Viet Nam News, Vietnam
HA NOI — Timber industry experts recently discussed solutions to tackle the difficulties caused by the global economic downturn, in Ha Noi.
Dam Ngoc Nam, deputy director of the Ministry of Agriculture and Rural Development’s Agro-products Processing and Trade Department, said the difficulties were largely due to fluctuations in the global timber export market.
There are 2,500 timber enterprises across Viet Nam that deal with the production, import and export of wooden products, including 500 exporters. Last year, total export turnover in the sector was estimated at around US$2.8 billion, an increase of 16.7 per cent over 2007.
However, locally grown timber accounts for only 20 per cent of the total demand from processors and craftsmen, the remaining 80 per cent is imported, Nam said.
Over $1 billion of timber was imported in 2007, he said. Often timber supplies in Laos, Cambodia, Indonesia and Malaysia are unstable, while sources from New Zealand, Australia, Sweden, Denmark are too expensive, Nam said.
Enterprises should invest in large-scale afforestation projects to increase the supply of locally grown timber over the next 10-15 years, said the chairman of the Viet Nam Timber and Forest Product Association (ViForest), Nguyen Ton Quyen.
Viet Nam’s wooden furniture is sold all over the world, with the EU, US and Japan forming the largest markets, but the small size of local wood craftsmen’s businesses in combination with their lack of organisation makes it difficult for them to purchase materials and fill large orders.
Nguyen Luc, a representative of the Viet Nam Handicraft Village Association, said that though Viet Nam’s products were sold in 120 nations, 90 per cent of the products were sold through intermediaries, significantly cutting into Vietnamese traders’ profits.
Trinh Minh Anh, deputy director of the National Commission for International Economic Co-operation, said that imported wood products from Taiwan, mainland China, Malaysia and some Western countries accounted for 80 per cent of the local market. These products are often 30-50 per cent more expensive than local ones, but sell better because of superior customer service and design.
Nguyen Thi Dien, director of southern Binh Duong Province’s Department of Industry and Trade, said that 90 per cent of the industry’s wood furniture designs were made according to customer orders because Vietnamese companies lacked designers.
To deal with the problem, deputy director Dam Ngoc Nam said the industry should create a sustainable development plan.
Nam said enterprises should actively monitor the source of their materials since the US and the European countries will soon start checking the origins of imported wood products.
Nam urged the industry to look for other potential markets and focus more on the domestic market.
“Enterprises should connect and update each other on the international situation,” Nam said, adding that enterprises should invest in technology to boost product quality.
According to Nam, the Ministry of Agriculture and Rural Development is building additional centres for timber imports and working to improve the industry’s marketing, capacity and competitiveness.
In addition, Nguyen Ton Quyen, Viforest secretary, said the State should support the industry with favourable policies to attract both domestic and international customers. — VNS