return icon Vietnamnet.vn

VN woodwork exports face new regulation on customs inspection

The new regulation on certificate of origin (C/O) makes it more for Vietnam to obtain $11 billion in woodwork exports this year as planned.

Nguyen Liem, general director of Binh Duong-based Lam Viet JSC, when attending the conference last week in Hanoi, received an urgent call from his company.

 

{keywords}



The company's containers of wooden products to be shipped to the US have had to undergo red-channel customs inspection.

Under current regulations, exports are classified into three types according to the degree of risk: green, yellow or red channel. Of these, the clearance of goods via red channel takes longest time. Goods owners have to show many kinds of documents, and goods have to undergo strict physical inspection.

The red-channel customs inspection is applied not only to Lam Viet, which exports 200 containers of products to the US each month, but to all wooden export products in an effort to prevent trade fraud.

The red-channel customs inspection is applied not only to Lam Viet, which exports 200 containers of products to the US each month, but to all wooden export products in an effort to prevent trade fraud.


Vietnam has been warned that Chinese enterprises may use phony Vietnamese origin for their exports to the US in order to avoid heavy tax. Therefore, customs agencies have been requested to reinforce the inspection over imports and exports to fight against origin counterfeiting and violations in labeling.

Liem complained that the new regulation will increase the cost higher, and the enterprise is at risk of being fined by US importers because of the delay in delivery.

Nguyen Sy Hoe, deputy director of Phu Tai, said that requiring woodwork exports to undergo red-channel customs inspection is not a good solution to reach two targets.

It is important to prevent Chinese enterprises from counterfeiting Vietnamese origin to export their products to the US market.

The possibility of the US government imposing trade sanctions on Vietnam’s exports should be reduced.

Hoe said Phu Tai’s target of obtaining revenue of $40 million a year is challenging and this depends on the inspection of every container of export products. It’s not easy to export woodwork to the US at this moment as the US government has tightened regulations on importing products since the US-China trade war breakout.

Analysts said Vietnam has great opportunities to boost woodwork exports to the US and gain bigger market share there, but it is facing big challenges because of the production shift by Chinese enterprises.

According to Huynh Van Hanh, deputy chair of the Handicraft and Wood Industry Association of HCM City (HAWA), large Chinese enterprises are not likely to relocate production to Vietnam because of high costs which cannot be offset by profits.

However, Vietnam may suffer from production shift by Chinese small enterprises which have small investment scale and equipment that has fully depreciated.

Chi Mai 

 

Vietnam needs ‘FDI filter’ for woodwork industry

Vietnam needs ‘FDI filter’ for woodwork industry

The US-China trade war has led toChinese wooden furniture manufacturers moving production to Vietnam, bringing risks to the domestic woodwork industry.

Vietnamese woodworking firms increase investment in technology, machinery

Vietnamese woodworking firms increase investment in technology, machinery

Nguyen Phuong, sales director of Minh Thanh Co., Ltd, said his company plans to invest more than 50 billion VND (2.15 million USD) in a production chain for bedroom and living room furniture.

MORE NEWS

Ministry listens to firms' difficulties, pledges to raise support

The Ministry of Planning and Investment will propose policies to remove obstacles for enterprises and enable them to seize opportunities to accelerate production and business, Minister Nguyen Chi Dung said.

Vietnam's e-government procurement system set to launch in August

The e-GP would allow effective and transparent management of the public procurement process.

VIETNAM BUSINESS NEWS JUNE 29

Newly-established businesses in H1 exceed 70,000

Australian Foreign Minister enjoys Pho ga in Hanoi

Australian Foreign Minister Penny Wong enjoys Hanoi's specialty of Pho ga or chicken noodles as she arrived in the city on her first visit to Vietnam.

Vietnamese ceramic artist sets two Guinness World Records

Two Vietnamese ceramic works will be recognised as having set Guinness World Records at a ceremony in Hanoi today (June 30).

VIETNAM NEWS HEADLINES JUNE 29

USAID assists Vietnamese businesses to reduce greenhouse gas emission

Vietnam Airlines plans to restore its entire flight network by the end of 2023

The restoration of international flight routes is an important condition for Vietnam Airlines to reduce losses and become profitable in the near future.

Saigon Zoo elephant dung used to make paper

A Saigon Zoo member of staff and a group of students are transforming elephant dung into paper.

Future of Hanoi’s 120-year-old Long Bien Bridge unclear

Long Bien Bridge, the iconic bridge across Hanoi’s Red River, has degraded, but no major repair plan has been finalized and its future is unclear.

Information & Communications Ministry works to create modern digital infrastructure

The Ministry of Information and Communications will exert efforts to create a modern and safe national digital infrastructure, and a new space for digital economic growth, and developing e-government towards the building of a digital government.

Vietnamese NA Chairman begins official visit to UK

National Assembly (NA) Chairman Vuong Dinh Hue arrived at Heathrow Airport in London on June 28 (local time), beginning his three-day official visit to the UK.

Vietnam to establish industrial environmental index

The Ministry of Planning and Investment (MPI) has called for the implementation of an industrial environmental index in Vietnam, according to Le Thanh Quan, head of MPI's department of economic zone management.

Rising costs cast doubt on wood companies growth prospects

As wood export turnover is rebounding with rising demand in the domestic market, the revenues of wood enterprises are expected to advance.

Vietnam’s GDP expands 7.72% in second quarter of 2022

Vietnam’s Gross Domestic Product (GDP) in the second quarter of this year was estimated to increase 7.72% year-on-year, higher than the growth rates in the same quarters during the 2011-2021 period.

Danish Crown Prince Couple to visit Vietnam in November

Wind energy and energy efficiency will be in focus during the visit, which will take place on November 1-2.
back_to_top