Wood products in Vietnam may have achieved a high level output, but they have not improved economic efficiency. A project by northern Quang Ninh province to improve production lines for wooden planks may work to reverse this trend. The Vietnam Economic News reports.

According to the Quang Ninh Department of Natural Resources and Environment’s statistics, the province has about 136,954 hectares of planted forests. In the first six months of this year, the province planted 9,000 more hectares of planted forests. Logging areas span an average of two million cu.m per year.

Quang Ninh province’s Industry Promotion and Industrial Development Consultation Centre Deputy Director Hoang Duc Kha said that although the companies are turning out significant product volume, the production process lacks efficiency.

The demand for wooden planks is rising as furniture production continues to grow and the product quality is consistent, no termites or shrinkage as well as a diversity of aesthetics and features such as scratch resistance. Most furniture is actually made from planted timber, which is cheaper than natural wood products.

As part of this year’s industry promotion plans, Quang Ninh province’s Industry Promotion and Industrial Development Consultation Centre has actively supported wood processing enterprises in implementing new technologies, expanding production and diversifying products to most effectively exploit raw materials.

The centre collaborated with the Dong Trieu Construction Co., Ltd. to build a technical performance model for the production of wooden planks with a capacity of 1,650cu.m per year. The model had investment capital totaling 5 billion VND. With the support of a local industry promotion budget of 200 million VND, the company invested in expanding its production facilities and constructing warehouses. In addition, the company also invested in automatic production lines and other state-of-the-art machinery.

The company reported that once started, the production model will consume approximately 6,000cu.m of planted timber per year and help the company reach revenues of over 15.675 billion VND per annum. The model will also create 13 new jobs, bringing the total number of employees working in the company to 40.

Industry Promotion and Industrial Development Consultation Centre Deputy Director Hoang Duc Kha said that a technical performance model for production line for wooden planks had engaged the interest of wood processing enterprises in the province.

The centre also supported the Quang Ninh Forest Product Processing JSC in investing in an improved production line with a capacity of 1,500cu.m per year.

The Quang Ninh Forest Product Processing JSC Director Tran Thi Lan said that with the support of the local industry promotion budget, the company was able to buy highly-rated Japanese technologies.

The model was completed and tested. The company reported that the new tech could help them reach revenues of 21.75 billion VND per year as well as create 57 new jobs earning roughly 3.5 million VND per month apiece.-VNA