Insight:
- Vietnam is tightening controls on plywood exports to the US to prevent origin mislabeling and illegal transshipment, protecting its market position.
- These efforts aim to ensure compliance with trade laws and maintain trust with international buyers.
Hanoi, Vietnam – To safeguard its burgeoning hardwood plywood export sector, the Trade Remedies Authority of Vietnam is reinforcing measures to prevent the mislabeling of product origins, particularly concerning exports to the United States. This initiative is crucial for maintaining Vietnam’s competitive edge in the US market and ensuring compliance with international trade regulations.
Key focus: Preventing illegal transshipment and misrepresentation
The authority has issued a strong advisory to Vietnamese wood enterprises, specifically urging them to:
- Avoid using imported peeled veneer from China as raw material for plywood cores. This practice has been identified by the US Department of Commerce (DOC) as a circumvention of existing trade remedy measures on Chinese plywood.
- Implement rigorous monitoring and inspection of plywood export and import processes to prevent illegal transshipment and the misrepresentation of Vietnamese product origins.
- Maintain meticulous records and documentation tracing the origin of raw materials, enabling them to provide verifiable evidence to US authorities when required.
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Background: US investigation and self-certification mechanism
In June 2020, the Department of Commerce investigated potential trade remedy evasion concerning all plywood products from Vietnam. The final determination, issued in July 2023, clarified that plywood from Vietnam containing cores made from Chinese peeled veneer is considered circumvention. However, plywood with cores produced domestically or from other countries is exempt.
To facilitate legitimate trade, the DOC has established a self-certification mechanism for eligible Vietnamese exporters, allowing them to avoid trade remedy measures.
Market dynamics: US demand and Vietnam’s leading position
Even though there was a slight dip after the DOC investigation, the demand for hardwood plywood in the US is still quite strong.
- In 2022, the United States saw its hardwood plywood imports hit an all-time high of $2.8 billion.
- 2023, this figure decreased to $1.5 billion, representing a 47% drop.
- In 2024, the market has shown signs of recovery, with total wood product imports reaching $22.9 billion and hardwood plywood accounting for $1.6 billion.
Vietnam has emerged as the leading supplier of hardwood plywood to the US:
- In 2022, Vietnam’s exports totaled $670 million, representing 23.7% of US imports.
- In 2023, exports dropped to $334.3 million, yet they still accounted for a 22.3% share.
- By 2024, exports rebounded to $414.8 million, accounting for 25.3% of the total US import market.
Looking ahead: Maintaining market integrity.
The Trade Remedies Authority’s proactive measures underscore Vietnam’s commitment to ensuring the integrity of its export sector and maintaining its position as a reliable supplier in the US market. By adhering to international trade regulations and implementing robust traceability systems, Vietnamese businesses can mitigate risks and capitalize on the continued demand for high-quality plywood in the United States.
This vigilance is crucial to avoid future US anti-dumping and countervailing duty investigations. SourceVietnam.com will continue monitoring this situation and provide updates as they become available.
