The wood processing industry is to become a spearhead economic sector by 2025, posting export turnover of about 20 billion USD to contribute to socio-economic development and stabilise the livelihoods of people living in forested areas.
Vietnam's export value of wood and wooden products reached 2.7 billion USD in the first quarter of 2020, representing a year-on-year increase of over 16 percent, according to the Ministry of Agriculture and Rural Development.
The wood industry is facing a ‘disaster’ with many businesses left without orders from now until 2021 due to the COVID-19 pandemic, said the Vietnam Timber and Forest Product Association (VTFPA).
Local wood processing enterprises need to expand supply chains with a focus on seeking suppliers from domestic and overseas markets to ease disruptions from China due to the novel coronavirus SARS-CoV-2 outbreak, experts have said.
With the current good growth, the wood processing industry will achieve its export goal of 20 billion USD by 2025, said Minister of Agriculture and Rural Development Nguyen Xuan Cuong at a working session with the Vietnam Timber and Forest Product Association (VIFORES) in Hanoi on January 9.
Forestry sector maintained a high growth of over 5 percent this year, with forestry product export reaching 11.3 billion USD, up nearly 20 percent from 2018.
Foreign direct investment in the wood processing industry has increased rapidly, especially since 2018, the Vietnam Timber and Forest Product Association has said.
Foreign direct investment in the wood processing industry has increased rapidly, especially since 2018, the Vietnam Timber and Forest Product Association has said.
The reality of export-import and foreign direct investment (FDI) shift in the wood industry in Vietnam were the main focus of a recent workshop in Hanoi.
Nguyen Phuong, sales director of Minh Thanh Co., Ltd, said his company plans to invest more than 50 billion VND (2.15 million USD) in a production chain for bedroom and living room furniture.
Vietnamese wood processing firms need to rethink their production models and embrace technologies to increase their competitiveness amid current and future challenges, delegates said at a seminar held in Ho Chi Minh City on September 10.
Vietnam and the European Union (EU) last week signed a landmark free trade deal that will slash tariffs on almost all goods, including wood and timber products. It is expected to give Vietnamese wood exporters better market access and more opportunities to expand their business.
The United States (US) is a leading important market of the Vietnamese wood processing industry, Deputy Minister of Agriculture and Rural Development Ha Cong Tuan affirmed at the Southeast Asia Convention held by the American Hardwood Export Council (AHEC) in Hanoi on June 25.
Export turnover of wood and wooden products reached nearly 3.12 billion USD in the first four months of the year, a year-on-year increase of 18.3 percent, according to the General Department of Vietnam Customs.
Prime Minister Nguyen Xuan Phuc on March 28 issued a Directive on measures to achieve rapid and sustainable development of the wood and non-wood forest product processing industry to serve exports.
Orders for furniture exports have risen strongly so far this year as demand has risen, according to Huynh Quang Thanh, Chairman and CEO of Binh Duong-based Hiep Long Fine Furniture Company.
The forestry sector will support the issuance of sustainable forest management certificates on an area of 100,000ha per year as part of efforts to ensure that Vietnamese wood products satisfy all international requirements as the country joins free trade agreements.
2019 is expected to be a good year for Vietnamese wood and wooden furniture exporters thanks to the expansion of markets, according to the Ministry of Agriculture and Rural Development (MARD).
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