Many businesses in timber craft villages have switched their focus to the domestic market in a bid to escape the current economic downturn which has forced foreign importers to reduce spending on timber products.
In northern Bac Ninh Province , there are more than 15 timber trade villages operating, creating jobs for thousands of local labourers.
Wood products from Dong Ky, Phu Khe, Huong Mac and Tam Son have got its trademark and been exported for years.
However, vice chairman of the provincial Timber and Forest Products Association Le Van Cam said many businesses have stopped production or operated in moderation due to the reduction in orders from China, the province's main importer.
In Dong Ky Village, for example, up to 70 percent of wood products were exported to China. Thus, these businesses are trying to supply wood products to the domestic market.
Chu Van Nhung, owner of a timber enterprise in the village said he used to hire six full-time labourers to produce and deliver products to Chinese partners.
But due to fewer orders, high interest rates on bank loans and increasing costs of materials, he began to sell his products to domestic consumers since last year. Now, a large number of his products are sold in northern and central regions.
According to the village's estimation, up to 90 percent of wood products will be consumed domestically this year and the rest exported.
Nguyen Ton Quyen, General Secretary of the Vietnam Timber and Forest Product Association said the domestic market had been left wide open with the increasing demand of timber products for hotels, offices and new urban areas.
A survey conducted by the association in the last six months of 2012 among 200 households showed that each family spent about 6 million VND (288 USD) on average for wood furniture. A senior expert of non-profit organisation Forest Trends said that although trade villages' wood products were diversified, the industry lacked policies for sustainable development.
Currently, Viet Nam has 302 timber trade villages. These villages supply more than 80 percent of wood furniture and wood building materials for the domestic market with total turnover of 1.5 USD billion annually.
About 50 percent of the villages are located in the Red River Delta, creating jobs for 300,000 labourers. -VNA
In northern Bac Ninh Province , there are more than 15 timber trade villages operating, creating jobs for thousands of local labourers.
Wood products from Dong Ky, Phu Khe, Huong Mac and Tam Son have got its trademark and been exported for years.
However, vice chairman of the provincial Timber and Forest Products Association Le Van Cam said many businesses have stopped production or operated in moderation due to the reduction in orders from China, the province's main importer.
In Dong Ky Village, for example, up to 70 percent of wood products were exported to China. Thus, these businesses are trying to supply wood products to the domestic market.
Chu Van Nhung, owner of a timber enterprise in the village said he used to hire six full-time labourers to produce and deliver products to Chinese partners.
But due to fewer orders, high interest rates on bank loans and increasing costs of materials, he began to sell his products to domestic consumers since last year. Now, a large number of his products are sold in northern and central regions.
According to the village's estimation, up to 90 percent of wood products will be consumed domestically this year and the rest exported.
Nguyen Ton Quyen, General Secretary of the Vietnam Timber and Forest Product Association said the domestic market had been left wide open with the increasing demand of timber products for hotels, offices and new urban areas.
A survey conducted by the association in the last six months of 2012 among 200 households showed that each family spent about 6 million VND (288 USD) on average for wood furniture. A senior expert of non-profit organisation Forest Trends said that although trade villages' wood products were diversified, the industry lacked policies for sustainable development.
Currently, Viet Nam has 302 timber trade villages. These villages supply more than 80 percent of wood furniture and wood building materials for the domestic market with total turnover of 1.5 USD billion annually.
About 50 percent of the villages are located in the Red River Delta, creating jobs for 300,000 labourers. -VNA
