Thursday, August 24, 2017 - 14:03:18

Binh Dinh protects stonemasons, woodworkers


Wood workers and stonemasons in the central province of Binh Dinh are in difficulties due to the economic slowdown and provincial leaders are working to devise measures to help them.

"Current problems are causing the decline of two of the major industries in the province," said the director of the provincial Department of Industry and Trade, Nguyen Kim Phuong.

Costs of raw materials have increased sharply while the prices of finished products have remained steady or even declined due to falling demand. Access to credit remains difficult, and even those that can secure bank financing face steep interest rates.

In the face of the global economic recession and the eurozone debt crisis, European importers have been very careful about signing new contracts, or have made smaller orders, said Binh Dinh Timber and Forest Products Association chairman Nguyen An Diem.

The masonry sector saw production value of only about 300 billion VND (14.3 million USD) in the first seven months of this year, down 25.5 percent from the same period last year. Production of the wood products industry hit barely 1.6 trillion VND (74.8 million USD), a modest increase of 1 percent over last year.

Firms have asked authorities to help them access capital, stabilise production, and find new markets.

Provincial People's Committee chairman Le Huu Loc has also requested the State Bank of Vietnam's provincial branch to create favourable conditions for businesses to obtain loans.

Outdoor furniture has become a saturated market worldwide, so some industry experts have recommended that local furniture exporters shift to manufacturing interior furniture to ensure sustainable development.

Stone processors could do more sale promotion and study market demand more carefully in order to trim inventories, experts said. Companies also needed to build long-term strategies to upgrade equipment and technologies to make higher quality products.-VNA
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