Wood industry facing losses due to COVID-19

Workers make timber products for export at Vu Thinh Company Ltd, in the northern province of Bac Giang (Photo: VNA)

Hanoi (VNS/VNA) - 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).

VTFPA said that the US, EU, Japan, the Republic of Korea and China accounted for over 90 percent of the country’s wood export market, and have all been strongly affected by COVID-19.

“Many Vietnamese wood processing enterprises have had orders cancelled of suspended,” said the association.

Since March, 80 percent of exporters to the US and EU markets have received cancellations or delays until the situation improves. Orders from Japan, the RoK and China also dropped 60-80 percent.

“For the remaining orders and small orders, businesses are also having difficulties as input prices have gone up by 10-20 USD per cu.m, and freight costs have increased 500-1,000 USD per container,” the statement said.

Do Xuan Lap, chairman of VTFPA, said the wood processing industry, one of the country's three main export industries, is facing the reality that most enterprises would have to stop production this month and lay off workers without strong support from the Government.

In order to minimise these losses, VTFPA have asked the Government to include the wood processing industry on the list of products the Government says can extend tax payments and land rents.

VTFPA also said the Government should consider value added tax refunds for eligible exporters, and the exemption of export taxes./.