Timber products earn $3.3b in exports

The wood products industry earned US$3.3 billion from exports this year, $300 million more than the target set for the year, according to the Viet Nam Timber and Forestry Products’ Associations.

The association’s vice chairman, Nguyen Ton Quyen, attributed the result to the rebound of traditional import markets, such the EU, US and Japan, following slumps over the past two years, as well as rising prices and a Government incentive policy that lifted the 10-per-cent tariff imposed on imported wood materials.

Of the $4 billion in export turnover predicted for the industry next year, $1.3-1.4 billion would be spent on importing between 4-5 million tonnes of raw materials.

HCM City Handicraft and Wood Industry Association (HAWA) vice chairman Tran Quoc Manh, speaking on the sidelines of a meeting celebrating the 20th anniversary of the association’s founding in HCM City on Tuesday, said inflation would continue to increase many input costs for the industry next year.

Manh said that with increased demand for higher quality and environmentally friendly goods, local wood products makers should improve their production systems to meet the requirements of foreign customers.

He advised companies to learn about technical barriers set by importing countries and understand foreign laws and regulations to minimise potential risks imposed by those barriers.

“The economic recovery is still underway, but with increased demand from the US in the fourth quarter, I hope that orders will increase significantly next year,” Manh said.

Ongoing efforts of domestic enterprises in seeking new export opportunities in India, Eastern Europe and the Middle East also contributed to the increase in exports, Quyen said, adding that penetration into such new markets would bode well for the industry in the future.

Quyen listed stricter provisions for timber products in importing countries, raw material shortages and inadequate capital as major challenges facing the industry in the coming year. Compliance with the Lacey Act, the US law requiring wood exporters to prove the origin of timber and related materials, would increase production costs.

Difficulties in accessing credit were also problematic for wood products exporters, he said.

HAWA chairman Nguyen Chien Thang said reliance on imported raw materials and a labour shortage would likely cause difficulties for manufacturers next year.

Local wood processors needed to develop their own sources of raw materials, create more added-value in their products, and use more advanced technology to reduce the dependence on manual labour, he said.

To mark its 20th anniversary, HAWA was awarded the Certificate of Merit from the Prime Minister for its contribution to the socio-economic development.

“HAWA has greatly contributed to the development of the handicrafts and wood products sector not only in HCM City but elsewhere,” said Deputy Minister of Industry and Trade Nguyen Thanh Bien.

The association has conducted professional training courses, trade promotions and seminars to help members strengthen competitiveness and expand markets, and the association and its members have made significant contributions to the sustainable development of the domestic wood products industry, said Thang, noting that the number of members had increased from 27 when it was established in 1990 to 350.

Viet Nam now has over 2,500 wood processing businesses, nearly three times the number in 2000 and eight times that of 1990. Private enterprises represent 90 per cent of the total. Altogether, the firms manufacture 3,000 different timber products sold in 120 foreign markets. — VNS

Tags: Vietnam timber, Vietnam Timber exports