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Japan Implements Expand Timber Export Policy for Vietnam

Views:0     Author:Site Editor     Publish Time: 2018-04-13      Origin:Site

The Japanese Forestry Office website published the full text of the "Policy for Expanding the Export of Wood and Timber Products" on June 16, 2017, which explained the strategy of strengthening the export of forest products by the Ministry of Agriculture, Forestry and Fisheries, and the mainland of China, Korea, and Taiwan of China (hereinafter referred to as the Taiwan region). In addition to timber export policies in Vietnam and other countries and regions, as well as comprehensive issues related to timber exports, the following is an excerpt of the policy of expanding timber exports to Vietnam.

I. Current Situation of Forestry and Wood Industry in Vietnam and Measures Related to Wood Utilization

As of 2015, the forest area in Vietnam is 14.01 million hm2, and the forest coverage rate is 41%. Among them, 3.9 million hm2 of plantation forests account for 28% of the total forest area. Before 1995, the area of forests has been decreasing, but it has gradually recovered since then. The main tree species in plantation forests are Acacia arborescens and Eucalyptus.

In 2015, Vietnam’s wood demand was approximately 17 million m3, including 8 million m3 wood chips, 6 million m3 wood products for export, and 3 million m3 timber for construction and interior decoration. In the same year, timber imports amounted to 2.09 billion U.S. dollars, of which 1.66 billion U.S. dollars were for logs and 430 million U.S. dollars.

There are 3,930 timber processing companies in Vietnam. Among the top ten export products in Vietnam, timber products ranked sixth. In Asia, Vietnam is the second largest exporter of wood products after China. It exports to more than 120 countries, and exports have increased year by year. In addition, Vietnam's furniture manufacturing industry is also booming, accounting for 4% of the total global furniture production.

In Vietnam, the tariff rates imposed on wood products are: raw wood 0%, sawn timber 3%, fused timber 5%. In addition, a 10% value-added tax is levied on the total amount of CIFs and tariffs including cost, insurance, and freight.

In September 2016, when Japan declared customs for the “Japanese Wood Base” permanent exhibit in Vietnam, a wooden shelf was levied a 20% tariff, and wooden chairs and wooden tables were subject to a 25% tariff. This shows that deep processing products High tariffs were imposed.

Second, Japan's current status and issues of timber exports to Vietnam

1. Status of timber exports to Vietnam

(1) Exports of various types of timber

In 2016, Japan’s exports of various wood products exported to Vietnam totaled 660 million yen. Judging from the classification of species, sawn timber is the largest, followed by man-made boards and logs. Annual exports of sawn timber and wood-based panels have increased. Due to the year-on-year growth in the export value of timber products in Vietnam and the continuous development of the wood processing industry, in order to increase the timber import demand in Vietnam, Japan needs to use processed raw materials as its main export product.

Judging from the tree species exported from Japan to Vietnam, the proportion of cypress in logs is nearly 80%, and other broad-leaved trees only account for 20%. The share of cypress in the sawn timber is close to half, and the remaining half is mainly broad-leaved species. Presumably, the use of these wood species is mainly furniture and interior decoration materials.

(2) Demand for timber and use of imported timber in Vietnam

Most of the raw materials required for timber processing and furniture manufacturing in Vietnam are imported from overseas. After processing and manufacturing in Vietnam, the products are exported overseas. It is difficult for Japan to fully grasp the specific timber demand in Vietnam.

Vietnam has wooden houses in the mountains, but in the city it is mainly reinforced concrete buildings. Due to the large number of termites, it is necessary for Japan to make long-term efforts to make wood-based residences popular. In addition, the wooden structure of public buildings such as Vietnamese schools and kindergartens has attracted attention.

2. Japan's expansion of timber exports to Vietnam

As a destination country for Japanese timber exports, Vietnam is one of the countries that Japan’s major corporations and local governments are highly concerned about. However, it is still in the test stage of export, and there are few Japanese companies that are committed to the continuous export of Vietnam. In October 2016, the Japan Timber Export Promotion Association opened a permanent wood product display base called “Japan Wood Base” in Ho Chi Minh City, Vietnam, with the aim of expanding timber exports to Vietnam.

3. Issues faced by Japan’s policy of expanding timber exports to Vietnam

(1) Vietnam's low awareness of Japanese wood

Although Vietnam is a developed country in the timber processing industry, there are not many timber imports from Japan so far, and there is a low awareness of Japanese-origin wood products such as cedar and cypress.

Therefore, it is necessary for Japan to make effective use of the exhibition bases located in the region and to actively and widely publicize the characteristics and functions of Japanese-produced lumber.

(2) Understand the domestic timber demand in Vietnam

Vietnam's wood processing industry and furniture manufacturing industry import materials from overseas. After processing and manufacturing in Vietnam, the products are exported overseas. Therefore, although Japan has mastered the demand for Vietnam's demand for processed materials for furniture, it has not yet grasped the potential demand for wood utilization in the wood structure of public buildings and the lignification of interior decoration. Moreover, there is also insufficient information on the specific laws and regulations on timber and timber construction in Vietnam. To this end, Japan needs to further understand the current situation of wood utilization and timber demand in Vietnam.

Third, Japan's objectives and measures for expanding timber exports to Vietnam in the future

1. Export target (variety, object)

The demand for timber in Vietnam is not so much a domestic demand as it is almost the demand for raw materials for export products. Therefore, in order to promote the export of wood products from Japan, based on the use of semi-finished products such as sawn timber, MDF, and plywood for furniture and interior decoration materials as the main export products, the demand for wood and other wood materials for interior decoration materials must be properly grasped. , establish the final product target.

2. Export policy

Since Vietnam’s awareness of Japanese wood production has been low so far, cedar and cypress have little room for furniture and interior decoration materials. In the future, it is necessary for Japan’s furniture manufacturers and timber processors to improve Japan’s The awareness of wood production and the demonstration use of furniture and interior trim materials have increased the publicity of wood produced in Japan.

In addition, in consideration of the structural structuring of public buildings, it is necessary to popularize the "Wooden Axle Assembly Method" as a long-term measure. To this end, Japan will take the following measures.

(1) Short-term measures

The first is to raise the awareness of Japanese-origin wood production and promote branding: Utilize “Japanese wood base” to vigorously promote Japanese wood products and products to Vietnamese wood processing companies, furniture manufacturers and designers; organize indoor decoration and furniture manufacturers as The workshop on wood use of the target; Vietnamese furniture manufacturers and Japanese sawmill companies cooperated to use Japanese-made wood to make furniture.

The second is the promotion of Japanese-produced wood products: marketing through promotional activities such as interior decoration materials stores and interior decoration stores; holding fairs for interior decoration and furniture manufacturers; recruitment of furniture manufacturers and interior decoration workers. And interior designers and so on.

The third is to train technical talents who can use Japanese-made wood for interior decoration: Japanese-made wood use seminars for international students majoring in wood and construction are held; in Vietnam, interior decoration designers and interior decoration companies are organized Construction technical training.

(2) Medium and long-term measures

Publicizing and publicizing wooden structures in public buildings: Seminars such as wooden structure construction and "wood-made axis structure method" were held for administrative agencies and school legal persons.


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