problem and keep its exports growing.
The signing of the Forest Law Enforcement Governance and Trade Voluntary Partnership Agreement (FLEGT-VPA) between Việt Nam and the European Union is expected to have a positive impact on the country’s economy and environment.
Household-owned timber plantations must be substantially reformed in order to yield sustainable profits for their owners.
The EU-Vietnam Free Trade Agreement (EVFTA) is expected to create a breakthrough for timber and wooden products. Experts forecast about US$1 billion worth of timber to be exported to the EU annually by 2020, according to an official of the Vietnam Timber and Forest Association.
The export turnover of Vietnamese timber and timber products is estimated to hit US$8 billion this year, 10 per cent higher than the target, according to the Ministry of Agriculture and Rural Development.
The wood processing industry faces a lot of difficulties in the future following the government’s order close natural forest gates from January 1.
The doors are set to open wider for Vietnamese timber exports to Europe after Việt Nam and the European Union (EU) concluded negotiating a forestry pact.