HÀ NỘI — The Trade Remedies Authority of Việt Nam advised wood enterprises not to use imported peeled veneer from China as a raw material for manufacturing plywood cores.

The authority also urged businesses to continue monitoring and inspecting the export and import of these products to prevent illegal transhipment and the misrepresentation of Vietnamese origin.

They should be aware of the potential risk that the US may initiate further anti-dumping or countervailing duty investigations into these products. 

In June 2020, the US Department of Commerce (DOC) launched an investigation into trade remedy evasion concerning all plywood products imported from Việt Nam. 

After multiple extensions, the DOC issued its final determination in July 2023. Plywood imported from Việt Nam into the US containing cores made from peeled veneer imported from China is considered to circumvent trade remedy measures imposed on Chinese plywood imports.

However, plywood from Việt Nam with cores made from veneer produced domestically or in other countries is not considered circumvention. The DOC has allowed eligible Vietnamese exporters to participate in a self-certification mechanism to be exempt from the trade measures. 

Businesses should maintain thorough records and documentation tracing the origin of raw materials in a systematic manner to provide evidence to US authorities when required for verification.

Following a sharp decline due to the DOC's trade remedy circumvention investigation, US demand for plywood imports remains significant. 

In 2022, the value of US hardwood plywood imports reached a record high of US$2.8 billion. In 2023, the value dropped by 47 per cent compared to the previous year, falling to $1.5 billion.

By 2024, import values showed a slight recovery, with total wood product imports into the US reaching $22.9 billion. Of which, hardwood plywood imports accounted for 7.1 per cent, totalling $1.6 billion.

According to the Trade Remedies Authority, Việt Nam holds the highest value of hardwood plywood exports to the US among major exporting countries.

In 2022, Việt Nam’s hardwood plywood exports to the US were valued at $670 million, accounting for 23.7 per cent of total US hardwood plywood imports.

In 2023, the export value declined to $334.3 million but still represented 22.3 per cent of the total.

By 2024, this figure rebounded to $414.8 million, accounting for 25.3 per cent of total US imports in this category.

From 2022 to 2024, Việt Nam remained the leading supplier of hardwood plywood to the US. — BIZHUB/VNS