It is predicted that timber sector would continue to grow strongly in 2018. Wood enterprises in the province continue to seek solutions for sustainable development.
Many advantages
In 2017, export turnover of timber industry in Vietnam reached $8 billion, of which Binh Duong contributed more than 50% of total export turnover. For the period of 2010 - 2017, the export turnover of wood and wood products of the country reached an average growth of 12.9% per year. Vietnam is ranked fifth in the world, second in Asia and the leader in Southeast Asia for export of wood and wood products.
Leaders of wood enterprises in southeastern region meet and discuss about development direction of timber industry in the coming time.
According to Ministry of Agriculture and Rural Development, there are about 4,500 wood processing enterprises in the country. By the end of 2017, Vietnam has 732 enterprises with Chain of Custody (CoC / FSC), leading the Southeast Asian region; of which 24 were certified for sustainable forest management (FSC / FM) with a total area of 173,000 ha. On May 11, 2017, after a six-year negotiation, the Government signed the Voluntary Partnership Agreement on Law Enforcement, Governance and Trade in Timber and Wood Products (VPA / FLEGT) between Vietnam and European Union (EU). In this agreement, Vietnam will have to ensure that all timber products included in the list agreed by EU, including products for domestic consumption and export, are legal timber products.
Meanwhile, on November 15, 2017, the National Assembly approved Forest Law, adding a chapter on processing, stipulating that forests are managed sustainably in terms of area and quality, harmonizing socio-economic development objectives, national defense and security, biodiversity conservation; Raising the rate of forest cover, the value of environmental services and responding to climate change. The signing of VPA / FLEGT and the adoption of the new Forest Law were important events that will bring about radical changes in the entire supply chain, including both domestic and export markets.
At present, in Binh Duong, the wood processing industry has a wide spread, is highly modernized and plays a stimulating role to auxiliary industries such as machinery, manufacturing tools, metal materials, cover, liner; processing techniques such as wood bending, denaturing treatment… help other sectors, such as transportation, logistics, new material development.... to grow at the same time. According to leaders of wood enterprises in Binh Duong, in 2017, export markets of timber achieved stable growth. Wood enterprises in the province, after a period of accumulation and development, has built a strong foundation of production capacity, modernized machinery and technology, as well as step by step improve corporate governance, strengthen position and trademark in the international market.
In addition, Binh Duong's wood enterprises have made great efforts to enhance trade promotion activities, connect customers and participate in big furniture fairs in the world to catch up with market demands, search new customers. Wood processing companies have boldly invested in modern technologies, machinery and automation from developed countries, such as the US, Germany and Italy, to improve labor productivity and stable quality to meet requirements of customers and the market.
Desire for sustainable development
On 30 Jan 2018, Binh Duong hosted the anniversary of wood sector in the Southeast, wood enterprises in the region-exchanged experiences to overcome difficulties to achieve export turnover target of $8.960 billion in 2018. The most concern for timber businesses was how to continue to grow steadily, shaping the brand name of Vietnam's wood industry in the international arena in the fast globalization context.
Luong Ngoc Kim, Director of Kim Thanh A Company (Thuan An Town), said that in 2017, wood industry of Binh Duong accounted for 50% of total wood export turnover of the country. However, domestic wood enterprises are mainly outsourcers for bigger foreign companies, do not have their own products to customers. In addition, the wood processing industry has not developed strongly in designing, developing new models and products, catching and responding to changing tastes of the market and being passive in approaching tastes of markets around the world.
In recognition of the fact, leaders of timber enterprises in the Southeast Vietnam said that in 2018 and the period up to 2020, there would be many big challenges to wood processing enterprises, such as scarce raw material, price increases. In particular, the 4.0 Revolution with the increasing tendency of automation, which accounts for a large portion of manufacturing and artificial intelligence, poses challenges in investment in technology, machinery and equipment in the direction of automation and human resource with management skills through information technology, technical level of labor. In addition, market taste changes rapidly and must increasingly meet the demand for personalization, resulting in the tendency of placing small orders, fast delivery times and competitive prices.
Timber companies wanted the functional sectors to create the most favorable conditions for wood enterprises to participate in the global supply chain, enhance trade promotion and technology development, so that wood industry in the country in general and Binh Duong province in particular could develop the potential of the available.
Reported by Tieu My – Translated by Ngoc Huynh
