The wood processing industry still has great attraction

At the meeting with the Vietnam Timber and Forest Products Association on April 23, 2021, Minister of Agriculture and Rural Development Le Minh Hoan asked to socialize resources to support brand building and development. Vietnamese wood products, bringing the value of wood products and NTFPs for export will increase higher, from 18 to 20 billion USD in 2025 and 23-25 ​​billion USD in 2030.

FILTER WITH TRANSPORTATION COST

Report to the Minister, Chairman of the Association of Timber and Forest Products Do Xuan Lap stated that the export of wood and wood products has reached the value of nearly 12.5 billion USD in 2020. Particularly in the first 3 months of 2021, export turnover wood processing industry export reached 3,699 billion USD, up 41.5% over the same period last year. Wood and forest products export markets include: the United States, Japan, China, the EU and South Korea currently account for 90% of the total export value of wood and forest products.

According to Lap, in the first 3 months of 2021, wood export has had to overcome many difficulties and challenges. First of all, the rising cost of freight. For example, in the US market, it is expected that in 2021, export of wooden furniture to this market will reach over 7.8 – 8 billion USD, estimated to need about 500 thousand containers.

However, the price of export to this market is fluctuating, before September 2020, the price of a container to the US market is at 4,000-5,000 USD / container, in the first quarter of 2021, the rate fluctuates from 8,000. – 9,000 USD / container (sometimes, businesses have to pay freight at 11,200 USD / container).

Meanwhile, in the European market, the sea freight rate increased from 400-500 USD / container in the import direction, the average rate in November 2020 was 1,100 USD / 40feet container, in March 2021. increased to USD 1,500 / 40feet container.

INVESTMENT MORE IN ADVANCED TECHNOLOGY

Minister Le Minh Hoan appreciated the wood industry business community for overcoming difficulties, making wood export always achieve very high growth. The export value of wood products and forest products has increased 5 times over the past 15 years, from 2.8 billion USD / year in 2006-2010 period about 8 billion USD / year in 2011-2020 period and over 13 billion USD in 2020. .

Thereby, has confirmed Vietnam’s position in the international wooden furniture market. The wood and forest product processing capacity has grown rapidly in terms of scale, quantity, quality and efficiency of production and business. Attract more and more investment from the private sector.

“If in 2006, Vietnam had about 1,200 wood processing enterprises operating, up to now, the whole country has nearly 6,000 wood and forest product processing enterprises, of which there are about 1,000 enterprises with water investment. with a total registered investment capital of nearly 6.5 billion USD ”The Minister emphasized.

Enterprises have been focusing on investing in many modern equipment, producing many complex products. This has helped businesses to produce many high-quality, high-quality products that can meet the tastes of domestic and international consumers.

The number of employees working in wood and forest product processing enterprises has also increased highly. Up to now, there are more than 500,000 laborers, of which trained and stable workers account for 55-60%.

“Community of wood industry enterprises should continue to invest in wood processing factories with advanced technology with a capacity suitable to each raw material area of ​​planted forest; Apply mechanization and automation to reduce labor costs, save and utilize raw materials for processing, at the same time create uniformity and ensure product quality ”, the Minister recommended

Invest in projects using by-products from wood processing, wood glue production and accessories for the wood processing industry. Along with that, it is necessary to develop the industry of manufacturing machinery, forestry equipment, industry of producing auxiliary materials for the wood processing industry. At the same time, it is necessary to socialize resources to support the building and development of Vietnamese wood product brands. Strive to bring the value of exported wood and non-timber forest products to 18 to 20 billion USD by 2025 and 23-25 ​​billion by 2030.