KUALA LUMPUR – To further promote economic cooperation, the timber industries of Vietnam and Malaysia have recently inked a memorandum of cooperation (MOC).
According to the Vietnam News Agency (VNA), the MoC would also facilitate timber manufactures on exports and imports opportunities by both the Vietnamese and Malaysian industry players, which will be beneficial to both nations.
The VNA report stated that the MOC was signed by multiple parties namely the Malaysian Furniture Council (MFC), the Timber Exporters’ Association of Malaysia (TEAM), the Binh Duong Furniture Association (BIFA), the Vietnam Timber and Forest Product Association (ViForest), the Handicraft and Wood Industry Association of Dong Nai (DOWA) and also the Wood Industry Association of Ho Chi Minh City (HAWA).
When commenting about the MOC, the CEO of the Malaysian Timber Council (MTC), Muhtar Suhaili, stated that Malaysia is dedicated to further developing its timber industry in a sustainable manner.
Speaking to the VNA, the report quoted him saying that Malaysia stands to gain from Vietnam’s higher foreign direct investment (FDI) in the timber and furniture manufacturing industry as well as getting access to the European Union market through Vietnam’s free trade agreements.
Muhtar also said that the skilled workforce and the availability of local workers will be an added advantage for Vietnam as well as another advantage of bordering China that will allow for easier access for furniture parts and timber panels.
The MOC is keeping in line with the 2000 ASEAN Summit agreement that called for the introduction of the Initiative for ASEAN Integration (IAI) with the goals of reducing the development gap and enhancing ASEAN’s overall competitiveness as a region.
Additionally, the MOC is also expected to defend the interest of both Vietnam and Malaysia particularly against regulations which could have an impact on the interests of the timber industries for both nations.
In 2021, the value of Malaysia’s timber product exports to Vietnam had reached US$38.44 million. Furthermore, Malaysia had spent about US$148.25 million on the imports of wood products from Vietnam in the same year.
Join our Telegram group for the latest updates!