VietNamNet Bridge - The first round of talks between the EU and Vietnam for a bilateral FLEGT Voluntary Partnership Agreement is scheduled to take place in Hanoi laler November, according to the Ministry of Agriculture and Rural Development.

The seminar on the impacts of a Forest Law Enforcement, Governance and Trade (FLEGT) deal on Vietnam’s wood product shipments to EU was organized by the Vietnam Chamber of Commerce and Industry (VCCI).

It targeted to support local firms to adjust to the FLEGT agreement.

The EU delegation to Vietnam said the implementation of the FLEGT agreement would set up control and licensing paperwork in Vietnam to certify that only products originated from the legal sources can enter the EU.

Companies exporting products made from timber will have to provide documents to prove the wood was logged legally. This means either an import declaration containing the timber’s scientific name and quantity, import value, and country of origin, or a certificate from EU’s FLEGT act

The European Union’s FLEGT Agreement will take effect from January 2012. The Voluntary Partnership Agreement is a part of an EU action plan with exporting countries such as Vietnam to limit illegal timber from trade with the EU. The agreements will permit the identification of legal timber via the issuance of FLEGT licenses.

Companies found selling products made from illegally sourced timber face severe penalties, including confiscation of goods, a possible jail term, and a heavy fine.
And Vietnamese wooden products exporters have to comply with the US’ Lacey Act, a new timber origin tracking system, from April.

The EU is the second largest export market of Vietnam wood manufacturers only after the US. Export to the EU in the last two years was valued at more than US$750 million on average.

This year’s export target of $3 billion, half from wooden furniture, is within reach.
Many central- and south-based businesses signed export contracts for the whole year starting last December, Vifores said, with some even clinching deals for 2011. Exports were worth $2.65 billion last year, slightly less then than the target of $2.8 billion due to the global economic slump.

The US was the biggest importer, accounting for $1 billion worth shipments, followed by the EU with $700 million and Japan with over $360 million.

Two-way trade between Vietnam and the EU rose to US$15.2 billion in 2009, an increase of 3.68 times with Vietnam ’s exports to the EU rising 3.3 times to $9.38 billion. In the first nine months of this year, Vietnam’s exports to the EU reached $7.8 billion, up 13 percent over the same period last year.

The EU has invested in 1,036 projects with a total registered capital of $16 billion, ranking among top investors in the Southeast Asian country. EU-invested projects are concentrated in construction, oil and gas, services, agriculture and forestry.

Source: TBKTSG