ASEAN: Regional Trends in Economic Integration, Export ... - USITC

industrialized country markets. Of lesser importance to the competitiveness of ASEAN
plywood and flooring producers (and not discussed at length in this profile) are labor
costs, infrastructure, and availability of investment capital.
Wood costs remain the single most important factor in relative competitiveness for
hardwood plywood and flooring. Delivered wood costs to a plywood plant are typically
upwards of 60 percent of the total manufacturing costs. 25 As measured by the export
market, tropical log prices in the ASEAN region are generally lower than in other world
regions. 26 However, hardwood plywood manufacturers are facing increasing scarcity in
raw materials. 27 This is particularly the case for the large-diameter logs that are most
often utilized for making plywood. 28
ASEAN countries regulate the volume of timber harvesting under concession systems to
private and/or state enterprises, and for environmental reasons, some have imposed
complete bans on harvesting in natural forests where large logs typically originate. With a
few exceptions, most ASEAN countries restrict or ban exports of unprocessed or
minimally processed wood material (table 5.2). With raw materials being so critical and
not easily secured, opportunities for investment in the hardwood plywood and flooring
TABLE 5.2 Harvesting and/or export bans imposed by ASEAN countries
Country Year enacted Description
Brunei 1989 Has a moratorium on new logging permits and a complete
ban on log exports.
Cambodia 1996 Has a complete ban on exports of logs and rough lumber.
Indonesia 1980–1992
1992–1998
2001: logs
2004: lumber
Log exports banned from 1980 to 1992; ban replaced by
high export tax from 1992 to 1998.
Since 2004, exports of both logs and rough lumber from
natural forests are banned; also prohibits harvesting certain
species such as ramin (Gonystylus spp.).
Laos 1999 Exports of logs, lumber and “semi-finished” products from
natural forests are banned, but government-issued
exemptions are common.
Malaysia
Burma
Philippines
Singapore
1985 (P. Malaysia)
1993–1996 (Sabah)
1992 (Sarawak)
1986 (export ban)
1992 (harvesting ban)
Peninsula Malaysia has complete log export ban; Sabah
imposed export ban from 1993 to 1996; Sarawak imposes
an export quota.
No specific export ban noted.
Has a complete ban on exports of logs from natural forests;
has a harvesting ban on steep slopes and elevations over
1,000 meters.
Has no productive forests, so imposes no restrictions on
log trade.
Thailand 1989 Has a harvesting ban in natural forests; log exports are
plantation based or re-exports.
Vietnam 1992 Prohibits exports of both logs and rough lumber from
natural forests; has a harvesting ban in natural forests.
Sources: Resosudarmo and Yusuf, table 1, 2; FAO, ASIA and the Pacific National Forestry Programmes
Update No. 34, 35, 41; Bibi and Berudin, 19; Forest Trends, 4; Boungnakeo, 5; Macek, 1; Tachibana, 58–59.
25 Tachibana, “Forest-Related Industries and Timber Exports,” 1999, 70–71.
26 ITTO, Tropical Timber Market Report, April 30, 2010, 19; log export price data are limited to ASEAN
countries that permit log exports.
27 Industry representative, interview by USITC staff, March 12, 2010; EC-FAO Partnership Programme,
December, 2002, 176.
28 Industry representative, interview by USITC staff, Hanoi, March 9, 2010. Vietnam lacks large diameter
logs and thus has only a small plywood industry.
5-6