Wood industry in trying to recover and seeking of export markets

Update: 02-06-2020 | 11:31:54

To revive and promote the development of the wood industry to meet its inherent potential, great efforts of each enterprise and a strong push from mechanisms and policies are needed.

Production in Long Hao Company, Bac Tan Uyen District

Many bright spots

According to enterprises of the Binh Duong Wood Association (BIFA), Vietnam's effective control of Covid-19 disease in the context of competitors in ASEAN, EU, and the United States having to stop production activities also helps Vietnamese enterprises. have more orders. In addition, it should also be noted that businesses have made efforts to actively seek off-season orders in Australia, EU and US markets. In FDI enterprises, efforts in jointly finding ways to minimize losses also help wood enterprises overcome difficulties in epidemic season. Mr. WangSheng-Lung, Director of Long Hao Company (KSB Industrial Park - Bac Tan Uyen District), said that thanks to the great sharing from customers, the company is not damaged in terms of logictisc costs, and still maintains the production to ensure life for workers.

Confirming this, Mr. Do Xuan Lap, Chairman of the Vietnam Association of Wood and Forest Products, said that by 2020, the timber industry can still grow by nearly 2 digits. This is thanks to efforts to control the disease and Vietnam has become an attractive country for many wood processing investors with multi-billion dollar turnover to set up manufacturing plants. On the other hand, many Vietnamese enterprises are actively shifting production of core products or large quantities of products to adapt to the market. Export volume in the second quarter may decline, but this is normal, because in the summer of the year usually reduce 30% of orders.

At the moment, the encouraging news for the manufacturing sector, including the wood industry, is that although the disease has not been completely controlled, the policy of living with the epidemic in the US and most European countries will impact strongly to consumption. However, due to the spending cut, the consumer choice trend and the way of manufacturing, trading and distributing wooden products of enterprises will be streamlined. This requires enterprises in the wood industry to catch up with the trend to change design designs.

As for raw material sources, according to Mr. Dien Quang Hiep, Chairman of BIFA, Vietnam currently grows many types of wood such as rubber, eucalyptus, acacia, oily wood ... in large numbers, but there is a serious shortage of wood for making planks. In addition, many plywood factories do not meet export standards. This sets out for wood enterprises to promote the link between enterprises in the industry to provide what the wood industry needs, not sell what they have. At the same time, it is time for the province to facilitate the development of ancillary industries such as mechanics, woodworking equipment, chemicals, paints, plywood, artificial boards and processing chains for forestry development. Only then can businesses grasp development opportunities.

Enterprises need a mechanism

Despite the recent effects of the Covid-19 epidemic, the timber industry still has great potential and development advantages. It is important for businesses to know "catch the trend" to prepare the mind to be ready. Besides, it is necessary to create favorable conditions for businesses to develop commensurate with the potential. According to Mr. Nguyen Liem, General Director of Lam Viet Joint Stock Company, in order for the wood industry to overcome difficulties, reproduce and expand, the enterprise needs a mechanism.

Regarding the policy of reducing interest rates of the State Bank, commercial banks have also implemented. However, all banks have very strict regulations. Lending takes time to evaluate. Therefore, so far very few wood enterprises can access credit policy packages. Meanwhile, Decree No. 41/2020/ND-CP of the Government on extension of tax payment and land rent is assessed as not really meeting the aspirations of enterprises. For timber enterprises, the payment of land rent is usually made from the beginning of the year or for the period. The Government and other ministries need to pay attention and consider supplementing new policies to support businesses, such as: Extension of the time limit for paying social insurance premiums, exemption from paying social insurance premiums for laborers during the leave period due to epidemics, extending the time to pay unemployment insurance ... At the same time, it is necessary to research, promulgating a policy of VAT refund right after the export of goods; Supplement credit packages to businesses with low-interest loans to pay salaries to laborers.

Assessing the key role of the mechanism in reviving and developing the timber industry, Minister of Agriculture and Rural Development (MARD) Nguyen Xuan Cuong said that the completion of policies is urgent. The Ministry of Agriculture and Rural Development requests the State Bank of Vietnam to instruct commercial banks to reduce the conditions when borrowing for businesses, especially the regulation of having effective production and business activities, or borrowing and repaying debts properly. In the coming time, MARD will continue to coordinate with associations to develop and expand markets; study and develop a program on developing raw material wood to take initiative in domestic sources, reduce prices and increase product competitiveness in the market; Along with that is the innovation of trading methods, sales promotion and branding for Vietnamese timber.

Reported by Tieu My – Translated by Vi Bao

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Wood industry in trying to recover and seeking of export markets

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