Vietnam’s wood processing faces material shortage

Vietnam’s wood processing faces material shortage
Vietnam’s wood processing faces material shortage ảnh 1Workers process wood at Sahabak Joint Stock Company in the northern province of Bac Kan (Photo: VNA)
 
HCM City (VNA) - Vietnammust improve the local supply of raw materials for the wood processing industryto ensure sustainable development and meet export targets.

Nguyen Ton Quyen,General Secretary of the Vietnam Timber and Forest Product Association, saidthe wood processing industry had developed strongly in the past 10 years, withits export revenue last year doubling the figure in 2010.

The development of theindustry had brought about an increase in demand for wood materials, from 25.7million cubic meters in 2013 to 31.3 million cubic meters last year, he told aseminar held in Ho Chi Minh City last week.

But the overall outputof timber harvested from plantation forests, rubber trees and other sources inthe domestic market was about 23 million cubic metres a year. The industryevery year has to import a large amount of wood material for processing, hesaid.

With the ChineseGovernment recent banning the exploitation of its natural forest, many Chinesebusinesses have rushed to other countries, including Vietnam and countries fromwhich Vietnam is buying materials, to buy raw materials, which results infierce competition in buying the materials, he said.

Bui Nhu Viet, Deputy Chairmanof the Binh Duong Wood Processing Association, said wood processing firms inthe south “are sitting on fire” because the supply of raw materials isgradually shrinking.

Recently, many Chineseenterprises came to Vietnam to purchase wood in bulk. If this situationcontinues, the domestic wood processing industry will face a severe shortage ofraw materials, he said.

Similarly, Truong MongTrinh, Director of Moc Luc Wooden Furniture Co,. Ltd, said more and more foreignenterprises are coming to Vietnam to purchase raw wood materials, leading to ascarcity of the materials.

Prices of raw woodmaterials continue to rise in recent times from 2 million-3 million VND a cubicmetre previously to more than 5 million VND now, she said.

Do Xuan Lap, Chairman ofthe Binh Dinh Timber Association, said prices of rubber wood went up by 20-25 percentcompared to earlier this year.

There was a fiercecompetition in terms of price to buy the raw wood, which created great pressureon wood processing in HCM City, Binh Duong, Dong Nai and Binh Dinh, he said.

He suggested theGovernment should restrict the export of raw materials effectively, includingraising export duties on the log and sawn wood.

Delegates at the seminarsaid re-organising the production of plantation forests to boost the domesticsupply of raw wood was necessary for sustainable forest plantation as well asto increase the inefficient use of raw materials.

Quyen said the country’splantation forest area increased from 3.55 million ha in 2015 to nearly 3.9million ha last year, of which about 200,000 ha obtaining the ForestStewardship Council (FSC) certification.

The sector must work toenable all forest areas to receive FSC certification and other certificates inthe coming years to meet the demand of import countries, who require onlyproducts made from legally harvested timber imported into their markets, hesaid.

Vietnam earned 5.76billion USD from wood and wood product exports in the first 10 months of theyear, a year-on-year increase of 0.8 percent, with the US the largest importerof Vietnamese wood products, followed by Japan.

Revenue from wood andwood product exports is expected to reach 7.2 billion USD this year and 10billion USD by 2020.

Last year, Vietnamimported 1.69 million cubic metres of log timber and 3.5 million cubic metresof sawn timber from over 100 countries and territories. The figures were 1.4million and 2.3 million cubic metres, respectively, in the first 10 months ofthe year.-VNA
VNA

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