Directive No. 19/2004/CT-TTg on Certain Measures to Develop the Wood Processing Industry and Wood Product Exports

 DIRECTIVE

On certain measures to develop

the Wood Processing Industry and Wood Product Exports

In recent years, despite many difficulties, due to the implementation of several policies encouraging production and export of wood products, the guidance and management of relevant sectors and localities, and the efforts of businesses in production and market search for exports, Vietnam's wood processing industry and wood product production and export have made new progress; becoming a commodity with significant export turnover (reaching over 560 million USD in 2003), with high growth rates (about 30% in 2003); contributing to job creation, income generation for workers, and consumption of forest products.

However, Vietnam's wood processing and production industry still has many limitations: domestic raw material supply is unstable, only meeting low levels in quantity and quality; production scale is small and scattered; machinery, equipment, and technology are outdated; workers' skills are still low; product designs are not diverse; market work, trade promotion, organization, management, division of labor, and cooperation in this field are weak; many traditional craft villages producing and exporting wood products have been restored and developed slowly.

To address the above shortcomings, better exploit potential and advantages, promote further development of the wood processing and production industry, and strive to increase the export turnover of wood products to 750 million USD in 2004 and reach 2 billion USD by 2010, the Prime Minister instructs ministries, sectors, provincial people's committees to focus on doing the following tasks:

1. Organize domestic production and import to meet the timely demand for raw materials for the wood processing and production industries for domestic consumption and export.

a. The Ministry of Agriculture and Rural Development and People's Committees of provinces and centrally-administered cities with land for planting forests:

- Urgently review, complete, and approve plans for planting raw material forests, ensuring stable supply for the needs of the wood processing and production industries; plan suitable areas for planting large timber forests, rare indigenous tree species, providing a stable source of wood to maintain and develop handicraft wood products.

- Direct the selection of appropriate forest structures according to the conditions of each region, economically viable, ensuring raw material standards for wood processing and production; at the same time, ensure sufficient forestry seedlings (including both domestic research and production and imports) for planting raw material forests; effectively carry out forestry extension activities to transfer advanced techniques in seedling production, planting, caring for, and protecting forests.

- Based on the plan for planting raw material forests, review and supplement policies to encourage more economic components to invest in planting forests, benefit from forests, and provide raw materials for the wood processing and production industries, especially policies on land, investment, credit, support for seedlings, infrastructure construction in raw material regions, forestry extension, and product consumption.

- Urgently review the pilot investment in domestic artificial board production, comprehensively evaluate its investment effectiveness and market consumption to guide future development. Based on this, develop solutions to meet the demand for artificial boards for domestic consumption and raw materials for wood product exports.

b. The Ministry of Trade, in collaboration with relevant ministries and sectors, the Vietnam Timber and Forest Products Association, based on the demand for imported raw wood, guide and support enterprises in searching for and selecting import markets; review, amend, and supplement mechanisms and policies and organize to create favorable conditions for importing sufficient raw wood, especially natural forest wood for wood product production. Strictly prohibit speculative, monopolistic, harassment, and other activities that make it difficult to import raw wood.

2. Review and amend policies to assist and create favorable conditions for businesses of all economic components to participate in investing in wood processing and production to meet domestic consumption and export demands.

a. People's Committees of provinces and centrally-administered cities plan and support the construction of infrastructure in concentrated production zones, resolve difficulties regarding production sites for businesses and craft villages operating in the wood processing and production export sector.

b. The Ministry of Industry, in collaboration with the Ministry of Agriculture and Rural Development, the Vietnam Timber and Forest Products Association, assess the current status, set directions, and compile the demand for modernizing equipment and technology in wood processing and production; based on this, formulate supportive policies and direct research and manufacturing domestically and imports appropriately; strengthen cooperation between the mechanical industry and the wood processing and production industry.

c. The Ministry of Labor, Invalids, and Social Affairs, in collaboration with the Ministry of Agriculture and Rural Development, the Vietnam Timber and Forest Products Association, and People's Committees of provinces and centrally-administered cities, determine the need for training technical workers and skilled craftsmen; review and improve existing training institutions linked to the task of training in wood processing and production; consider establishing new training centers in some locations with urgent needs; select and train to meet the needs of businesses and craft villages.

d. The Ministry of Planning and Investment, the Ministry of Finance, and the State Bank of Vietnam, within their respective functions and responsibilities, implement credit policies to support exports and rewards for exceeding export turnover targets for wood products according to general regulations; propose or issue and implement policies to encourage investment and credit for raw material production, processing, and wood product production.

3. Continue to review and promptly amend policies and administrative procedures to remove obstacles and difficulties for wood product exports; provide necessary guidance and support to enterprises in searching for markets and promoting wood product exports.

The Ministry of Trade shall take the lead in coordinating with the Ministry of Agriculture and Rural Development and the Vietnam Timber and Forest Products Association to focus on performing certain tasks:

a. Providing information on import demand for wood products, current regulations on importing wood products from several major countries; timely supplementing policies, resolving difficulties and obstacles to continue promoting the export of wood products, especially to large markets such as North America, the European Union, Japan, China, and ASEAN.

b. Based on annual national trade promotion programs, organizing international furniture fairs in some major cities within the country, while selecting, organizing, and guiding domestic enterprises to participate in international furniture fairs held in countries and regions around the world to introduce and promote Vietnamese wood products, actively seeking customers and signing export contracts; accessing new science and technology.

c. Working with the Vietnam Timber and Forest Products Association to build a website for promoting and introducing Vietnamese furniture products and wood product manufacturing and exporting enterprises.

d. Creating favorable conditions for the Vietnam Timber and Forest Products Association to participate in and enhance exchanges and relations with timber and forest product associations in the ASEAN region and globally.

đ. Promoting government-level agreements between Vietnam and countries in the region and worldwide regarding the import of raw wood materials through barter transactions, providing a legal basis for wood processing enterprises to implement.

4. The Ministers of the Ministries of Agriculture and Rural Development, Trade, Planning and Investment, Home Affairs, Finance, Natural Resources and Environment, Labor, Invalids and Social Affairs, the Governor of the State Bank of Vietnam, and the Chairpersons of the People's Committees of provinces and centrally governed cities are responsible for implementing this Directive.

The Office of the Government is responsible for inspecting, urging the implementation of this Directive, and reporting the results to the Prime Minister./.