China is largest plywood investor in Vietnam

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.

Speaking at a conference to promote Vietnam’s plywood and medium-density fiberboard industry in the context of Covid-19 that was held in HCMC on July 6, Hoai noted that Vietnam has attracted 53 foreign investment plywood projects worth a combined US$276.5 million.

In the first half of 2020 alone, the country attracted 35 foreign investment projects in the wood industry, including two plywood projects with a total investment of US$14 million.

Besides being the largest investor, China is also Vietnam’s largest plywood supplier, accounting for some 90% of the country’s plywood imports. In 2019, China exported plywood products worth more than US$188 million to Vietnam.

Increasing foreign investments, especially from China, have boosted Vietnam’s plywood exports in recent years.

However, several countries, including the United States and South Korea, have begun investigations into the evasion of antidumping duties on plywood products from Vietnam.

South Korea has imposed an anti-dumping duty of 9.18-10.65% on plywood imported from Vietnam, while the U.S. Department of Commerce on June 9 decided to conduct an investigation into whether Vietnam is dumping plywood products in the United States.

This affects not only plywood exporters but also Vietnamese forest growers and the country’s entire wood industry.

The Vietnam Timber and Forest Products Association suggested that relevant agencies should increase inspections into and control over plywood producers, importers and exporters as well as seek an investment shift to help local businesses avoid future risks.

Le Hoang - TBKTSG Online