As from the 1st January this year the government of Vietnam has closed what is referred to as the ‘natural’ forests as opposed to the ‘plantations.’

So what is the reason for this? Well it boils down to supply. The supply in question is for domestic use. The problem that Vietnam has is that domestic businesses, manufactures, are crying out for raw material in order to grow but growth is restricted because the majority of Vietnamese logs go for export.

There have been calls for a levy on exported logs but it would seem that the government want to restrict and control supply in favour of domestic manufacturers. Currently only ¾ of the amount of logs they use are home grown. The remaining quarter has to be imported which of course will increase the price of the end product.

The government’s solution does seem to be a genuine attempt to help business.

Madeleine

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