Great contributions by local woodwork industry
According to Nguyen Ton Quyen, Vice-Chairman cum General Secretary of the Timber and Forest Product Association of Vietnam (VIFORES), Vietnam’s woodwork export turnover in 2015 is likely to reach more than US$7bln, a year-on-year increase of 10%.
This is a good sign as domestic woodwork industry has faced difficulties in recent years. Particularly, the industry’s growth speed before 2010 reached around 15%-20% a year, but the figure has been 10% a year since 2010.
According to the owner of a woodwork firm in Di An town, Vietnam’s woodwork export value is likely to reach US$7bln as most orders with great export value focus on Binh Duong. Besides, province-based woodwork businesses are also striving to complete 2015’s production and export targets and define 2016’s business plans.
The province’s woodwork processing industry is getting more and more powerful and contributes to helping timber and wooden products rank sixth among Vietnam’s top export commodities.
As surveyed, woodwork businesses have deliberated about the TPP playground. When joining the TPP, the industry will enjoy advantages to widely and deeply penetrate into member countries of the TPP.
Binh Duong’s woodwork industry are actively preparing for the TPP. In picture: Export flooring planks being manufactured at Kim Thanh A Woodwork Co. in Thuan An town
Proactively investing in materials
Although tariff schedule for wooden products into member countries of the TPP has not been announced yet, they are a great market for Vietnam’s woodwork industry. Member countries of the TPP include big markets like the U.S, Japan, Australia, Canada…that account for 60% of Vietnam’s total woodwork export turnover.
Raw material source is the most biggest issue of the local woodwork industry. In fact, many businesses have be protective to develop their raw material areas in central and central highlands provinces, but they still have to import some kinds of timber like teak, fir…from member countries of the TPP. Tariff reduction from the TPP will help businesses in this field to save costs and enhance their competitiveness against rivals, especially ones from member countries of the TPP.
Luu Phuoc Loc, Director of Mtrade Woodwork Co. in Thuan An town said that the TPP playground will require domestic businesses to have careful research on technical barriers, raw material origin as big markets like the U.S and European countries are very severe with these issues. Besides, there is no more support in terms of price, water-power cost…from the State, so domestic businesses have to stand on their own feet in the TPP playground.
To Michael Buckley, an expert of the Program for the Endorsement of Forest Certification (PEFC), PEFC is now making its efforts to help households having small forest areas in Vietnam so that they can participate in the supply chain of raw materials. In Vietnam, as of 2014, there were 8 units certified FSC FM/CoC. Noticeably, the group of 103 households in central Quang Tri province’s Gio Linh district and 300 households under the WB3 project in 6 central province were granted the FSC FM certificates in 2010 and 2012.
Many woodwork businesses in Binh Duong have also taken part in the supply chain of raw materials in central provinces by linking with households having small forest area or making affrestation in areas supported by the PEFC to prove the legal origin of wooden products for export.
According to experts, Binh Duong’s proactive effort in building a specialized industrial park for woodwork industry is seen as a good way. But, the province needs to map out a strategy to develop raw materials at woodwork businesses’demand. If giving incentives for raw material areas, Binh Duong will not only become the country’s biggest woodwork producer, but also be an ideal material area for woodwork industry in the southeastern region.
Reported by Phung Hieu, H.H - Translated by K.T