The timber industry in Binh Dinh is apprehensive about the new EU regulations.

Wood industry businesses must comply with the European Union's (EU) Regulations on Preventing Deforestation (EUDR) when exporting to this market. However, to date, businesses still lack specific guidelines, leaving them in a state of uncertainty while producing their products.

Working while simultaneously "waiting" for updates.

According to data from the Binh Dinh Wood and Forest Products Association, in 2023, Binh Dinh exported nearly $1 billion worth of wood products to more than 100 countries; in the first half of 2024, export turnover reached $575 million, an increase of 30% compared to the same period in 2023. The wood processing industry accounts for approximately 60-65% of the province's total export turnover.

The province currently has nearly 10,000 hectares of planted forests with large timber trees. The area of ​​forest certified under the Forest Stewardship Council (FSC) for Sustainable Forest Management is nearly 15,000 hectares; of which, the area of ​​planted forests with large timber trees is more than 7,600 hectares.

It is projected that by 2025, the total area of ​​concentrated large-timber plantations in the province will reach 10,000 hectares, with nearly 16,000 hectares of plantations certified by FSC; the orientation for 2030 is to have a concentrated large-timber production plantation area of ​​over 50,000 hectares, with an average timber yield rate of over 60%.

Mr. Pham Anh Tuan, Chairman of the People's Committee of Binh Dinh province, shared that in recent times, the province has actively encouraged wood processing businesses to use imported wood raw materials and wood harvested from sustainably managed forests with FSC certification, initially meeting the strict environmental requirements and standards of EU and US countries.

Along with the orientation towards planting large timber forests, Binh Dinh is currently one of the four largest wood processing centers in Vietnam and is known as the "wood industry capital" of the country; it is one of the centers for developing industry clusters in wood processing and forest products.

Normally, the fourth quarter of each year is the time when wood businesses in Binh Dinh province "race" to promote and secure orders for the following year. However, this year, businesses are on tenterhooks because the EU's anti-deforestation regulations will come into effect in December 2024. Meanwhile, Vietnam's regulations on determining the origin of wood are currently not specific.

According to Mr. Tran Van Phuc, Director of the Department of Agriculture and Rural Development of Binh Dinh province, EUDR has set two core requirements for timber and wood products circulating in this market: no deforestation and ensuring the legality of the supply source.

To meet the EUDR requirements, wood product suppliers need to provide information on the geographical location of their plantations and demonstrate that production at these locations has not resulted in deforestation since December 31, 2020.

The Department of Agriculture and Rural Development assesses that, in general, most production forest areas in the province, planted before 2020, are at low risk of being classified as high-risk areas for deforestation and forest degradation. However, proving this in practice faces many challenges due to a lack of necessary legal evidence.

"When the EUDR regulations come into effect, they will have a significant impact on the timber industry of the province as well as the whole country," Mr. Phuc observed.

Wood industry businesses are very confused by this regulation, so they are working while also waiting anxiously. Hoang Hung Co., Ltd., a company specializing in the production of indoor and outdoor furniture for export to major markets worldwide such as the EU, America, Asia, Australia, and New Zealand, is also very worried about the EUDR regulation, even though it already has orders until the second quarter of 2025.

When asked what solutions the company has to meet the requirements from European partners regarding the EUDR regulation, the company representative appeared passive, stating that they are waiting for the EU Parliament to decide on extending the application period of this regulation.

Risk of not being able to export goods to the EU.

Mr. Le Minh Thien, Chairman of the Binh Dinh Wood and Forest Products Association, expressed concern that if businesses do not provide all the required documents according to EUDR requirements by December 31st, the risk of not being able to export goods to the EU is very real.

"Currently, businesses are focusing on orders until December 31st, and after that, they don't dare to produce anything even if they have orders," Mr. Thien stated, describing the current situation.

Reportedly, Binh Dinh currently has over 350 wood processing businesses and facilities concentrated in Quy Nhon City, Hoai Nhon town, and the districts of Tuy Phuoc and Phu Cat. Of these, over 50% of wood industry businesses export to the European market.

Wood processing and exporting businesses in the province are well aware of the EU's regulations on preventing deforestation. They have also proactively requested that organizations, individuals, or intermediary businesses supplying raw materials ensure legality and provide information on the geographical location of the growing areas; however, even the suppliers themselves are still confused.

From the perspective of a state management agency, to alleviate difficulties for businesses, the Department of Agriculture and Rural Development of Binh Dinh province has advised the Provincial People's Committee to issue a plan to implement solutions to adapt to the EU's non-deforestation regulations in Binh Dinh province.

“In the coming time, the Department of Agriculture and Rural Development will coordinate with other departments, agencies, and localities to find solutions to legal obstacles regarding forest land areas that have not been granted land use certificates, or have land use certificates but lack geographical location indications. At the same time, we will direct the Forest Protection Department to coordinate with relevant parties to propose solutions for building a database and digital map of the current state of forests, ensuring complete information for controlling, tracing the origin, and providing geographical indications for timber and wood products,” said Mr. Tran Van Phuc.

Source: https://baodautu.vn/nganh-go-binh-dinh-thap-thom-voi-quy-dinh-moi-cua-eu-d227359.html