Vietnam and the EU reached the consensus during the sixth session of negotiating the Voluntary Partnership Agreement (VPA) on Forest Law Enforcement, Governance and Trade (FLEGT).
According to Deputy Minister of Agriculture and Rural Development Ha Cong Tuan the two sides also agreed to apply the FLEGT licensing mechanism to timber product exported to the EU.
The EU, which accounted for about one-fourth of world timber consumption, is currently the fourth largest importer of Vietnam's wood and wood products, after the US, Japan and China.
Positive export forecast
The Vietnam Wood and Forestry Products Association (Viforest) forecasts the country’s wood industry would likely to generate US$7.7 billion for exports this year, higher than US$7.1 billion in 2015.
Viforest said, exports of wood and forestry products from Vietnam would enjoy the advantages brought by the ASEAN Economic Community (AEC) and the Trans Pacific Partnership (TPP) deal.
Local enterprises have established good trade relations with ASEAN partners for many years so the AEC would create favorable conditions for them to develop business in the future, it noted.
Meanwhile, TPP would also open up opportunities for Vietnamese manufactures to have more legal wooden material for export processing because the TPP member countries had great potential for high quality wooden materials with legal origins, according to Nguyen Ton Quyen, chairman of Viforest.
That would facilitate exports of Vietnam’s wood products to the EU and the US which both have high demand for licensed wooden products.
In 2015, Vietnam posted total export value of wooden and forestry products at US$7.1 billion, 8% higher than 2014, statistics from the Ministry of Agriculture and Rural Development revealed.