Malaysian Timber Exporters Seek Opportunities in Vietnam

Timber suppliers and exporters from the Malaysian state of Sarawak discussed cooperative possibilities at a seminar in Hanoi on August 21 as part of a six-day trade promotion tour of Vietnam.

 

Led by the Sarawak Timber Industry Development Corporation, the tour aims to provide information on the latest development of the Sarawak timber industry, tap investment opportunities, and further enhance the trade relationship between both countries, said the corporation’s general manager, Haji Len Talif Salleh.

 

Vietnam will be a potential market for Sarawak as the country has to import 80 per cent of raw materials for wood processing industry. The Vietnam government also encourages enterprises to increase their lumber imports instead of over-exploiting domestic forests.

 

The wood processing industry in Vietnam has been growing constantly in recent years, with the country’s wooden furniture exports generating US$898 million in 2003, US$1.4 billion in 2004, US$1.9 billion in 2005 and up to expected US$2.2 billion in 2006.

 

However, Sarawak timber exports to Vietnam were well below potential as Vietnam imported only US$28 million worth of Sarawak’s wood last year, presenting only 3 per cent of the state’s total timber production volume and 2 per cent of timber export value, said Salleh.

 

The import from Sarawak also accounted for only 4.2 per cent of Vietnam’s total timber import turnover which was US$667 million last year.

 

He expressed hopes that their ongoing visit to Vietnam will strengthen the bilateral trade relationship between Sarawak and Vietnam and help the state increase its market share in Vietnam.