Export tax on plywood
HS code of plywood (plywood) belongs to heading 4412. Applicable to actual goods, HS code 44123100, 44123300, 44123400 and 44123900. According to the 2018 import and export tariff, plywood products have an export tax of 0%. Therefore, when exporting plywood, enterprises will not have to pay export tax.
Procedures for exporting plywood
Wood products derived from planted forest wood are not on the list of goods banned from export and export under permits, so enterprises can export normally without a permit.
Customs documents needed include:
- Customs declaration
- Commercial Invoice
- Packing List
- List of forest products according to regulations of the Ministry of Agriculture and Rural Development
- Export entrustment contract (if any)
Plywood export companies
Currently there are several sources of information about Vietnamese companies exporting plywood.
For example, the Vietnam Yellow Pages source says that there are 115 companies specializing in plywood. In addition, a reliable source that details the list of companies and offers to export plywood from Vietnam is Fordaq.com – a B2B trading channel specialized in wood.
Some other platform is Alibaba, Go4worldbusiness,etc..
Industrial wood market: The scale is more than 70 billion USD, the growth rate is more than 30%/year
According to a report by the Vietnam Wood and Forest Products Association, the export of wood and wood products has reached a value of nearly 12.5 billion USD in 2020. The export target of the wood and wood products industry in 2021 will reach 14.5 billion, an increase of about 9.6% compared to 2020.
In the first 3 months of 2021, the export turnover of wood processing industry reached 3.7 billion USD, up 41.5% over the same period last year. Furniture export markets include the United States, Japan, China, the EU and South Korea, which currently account for 90% of the total export value of wood and forest products.
Particularly for plywood products, the report was made by Wood Associations VIFOREST, HAWA, BIFA, FPA Binh Dinh and Forest Trends Organization on Vietnam plywood industry (plywood) published in June 2020. , the total demand of plywood products globally in 2018, reached about 160 million m3, equivalent to a turnover of 72.7 billion USD.
In particular, the US is a huge market for plywood consumption and is the world’s largest plywood importer. In contrast, China is the largest supplier of plywood globally. Along with China, Vietnam is among the top exporters of plywood.
In 2019, Vietnam’s export value reached more than 790 million USD, accounting for 5% of total global export value. Vietnam’s plywood export turnover increased by 19% compared to 2018.
How to expand Vietnam plywood export market
Firstly, in terms of market expansion, trade promotion, continuing to disseminate the benefits that new-generation FTAs bring to support businesses in optimally exploiting the market. At the same time, continue to support businesses to effectively implement trade promotion programs to exploit major markets such as the United States, EU, Japan, Korea as well as emerging other potential markets.
Secondly, on ensuring raw materials for the plywood processing industry: In the coming time, it is necessary to maintain an open import policy, creating conditions for enterprises to import raw materials for production and export
Third, to enhance the quality of human resources for the plywood industry: It is necessary to allocate funds for human resource training programs of the plywood industry, trade promotion, construction and commercialization of the wood industry; prioritize the implementation of training programs, improve skills, ensure the supply of human resources for the wood production and processing industry; supporting universities, colleges and vocational schools in training interior and exterior design.