Some findings on the role of forestry sector group in sustainable development in Vietnam: An approach from input‒output analysis

Abstract

This study examines the economic and environmental significance of Vietnam's forestry sector group, emphasizing its role in mitigating greenhouse gas emissions. By employing the input‒output analytical framework and the most recent national input‒output table, this research quantifies the sector's influence on GHG emissions, value added, and import dependency. The primary significant result is that the forestry sector group has a negative CO2 emission multiplier, underscoring its importance in carbon sequestration and emission reduction. Second, the industry has significant value-added spillover effects, suggesting that its expansion can increase production and create additional value in other sectors of the economy, but its impact on overall output growth remains small. A significant benefit of the forestry sector group is its minimal dependence on intermediate inputs from other sectors, fostering resilience during supply chain interruptions. The value chain connecting forests and wood processing is fragmented, as evidenced by the significant import content in the wood manufacturing sector. Vietnam should prioritize the enhancement of indigenous supply chains to fortify the forestry sector, diminish import reliance, and encourage extensive timber afforestation.