According to FSC® International, the decision is effective from 8 April 2022, the FSC said. As a result, "wood and forest products from Russia and Belarus cannot be used in FSC products or be sold as FSC-certified anywhere in the world as long as the armed violence continues", it. The event has been immediately affected the Global Supply Chain of Wood products, especially in the countries requiring the FSC certification.
Russia is the top 2 largest Forest areas certificated by FSC with a Total area is above 45 million ha in 2018, accounting for 22.99% of total certificated Forest areas in the world, followed by Canada with 54 million ha of Forest Area that has been certificated.
Belarus accounts for 4.33% of the total certificated Forest Areas in the World. Total Russia and Belarus account for 27.32% of the total Certificated Forest Area in the World, which must be affected the global supply of wood, especially in the countries and products that the FSC Certificate is compulsory.
In 2021, Russia has been exported 11.7 billion of wood & wood products to the world, Europe countries accounted for 35.6% of the total export value of Russia in Wood. In the same year, Russia has exported 6.45-million-dollar wood products to the Asia area, accounting for 55% of the total export wood in Russia.
Europe and Asia area is the largest importer of Russia Wood, thus the decision of suspending the FSC certificate of Russia will have the largest impact there.
In addition, Russia has been banned from the SWIF system - The Society for Worldwide Interbank Financial Telecommunication, which makes a huge barrier to international trade with Russia and importing Russian wood products as well.
In this situation, Vietnam has a large chance of exporting wood products with FSC certification to conquer the international market, especially in Europe and Asia market.
In 2021, Vietnam’s timber and forest products are exported to over 140 countries and territories, of which the main markets are the US, Japan, China, the EU, and the Republic of Korea with a total export value estimated at USD 13.98 billion, accounting for 89.5 percent of the country's export value of forest products.
Estimate, in 2022, the exporting value of Vietnam wood products will increase by 20% higher than that of 2021. Even the export turnover of Vietnam wood products could increase by 30-40% in this situation if the Vietnam exporter could take this advantage of the Global Supply Chain Crisis.
1/ Having many FTA Free Trade Agreements with many countries, especially with EU and Asia area.
2/ Cheap labor cost
3/ Tropical Forest Plantation Area: 14.6 million ha
4/ A developing country with many facilitated policies that promote the production and export
5/ Logistics Infrastructure Developed.
However, to totally take the advantage of global supply chain crisis, Vietnam wood producers should upgrade themselves to meet all the demands from low to high, especially by investing in technology, increasing the quality standard, and improving the labor skills to improve the product quality and standard.
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Also, Vietnamese wood processors need to study the high international requirement, obtain the international certificate for the products and factory, to prepare all the significant conditions to match the international standard, such as increasing the FSC certificated forest, ISO certification, CE Certificate, CARB P2, JAS, …