Page 32 - FDMAsia Jan/Feb 2026
P. 32
30 FOCUS JAN/FEB 2026 FDM ASIA | www.fdmasia.com
johnsurbantimber.com regarding legal timber, product origin and carbon emissions—
he urged the association to adopt new mindsets, reform
operations, and accelerate the implementation of key plans.
For the 2025–2030 term the Deputy Minister outlined core
goals for Viforest: to continue helping businesses overcome
challenges, actively participate in policymaking, expand markets
and promote the development of high-value products.
He emphasised the need for a transparent, eco-friendly
production model that meets the growing expectations of
international markets and called on Viforest to strengthen its
role in building a legal wood supply chain.
Craft Village Association, stated that traditional woodworking
villages are facing immense pressures in today’s market. Timber sector seeks solutions to VAT refunds
According to En, traditional handicrafts, once celebrated for The Vietnam Timber and Forest Products Association (VIFOREST)
their cultural value, are being squeezed out by mass-produced has alerted the authorities that billions of VND in delayed VAT
goods and shifting consumer tastes. refunds are leaving Vietnam's timber enterprises short of capital
Moreover, many traditional designs no longer match modern for reinvestment, stalling production and directly threatening
consumer needs, limiting access to younger audiences and the livelihoods of millions of people across the country.
high-end markets. Although artisanal products receive praise VIFOREST has petitioned the Ministry of Finance and
in Europe, craft villages still struggle to meet international relevant agencies to eliminate VAT on primary wood products
standards. and recognise them as agricultural outputs exempt from VAT.
En also pointed to digital transformation and e-commerce It has also called for consistent application of Decree
as major challenges. Most workshop households still operate 209/2013/ND-CP, which clearly stipulates that ordinarily
independently, lack digital marketing strategies and have limited processed plantation timber should not be subject to VAT.
adaptability to rapid market changes and higher digitisation According to the Association, this proposal would allow
demands. processing and exporting firms to avoid burdensome deductions
For long-term sustainability, En believes craft villages must and refund procedures, reducing compliance costs and freeing
be restructured into larger models that allow collaborative up working capital.
production to boost competitiveness. “Our goal is to ease administrative bottlenecks, mitigate
“Authorities and Viforest need to strengthen support legal risks, and prevent losses to the state budget from invoice
in trade promotion, product design innovation and digital fraud,” VIFOREST stated in its report.
training for producers. Only by preserving traditional values The move, it argued, would also protect the incomes
while adapting to modern needs can woodworking villages of millions of rural household engaged in afforestation. The
truly thrive,” she said. sector's achievements underscore what is at stake.
Deputy Minister of Agriculture and Environment Nguyen Quoc Vietnam today maintains more than 4.6 million hectares of
Tri, speaking at the congress, praised Viforest’s contributions planted forests, producing an annual harvest of 35-40 million
to wood processing and exports. cubic metres of timber, sufficient to meet 75–80 per cent of
To help businesses meet stricter standards—especially processing demand.

