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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.
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