Minister Nguyen Xuan Cuong identified four groups of solutions, with the first being addressing the difficulties facing 4,600 enterprises involved in the sector in terms of credit, tax, land use fees and policy.
The second measure is tapping into the markets where the outbreak has been contained while the third concerns enterprises’ business strategies so that they are ready for recovery in the third and fourth quarters.
Finally, Vietnam should continue restructuring the timber industry by forming large production areas capable of supplying a variety of raw materials and building large processing firms that can take part in regional and global value chains, stated Cuong.
According to the Vietnam Administration of Forestry, Vietnam’s timber exports in 2020 are forecast to reach US$11.75 billion, down 6.6% from the target set at the start of the year, due to the coronavirus outbreak.
Two of Vietnam’s largest timber importers, the US and the EU, are still gripped by the pandemic.
The administration estimates that Vietnam’s timber exports will fall by a sharp 20% in the second quarter to US$2.18 billion.
If the outbreak is basically contained in the world by the end of June, revenues are projected to increase by 10% in the third quarter, followed by a 15% rise in the final four months.
Exports soared by a double digit figure in the first quarter but then plummeted by 20% in April as Vietnam’s key partners began to feel the impact of the coronavirus, forcing the cancellation or suspension of signed orders.