U.S. Business Groups Urge Trade Chief to Forgo Vietnam Tariffs

T2,Tháng Mười Một 29,2021

The U.S.’s biggest business organizations in areas from food to fashion asked the nation’s trade chief to refrain from resorting to tariffs as a remedy in its trade disputes with Vietnam.

“If the administration has concerns about elements of the U.S. trading relationship with Vietnam, then engagement is required — not more tariffs,” 76 groups including the U.S. Chamber of Commerce, the National Retail Federation and the Internet Association — whose members include Amazon.com Inc. and Alphabet Inc.’s Google — said Wednesday in a letter to U.S. Trade Representative Katherine Tai.

The USTR has been investigating imports of timber from Vietnam that it suspects are illegally harvested or traded, while the U.S. has also been considering whether to move forward on imposing tariffs over currency actions. In January, it labeled Hanoi’s currency actions as unreasonable, paving the way for punitive tariffs under section 301 of the 1974 Trade Act. The U.S. has until October to decide on whether to impose duties.

Read more: Vietnam Meets With U.S. Trade Reps on Currency, Timber

The U.S. is Vietnam’s biggest export market, with the value of shipments doubling over the past five years. Meanwhile, Hanoi is Washington’s 13th-largest goods-trading partner.

The trade associations argue there’s insufficient evidence that Vietnam has engaged in illicit activities on these fronts, and said the decision would undermine the relationship with a valued partner.

Vietnam has emerged as a “trustworthy alternative to China” in recent years, with imports of both raw materials and industrial products being key inputs for U.S. manufacturers. “Tariffs on these products would undermine U.S. manufacturers’ competitiveness.”

See: U.S. Business Groups Urge Trade Chief to Forgo Vietnam Tariffs – Bloomberg

Brazil, the largest supplier of eucalypt wood to Vietnam

Vietnams’ imports of eucalypt wood

In June 2021, Vietnam’s eucalypt wood imports were estimated at 25.2 thousand m3, worth USD 5.0 million, down 0.8% in volume and 0.4% in value compared to May 2021. However, compared to June 2020, it increased by 355.7% in volume and 344.2% in value. In general, in the first 6 months of 2021, imports of wood of this species reached 137.8 thousand m3, worth USD 29.2 million, up 99% in volume and 95.9% in value over the same period in 2020.

Sharing 57.6% of eucalypt wood imported into Vietnam from all sources in the first 5 months of this year, Brazil topping the list of eucalypt wood suppliers by shipping to Vietnam 39.7 thousand m3, worth 10.6 million USD, up 57.6% in volume and 52% in value over the same period in 2020.

Value of imported eucalypt wood 2019 – 2021 (Million USD)

According to Vietnam’s General Department of Customs, Vietnam’s eucalypt wood imports in May 2021 reached 112.6 thousand m3, worth 24.2 million USD, up 76.7% in volume and 75.4% in value over the same period in 2020.

In general, in the first 5 months of 2021, imports of this item reached 112.6 thousand m3, worth 24.2 million USD, up 76.7% in volume and 75.4% in value over the same period in 2020.

Imported eucalypt wood products

In the first 5 months of 2021, imports of eucalypt log reached 79.1 thousand m3, worth USD 13 million, up 79.9% in volume and 85.9% in value over the same period in 2020.

Import of eucalypt lumber reached 33.3 thousand m3, worth USD 11.1 million, up 75.3% in volume and 67.7% in value over the same period in 2020.

Source: Vietnam’s General Department of Customs

Price of imported eucalypt wood

In the first 5 months of 2021, price of imported was USD 214.6/m³, down 0.7% over the same period in 2020.

In particular, the import price of eucalypt wood from Brazil was USD 268.1/m3, down 3.6% over the same period in 2020; from South Africa USD 171.4/m3, down 2.5%; from Australia USD 280.1/m3,  down  4.0 per cent.

In contrast, the import price of this wood from Uruguay reached USD 192.9/m³, up 8.0% over the same period in 2020; Papua New Guinea USD161.4/m3, up 11.9%

Market dynamism

In the first 5 months of 2021, Vietnam’s imports of eucalypt wood from most sources have increased over the same period of 2020, except the decline of import from Laos.     market decreased. In particular:

Imports from the largest Brazil, the largest supplier, accounted for 57.6% of total imports in the first 5 months of this year, reaching 39.7 thousand m3, worth USD 10.6 million, year-on-year up 57.6% in volume and 52% in value.

Imports from Uruguay was reported at 35.2 thousand m3, worth USD 6.8 million, up 47.8% in volume and 59.7% in value.

Imports from South Africa amounted to 14.2 thousand m3, worth USD 2.4 million, up 118.3% in volume and 112.9% in value.

Imports from Papua New Guinea contributed 12.9 thousand m3, worth 2.1 million USD, up 112.2% in volume and 137.4% in value.

In addition, eucalypt imports from Australia increased by 261.4% over the same period in 2020; from the US rose by 224.1%; from Austria up 128.9% compared to the same period in 2020.

Eucalypt wood exported to Vietnam by top suppliers in the first 5 months of 2021 

Source: Vietnam’s General Department of Customs

Vietnam’s imports of tropical hardwood from Southeast Asia on rise

According to Vietnam’s General Department of Customs, imports of wood from Southeast Asia to Vietnam in May 2021 reached 74.50 thousand m3 with the value of USD 25.79 million, down 29.0% in volume and 20.9% in value compared to April 2021; increased 99.7% in volume and 186.2% in value over the same period in 2020. In the first 5 months of 2021, imports of wood from Southeast Asia reached 452.20 thousand m3 with the value of USD 135.65 million, year-on-year up 65.9% in volume and 84.7%.

Key suppliers

Thailand is the largest supplier of wood and wood products to Vietnam in May 2021 supplying 38,77 thousand m3 with the value of USD 9,48 million, decreased by 39,1% in volume and 36,7% in value compared to April 2021 and increased by 49,4% in volume and 88,4% in value over the same period in 2020, In the first 5 months of 2021, imports of wood from Thailand reached 280,55 thousand m3 with the value of USD 63,75 million, up 78,9% in volume and 101,5% in value over the same period in 2020,

Wood products imported from Thailand are mainly fiber-board and particle-board, accounting for 98% of the total imports from this country. In the first 5 months of 2021, imports of fiber-board from Thailand increased by 90,1% in volume and 107,5% in value over the same period in 2020, while import of particle-board increased by 50,0% in volume and 83,1% in value.

Laos supplied 15,55 thousand m3, with the value of USD 10,03 million in May 2021, up 1,3% in volume and 9,1% in value compared to April 2021; increased by 456,9% in volume and 531,5% in value over the same period in 2020. In the first 5 months of 2021, imports of wood from Laos reached 64,55 thousand m3 with the value of USD 38,42 million, up 84,8% in volume and 88,8% in value over the same period in 2020. Accounting for 83% of the total wood imported from Laos in the first 5 months of 2021, lumber import reached 53,74 thousand m3 with the value of USD 36,38 million, up 92,7% in volume and 88,1% in value over the same period in 2020,

Malaysia has exported 12,59 thousand m3 of wood to Vietnam in May 2021 with the value of USD 3,80 million, down 0,8% in volume and 11,5% in value compared to April 2021; up 254,1% in volume and 299,4% in value over the same period in 2020. In the first 5 months of 2021, imports of raw wood from Malaysia reached 55,38 thousand with a value of USD 16,76 million, up 7,8% in volume and 35,3% in value over the same period in 2020. Particle-board still remains as the largest imported wood product from Malaysia in the first 5 months of 2021, reaching 34,07 thousand with the value of USD 8,85 million, up 29,7% in volume and 63,4% in value over the same period in 2020. In the first 5 months of 2021, imports of log from Malaysia to Vietnam year-on-year dropped by 99,2% in volume and 99,1% in value. On the contrary, lumber imports increased by 160,7% in volume and 10,1% in value, reaching 17,68 thousand m3 with the value of USD 6,93 million.

Wood supply from Southeast Asia by key markets (Volume: m3; Value: Thousand USD)

Source: Vietnam’s General Department of Customs

 Key wood products imported

The key 3 wood products imported from Southeast Asia into Vietnam are fiber-board, particle-board and lumber. The imports of these 3 types of wood products from Southeast Asia all increased sharply over the same period in 2020. In particular, fiber-board topped the imports, reaching 215,01 thousand m³ with the value of USD 52,30 million, up 71,9% in volume and 85,2% in value over the same period in 2020.

In contrast to the above 3 key products imported, imports of log from Southeast Asia to Vietnam in the first 5 months of 2021 declined sharply (8,04 thousand m3 with the value of USD 1,76 million, down by 49,9% in volume and 38,2% in value over the same period in 2020,

Wood products imported from Southeast Asia in May and in the first 5 months of 2021

(Quantity: m3; Value: thousand USD)

Source:   Vietnam’s General Department of Customs

By Augusta Victoria Saraiva

July 15, 2021, 12:04 AM GMT+7