1. CENTRAL AND WEST AFRICA

  Bureaucratic procedures slowing trade
Producers indicate that demand remains subdued in
Europe, in part due to winter conditions and in China due
to high log inventories and economic uncertainties. West
African exporters are raising concerns about the
complexity of obtaining CITES documentation with long
bureaucratic procedures slowing down trade. Additional
headwinds include stricter enforcement of forestry
regulations in the region.

Nevertheless, pockets of demand for species like Azobé,
Tali, and Iroko, offer some resilience, particularly in
markets such as the Netherlands, Portugal and Vietnam. In
the shor term supply chain disruptions (such as evolving
regulations) are likely to keep pricing and availability in
flux.

Demand in Middle East markets continues to be relatively
stable for Iroko, Okoume and redwoods especially for
joinery. However, weak demand in China continues as
domestic operators work through substantial log
inventories at Zhangjiagang Port.

Gabon
Veneer production by mills in the Nkok economic zone is
reportedly around half of what it was last year because of
weak international demand and competition from mills
peeling logs from Equatorial Guinea and Congo.

Peeler log prices are said to be around 65,000-80,000
FCFA per cubic metre and sawing-grade logs at 50,000
FCFA per cubic metre. Demand for Okoume from
domestic processing mills is reported as stable but
production volumes are low.

It is understood the government has renegotiated the
contract with the Turkish power company but residents
complain power outages have increased to two or three
times per day.

Cameroon
It is reportedly still very hot and dry however, harvesting
levels have been scaled back due to weak international
demand. Several mills have ceased operations due to strict
enforcement of forestry regulations. Producers are taking
advantage of the dry season to repair roads.

While no major policy changes are reported delays in
processing CITES documentation are said to be an
ongoing issue for species such as Bubinga, Khaya,
Doussie and Padouk.

Republic of Congo
Production continues but at a much reduced level amid
waning Chinese demand. Until recently around 70% of
mill output went to China.

The severe electricity cuts and disruption of fuel supplies
have eased and there has been a gradual return to normal
electricity supply and some resolution of fuel shortages
easing pressures on mills and truckers.

The government is trying to achieve higher-value
transformations but with export log stocks yet to be
cleared (and the need to generate revenue) log export
quotas are in place.

New Carbon Agency
On 15 February the government in Gabon launched a
Carbon Agency and imposed a US$17.50/tonne of
CO2 equivalent (tCO2e) charge on shipping lines and
airlines entering Libreville, though initial administration
was delayed.

By 2026, businesses can offset 30% of their emissions
through locally developed carbon projects, prioritising
Gabonese initiatives. It is understood the levy amount
may increase over time, further aligning with
international carbon-reduction frameworks.

See: https://www.green.earth/news/gabon-introduces-
carbon-levy-for-airlines-and-
shipping#:~:text=Gabon%20is%20set%20to%20impleme
nt,which%20helped%20design%20the%20mechanism

Through the eyes of industry
The latest GTI report lists the challenges identified by the
private sector in the Republic of Congo and Gabon.

See: https://www.itto-
ggsc.org/static/upload/file/20250221/1740123021422119.pdf

2. GHANA

  Forest reserves degraded by illegal mining - Minister
According to the Minister of Lands and Natural
Resources, Emmanuel Armah-Kofi Buah, large areas of
forest reserves have been degraded by illegal mining
activities and to address this requires the collective efforts
of all stakeholders and the public.

Disclosing this to Parliament the Minister indicated an
estimated area of over 5,000 hectares has already been
devastated through illegal mining. These areas can be
found across 44 of the country’s 288 forest reserves. He
further explained that, of the 44 forest reserves, nine have
been completely taken over by illegal miners with
impunity and the Forestry Commission no longer has
access to these reserves.

He indicated that some of the areas most affected by
illegal mining activities include Bekwai and Nkawie in the
Ashanti Region, Tarkwa and Daboase in the Western
Region and Bibiani, Enchi and Juaboso in the Western
North Region. These areas are among the top timber
producing regions of the country. The loss of forest
resources means raw materials are not available for
manufacturing companies which provide employment and
create export opportunities.

According to the Lands and Natural Resource Minister,
the government is determined to win the fight against
illegal mining activities and assured there is hope for the
future. Since taking office the Minister has engaged
stakeholders at all levels to help strengthen existing
regulatory and law enforcement regimes. His Ministry is
also collaborating with the Minister of Environment,
Science and Technology and actively discussing the
modalities for revoking LI 2462 to establish a more
responsible legal framework for small-scale mining,
particularly in ecologically sensitive areas.

Meanwhile, stakeholders, Civil Society Organizations,
among others, have called for stricter and punitive
regulations to punish perpetrators to curb the destruction
of the country’s remaining forests. It is estimated over 3
million people are involved in illegal mining in Ghana.

In a recent development, the Ghana Rubber Estate Limited
(GREL), producer of latex foam for industrial use has also
complained of the huge impact of illegal mining activities
are having on their operations which puts the company at
risk.

Available statistics indicate that, of the country’s total land
area of approximately 23.8 million hectares, about 3.6
million hectares representing 15% of the total land area are
designated as either forest reserves (2.3 million hectares)
or wildlife protected areas (1.3 million hectares) all of
which are managed by the Forestry Commission. These
include 288 forest reserves and 21 protected areas
scattered across the country.

See: https://3news.com/news/we-have-lost-44-of-our-forest-
reserves-to-illegal-mining-activities-vice-president-tells-mps-to-
intensify-galamsey-fight/
and
https://www.graphic.com.gh/news/general-news/ghana-news-
our-forest-reserves-under-threat-lets-protect-them-lands-and-
natural-resources-minister-to-citizens.html

Asia accounted for most 2024 exports
The 2024 report of the Timber Industry Development
Division (TIDD) of the Ghana Forestry Commission
indicated that Asian countries imported 179,922 cu.m
representing 66% of the total export volume in to become
Ghana’s top market destinations. The value of exports to
Asia for the period was Euro 69.13 million.



In terms of export growth in 2024 the TIDD data shows an
increase of 4% in volume and 3% in value when compared
to the same period in 2023. The main importing countries
included India, Vietnam, China, Saudi Arabia and the
United Arab Emirates.

According to the TIDD report items produced from teak,
denya, wawa, denya/okan, koto/kyere, gmelina, kako/ekki,
papao/apa, potrodum/tali, ohaa, edinam, senya, chenchen
and dubini/khaya Ivorensis were mainly exported to these
markets as air-dried sawnwood, billets, sliced veneer, kiln
dried sawnwood, plywood and veneer curls. Billet exports
recorded a significant (43%) increase in export volumes to
18,827 cu.m in 2024 up from 13,163 cu.m in 2023 while
export volumes for other products plummeted in 2024.

Tertiary Wood Products, comprising mouldings and
dowels, contributed 6,113 cu.m (2%) to total wood
product exports in 2024 earning Eur6.01 million.
However, export volumes declined in 2024.

Similarly, the volume of Secondary Wood Products
exports also dipped from 92,299 cu.m in 2023 to 79,542
cu.m in 2024 and represented 14% of export earnings from
wood products a decline of 12%, from Eur51.58 million in
2023 to Eur45.43 million in 2024.

AGI calls on the government to protect local industries
The Association of Ghana Industries (AGI) is advocating
policies in the government’s 2025 budget statement that
will help protect local industries from competition from
imports. The Minister of Finance, Dr. Cassiel Ato Forson
is expected to present the 2025 Budget Financial
Statement to Parliament on 11 March 2025.

At the 3rd US-Ghana Business Expo Roundtable the Head
of Memberships Development at AGI, Stephen Owusu,
hinted that the government’s new vision of the 24-hour
economic strategy can only be achieved if local
companies, including timber processors, are insulated
through introduction of targeted policies. Under
financially favourable conditions timber companies could
be working 3-shifts.

The President of the US-Ghana Chamber of Commerce,
Pennsylvania Florence Torson Hart, called on Ghanaian
businesses to fully explore innovative strategies such as
mergers, joint ventures and strategic partnerships in their
quest to scale up their operations.

She indicated these models offer a powerful way for local
companies to build capacity, gain technical expertise and
scale their operations to compete on regional and global
levels.

Ghana continues to position itself as a leader in the West
African economic transformation and the continent. It is
the headquarters of the African Continental Free Trade
Area (AfCFTA) to create a single market for goods and
services in Africa. The US has remained a strong ally
providing investment in infrastructure capacity building
and entrepreneurship.

However, early this year the US suspended its global
USAID support to countrie. This is likely to deny about
US$156 million upport for Ghana’s economy in 2025.
President John Mahama has therefore instructed the
Minister of Finance, Dr. Cassiel Ato Forson, to take
immediate steps to address the funding shortfall.

See: https://www.graphic.com.gh/business/business-news/24hr-
economy-strategy-agi-wants-2025-budget-to-protect-local-
industries.html
and
https://www.graphic.com.gh/business/business-news/ghanaian-
businesses-urged-to-open-up-to-mergers-joint-ventures.html
and
https://presidency.gov.gh/president-directs-urgent-action-to-
bridge-usaid-funding-gap/

Through the eyes of industry
The latest GTI report lists the challenges identified by the
private sector in Ghana.

See: https://www.itto-
ggsc.org/static/upload/file/20250221/1740123021422119.
pdf

3. MALAYSIA

  Cautious optimism on GDP outlook
Malaysia’s economic forecast for 2025 is being
maintained for now amid the uncertainties surrounding
global trade and implications US tariffs will have on the
country’s exports as well as how they will shape supply
chains across the world.

Analysts expressed cautious optimism on the country’s
economic growth with the Socio-Economic Research
Centre (SERC) estimating gross domestic product (GDP)
growth at 5% for this year, the mid-point of government
forecasts of 4.5% to 5.5%, with domestic demand
supporting growth.

See: https://www.thestar.com.my/business/business-
news/2025/02/18/cautious-optimism-on-gdp-
outlook#:~:text=Analysts%20expressed%20cautious%20optimis
m%20on,with%20domestic%20demand%20supporting%20grow
th.

Timber the third largest contributor to commodity
exports
Malaysia's wood product exports rose almost 5% in 2024
to RM22.9 billion, up from RM21.85 billion in 2023
according to the Ministry of Plantation and Commodities.
Under the National Agricommodity Policy 2030, the
Ministry aims to reach a timber export target of RM28
billion by 2025. Minister, Datuk Seri Johari Abdul Ghani,
said the timber industry is the third largest contributor to
commodity exports after palm oil (RM114 billion) and
rubber (RM33 billion).

Minister, Johari, reported Bumiputera entrepreneurs also
recorded a notable rise with exports totaling RM44.03
million, up 33% from the previous year. However,
Bumiputera entrepreneurs still account for less than 1% of
the total export value.The main products produced by
Bumiputera entrepreneurs are sawnwood and wooden
furniture.

Most Bumiputera-owned businesses in the timber industry
are still classified as small or micro enterprises, reflecting
ongoing challenges in expanding within the sector. While
there are many opportunities small or micro enterprises
can pursue, he said, the lack of a reliable supply chain
holds them back.

The Minister suggested small or micro enterprises need to
collaborate with well-established and successful
companies that are already part of the existing supply
chain.

Johari said the national timber agencies, the Malaysian
Timber Industry Board (MTIB) and the Malaysian Timber
Council (MTC) are continuously working to enhance
Bumiputera competitiveness and involvement in the
timber industry.

See:
https://www.nst.com.my/business/corporate/2025/02/1176546/up
dated-malaysias-timber-exports-climb-49pct-rm229bil-2024
and
https://themalaysianreserve.com/2025/02/18/timber-export-hits-
rm23b-but-bumiputera-contribution-below-1/

Furniture industry and AI
A leading Malaysian manufacturer of sofas and cabinets is
set to increase production by as much as 30% next year as
the company shifts towards artificial intelligence
technologies. A company representative and also Deputy
Secretary-General of the Malaysian Furniture Council said
the adoption of smart factory technology, incorporating
Fourth Industrial Revolution (IR 4.0) methods set to add
value to the company’s furniture brand, particularly in
customer service.

See:
https://www.nst.com.my/business/corporate/2024/11/1139768/td
-furniture-eyes-30-pct-growth-ai-smart-factory-tech

Sabah /Sarawak bamboo collaboration
The Sarawak Timber Industry Development Corporation
(STIDC) welcomed a delegation from the Sabah
Handicraft Centre, Yayasan Sabah Group (KYS) on a
working visit aimed at strengthening collaboration in the
bamboo sector.

KYS Corporate Secretary, Hanafiah Diman, described the
visit as a valuable experience allowing the delegation to
witness firsthand how STIDC has successfully developed
the bamboo industry with the expertise of local
professionals.

He added “this experience is highly valuable for us,
especially in understanding the process of bamboo
cultivation from the nursery stage to the plantation. The
capability of STIDC in producing local experts in this
industry is something we greatly admire and serves as a
benchmark for us to explore the potential of the bamboo
industry in Sabah.”

See:
http://theborneopost.pressreader.com/article/281711210366987

Through the eyes of industry
The latest GTI report lists the challenges identified by the
private sector in Malaysia.

See: https://www.itto-
ggsc.org/static/upload/file/20250221/1740123021422119.
pdf

4.  INDONESIA

   Indonesian wood products prepared for the EUDR
The Ministry of Forestry is ensuring that exports of
Indonesian forest products are ready to face the EUDR.
The Director General of Sustainable Forest Management,
Ministry of Forestry, Dida Migfar Ridha, said "We are
ready for EUDR, we are ready with the timber legality
verification system or SVLK to ensure traceability of
forest products."

Dida mentioned that the SVLK has incorporated
geographical locations to satisfy export requirements.
However, he also hopes the European Union and
Indonesia can collaborate and agree on a common
reference map.

See:
https://hijau.bisnis.com/read/20250221/651/1841609/kemenhut-
pastikan-produk-kayu-indonesia-siap-hadapi-eudr.

Encouraging down-streaming of furniture sector
The Ministry of Industry continues to implement its forest
products down-streaming policy to add value. One of the
actions is through the development of an innovative and
competitive furniture industry. This aims to strengthen the
industrial structure, create jobs, encourage exports and
support import substitution.

The Director General of Agro Industry of the Ministry of
Industry, Putu Juli Ardika, revealed that the furniture
industry contributed 1.15% to non-oil and gas GDP in
2024.

At a National Working Meeting of the Indonesian
Furniture and Craft Industry Association (HIMKI) Putu
said "the furniture industry is an important part of the agro
industry sector which recorded a growth of 2.07% in 2024.

In the period of January-November 2024, the value of
Indonesian furniture exports (HS 9401-9403) reached
US$1.47 billion, an increase of 0.7% compared to the
previous year. However, the national furniture industry
faces challenges, including logistical constraints due to
geopolitical conditions and environmental sustainability
regulations in export destination countries.

In addition, rising imports of metal and plastic furniture
have become a competitor for the wooden furniture
industry. To face these challenges, the Ministry of
Industry has prepared five main strategies, namely:
facilitating the availability of raw materials, improvement
of skilled human resources, market expansion and market
research, increasing productivity and product quality and
creating a conducive business climate.

Putu emphasised that the national furniture industry must
continue to pay attention to the domestic market with more
efficient and environmentally friendly production
innovations.

See: https://harian.fajar.co.id/2025/02/20/kemenperin-dorong-
hilirisasi-industri-furnitur/2/
and
https://www.agrofarm.co.id/2025/02/keluarkan-lima-strategi-jitu-
kemenperin-yakin-kinerja-industri-furnitur-melaju/

Broaden export markets beyond the United States
The Coordinating Minister for Economic Affairs,
Airlangga Hartarto, aims to maximise Indonesia's potential
in export markets beyond the United States. He stated that,
given the US government policies Indonesia must explore
trade opportunities worldwide. He added “we need to
maximise on the Comprehensive Economic Partnership
Agreement (CEPA) and to initiate trade cooperation with
countries outside the US”.

The Minister Airlangga mentioned that drafting a legal
framework for Indonesia's comprehensive economic
cooperation with various other countries is already in
progress. He said "we are also collaborating with the Gulf
Cooperation Council (GCC) and are looking closely at
partnerships with others. The Minister said we hope that
Indonesia's accession to the Comprehensive and
Progressive Agreement for Trans-Pacific Partnership
(CPTPP) will open markets in the UK, Canada and Latin
America.

See: https://kumparan.com/kumparanbisnis/airlangga-ingin-
perluas-pasar-ekspor-selain-as-24XRtRsToLa/full

Advancing rattan and bamboo processing technology
The Indonesian Furniture and Craft Industry Association
(ASMINDO) has signed a memorandum of understanding
with the National Research and Innovation Agency
(BRIN) to develop processing technologies for rattan and
bamboo, essential raw materials for the furniture and craft
industry. Dedy Rochimat, the General Chairperson of
ASMINDO, emphasised that the Association aims to
enhance the prosperity of the Indonesian nation and its
people through advancements in the furniture and craft
sector.

To strengthen the industrial system, ASMINDO has
reactivated the National ASMINDO Cooperative
(Kopasnas). This cooperative is expected to address
challenges related to raw material availability in the
industry by managing a national wood and rattan logistics
centre. One significant step taken is the partnership with
BRIN to develop processing technology for rattan and
bamboo. This research collaboration will facilitate a more
comprehensive study of these raw materials which have
not yet been fully utilised in the industry.

See: https://wartaekonomi.co.id/read557394/gelar-mou-asmindo-
dan-brin-kembangkan-teknologi-pengolahan-rotan-dan-bambu

In related news, BRIN is encouraging community-based
forest management initiatives. In a statement it was
highlighted that, currently, many forest areas are degraded
due to large-scale exploitation as well as climate change.

A BRIN researcher, Syarif Hidayat, introduced a model
designed to address social forestry issues through the
concept of Community, Government and Private
Partnerships (CBPP). According to him, the CBPP
concept presents an inclusive and sustainable approach to
forest governance where the collaboration of different
stakeholders can reduce transaction costs and increase
benefits for the community.

See: https://jabar.antaranews.com/rilis-pers/4664725/peneliti-
brin-dorong-upaya-pengelolaan-hutan-berbasis-masyarakat

Improving human resource skills in the forestry sector
The Ministry of Forestry's Human Resources Extension
and Development Agency is collaborating with the
Indonesian Forestry Entrepreneurs Association (APHI) to
encourage improvements in the quality of forestry human
resources.

A memorandum of understanding was signed by the Head
of Kemenhut, Indra Exploitasia and the General
Chairperson of APHI Prof. Indroyono Soesilo. Indra said
that the cooperation that was established is expected to
help increase the capacity of forestry human resources.
Indra hopes that APHI members can accommodate
students who will undergo Field Work Practices. "We
hope that students can become skilled workers in the
forestry sector to support the President's ideals regarding
down-streaming.

See:https://forestinsights.id/tingkatkan-kualitas-sdm-kehutanan-
kemenhut-gandeng-asossiasi-pengusaha-hutan-indonesia/#

Sustainable agriculture and food security initiative
A new initiative has been launched, namely the Forest,
Agriculture and Sustainable Trade (FAST) Programme.
This initiative is a collaboration between Indonesia and the
UK and aims to increase the sustainability of the
agricultural sector as well as strengthen the
competitiveness of Indonesian commodities in the global
market.

At the launch of the FAST Programme the Coordinating
Minister for the Indonesian Economy, Airlangga Hartarto,
said “in recent years, the UK has become Indonesia’s main
partner in efforts to promote sustainable agriculture and
increase food security”.

The FAST Programme is designed to support small
farmers face the challenges of modern agribusiness with
better access to financing and technology. In line with the
vision of Advanced Indonesia and the Asta Cita national
agenda the Indonesian Government has set priorities in
achieving food and energy security as well as
strengthening the downstream industry to increase
domestic added value.

One of the strategic steps taken has been to expand access
to financing and production facilities for farmers through
the Plantation Fund Management Agency which now not
only manages palm oil funds but also coconut and cocoa.

The FAST programme, which will last for 3.5 years
(August 2024 to March 2028) with facilitation from
UNDP is expected to increase global acceptance of
Indonesian commodities. This programme is in line with
the Government’s efforts to respond to global green
policies and strengthen the ISPO tracking system so that
Indonesian palm oil products come from areas free of
deforestations.

See: https://asiatoday.id/read/indonesia-uk-launch-fast-
programme-sustainable-agriculture-and-food-security-initiative

5. MYANMAR

6. INDIA

  QCO implementation disrupting the flow of panel
imports
The Correspondent writes “market sentiment appears to be
at an all-time low mainly because uncertainty over the BIS
Quality Control Order (QCO) implementation which has
disrupted the flow of panel imports.

Staff from the QCO Department responsible for mill
inspections and certification have not visited many foreign
panel manufacturers and there are indications that only
two BIS certificates have been issued to overseas
suppliers, both of which are in Nepal. Thai, Indonesian,
Malaysian, Chinese, Vietnamese and Russian shippers
have applied for certification but they have not been
advised of dates for mill inspection.

On 27 February a meeting will be held between the
importers, manufacturers, the BIS and other government
officials the conclusions of which will be reported later.

The Indian Standards Quality Control Order (QCO), BIS
certification and ISI marks, came into effect on 10
February 2025 and is mandatory for domestic and
imported MDF, particleboard and blockboard, plywood,
shuttering plywood and other wood panel products.

The QCO implementation deadline for plywood was 28
February 2025. Plywood importers are presuring shippers
to dispatch orders immediately. Some say that, post QCO
deadline, imports of veneers may increase.

See: https://www.plyreporter.com/article/154006/qco-on-wood-
based-panels-countdown-begins

Budget focus on stimulating consumption
The domestic media has reported on comments in a BNP
Paribas analysis that the economically challenging times
due to a slowdown in growth seems to be over as new
orders, agriculture exports, rural wages, steel production,
auto sales and tax collection picked up after the weak
third-quarter 2024.

According to the National Statistical Office India‘s GDP
growth is projected at 6.4% for Financial Year 2025 with a
more robust 6.7% growth expected in the second half of
the fiscal year. The improvement is attributed to a stronger
agriculture sector.

The BNP Paribas report also highlighted a focus in the
Union Budget on stimulating consumption through which
tax adjustments were made to boost disposable incomes,
particularly for high-income households.

See:
https://economictimes.indiatimes.com/news/economy/indicators/
worst-seems-to-be-behind-indian-economy-shows-signs-of-
recovery-report/articleshow/118497201.cms?from=mdr

Demand for luxury homes remained strong in 2024
Despite a surge in property prices demand for luxury
housing remained strong in 2024. This growing interest of
India’s middle and upper-class buyers towards luxury
reflects a desire for homes that embody status, comfort
and an elevated lifestyle.

This trend is reflected in Knight Frank’s housing sales data
where sales of apartments priced between Rs2 crore and
Rs5 crore jumped four fold between 2019 to 2024 with an
80% increase in 2024 alone.

A report by Anarock showed that the demand for super
luxury homes, each price above Rs40 crore hit an all-time
high in 2024 with sales of 59 units for Rs4,754 crore
across the top seven primary and secondary housing
markets. The surge in luxury housing in India is driven by
rising disposable incomes, an expanding base of high net
worth individuals and evolving homebuyer preferences.

See: https://www.financialexpress.com/money/why-indias-
luxury-housing-market-is-booming-despite-rising-prices-and-
economic-challenges-3753100/

7. VIETNAM

   February exports jump almost 5 percent
According to the Vietnam Customs Office, W&WP
exports in February 2025 earned US$800 million, up 4.5%
compared to February 2024. Of this, the WP exports
contributed US$500 million, up 5.4% compared to
February 2024. In the first 2 months of 2025, W&WP
exports amounted to US$2.2 billion, down 0.8% over the
same period in 2024 of which, the WP share was US$1.48
billion, down 1.7% over the same period in 2024.

In January 2025 imports of raw wood (logs and
sawnwood) totalled 413,400 cu.m, worth US$127.3
million, down 18% in volume and 22% in value compared
to December 2024. Compared to January 2024imports
decreased by 5% in volume and 12% in value. The reason
for the decrease in the first month of 2025 is attributed to
the impact of the Lunar New Year holiday.

NTFP exports in January 2025 decreased by 7% compared
to December 2024 and decreased by 7% compared to
January 2024 and were valued at US$74.42 million.

Vietnam preparing for the EUDR
Vietnam is a major global exporter of timber, coffee and
rubber. As such the EUDR presents both challenges and
opportunities. For instance, adapting commercial
operations to ensure the production of deforestation-free
commodities will require adjustments, especially
strengthening business due diligence systems. At the same
time, however, it also offers the potential to improve
Vietnam’s sustainability credentials and global
competitiveness.

With the EUDR the focus is shifting from voluntary action
to a regulatory framework. Companies placing products on
the EU market will be required to conduct due diligence.
This includes ensuring products are deforestation-free,
complying with national legislation and provide
geolocation data for production plots. Vietnamese
enterprises are preparing a robust traceability systems and
to conduct due diligence to ensure their products meet
EUDR requirements.

The regulation’s traceability requirements may pose a
challenge in some situations. But they may also create
important possibilities for others. For example, they offer
significant opportunities for smallholders in third
countries, such as Vietnam, by ensuring a more
transparent and traceable value chain.

Meanwhile, by owning their geolocation data,
smallholders will gain greater independence in the value
chain, enabling direct relationships with suppliers and
fairer pricing. Furthermore, the regulation will facilitate
technical support and capacity building from business
partners who depend on information exchange, helping
smallholders and their cooperatives meet requirements.

Recognising the importance of the EUDR, the Vietnamese
government is assisting stakeholders to build
deforestation-free, legal supply chains. For instance, it is
fostering collaboration among coffee, rubber and timber
actors to address challenges in these sectors.

In doing so the government is encouraging the
development of sustainable and climate-adaptive
agricultural products and demonstrating its dedication to
building sustainable, deforestation-free supply chains that
meet EUDR requirements.

EU, a strong partner for Vietnam
The EU has introduced several measures to help
stakeholders prepare for the implementation of the
regulation. These include comprehensive guides, a
detailed FAQ, the creation of the European Forest
Observatory and international dialogues designed to
clarify regulatory requirements and encourage compliance.

Under the Team Europe Initiative on Deforestation-free
Value Chains and with €80 million (US$82.4 million) of
funding, the EU and several of its member states are
supporting supply chain actors to ensure deforestation-free
value chain production in partner countries like Vietnam.

The EU remains a strong partner for Vietnam in
navigating the regulation. Through the EUDR Engagement
project, the EU Delegation to Vietnam is working closely
with the Ministry of Agriculture and Rural Development
(MARD) to facilitate communication and implementation.

To support the transition under the EUDR Engagement
initiative in the coming months, various activities have
been planned. A major component involves further
outreach and capacity building for a wide range of
stakeholders. This will ensure a better understanding of the
new regulation and provide a platform to discuss the
implications for Vietnam among different partners.

See: https://vir.com.vn/getting-ready-for-the-eus-regulation-on-
deforestation-121795.html

Businesses urged to diversify export markets
Speaking at a meeting held to introduce the 16th edition of
Vietnam International Furniture & Home Accessories Fair
(VIFA EXPO 2025) in HCM City on 19 February, Trần
Quốc Mạnh, Deputy Chairman of the Việt Nam Handicraft
Exporters Association said the outlook for wood product
exports in 2025 remains promising.

However, businesses need to adopt flexible strategies to
cope with trade policy changes in key markets and
diversify their export markets and product offerings to
mitigate risks and sustain growth, according to industry
insiders.

There were positive signs in wood product exports since
the fourth quarter of last year with many firms having
export orders secured until the end of the first quarter of
2025, he added. However, he also warned of likely
challenges due to rapid changes in trade policies in key
markets and geopolitical tensions, requiring businesses to
adopt flexible strategies in response.

“Another issue is that exports to the US account for over
50% of the sector’s total exports. While this is an
advantage, it also presents risks. If businesses do not
expand their exports to other markets such as China or the
Middle East they could face risks associated with over-
reliance on a single market.”

He urged firms to diversify their products and explore
markets with which Vietnam has free trade agreements
and also highlighted the need for them to enhance digital
transformation in their production and sales through e-
commerce channels which could significantly reduce costs
and create a breakthrough for businesses.

Võ Tân Thành, Deputy Chairman of theVietnam Chamber
of Commerce and Industry (VCCI), said wood industry
achieved great success last year with exports of wood and
wooden products reaching US$16.25 billion, up over 20%
from 2023.

Of this, exports of wooden products alone are estimated at
US$11.2 billion, a year-on-year increase of nearly 22%.
He attributed the growth to “the initiative-taking efforts of
enterprises in seeking new markets, actively participating
in exhibitions and fairs and capitalising on recovery
signals from major partners like the US and Europe.”

To help businesses find customers and diversify markets,
VCCI and the Alliance Handicraft Wooden Fine Art
Corporation (Liên Minh Company) will organise the
annual VIFA EXPO from March 5 to 8 at the Saigon
Exhibition and Convention Centre, Thành said. The Expo
has attracted more than 650 exhibitors with over 2,500
booths, making the 16th edition the largest to date.
Exhibitors will come from 19 countries and territories and
Việt Nam’s 17 provinces and cities.

See:https://vietnamnews.vn/economy/1692564/wood-products-
businesses-urged-to-diversify-export-markets.html
and
https://vietnamnews.vn/economy/1692564/wood-products-
businesses-urged-to-diversify-export-markets.html

Exports on a strong footing
Vietnam plans to raise the export target for wood and
timber products to US$18 billion in 2025 from the
US$16.25 billion in 2025 according to the Ministry of
Agriculture and Rural Development (MARD).

The target was set with markets such as the US, China,
Japan, South Korea and the European Union all
recovering, thereby boosting purchasing power.
Production and export of the wood and wood product has
been expanding since the beginning of the year according
to some company leaders.

Tran Lam Son, CEO of Thien Minh Furniture Company,
said orders, mainly from the EU and the US have
increased sharply since the middle of the last quarter.

Son continued “transport often accounts for a large part of
the production cost, thus, to maximise efficiency the
Handicraft and Wood Industry Association of Ho Chi
Minh City has recently gathered export enterprises,
calculated market demand in each market, negotiated
freight rates with shipping lines to get the best prices and
increased competitiveness for Vietnamese wooden
furniture manufacturers.”.

If there are no unexpected fluctuations, the wooden
furniture and interiors industry can continue to achieve
export growth of 20 per cent, and many enterprises have
even set a growth target of 20-30 per cent”, Son said.

 According to MARD of the 15 main export markets the
export value of wood and wood products increased the
most in Spain, with an increase of over 63% year on year.
In addition, certain export products increased well, such as
wood chips (up nearly 38%), as well as timber and wood
products (up over 20%).

Phung Quoc Man, Chairman of the Handicraft and wood
industry association of Ho Chi Minh City (HAWA), said,
“the global furniture market is valued at more than
US$516 billion while the exports of Vietnamese
enterprises is only US$16 billion. This indicates that the
industry has a lot of room for development, but
competition will also be fierce.”

Tran Quang Bao, Director General of the Department of
Forestry, said the Department aims to promote Vietnam’s
Timber Legality Assurance System, strengthen links
across the supply chain from forest growers to processing
and export enterprises and support businesses in engaging
in international trade fairs to both secure contracts and
boost Vietnamese wood products.

See: https://vir.com.vn/export-turnover-of-timber-and-wooden-
products-remains-on-strong-footing-123270.html

8. BRAZIL

  Bids invited for sustainable management concessions
in Jatuarana Forest
Bids have been invited for sustainable forest management
concessions in the Jatuarana National Forest in the
Amazonas. This is being overseen by the National
Economic and Social Development Bank (BNDES) for the
Brazilian Forest Service (SFB).

Forest management concession contracts will extend up to
40 years with projected investments of R$430 million in
infrastructure and R$3.4 billion in operations. The
concessions are expected to generate 1,500 direct and
indirect jobs.

The bidding process will take place in May this year and
will cover four Forest Management Units covering
453,000 hectares.

This initiative is expected to generate R$1 billion in
concession fees to be distributed between the State (30%)
and the municipalities (30%). Additionally, R$70 million
will be allocated to socio-environmental investments and
15% is to be directed toward supporting indigenous
communities in the surrounding areas.

See: https://forestnews.com.br/servico-florestal-lanca-edital-
para-manejo-sustentavel-da-floresta-jatuarana/

Payments for environmental services to be raised at
UNFCCC COP30
The Ministry of Finance has determined there is a need to
advance discussions on integrating carbon credit markets
and payments for environmental services in preparation
for UNFCCC COP30 which will take place in Belém in
the Amazon region at the end of this year.

In a statement made by the Ministry of Finance during the
International Monetary Fund Conference in Al-Ula, Saudi
Arabia the Ministry highlighted its partnership with the
IMF to discuss models that prevent the use of the climate
crisis as a justification for raising protectionist trade
barriers.

On payments for environmental services the Ministry
noted that several emerging economies are making
significant investments in conserving their natural forests.
Brazil advocates the creation of the Tropical Forests
Forever Fund (TFFF), a fund dedicated to environmental
conservation. Finally, the Ministry of Finance reaffirmed
Brazil's commitment to balancing economic and socio-
environmental agendas.

See:
https://www.correiobraziliense.com.br/politica/2025/02/7062904
-haddad-diz-que-mercado-de-carbono-e-crucial-e-defende-fundo-
de-florestas-tropicais.html

Export update
In January 2025 Brazilian exports of wood-based products
(except pulp and paper) decreased 10% in value compared
to January 2024, from US$294.9 million to US$265.1
million.

However, pine sawnwood exports increased 3% in value
between January 2024 (US$48.2 million) and January
2025 (US$49.6 million). In volume, exports decreased 5%
over the same period, from 221,600 cu.m to 210,700 cu.m.

Tropical sawnwood exports also increased rising 12% in
volume, from 24,700 cu.m in January 2024 to 27,700 cu.m
in January 2025. In contrast export earnings decreased 3%
from US$11.3 million to US$11.0 million over the same
period.

Pine plywood exports increased 6% in value in January
2025 compared to January 2024, from US$58.4 million to
US$61.9 million. In volume, exports increased 4% over
the same period, from 188,600 cu.m to 195,600 cu.m.

As for tropical plywood, exports increased in volume 6%
but decreased in value 9%, from 1,100 cu.m and US$1.7
million in January 2024 to 1,000 cu.m and US$1.8 million
in January 2025.

As for wooden furniture, the exported value fell from the
US$38.6 million in January 2024 to US$34.8 million in
January 2025, a decrease of almost 10%.

Particleboard exports expanded in 2024
Brazilian exports of particleboard grew by 40% in 2024,
reaching US$113.3 million compared to the US$80.7
million in 2023. This growth was mainly driven by
expansion in key markets, particularly China and
Colombia.

China led the growth with an 82% increase, totaling
US$33.2 million, up from US$18.2 million in 2023.
Colombia recorded the highest percentage growth,
increasing 128% to US$ 27.0 million, a significant jump
from US$11.8 million the previous year.

Peru also recorded growth with 6% increase reaching
US$18.0 million compared to US$16.9 million in 2023.
On the other hand, exports to Bolivia experienced decline
of 14%, totaling US$13.0 million, down from US$15.2
million in the previous year.

See: https://forestnews.com.br/exportacoes-brasileiras-de-
aglomerado-crescem-404-em-2024/

US plans tariffs on timber and forest products
The United States has announced plans for tariffs on
timber and forest products. According to recent news a
25% tariff will be applied on imported timber and forestry
products.

The US is a major export destination for Brazilian timber
which amounted to US$3.7 billion in 2024. According to
the Brazilian Forest Service (SFB), pulp is the main
product imported by the US.

The Ministry of Development, Industry, Trade and
Services (MDIC) stated that Brazil will seek dialogue with
US authorities.

See: https://www.remade.com.br/noticias/20535/mais-tarifas:-
trump-quer-taxar-madeira-e-produtos-florestais-em-25-por-cento




Export prices
Average FOB prices Belém/PA, Paranaguá/PR,
Navegantes/SC and Itajaí/SC Ports.



Through the eyes of industry
The latest GTI report lists the challenges identified by the
private sector in Brazil.

See: https://www.itto-
ggsc.org/static/upload/file/20250221/1740123021422119.
pdf

9. PERU

  Forestry exports dropped in 2024
The Association of Exporters (ADEX) has reported
forestry sector exports totalled US$85 million in 2024, a
drop of 16% compared to 2023. The 2024 figure is even
lower than that of 2020 (US$94 million) when Peru and
the world suffered the effects of the pandemic. This
decline shows the lack of an effective promotion strategy
and policies that promote the sustainable use of forest
resources according to the president of the Committee of
Wood and Wood Industries in ADEX, Erik Fischer
Llanos.

He declared it essential to take advantage of the
competitive advantages of Peru by developing policies that
promote responsible investment and the generation of
employment to contribute to reducing poverty adding ‘in
some regions 30% of the population live in conditions of
extreme vulnerability”.

Since its peak in 2008, when exports amounted to US$219
million, the sector has experienced a significant decline
due to several factors including excessive bureaucracy and
complex regulations, says Fischer.

The inclusion of “Shihuahuaco” (Dipteryx spp.) in
Appendix II of the Convention on International Trade in
Endangered Species of Wild Fauna and Flora (CITES) has
added to the problems faced by exporters, Fischer
concluded.

Use of AI in raising competitiveness
At the National Forestry and Wildlife Service innovation
in generating competitiveness in the sector is important
and a priority. SERFOR considers innovation to be a key
piece in generating competitiveness

The Executive Director of SERFOR pointed out that the
Service promotes the use of innovation for the sustainable
management of forests such as the use of artificial
intelligence (Lidar and Hyperspectral Sensor) in geospatial
analysis, satellite monitoring by drones in forestry activity
and in the identification of species.

Artificial intelligence (AI) through machine learning
algorithms allows for the processing and analysis of
massive data sets, detecting patterns and making decisions
based on data almost in real time, added the Executive
Director.

See: https://www.gob.pe/institucion/SERFOR/noticias/1108950-
SERFOR-incentiva-el-uso-de-innovacion-para-la-gestion-
sostenible-de-los-bosques-y-generar-competitividad-en-el-sector

Strengthening commitments against forest crimes
Representatives of forest authorities, justice departments
and technology experts from Brazil and Peru defined joint
actions aimed at strengthening the fight against illegal
logging and deforestation in the Amazon during their
participation in the ‘Regional Forum for Operational
Cooperation for cross-border coordination against forestry
crimes between Peru and Brazil’ held in Puerto
Maldonado, Madre de Dios Regio.

This was organised by the United Nations Office on Drugs
and Crime (UNODC) in cooperation with the Agency for
the Supervision of Forestry and Wildlife Resources
(OSINFOR) and Interpol.

It was agreed to increase the exchange of strategic
information and strengthen coordination in the border
areas between Peru and Brazil and the need to involve
other neighboring countries, such as Colombia in order to
achieve a broader and more effective regional
coordination.

The superintendent of the Brazilian Institute of the
Environment and Renewable Natural Resources (IBAMA)
in Rondonia, César da Silva, highlighted the importance of
regional collaboration because “operational cooperation
and the exchange of information are essential to combat
forestry crimes.”

For his part, the coordinator of forestry crimes at Interpol,
Adrián Sánchez, emphasised that coordination between
institutions is essential to generate solid evidence and act
effectively against illegal logging.

See: https://www.gob.pe/institucion/osinfor/noticias/1116694-
foro-regional-realizado-por-osinfor-y-unodc-refuerza-
compromisos-para-la-cooperacion-transfronteriza-contra-delitos-
forestales

Training native communities on forest product
marketing
In order to provide specialised and free technical
assistance in forest management the National Forest and
Wildlife Service, in coordination with the Regional Forest
and Wildlife Management of Ucayali (GERFFS),
conducted training for ten native communities in the
Provinces of Padre Abad and Coronel Portillo in Ucayali.

Representatives of native communities of Santa Rosa de
Apua and Puerto Nuevo in the Padre Abad district as well
as Nuevo Perú, Atahualpa de Tabacoa, Nuevo Nazareth,
Nueva Unión de Piérola, Puerto Grau, Nuevo Saposoa,
Nueva Palestina and San Luis de Contamanillo Betel in
the Iparia district, strengthened their capacities to
articulate their offer of timber and non-timber forest
resources.

This activity was part of the 2024-2025 Global
Operational Plan of the Joint Declaration of Intent (JDI), a
voluntary cooperation agreement signed by the
Governments of Peru, Norway and Germany to achieve a
40% reduction in greenhouse gas emissions by 2030
caused by deforestation and forest degradation in Peru.

See: https://www.gob.pe/institucion/SERFOR/noticias/1108516-
SERFOR-capacita-a-10-comunidades-nativas-en-ucayali-en-
asociatividad-y-mercados-de-productos-forestales