The Vice President of the Vietnam Timber and Forest Product Association, Nguyen Ton Quyen, said that both the Lacey Act and the EU law require timber exporters and retailers to prove the origins of its timber and related materials.

This decision poses a number of difficulties for Vietnamese businesses when sourcing quality legal timber at reasonable prices as the bulk of Vietnam’s wooden products comes from imported timber, said Mr Quyen.

To minimise the negative impacts of both these regulations, Mr Quyen said that his association is preparing for the opening of timber transaction centres in the northern, central and southern regions of the country. Once operational, these centres will help to reduce the prices of products by 10 percent, cut production times and guarantee the timber’s origins.

In the meantime, for the European market, the Ministry of Agriculture and Rural Development (MARD) has set up a working group to help businesses buy wooden products with clear origins and provide consultations on the necessary procedures when applying for Forest Stewardship Council (FSC) certification.

A number of EU timber importers have already been assisting Vietnamese businesses to abide by both laws.

The association’s heads have suggested that businesses work together to increase their competitiveness and focus on manufacturing products that meet the requirements of both markets. They also emphasised the need for businesses to diversify their outlets to avoid a drop in sales in individual markets when global prices fluctuates.

MARD said that Vietnam’s timber exports brought in approximately US$655 million in the first three months of this year, a year-on-year rise of more than 16 percent. Timber exports to the US and the EU accounted for more than 50 percent of the country’s total.