Directive 08/CT-TTg on timber and non-timber forest product processing industry

DIRECTIVE 

On a number of tasks and solutions for fast and sustainable development of timber and non-timber forest product processing industry for export^[1]

Timber and non-timber forest products are Vietnam’s sixth important export item and unceasingly record high growth rates with an annual average growth of over 13% during 2010-2018. In 2017, the timber and non-timber forest product processing industry’s export turnover reached more than USD 8 billion, with timber and timber products accounting for USD 7.66 billion, up 10.2% from the 2016’s figure and fulfilled the goal three years ahead of the schedule set in the 2006-2020 forestry development strategy. The timber and non-timber forest product processing industry’s export turnover reached more than USD 9.38 billion in 2018, a year-on-year increase of 15.9%, representing over 23% of the agriculture and rural development sector’s export turnover, of which export turnover of timber and timber products contributed around USD 8.909 billion with a trade surplus of over USD 7 billion, making up 85% of the whole sector’s trade surplus value. Vietnam’s timber products have been exported to 120 countries and territories and rank second in Asia and fifth in the world in export turnover, accounting for 6% of the world’s timber product market share and there remains plenty of room for development.

With around 4,500 enterprises recruiting tens of thousands of workers and more than one million farmer households planting raw material forests, the timber and non-timber forest product processing industry has truly become a spearhead economic sector in the national economy. The development of timber and non-timber forest product processing industry for export promotes afforestation development, protects the environment, creates sustainable livelihood for rural and mountainous farmer households and contributes to successful implementation of the forestry sector restructuring program.

Despite recognizable achievements, the timber and non-timber forest product processing industry is facing not a few challenges and difficulties, e.g., the sources of supply of raw materials possessing high quality and sustainable forest management certificates remain limited; chain-based linkages between forest growers and enterprises from the stage of creating new seedlings to processing and exports are loose; investment in silvicultural infrastructure is not paid with due attention; tax and land concentration policies for developing material zones reveal many shortcomings, small-sized enterprises can hardly access credit sources to expand their production and business; development of corporate and national brands for timber products has not yet been paid proper attention; international trade conflicts and frequent changes and adjustments in policies of material exporting nations and timber product importing nations exert great impacts on the timber and non-timber forest product processing industry; and free trade agreements and treaties to which Vietnam has acceded to bring about both opportunities and challenges to Vietnam’s timber and forest product processors.

To bring into play attained achievements, surmount difficulties and overcome challenges and potential risks to create breakthroughs for fast and sustainable development of the timber and non-timber forest product processing industry for export, the Prime Minister requests ministries, sectors, localities and enterprises to effectively implement the following contents:

I. VIEWPOINTS AND OBJECTIVES