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Higher growth of the wood industry expected

At the conference on directions and solutions for fast and sustainable development of the wood and forest product export industry, Prime Minister Nguyen Xuan Phuc ordered that the wood industry should gain the export target of 2 figure in 2019 and sustainable development in the coming years. This is also a matter that leaders, functional branches and enterprises in Binh Duong province have high expectation for.

Timber production at Tuong Van Wood Co., Ltd (Bac Tan Uyen district). Photo: Xuan Thi

Higher orders

According to the report of the Ministry of Agriculture and Rural Development, the average growth rate of the wood industry in the country in the past 18 years reached 15% per year, five times higher than that of the agricultural sector. In particular, our country has over 4,500 wood enterprises with more than 350,000 employees, creating an average value of over US$ 23,000 / worker. In the first seven months of 2018, the value of key forest products exports increased by over 14% over the same period of 2017. The wood processing industry also has the development of forest plantation projects to supply raw materials, contributing to stability. To reduce the natural forest destruction, to contribute to the protection of the ecological environment and the preservation of bio-diversity. In addition, the wood industry develops supporting industries such as machinery, manufacturing tools, metal materials, packaging, linings and other industries such as transportation, logistics, new materials production. develop together.

Speaking at the conference on directions and solutions for rapid and sustainable development of wood processing and forestry products for export, Prime Minister Nguyen Xuan Phuc appreciated and praised ministries, sectors, localities and communities. Entrepreneurs and workers have made great contributions to the great achievements of the wood and forest product processing industry in the country. However, the Prime Minister also worries that many of our products can be produced fully, quality but still have to import because no brand to compete in the domestic market.

Prime Minister Nguyen Xuan Phuc has "ordered" the wood export turnover higher than the target set by the Ministry of Agriculture and Rural Development. Specifically, in 2018, the export turnover of the industry will reach $ 9 billion, 2019 will reach $ 10-11 billion, $ 12-13 billion in 2020 and $ 18-20 billion in 2025. According to the Prime Minister, this number is not far-fetched but "I have heard the opinions of entrepreneurs, associations, localities, all aspire to such development." Prime Minister stressed that in order to achieve these objectives, there should be a policy of supporting production and wood processing establishments to promote the comparative advantages of Vietnam.

The Prime Minister requests the ministries, branches, localities and enterprises to focus on well implementing the Forest Law 2017. In particular, the new point is very important that the ministries, sectors and localities must consider the forestry sector as a technical economic Specifically, linking the value chain of forest products from management, protection, development to forest utilization, processing and trade, export. On that basis, all levels and branches shall review and finalize relevant legal documents; Simultaneously with the administrative reform, creating a favorable and more favorable investment environment for wood processing and forest products development. At the same time, to encourage the investment in planting large timber material forests, to apply science and technology to the production and processing of timber and forest products for export; Bringing innovative value into Vietnamese products, raising value added in the coming time. For the timber industry, it is necessary to well perform the development of domestic and foreign markets, to study and take advantage of international trade agreements which Vietnam has joined; At the same time, focus on the domestic market with population size and large consumption demand.

The Prime Minister noted the levels, branches and localities to promote propaganda and promotion for people and enterprises to change the awareness and practice of using natural forest timber, to implement well international commitments. The Government also suggested that associations, business communities, producers of wood and forest products processing industries should actively integrate and strictly implement regulations on the use of legal timber; Focusing on improving production capacity, technology innovation, management, creating many new products, beautiful designs, good quality to meet market demand.

After this meeting, the Prime Minister will issue directives for Vietnam's timber and forest product processing industry to have better and more sustainable development in the future.

Binh Duong wood enterprises have high expectations

Wood processing is one of the key export industries of Binh Duong province. Wood products of enterprises in the province have beautiful models, high quality, prestigious in the market in and outside the country. In the past years, the wood processing industry has always been one of the industries that make up a high proportion of the total industrial production value of the province and has high growth rate. In 2017, wood processing is the province with the largest export turnover of over 4 billion USD, accounting for 14.7% of the total export turnover of the province and accounting for 54.8% of the total wood export turnover of the country. In the first 6 months of 2018, the wood export turnover in the province reached nearly 1.5 billion USD.

Talking to reporters Binh Duong Newspaper about the target that Prime Minister Nguyen Xuan Phuc ordered for the wood industry in 2019 and the following years, Huynh Quang Thanh, Chairman of the Binh Duong Wood Processing Association, said that the growth Two-digit numbers in the next few years are all well-founded. Along with this view, Tran Anh Vu, Director of Lien Thanh Co., Ltd., said that just maintaining the current market and exploiting the US market, this goal can be made. OK. However, to penetrate the US market, the business needs to prepare well the four basic elements: machinery technology; High-quality human resources, including human resources design and human resource management capabilities; Create a legal supply chain for materials and businesses that are environmentally and socially responsible.

Vu expressed his hope that the Government will have a national branding program for the timber industry; Large scale trade fairs will take place in large international fairs such as High Point in the USA, Cologne in Germany, etc. In Binh Duong, wood for business opportunity to trade with international visitors, brand development, instead of doing the current work. Leaders of many enterprises in the province also expect the construction of Binh Duong province to become the regional capital of wood industry in Vietnam soon become reality. To achieve this objective, enterprises in the immediate future in the trade promotion and business support programs in the coming time need to be organized on a larger scale, more focused to help businesses make effective exploitation of this program.

Nguyen Van Danh, Director of Department of Industry and Trade, said that within the scope of its functions and tasks, the department will continue to direct the functional units to develop trade promotion and industrial promotion programs in a sensitive manner. Focusing on the needs of enterprises and improving the efficiency of the programs support from the budget in the integration stage.

Reported by Tieu My – Translated by Vi Bao

 

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