Under the agreement, New Zealand’s radiata pine will be recognised under Viet Nam’s evolving timber construction standards, paving the way for increased market access in the rapidly developing Vietnamese market.

Minister McClay highlighted that the pact is expected to drive growth in the 2.68 billion NZD (1.59 billion USD) bilateral trade and expand the 48 million NZD worth of sawn timber New Zealand currently ships to Viet Nam.

He emphasised Viet Nam’s strong economic trajectory, noting that its economy has doubled over the past decade and is poised to lead global income growth. This trend is expected to spur construction activity and demand for sustainable building materials, creating further opportunities for New Zealand’s wood sector.

The agreement is set to add value to New Zealand’s timber products and offer opportunities in addition to exporting logs. It boosts the country's export potential and helps double its exports by value in 10 years.