Vietnam Cuts Timber, Woodwork Export Tax to 0 per cent
The Vietnamese Ministry of Finance has decided to reduce export taxes on timber and woodwork products to zero from Dec 1, the Labor newspaper reported, citing an official from the ministry.
But economist did not believe that this is a wise decision because Vietnam’s earnings are falling.
Moreover, domestic timber supply meets only 20 per cent of demand, and Vietnamese woodwork industry now relies on 80 per cent of imported materials.
In the first eleven months of this year, Vietnam raked in US$2.559 billion from woodwork exports, up 19.9 per cent against the same period of 2007.
The country also spent more than US$1 billion on importing timber material for processing during the time, up 12 per cent on year, according to the General Statistics Office. (Labor, GSO November 2008)
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