According to the cooperation agreement, New Zealand will increase timber exports while Vietnam will remove potential trade barriers.

The arrangement will see New Zealand’s radiata pine recognised under Vietnam’s evolving timber construction standards, opening more opportunities in this growing market.

“This will grow our $2.68 billion two-way trade and significantly bolster the $48 million worth of sawn timber we currently export to Vietnam,” McClay said.

McClay emphasised that Vietnam’s economy has more than doubled in the past decade and is expected to see some of the fastest global income growth over the next. That means more construction, more demand for sustainable products, and more opportunity for New Zealand timber.

This agreement is expected to add value to New Zealand wood products and offer opportunities in addition to exporting logs. It boosts New Zealand's export potential and helps double the country's exports by value in 10 years.

As reported by Wood Central, Vietnam is closing in on Australia, which is New Zealand’s fourth-largest market for lumber (behind China, the US, and South Korea).

“Forestry is an important sector for New Zealand, significantly contributing to our trade relations with Vietnam. New Zealand’s timber exports to Vietnam were valued at NZ$80 million ($50.8 million) in the year ending 2018, making this our second-largest export sector,” said the then-New Zealand ambassador to Vietnam Wendy Matthews.

“This agreement successfully combines New Zealand’s sustainable radiata pine with Vietnam’s expertise to enable Vietnamese furniture manufacturers to produce sustainable, strong, and high-quality products,” she said.

Source: Vietnam Investment Review