Plan to axe wood imports

The Government plans to develop 8.4 million ha of forest by 2020 to generate 22 million cu.m of wood of various kinds to ensure sufficient supply for domestic production activities, according to the Handicraft and Wood Industry Association of HCM City (HAWA).
The Government plans to develop 8.4 million ha of forest by 2020 togenerate 22 million cu.m of wood of various kinds to ensure sufficientsupply for domestic production activities, according to the Handicraftand Wood Industry Association of HCM City (HAWA).

HAWA Vice Chairman Tran Quoc Manh said that, with the 8.4 million ha offorest in 2020, domestically produced wood materials will be able toreplace imported materials.

" Vietnam now has toimport between 70 and 80 percent of wood materials for producing exportwood products annually," Manh said.

In 2011 alone,wood enterprises had to spend 1,209 million USD on importing woodmaterials, and the fund was 340 million USD in the first quarter of thisyear.

Vietnam 's main wood material exportersare Laos (30.8 percent), the US (14.1 percent), China (8.9percent) and Malaysia (8.8 percent).

"The mainwood imports include medium-density fibreboard or MDF (accounting for12.8 percent), rosewood (11.2 percent), ironwood (8.4 percent), pine(7.1 percent) and poplar (5.0 percent)," Manh said.

In 2008 the country had 12.9 million ha of forest, including 10.3million ha of natural forest and 2.6 million ha of planted forests.

Figures also show that between 2002 and 2007 the country's forestcoverage grew by 0.5 per ent annually due to Government and publicefforts in forest protection and development.

However, domestic forests still can meet only 30 percent of woodproducers' demand for wood materials, Manh said at a conference heldrecently in HCM City.

In addition to extending thecountry's forest coverage, Manh said the domestic wood industry alsoplanned to carry out several measures to become one of the leadingmanufacturers of wooden furniture in Southeast Asia .

According to the plan, the industry will continue participating in theglobal supply chain and value chain, and intensify investments in tradepromotion.

The industry will also set up bonded andunbonded warehouses in overseas markets, and identify major importersin those countries who can help Vietnamese wood enterprises directlysell their products.

Vietnam has 2,526 woodprocessing enterprises, including 300 foreign-invested companies, with600 factories specialising in manufacturing export wood products. Thesehave created 250,806 jobs.

According to the Ministryof Industry and Trade, the industry's export value increased from 219million USD in 2000 to over 3.9 billion USD in 2011. In the firstquarter of this year, the industry exported nearly 1 billion USD ofproducts.

Wooden products have become one of thecountry's major export earners in addition to rice, seafood, textilesand apparel and footwear.

The industry's annualgrowth rates have been high, with 31.2 percent in 2010, 13.7 percent in2011, and 18.3 percent in the first three months of this year.

In addition to these successes, the domestic wood processing industrystill has some limitations that restrict enterprise development,according to Manh.

"Reliance on imported materials,lack of market information and good managers, designers and marketingworkers are the biggest obstacles for domestic wood processors," hesaid.

Most wood processors are small – and medium-size companies that use manual workers whose labour productivity is low.-VNA

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