Pham Minh Duc, an expert from World Bank (WB) told this  at a conference on economic and timber business sector prospects in Ho Chi Minh City on August 7.

Duc explained that according to TPP regulations timber products have to achieve a localization rate of 55% and Vietnamese enterprises are allowed to import a maximum of 45% of materials from outside the TPP bloc. Achieving this localization rate is a major obstacle for wood products to comply with.

A report by WB research experts shows that over 80% of materials needed by Vietnamese wood processing firms are imported from foreign countries. On average, Vietnam has imported nearly 3.5 million cubic metres per year, of which, sawed timber imports serving the processing industry accounted for 65%, well over the allowed localization rate.

Despite facing many difficulties in the long term, development prospects,  Duc predicted a bright outlook for the timber processing sector while emphasizing the Government‘s  important role in stimulating the growth of the industry.