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14 Market Beats Jan/Feb 2024 FDM AsiA | www.fdmasia.com

Climate Leaders’ Partnership, as well as countries recognizing to 2022.
the numerous opportunities to scale up national and global This decline was caused by market instability, affected
forest bioeconomies here at COP 28.” by the Russia-Ukraine confict and tightening spending in
the United States and European Union (EU) markets on non-
Forestry industry aims for US$18 billion exports in essential products, including wood.
Vietnam Moreover, Vietnamese businesses also faced diffculties

The forestry industry in Vietnam has set an export target of when the EU added many new regulations such as the carbon
US$17.5bil to contribute 23 million cubic m of wood from border adjustment mechanism, including the wood industry
planted forests in 2024, according to thestar.com.my. and the EU’s Anti-Deforestation Regulation.
This aim was revealed by Trieu Van Luc, deputy director To boost wood and forest product exports in the upcoming
of the forestry department under the Agriculture and Rural time, the industry aims to develop legal sources of wood from
Development Ministry, at the conference about the sector’s planted forests to meet production standards by developing
performance last year and to outline development orientations concentrated planted forests and sustainably grown forests.
for 2024. It also encourages creating conditions for EU suppliers to
Luc highlighted that the sector would advance the promote raw materials in Vietnam while controlling imports

multipurpose value of forest ecosystems and create a sustainable from high-risk areas.
forestry economy through effcient use and management of In addition, a green economy model is being piloted in
forest resources. the wood industry with net-zero commitments.
It would also protect and sustainably develop 100 percent Along with the EU, many other markets have also set
of the existing forest area, while diversifying production under new and strict policies, causing many diffculties for wood
green, sustainable and circular practices. This effort would export activities. The US market requires an increase in the
be supported by developing collaboration and association frequency of investigations applying trade remedies to the

structures within the forestry supply chain. industry, and also compliance with labour and employment
The industry would also strengthen the quality management regulations. Japan also requires Vietnamese wood products
of forestry plant varieties that contribute to the ecosystem to have sustainability certifcates.
to increase the productivity and output of planted forests, The German Supply Chain Due Diligence Act is also
developing large timber production forests. indirectly impacting Vietnamese exporters. German importers
In 2023, the forestry sector marked a signifcant milestone require Vietnamese exporters to provide additional certifcates
when the processes were completed to transfer 10.3 million related to product origin, employment status, wages, waste
tonnes of carbon emission reduction to the Forest Carbon treatment and other related certifcates.
Partnership Facility through the World Bank at a unit price of Meanwhile, Canada currently tends to put forward more

US$5 per tonne of CO2, amounting to US$51.5mil. environmental regulations in its product design, manufacturing
The Vietnam Forest Protection and Development Fund and marketing strategies. Recently, the Canadian Government
recently received the frst payment of US$41.2mil from the World published a regulatory framework to establish mandatory
Bank and already disbursed the payment to the provinces, requirements for recycled content and labelling for plastic
making urgent plans to pay forest owners in six provinces. products, which will have some impacts on most of Vietnam's
The department estimated that forest product exports export commodity groups, from consumer goods packaging
reached US$14.39bil last year, down 15.8 percent compared to other key export sectors.