New Zealand to boost wood trade with Vietnam

18:35 | 30/10/2019
New Zealand’s Sequal Holdings Ltd. and Vietnam’s VinaFor Saigon have inked a distribution agreement, with the former to provide timely custom-cut Radiata pine wood to the latter’s manufacturers, thus reducing waste and inventory build-up.

Radiata pine wood from New Zealand is a sustainable plantation-grown timber. It is versatile and used across a range of applications from paper, construction, panelling and flooring to timber frames for furniture. Radiata pine’s dimensional stability is a crucial wood property for interior fittings and joinery uses and it has low shrinkage, which contributes to its stability. With good resistance to splitting, it can be nailed or jointed efficiently which is another important attribute.

new zealand to boost wood trade with vietnam

Sequal Holdings Limited of New Zealand and VinaFor Saigon inked a wood distribution agreement

New Zealand Ambassador to Vietnam Wendy Matthews said the deal highlights the potential for Sequal Holdings Ltd. and other New Zealand wood companies to increase their exports of Radiata pine wood to Vietnam.

“Forestry is an important sector for New Zealand and it is a significant contributor to our trade relations with Vietnam. New Zealand’s timber exports to Vietnam were valued at NZ$80 million ($50.8 million) in the year ending 2018, making this our second-largest export sector,” Matthews said.

“This agreement successfully brings together New Zealand’s sustainable Radiata pine wood with Vietnam’s expertise to enable Vietnamese furniture manufacturers to produce sustainable, strong, and high-quality products,” she said.

Rhys Arrowsmith, Sequal Holdings Ltd.'s head of sales and marketing Asia, said, “The foundation of this agreement is to give more by challenging and transforming the traditional supplier-customer model and to work together to help meet the Vietnamese furniture industry’s 2025 export aspirations.”

“We’re committed to providing our partners in Vietnam with high-quality Radiata pine that meets their needs for quality, sustainability, and value. This agreement represents an important milestone by providing 100 per cent Forest Sustainability Council-certified wood to help our partners grow their business sustainably.”

To Ngoc Ngoi, general director of VinaFor Saigon said, “Vinafor Saigon has imported New Zealand Radiata pine since 2001. For over 19 years, I recognised that this wood species provides a sustainable and reliable source of timber material for Vietnamese furniture manufacturers. Beyond this agreement, we would like to improve the market awareness for sourcing legal wood to take advantage of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).”

Vietnam is projected to become the second-largest exporter of interior furniture globally in the next seven or eight years, following continued growth in the sector. The country is one of New Zealand’s largest customers for quality, sustainable lumber to meet their growing need to manufacture and export furniture around the world.

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