Source: Vtv.vn
Wood exports regain growth momentum
Wood exports have regained growth momentum as Vietnam’s wood and wood products export turnover in the first 5 months of the year is estimated at more than 6 billion USD, up 18% over the same period last year. Wood product exports alone are estimated at more than 4 billion USD, up 7.5% over the same period in 2023.
According to the General Department of Customs, the five largest markets with the most impressive growth are: the United States, China, the EU, ASEAN, and Hong Kong (China). Notably, the United States continues to be Vietnam’s largest export market and is one of the markets with the highest growth rate, reaching over 20%.
According to the Vietnam Timber and Forest Products Association, the Vietnamese wood industry has expanded its export market to 170 countries around the world, penetrating deeper into important markets such as the US, Europe, Korea, Japan and becoming more present in emerging markets such as the Middle East, India… The Vietnamese wood industry is in a favorable position to take advantage of strong demand from domestic and international markets.
Vietnam’s export turnover of wood and wood products in the first 5 months of the year is estimated at more than 6 billion USD. Illustrative photo.
Improve the quality of wood products to meet export requirements
The growth momentum is partly due to the gradual return of demand from import markets. In addition, many businesses have boldly invested in new technology and digital transformation to develop new products and services, and improve competitiveness to attract orders.
Thai Hoang Co., Ltd. said that boiling wood, peeling each layer and cutting it into pairs – a seemingly simple step, but it took the company many months to perfect the process. In the early days, only about 10% of the rolled wood could be used, the rest was broken and damaged. Now, Mr. Nguyen Van Thai – Director of Thai Hoang Co., Ltd. has found a secret to reduce the amount of wood lost.
“The wood must be steamed to achieve flexibility so that peeling it does not damage the product…”, said Mr. Nguyen Van Thai.
After cutting, the chopsticks continue to be polished and sorted. “Picking chopsticks is similar to Tam, having to sort them into many types. A pair of standard chopsticks is even in color and smooth…”, said Ms. Do Thi Hang – Worker, Thai Hoang Company Limited.
Many businesses boldly invest in new technology and digital transformation to develop new products and services. Illustration photo.
According to the Handicraft and Wood Processing Association of Ho Chi Minh City, the strong growth in wood and wood products exports is thanks to positive signals from the US and EU markets. The US is still the largest market for Vietnamese wooden furniture exports, accounting for 55% of the total turnover. Therefore, keeping up with the latest trends in the US market is what businesses are aiming for to meet the spending tastes of the people of this country.
It is not yet the peak season, but Vietnam exports 1.2-1.4 billion USD worth of wood products each month. With the current increase, the last months of the year, during the peak shopping season of other countries, could increase to 1.6-1.8 billion USD, so Vietnam’s export target of 17.5 billion USD this year could be achieved.
30,000 billion VND credit package for forestry and fisheries effectively promoted
Along with proactively improving product quality, the wood industry’s growth is partly due to specific credit policies specifically for the industry that have proven effective. This year, the credit package for forestry and fishery products has doubled in size to VND30,000 billion. It is worth noting that the credit provision is not limited to just four state-owned banks, but has been joined by many more commercial banks.
Hung Bich Doan Hung Company Limited said that the wooden bars are used to produce large plywood panels, and almost all of the goods have been sold out. With increasing orders, the company needs about 3-5 billion VND in working capital each month to purchase wood materials for production. They are always given a yearly limit by the bank and disburse immediately when needed.
Mr. Pham Quang Hung – Member of the Board of Members of Hung Bich Doan Hung Company Limited said: “If the interest rate is lowered, we can buy more raw materials and receive more orders, bringing economic efficiency to the business as well as ensuring social security, paying bank debts on time and on schedule”.
This year, the Vietnam Bank for Agriculture and Rural Development has tripled the size of its credit package registration, to VND8,000 billion. As of the end of May, the bank has disbursed more than 77%. It is expected that the bank will complete the disbursement by the end of this month.
Ms. Nguyen Thi Phuong – Deputy General Director of the Bank for Agriculture and Rural Development said: “Agribank has reviewed procedures and documents, reduced 20% of procedures, accelerated disbursement speed, and provided timely capital support to people”.
The 30,000 billion VND credit package for forestry and fisheries has been effective. Illustrative photo.
Despite the good disbursement rate, not all businesses can access this preferential credit capital. Some businesses even borrow a lower amount than they registered, not enough to invest in expanding production scale.
“Currently, to borrow, you need collateral, mostly personal assets such as cars and houses. We hope that the materials and supplies we invest in can be used as collateral for loans,” said Ms. Nguyen Thi Hai Binh – General Director of STP Vietnam Group Joint Stock Company.
Mr. Ngo Hung Dung – Director of Tan An Seafood Company Limited said: “In the field of seafood, to make the support packages closer to reality, we should let the departments of agriculture and fisheries participate in the assessment to clarify the health, transparency and capacity of each enterprise, cooperative and individual”.
According to the State Bank, commercial banks have so far disbursed loans with a cumulative turnover of over VND21,000 billion with over 7,300 customers borrowing capital. With signs of market recovery and current disbursement speed, the State Bank is ready to propose expanding the preferential loan limit to up to VND50,000 billion to remove financial bottlenecks for businesses.
