The new agreement 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 Vietnam.

Experts forecast about 1 billion USD worth of timber to be exported to the EU annually by 2020 thanks to the EU-Vietnam Free Trade Agreement (EVFTA).

Vietnam and the EU have just concluded negotiations for a voluntary partnership agreement on Forest Law Enforcement, Governance and Trade, according to the EU delegation to Vietnam on May 16.

Chile is a big timber producer and wants to boost exports to Vietnam, which has increasing demand for wood to make products for export, a seminar heard on October 29 in HCM City.

Vietnam expects a year-on-year growth of 10 percent in export of timber and timber products this year, said a Vietnam Wood and Forestry Product Association official.