Source: nhandan.com.vn
To reduce risks, businesses and state management agencies need to have close coordination. Effective control of trade fraud in wood products import and export activities of enterprises …
Facing many risks
2020 is considered a winning year for the wood industry. However, the wood industry is facing many difficulties in the context of trade tensions between world powers continues to take place. From the beginning of the year until now, the wood industry has continuously faced anti-dumping lawsuits from the US and South Korea. Most recently, the US Trade Representative accused the Vietnamese wood industry of using illegal timber in the domestic market and in products exported to the country. This makes the business activities of the wood industry in this market in the coming time forecasted to be more volatile and risky.
Mr. Phung Gia Duc, Department of Trade Defense (Ministry of Industry and Trade), said that up to now, Vietnam has been investigated a total of 199 lawsuits related to trade defense. In the past 5 years alone, there have been 97 investigations. The most frequent cases are the US (40 cases), India (27 cases), Turkey (23 cases), Australia (16 cases), Canada (16 cases), EU (14 cases). ) and Philistines (12 cases). In 2020, Vietnam will be investigated for 37 cases. Particularly cases related to wood products many years ago were few, but from 2019 until now, the cases under investigation have taken place quite quickly. Specifically, in 2019, South Korea investigates anti-dumping with plywood products. In 2020, Vietnam has been continuously investigated by India against anti-dumping investigation with MDF wood products and the US investigated against tax evasion with plywood. According to the General Department of Customs, the challenge that is posing now is the increasingly sophisticated form of fraud, the larger and larger scale. Legal documents have not yet adjusted all the actual arising cases; sanctions are not deterrent; Limited awareness of some Vietnamese businesses leads to facilitating illegal trade.
In the face of more and more lawsuits, Forest Trend has warned that some Vietnamese businesses will face risks in the supply of illegal timber from Russia and Ukraine. imported via China. The General Department of Customs has issued a written request to the local customs to closely check the origin of imported raw wood from the above countries. Chairman of the Vietnam Timber and Forest Products Association (VIFOREST), Do Xuan Lap, said that the import of raw materials from geographic areas with high risks will lead to unclear wood origin and origin. prohibited by bilateral and multilateral trade agreements. Timber import and export enterprises should be very cautious, should only use materials with clear origin and in accordance with regulations. How businesses can strictly comply with regulations on imported wood control; How do regulators create open air and an effective policy mechanism in line with international practices for timber businesses are big questions that need to be answered soon, with the join hands, close cooperation between entrepreneurs and managers.
Proactive trade defense
On September 1, 2020, the Government issued Decree 102/2020 / ND-CP regulating the timber legal system and establishing mechanisms to control imported timber. The decree stipulates that imported timber is risk-managed according to criteria that define whether the country is geographically positive or not positive, the type of wood is risky or not risky. To implement the Decree, on November 27, 2020, the Ministry of Agriculture and Rural Development issued Decision 8432 / QD-BNN-TCLN announcing the List of Active Geographic Areas and the List of Imported Timber Species. into Vietnam. These are important legal guidelines to guide to avoid risks for timber enterprises in import and export activities. However, in order to avoid anti-dumping and tax evasion investigations, timber businesses need to have knowledge about trade remedies. When exporting wood products of their own enterprises to other countries, there must be specific sources of information, ensuring the validity and legality of the importers in that market.
The Trade Defense Department recommends that, before the case occurs, exporters need to update the list of early warning of the Trade Defense Department; building a team in the field of trade defense internally; Find out about the trade defense regulations of the investigating country. Besides, in exporting, it is necessary to diversify products; focus on high quality products; market diversification. For domestic manufacturers, it is necessary to monitor the situation of goods imported into Vietnam, and at the same time use trade remedies to protect the domestic manufacturing industry. If doing this well and with careful preparation, it will overcome the barriers of anti-dumping investigation from other countries. The timber industry needs to work closely and effectively with the customs sector in identifying risky products and companies at risk of fraud, counterfeiting of origin, or illegal transmission; building a channel to connect information between the Vietnam Timber and Forest Products Association with relevant state management agencies to regularly update information on signs of fraud, counterfeiting origin so that relevant agencies early plan to take interventions in a timely manner.
According to Deputy Minister of Industry and Trade Cao Quoc Hung, to ensure raw materials for the wood processing industry, it is necessary to maintain a clear import policy, creating a favorable legal corridor for businesses. Early to have a plan to develop a stable source of raw materials in the country, and at the same time strengthen the planting of large timber material forests to meet the increasing raw material demand for the wood processing industry. It is necessary to strictly control trade fraud, in which, strictly complying with the Voluntary Partnership Agreement VPA / FLEGT, a part of EVFTA, has a great impact on Vietnam’s wood industry in the coming time.
One of the most important issues today is to allocate funds for human resource training programs of the wood industry, trade promotion, building and promoting the brand of the wood industry. Therefore, it is necessary to prioritize the implementation of training programs, improve skills, and ensure the supply of human resources for this industry. Provinces need to take advantage of opportunities from Free Trade Agreements and based on local advantages to develop production of key products, have plans to attract investment in production and processing of This item is aimed at sustainable export.
Proactively implement associated activities to create a centralized area for supply and wood processing, including industrial and service zones for wood processing. Continue to search for emerging and potential markets in order to diversify the market. Along with strictly complying with domestic and international laws, business managers need to continue to promote the role of linking, building supply chains, capturing information, connecting with agencies. related management to control the situation well.
