Import:Export Wood Purchasing News - August/September 2017

BUSINESS TRENDS ABROAD
Vietnam–According to offi cials, once the EU-Vietnam Voluntary Partnership
Agreement on Forest Law Enforcement, Governance and Trade
(VPA-FLEGT) comes into effect Vietnam will export considerably more
wooden products to Europe and other markets.
Vietnam Plus reports that Vietnam and the European Union have
concluded that the VPA negotiations earlier this summer, along with the
forest pact, would increase Vietnamese timber products competitiveness
compared to those in which countries don’t have much control.
Jana Herceg, deputy head of trade and economic section of the Delegation
of the European Union to Vietnam, stated that Vietnam is the second
country after Indonesia in ASEAN to fi nalize this agreement. When the
VPA-FLEGT agreement takes effect, it will furthermore boost the export of
furniture products.
Consumers in Europe are wanting to know about the labor conditions
and corporate social responsibility standards of Vietnam. If the Vietnamese
companies understand the demand consumers have and meet those
conditions, then they have the opportunity to boost exports to Europe.
Enterprises also face trade barriers and intense competition from other
exporters to the market, which requires them to improve the quality, access
to the information and competitiveness. Vietnam Plus reports that
Vietnam needs to ensure legal timber sources by increasing imports of
raw materials from low-risk countries, which connects with importers in
developed countries and to invest
in growing their timber in Vietnam.
Deputy Chairman of Handicrafts
and Wood Industry Association of
Ho Chi Minh City, Nguyen Chanh
Phuong stated that besides branding,
product design along with
pricing are two very important factors
in the competitiveness of the
wooden sector. Habits are changing
for European consumers, and
exporters are needing to catch up
on these trends.
Johannes Schwegler of the Swiss
Import Promotion Program, commented
that there is an emerging
trend of using laminated fl ooring
and bamboo products as substitutes
for tropical timber because
of their environmental-friendliness
and technical properties. Solid
wood-based products are the
strength of Vietnam and fi rms still
have the opportunities for growth,
but should keep current of market
trends.
South Africa–The demand for
U.S. hardwoods remains steady
in South Africa, where its currency
(Rand) is so robust that it has
added to its competitiveness. Shop
fi tters have created a steady demand,
along with high-end furniture
manufacturers.
Sales of Meranti, on the other
hand, have been slow mainly because
of the poor property market.
Rand, being as strong as it is, has
helped keep aluminum substitutes
competitive, causing a reduction
for the demand of timber windows.
Markets for Okoume have been
very undermined. Compared to
Meranti, Okoume’s prices have
been high, along with an extended
delivery time.
Kiaat supply remains tight because
of its erratic supplies, manufacturers
are buying substitutes
such as Acajou and Mahogany.
Sweden–The “Tandem Forest
Values” project aims to produce
high-quality research and expertise.
A total of 12 research positions
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will be funded and made available. They include four positions for sustainable
forest management research and eight positions for new forest
industry products and process research. Current and existing research
groups at universities and institutes are able to apply for funding.
Projects will be released as bilateral research collaborations. One
requirement is that research be carried out in both Finland and Sweden.
The fi rst call is planned for Finland’s Independence Day in December,
2017.
Sweden’s research funding gift will be fi nanced– half by the private
sector, while the public sector will provide the remaining half. In addition
to the Swedish government, the following are also taking part in the
donation: The Marianne and Marcus Wallenberg Foundation, the Kempe
Foundation, the Forestry Research Institute of Sweden, the Royal Swedish
Academy of Agriculture and Forestry.
Funding period will span across two years.
Nigeria– Trade and Industry Minister Tareq Quabil commented recently
that Nigeria lifted its ban on imports of furniture from Egypt. The minister
added that Nigeria has imposed a ban on its imports of furniture among
25 other products since 2005, which had harmed Egypt’s exports of
furniture.
Quabil remarked that Egypt raised the issue during its discussion with
Nigeria. Several negotiations were held within the context of the Nigerian
talk, during which Egypt expressed the negative impact on Egyptian companies
as a result of the Nigerian furniture imports ban.
WE’RE COMMITTED TO SUSTAINABLE FOREST MANAGEMENT
DIRECT IMPORTERS OF HARDWOODS SINCE 1947
Import/Export Wood Purchasing News August/September 2017 Page 9
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