Chinese wood enterprises “sweep” the Vietnamese wood

According to Nguyen Ton Quyen, this phenomenon has been going on for a long time, but there are two major problems occurred in the past two years from the Chinese wood enterprises overflow into Vietnam. Firstly, from 2015 China closed natural forests nationwide. Second, China banned the export of raw material wood. While each year this market consumes about 200 million m3 of wood, this has led to a shortage of wood materials and they have to “sweep” the surrounding countries.

– How does this affect the wood processing enterprises of Vietnam, sir?

This led to the time when Vietnam imported wood materials very difficult. Vietnam buys where the Chinese also compete to buy there. VIFORES has proposed to the Government, the Ministry of Agriculture and Rural Development temporarily stop exporting some types of timber, but not yet results.

In addition to the move to invest in Vietnam, there is the phenomenon of Chinese timber enterprises apply measures to temporarily import goods in Vietnam and re-export to get Vietnam to export to other countries, including the United States.

– It is known, the Association has proposed to the Government on this issue?

By the end of 2016, the Vietnam Timber and Forest Products Association (VIFORES) has cooperated with wood associations nationwide such as Binh Dinh, Binh Duong, Ho Chi Minh City to hold meetings with more than 150 enterprises to reflect on the situation. Chinese enterprises to buy wood from Vietnam wood from planted forest to rubber wood in the spirit of “drastic”, any price to buy, wood also take. We have recommended to the Government, Ministry of Agriculture and Rural Development temporarily stop exporting these types of wood. But now the ministry is just submitting to the government and the result is unknown. Vietnam’s reaction to China on this issue is too slow.

The transfer of investment to Vietnam by Chinese wood processing enterprises takes place to benefit from trade agreements if Vietnam is a member of the TPP. But before the US information does not participate in TPP, some Chinese wood processing enterprises still shift production investment to Vietnam.

– How do you see this phenomenon?

Calling FDI enterprises into the timber sector, we have proposed three issues to the Government, but have not been solved yet. Firstly, how to evaluate FDI in Vietnam now. Because we have a lot of incentives for FDI enterprises, while not much incentives for domestic enterprises. The years we have called and the incentives for FDI are right, but now it is necessary to look at the pros and cons of those that have a positive or a negative impact. The biggest concern of FDI enterprises is that they themselves have the right to become “oases” that are difficult to access. The purpose we call FDI is to get access to capital, markets, technology … but in fact do not do this.

Secondly, it is required FDI enterprises to have links with Vietnamese enterprises. Thirdly, it is necessary to evaluate and only allow FDI enterprises to invest in Vietnam, which also benefits, does not affect as well as cause difficulties for domestic enterprises. If Chinese FDI enterprises are more involved, it is more difficult to buy materials from domestic enterprises. Because they are “strong for money”, while our businesses are too small, their ability to compete with them is difficult.

– Analyzing the analysis, the Chinese enterprises “sweeping” like, it is possible that Vietnamese enterprises face anti-dumping lawsuits if the export of wood furniture Vietnam to the United States too Fast?

This is very likely to happen. Since 2000, the United States has dealt a lot of dumped goods with Chinese goods, but Vietnam is very few. But now the flow of Chinese FDI into Vietnam is too high. This is likely to be high risk because it is not yet known how large the state allows Chinese FDI enterprises to invest in Vietnam with the capacity of how much m3 / male. If the proportion is too large and overwhelming Vietnam wood enterprises, the risk of Vietnam sued dumping is unavoidable.

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