Workshop focuses trade frauds, FDI shift in woodworking sector
The reality of export-import and foreign direct investment (FDI) shift in the wood industry in Vietnam were the main focus of a recent workshop in Hanoi.
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| Illustrative photo (Photo: VNA) |
Participants heard that FDI flows poured into wood processing has recorded a strong increase in recent years. China, Japan and the Republic of Korea (RoK) are operating a great number of large-scale projects in Vietnam in the field.
According to statistics from the Foreign Investment Agency under the Ministry of Planning and Investment, there were 67 newly-registered FDI projects worth 581 million USD operating in the wood sector in the first three quarter of 2019. The registered capital amount of the new projects in the period was 2.3 times higher than the total registered capital in the whole 2018.
Chine topped the list of countries and territories investing in the field in Vietnam with 40 projects, accounting for nearly 60 percent of the total number of project.
To Xuan Phuc from Forest Trends said FDI firms are greatly contributing to Vietnam’s export turnover of wood products, with their export turnover reaching 3.96 billion USD in 2018, equivalent to 46.7 percent of the sector’s total export value.
Phuc said the US-China trade war can create new opportunities for further FDI expansion in the wood processing industry in Vietnam.
However, Vietnam is facing trade frauds in the field, which can cause risks for the industry.
According to Tran Thi Thu Huong from the Vietnam Chamber of Commerce and Industry, the time for granting of certificates of origin (CO) for wood enterprises is slower than for those operating in other fields, aiming to prevent growing trade frauds in this area.
Nguyen Ton Quyen, Vice Chairman and Secretary General of the Vietnam Timber and Forest Product Association, said Vietnam’s wood export has reported a stable and sustainable growth.
The last two months of the year are time for the industry to promote exports, towards reaching 11 billion USD in export turnover, Quyen said.
He also pointed out difficulties and limitations in attracting FDI in the wood sector, especially issues related to trade frauds and efficiency in cooperation between domestic and FDI firms.