Sir, what is the order situation of May Forestry Joint Stock Company in the first 6 months of the year?
- Our product consumption market is about 20% of the output being exported directly to many countries and territories around the world; 60% of the output is supplied to export manufacturing enterprises, contributing to the supply chain of Vietnam's wood processing industry; and the remaining 20% serves the domestic market.
In the first half of 2026, the production and business situation is relatively favorable. However, from May to July, businesses faced some difficulties due to the impact of the Middle East war situation, causing freight rates, especially international freight, to increase sharply.
Export markets such as: EU, USA, Japan are increasingly tightening standards on legal timber origin, sustainable development and emission reduction. What difficulties do businesses face in the process of meeting these requirements?
- Currently, planted forest area that has not been granted land use right certificates still faces many difficulties in completing wood origin dossiers as well as tax inspection dossiers, forest area with FSC and PEFC certificates is still limited, causing many businesses to face difficulties in expanding export orders as well as reducing competition.
We propose that the State and local authorities review and re-plan raw material areas for each factory and each enterprise, thereby completing the legal documents to meet the certification requirements. At the same time, it is necessary to review the land area of people and accelerate the issuance of land use right certificates so that people can fully participate in the value chain of the wood industry. Continue to improve the system of certifying the legal origin of timber, simplify administrative procedures, and support businesses to meet the new regulations of the international market on combating forest loss, reducing carbon emissions and sustainable forest development.
Besides the high requirements of the international market, according to you, what are the biggest difficulties that wood processing enterprises are facing?
Currently, wood chips still account for a large proportion in the structure of forestry exports, but this is a product with low added value, contributing limitedly to the value chain of the wood industry.
Domestic raw material sources do not meet the needs of deep processing, most of the planted forest area today is small timber, with a short 3-4 year exploitation cycle of poor quality, mainly serving the production of raw export wood chips. Meanwhile, deep processing enterprises need large timber sources with a exploitation cycle of over 7 years, high quality, stable to produce furniture, technical boards and export products with high added value, but they are increasingly depleted and seriously lacking raw materials, having to compete fiercely to purchase raw materials, many units have to import timber at high costs, reducing the competitiveness of Vietnamese products.
To remove difficulties and promote the wood processing industry to develop towards high added value, what policies should you propose to prioritize in the coming time?
I propose to study adjusting the export tax on wood chips according to an appropriate roadmap, from the current level to about 5-10% or applying according to the export tax rate on raw materials. Propose to review the management mechanism for compliance with legal documents and wood origin documents for wood chip purchasing and export processing facilities according to regulations to ensure harmony of interests between wood chip exporting enterprises and domestic deep processing enterprises.
There are policies to encourage the prolongation of the exploitation cycle of planted forest timber, especially for acacia wood raw material planted forests, to ensure the quality of raw wood for deep processing industries, and at the same time support the issuance of FSC, PEFC sustainable forest management certificates.
- Thank you!
