Order decline challenges Binh Dinh’s wood exporters

Wood processers and exporters in the central province of Binh Dinh are facing a lot of difficulties due to a decrease in orders, despite strong growth in exports in the first nine months of 2015.

According to the provincial Department of Industry and Trade, the export value of wood and forest products reached 211.7 million USD during January-September, accounting for 51 percent of the province’s total export turnover and up 28.5 percent against the same period last year.

However, orders for the remaining months of 2015 and 2016 are in a downward trend, falling by 30-35 percent. This is blamed for the instability of the world financial market, especially the devaluation of Euro against US dollar.

To overcome difficulties and reach the set yearly target of 320-325 million USD in wood and forest product export, or a year-on-year increase of 5 percent, the local wood processing sector is required to carry out measures to increase product competitiveness, particularly in terms of price, material and design.

Chairman of the provincial Association of Wood and Forest Products Do Xuan Lap suggested businesses remove unnecessary production costs and strengthen cooperation with material suppliers in order to reduce money spent on materials.

Enterprises were also urged to use new materials in wood processing like plastic and metal, which are favoured by foreign consumers, to avoid dependence on imports.

They should promote consumption in major and traditional markets such as the EU, the US, Canada, Australia, Japan and the Republic of Korea, he added.-VNA