The timber and timber-based industries in Malaysia and Vietnam have signed a Memorandum of Cooperation (MoC) to further develop the timber trades in both countries.
The Timber Exporters’ Association of Malaysia (TEAM), the Malaysian Furniture Council (MFC), the Vietnam Timber & Forest Products (ViForest), Binh Duong Wood Processing Association (BIFA), Dong Nai Wood Processing Association (DOWA), and Handicraft and Wood Industry Association of Ho Chi Minh City (HAWA) signed the MoC at the Icon Saigon – Lifestyle Design Hotel in Ho Chi Minh City, Vietnam, today.
The MoC signing was facilitated by the Malaysian Timber Council (MTC).
The MoC will strengthen economic cooperation between Malaysia and Vietnam. Although both Malaysia and Vietnam are producers of timber products, the collaboration will provide opportunities for manufacturers to increase their exports and imports between Malaysian and Vietnam.
The MoC is also expected to generate other spin-offs such as socio-economic benefits and employment opportunities.
“Malaysia is committed in further developing its timber industry sustainably. Malaysia can benefit from Vietnam’s higher Foreign Direct Investment (FDI) in furniture manufacturing and access to the EU markets through Vietnam’s Free Trade Agreements,” said the Chief Executive Officer of the MTC, Muhtar Suhaili.
He added that Vietnam’s skilled manpower and its availability from the local population will be an advantage, on top of its proximity to China which provides easier access for furniture parts and wooden panels.
The MoC is also in line with the ASEAN Summit agreement in 2000 where the Initiative for ASEAN Integration (IAI) was launched to narrow the development divide and enhance ASEAN’s competitiveness as a region.
Malaysia’s export of timber products to Vietnam in 2021 was USD38.44 million while Malaysia imported USD148.25 million worth of wood-based products from Vietnam.