Illustrative image (Photo: VNA) Hanoi (VNS/VNA) - Thewood industry needs a fundamental change in export product lines and marketsafter the COVID-19 pandemic ends, an official has said.
Presidentof the Vietnam Timber and Forest Product Association(VIFORES) Do Xuan Lap made the statement at arecent online conference as domestic production and export of timber andtimber products have been heavily affected by the outbreak.
Lap said the export of furniture productsincluding kitchen, bathroom and dressing tables, accounting for 60 percent oftotal demand in the world, did not change much when the pandemic occurredglobally, while demand for other wood products almost disappeared.
“Thestructure of Vietnam’s product lines is currently unreasonable because itsexport products are not in great demand across the world. To restoreproduction, businesses need to change their production following markettrends,” Lap said.
Hesaid the pandemic also showed that the industry needed to change its salesmethod from traditional offline channels to online. In addition, it isneccessary to form and promote links among businesses in the industry, builddomestic supply chains and develop supporting industries.
“Theimpact of the COVID-19 outbreak shows Vietnam’s current furniture export supplychains are not good, partially depending on imported raw materials and accessories,especially from China,” Lap said.
DeputyMinister of Agriculture and Rural Development Ha Cong Tuan said the pandemic’s impact showed theresistance of the domestic market was much higher than the export market.
“Prioritisingthe domestic market’s development will be one of strategies helping theindustry break through. Through policies of public furniture purchases, theGovernment can lead the domestic market, giving priority to the use of legaland sustainable timber products for public works, encouraging the businesscommunity and craft villages to participate in this supply,” Tuan said.
Accordingto Vo Tri Thanh, former Deputy Director of the CentralInstitute for Economic Management, besides the Government’s special supportpackages for those affected by COVID-19, businesses need to take advantage ofthe opportunities on offer.
Forexample, he said when the Chinese market gradually stabilises but local orinternational suppliers have not recovered, Vietnam can take advantage of thisperiod to expand its market share in China.
“Thisis also a period of rethinking and re-planning. Enterprises need to beflexible, calm and follow the trends to stand firmly,” Thanh said.
ViceChairman of the Binh Duong Furniture Association (BIFA) Huynh Quang Thanh said banks should work withenterprises to overcome the pandemic’s impact.
“Banksare now our 'ventilator' but they said the more risky the higher interest rate.I think the Government should control this problem, pushing up theimplementation of policies to ensure benefits for businesses,” Thanh said.
AVIFORES survey of 124 wood processing businesses showed that 76 percent offirms in the Vietnamese woodprocessing sector reported total initial damage of 3.066 trillion VND (129.86 million USD) due to the COVID-19 pandemic, with mostfirms reducing production scale and some stopping operation.
About24 percent of enterprises had not yet calculated their losses. In addition, 51 percent ofsurveyed firms said they had to shrink their production scale due to thepandemic, while 35 percent were operating normally but will have to suspendproduction in the near future.
Ngo Sy Hoai, Vice President and General Secretary ofVIFORES, said with the survey results, it would difficult to hit the target of 12billion USD in export turnover thisyear.
“Theexport growth of the industry in 2020 may be zero,” Hoai said.
Chairmanof the Handicraft and Wood Industry Association of HCM City(HAWA) Nguyen Quoc Khanh mentioned the three most importantcriteria for businesses to recover, including speed, creativity and optimism.
Hesaid one of the most urgent issues for Vietnamese wood enterprises at this timeis to speed up the application of digital technology./.
Presidentof the Vietnam Timber and Forest Product Association(VIFORES) Do Xuan Lap made the statement at arecent online conference as domestic production and export of timber andtimber products have been heavily affected by the outbreak.
Lap said the export of furniture productsincluding kitchen, bathroom and dressing tables, accounting for 60 percent oftotal demand in the world, did not change much when the pandemic occurredglobally, while demand for other wood products almost disappeared.
“Thestructure of Vietnam’s product lines is currently unreasonable because itsexport products are not in great demand across the world. To restoreproduction, businesses need to change their production following markettrends,” Lap said.
Hesaid the pandemic also showed that the industry needed to change its salesmethod from traditional offline channels to online. In addition, it isneccessary to form and promote links among businesses in the industry, builddomestic supply chains and develop supporting industries.
“Theimpact of the COVID-19 outbreak shows Vietnam’s current furniture export supplychains are not good, partially depending on imported raw materials and accessories,especially from China,” Lap said.
DeputyMinister of Agriculture and Rural Development Ha Cong Tuan said the pandemic’s impact showed theresistance of the domestic market was much higher than the export market.
“Prioritisingthe domestic market’s development will be one of strategies helping theindustry break through. Through policies of public furniture purchases, theGovernment can lead the domestic market, giving priority to the use of legaland sustainable timber products for public works, encouraging the businesscommunity and craft villages to participate in this supply,” Tuan said.
Accordingto Vo Tri Thanh, former Deputy Director of the CentralInstitute for Economic Management, besides the Government’s special supportpackages for those affected by COVID-19, businesses need to take advantage ofthe opportunities on offer.
Forexample, he said when the Chinese market gradually stabilises but local orinternational suppliers have not recovered, Vietnam can take advantage of thisperiod to expand its market share in China.
“Thisis also a period of rethinking and re-planning. Enterprises need to beflexible, calm and follow the trends to stand firmly,” Thanh said.
ViceChairman of the Binh Duong Furniture Association (BIFA) Huynh Quang Thanh said banks should work withenterprises to overcome the pandemic’s impact.
“Banksare now our 'ventilator' but they said the more risky the higher interest rate.I think the Government should control this problem, pushing up theimplementation of policies to ensure benefits for businesses,” Thanh said.
AVIFORES survey of 124 wood processing businesses showed that 76 percent offirms in the Vietnamese woodprocessing sector reported total initial damage of 3.066 trillion VND (129.86 million USD) due to the COVID-19 pandemic, with mostfirms reducing production scale and some stopping operation.
About24 percent of enterprises had not yet calculated their losses. In addition, 51 percent ofsurveyed firms said they had to shrink their production scale due to thepandemic, while 35 percent were operating normally but will have to suspendproduction in the near future.
Ngo Sy Hoai, Vice President and General Secretary ofVIFORES, said with the survey results, it would difficult to hit the target of 12billion USD in export turnover thisyear.
“Theexport growth of the industry in 2020 may be zero,” Hoai said.
Chairmanof the Handicraft and Wood Industry Association of HCM City(HAWA) Nguyen Quoc Khanh mentioned the three most importantcriteria for businesses to recover, including speed, creativity and optimism.
Hesaid one of the most urgent issues for Vietnamese wood enterprises at this timeis to speed up the application of digital technology./.
VNA
