Vietnam and Malaysia’s timber industries have signed a memorandum of cooperation (MoC) to further strengthen economic cooperation between the two countries. Source: The Vibes
The MoC will also pave the way for Vietnamese and Malaysian timber manufacturers to create opportunities to promote exports and imports, according to Vietnam News Agency (VNA).
The MoC was signed by the Timber Exporters’ Association of Malaysia, the Malaysian Furniture Council, the Vietnam Timber and Forest Product Association, the Binh Duong Furniture Association, the Handicraft and Wood Industry Association of Dong Nai and the Handicraft and Wood Industry Association of Ho Chi Minh City.
CEO of the Malaysian Timber Council Muhtar Suhaili said Malaysia is committed to further developing its timber industry sustainably.
Malaysia can benefit from Vietnam’s higher foreign direct investment in furniture manufacturing and access to the EU market through Vietnam’s free trade agreements, VNA quoted him as saying.
According to Muhtar, skilled manpower and the availability of local labour will be an advantage for Vietnam, and the advantage of bordering China will provide easier access for furniture parts and wooden panels.
The MoC is in line with the Asean Summit agreement in 2000 where the Initiative for Asean Integration was launched to narrow the development gap and enhance the association’s competitiveness as a region.
It is also expected to protect the interests of both countries against regulations that may affect the interests of their timber industries.
Malaysia’s export of timber products to Vietnam in 2021 reached US$38.44 million while Malaysia spent US$148.25 million on importing wooden products from Vietnam.
