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Coat too large for the timber sector

  • Coat too large for the timber sector

    Ministry of Agriculture and Rural Development expects the wood processing industry is a key sector. However, many companies and experts say, with the industry is current capacity is intended as the shirt is too wide.


Weakness in the structure

Want to become a key industry sectors require the material to be proactive, strong businesses and products is highly competitive value, standing there on the market ... However, most businesses still struggling photographer internal processing. Currently there are over 3,000 wood processing enterprises, of which 95% were privately owned, the rest of the state. But, in general, the wood processing enterprises are enterprises are small in quantity as well as working capital investment.

According to figures from the Commerce Department of Agriculture and Forestry Processing and Salt production (MARD), if calculated on the level of employment, up to 46% of the total wood processing enterprises have tiny scales; 49 % is small-scale, medium-scale is 1.7%, 2.5% is large. But in terms of capital investment, up to 93% of wood processing enterprises in the micro and small scale.

Many small processors and small, especially in the village areas barely employees basic training should be able to master the technology, production equipment is not high. This is also the reason why Vietnam businesses can not offer the superior products to compete with the products of countries that accept outsourcing for foreign companies drips or FDI.

Ha Cong Tuan, Deputy Minister of Agriculture and Rural Development, said: "The FDI enterprises accounted for 50% of total exports of the timber industry. Meanwhile, total FDI wood processing enterprises only accounted for 16%. Thanks to modern production lines and high automation of this FDI are brought to market high-end products, high value. This is where Vietnam now show that loss. "

Due to the impact of the global economic downturn so purchasing power market reduced. Specifically, the market fell 30% world demand processing wood products, while in the domestic market Vietnam wood industry is being dominated by imported wood products. So, to get up in time of crisis, it is still difficult for companies in the industry.

Vo Truong Thanh, General Director of JSC engineering conglomerate Truong Thanh Furniture, said: "Given the purchasing power of foreign markets significantly reduced, some businesses have returned to fight in the internal market address. however, they still do not squirming create design products that fit, lack of distribution systems and unreasonable price. Additionally, many businesses are caught cheating tariff plus injured that commercial competition is not easy. "

No material proactive

While the Ministry of Agriculture and Rural Development to develop wood processing industry is a key sector is more difficult now that Vietnam has made active by the material. Even the materials are still severely lacking. Every year, the Vietnam now imports over 80% of raw material, accounting for about 60% of the product price.

Mr. Nguyen Manh Dung, Director of Processing, Trade and Agriculture Forest Products and Salt, said: "We are exporting raw materials too. Moreover, a lack of raw material due to the lack of coherent between forestry companies with the woodworking business. lack is a surface mount makes efficient use of forest resources is not high, the added value of forest products as expected. on the other hand , to limit fair competition between the processing facility, timber business. "

With the objective to export wood products to reach $ 7 billion in 2020 as the Forestry Development Strategy 2006-2020 Vietnam, planting should focus on intensive method to import 50% reduction in board 2020 water agreement with the abundant wood resource, providing long-term for Vietnam. Need assistance from the state to businesses and growers have developed conditions for large trees.

"There are many issues raised as to woodworking become a key industry. To achieve this goal, requires us to develop the right direction, with the planning and specific policies. Needed material generated in the right direction. Among them, striving 2020 provides 60% of raw materials for the wood processing industry, 2030 to supply about 75% of raw materials, "Dung said.
Source: VEF