Vietnam’s National Assembly ratified a free trade agreement with the European Union on Monday 8 June 2020. This will have a significant impact on the development of the timber export industry and provides Vietnam with an incentive to implement its timber legality assurance system.
Not wanting to be "overwhelmed" by the difficulties caused by the Covid-19 epidemic, reorganizing production scale and capacity, restructuring goods or promoting online sales. It is an initiative and practical action implemented by many timber enterprises.
China has invested in 29 plywood projects worth over US$150 million in Vietnam, becoming the country’s largest plywood investor, according to Ngo Sy Hoai, vice chairman of the Vietnam Timber and Forest Products Association.
Vietnam’s wood export revenue is forecast to rise 20% in 2020. However, the industry cannot avoid the impacts of the recent epidemic, necessitating efforts to diversify its export markets.
The wood industry was facing a ‘disaster’ with many businesses left without orders from now until 2021 due to the COVID-19 pandemic, said the Vietnam Timber and Forest Product Association (VTFPA).
The Handicraft and Wood Industry Association of HCM City (HAWA), the Binh Duong Furniture Association (BIFA) and the Handicraft and Wood Industry Association of Dong Nai (DOWA) on March 5 signed co-operation agreements with FPT Corporation on promoting digital transformation to help wood processing enterprises optimise operations, save costs and improve competitiveness.
In addition to losses and concerns about the decline in exports of agricultural, forestry and fishery products due to the impact of the acute respiratory infection caused by the new corona virus, forestry and fishery enterprises can take opportunities to boost exports and increase competition for some commodities in a difficult situation.
Vietnamese wooden furniture manufacturers face a shortage of workers, modern technology and money to upgrade technology.
The EU-Vietnam Free Trade Agreement (EVFTA) offers many opportunities to Vietnamese workers and just as many challenges. The country’s labour force must find ways to improve its quality in order to produce products that adhere to stricter standards in European markets, said policymakers and labour experts at a conference in Hà Nội on Tuesday.
Vietnamese wood processing companies need to rethink their production models and upgrade technology lines to increase their competitive capacity in face of the upcoming challenges.