Vietnam and Malaysia sign cooperation document on timber trade
The MoC will not only strengthen economic cooperation between Malaysia and Vietnam, but also create opportunities for their manufacturers to increase exports and imports.
Although both Malaysia and Vietnam are producers of wood products, the collaboration will provide opportunities for manufacturers to increase their exports and imports between Malaysia and Vietnam. The MoC is also expected to generate other spin-offs such as socio-economic benefits and employment opportunities.
Muhtar Suhaili, chief executive of the Malaysian Timber Council (MTC), said Malaysia is committed to pursuing the sustainable development of the two countries’ timber industry, and the country can benefit from more foreign direct investment. raised by Vietnam in the manufacture of furniture and access to the European market. Union (EU) market through Vietnam’s free trade agreements.
According to Muhtar, qualified human resources and the availability of local labor will be advantages for Vietnam.
“Malaysia is committed to pursuing the sustainable development of its timber industry. Malaysia can benefit from Vietnam’s increased foreign direct investment (FDI) in furniture manufacturing and access to EU markets through Vietnam’s free trade agreements,” Muhtar said.
He added that Vietnam’s skilled labor and availability to local people will be an advantage, in addition to its proximity to China, which facilitates access to furniture parts and wood panels.
The MoC is also in line with the ASEAN High-Level Agreement adopted in 2000 when the Initiative for ASEAN Integration (IAI) was launched to narrow the development gap and enhance the competitiveness of the country. ASEAN as a region.
It will also protect the interests of both countries against regulations that may affect the interests of the timber industry.
Present at the signing ceremony was the President of TEAM. Chua Song Fong, President of MFC Mr. Khoo Yeow Chong, Vice President of ViForest, Huynh Quang Thanh, President of Binh Duong Wood Processing Association (BIFA) Mr. Nguyen Liem, President of Dong Nai Wood Processing Association (DOWA) Le Xuan Quan and DOWA Vice President and General Secretary Nguyen Chanh Phuong.
Addressing the ceremony, TEAM Chairman Chua Song Fong said, “Vietnamese timber industry has developed very well over the past decade and we would like to take advantage of it and explore business opportunities.
“We would like to increase our market share in Vietnam and the MoC can deepen investment flows for Malaysia,” MFC Chairman Khoo Yeow Chong said, citing supplying furniture parts to Vietnam as a good possibility.
Among the top five products that Malaysia exported to Vietnam in 2021 were particle board ($9.35 million), wooden furniture ($7.77 million), fibreboard ($5.99 million), sawn timber ($5.46 million), and carpentry and joinery ($3.39). million).