Vietnam timber industry expected to resume growth momentum in 3Q 2020

According to VIFOREST, the timber sector is expected to resume its growth momentum from the third quarter of 2020, reported ITTO.

At a recent meeting to decide on support for the timber sector, Dr. Nguyen Xuan Cuong, Minister of Agriculture and Rural Development, highlighted 4 measures to boost post-covid recovery in the timber industry.

  • Policy interventions to support over 5,000 sector enterprises in accessing the government’s US$10.8 billion credit support package, lower interest rates, delay in the collection of taxes and land fees and financial assistance for employers and employees.
  • As Vietnam has emerged as one of a few countries effectively managing the impact of the virus, support will be provided to capture market opportunities in those consumer countries that are resuming business activities. Support will be given to initiatives such as trade fairs and other forms of off-line trade development as well as online marketing of wood products.
  • The industries in the sector will be assisted to review and revise their business strategy to adapt to the “new normal” as preparation for the anticipated economic ‘take off’ beginning in the third quarter of this year.
  • Support for restructuring of the sector toward sustainable development through promoting large timber plantation establishment, diversification of export markets and intensifying value adding of made-in-Vietnam wood products and developing Vietnam as a world leader in wooden products.

Vietnam intends to deepen integration into the global wood product supply chain with well-developed brands and highly ethical corporations. The Minister also mentioned the opportunities in the domestic market of almost 100 million wage earners.