Vietnam will introduce new policies aimed at developing the full potential of its timber industry.
The timber importing, processing and exporting industries are growing dramatically but the price of imported wood, used by most Vietnamese mills, was 15-20% higher during the first five months of 2004 compared to the same period last year.
The price increases have been due to forest fires, environmental decay, transport rates and timber export bans in supplier countries such as Indonesia and Malaysia.
Vietnam’s prime minister has reacted by requiring authorities to monitor the import and processing sectors to ensure furniture quality for domestic and foreign use.
The ministry of agriculture and rural development have also been ordered to finalise forest planning. It will also join with the Vietnam Association for Timber and Forestry Products to help companies select proper markets for timber import.
The policies could earn US$750m in furniture exports this year and US$2bn in 2010.
