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WOOD PROCESSING INDUSTRY IN 2017: OVERCOMING CHALLENGES, DRAG GROWTH

02/09/2017
A series of changes in the supply of timber from countries in the region, have set a challenging problem to secure supplies for the timber industry in Vietnam in the coming time, not only to meet the growth in 10-15% / year and still have to ensure legal timber. Vietnam and the European Union in 2016 ended VPA / FLEGT and after the Agreement enters into force, all wood products exported to the EU Vietnam must have a legal origin. Along with the change in timber management policies in Myanmar, Laos or China in the direction Egg Export squeeze timber, sawn timber will impact greatly to Vietnam's wood supply.
WOOD PROCESSING INDUSTRY IN 2017: OVERCOMING CHALLENGES, DRAG GROWTH

CHALLENGES OF SUPPLY

In the past 10 years wood processing industry of Vietnam has seen a boom, the export value of the industry in 2010 increased by 16 times compared to 2000, and during the period of 5 years here (from 2010 compared to 2015), the export value increased 2 times the timber industry. 
But the quality of wood from plantations Vietnam uneven quality, mostly small-diameter wood, wood quality has not improved, yield per 1 ha for a cycle low, and has not met to be the kind of large-diameter timber for wood processing and export. And if you look at the numbers the average volume of wood used in the timber industry is 31 million m3 per year, to cater to the domestic market as well as export processing, that is the challenge can not be solved in time near future. 
Nguyen Ton Quyen, general secretary of the Association Vietnam Timber and Forest Products, wood processing industry will have to address a range of issues such as competition in the procurement of raw materials will take place plantation timber fierce . On the other hand, wood processing enterprises will be faced with the Chinese traders into buying plantation timber of Vietnam, the Chinese government has banned the extraction and export of raw timber. And to compensate for the shortage of raw materials including wood, Chinese traders will spill out of the countries in the world to purchase raw materials in the market not only Vietnam but the world market in Vietnam has been purchasing . Besides, countries Laos and Cambodia have banned the export policies of logs and sawn timber from plantations, will increasingly make this competition more fierce. 
He stressed Rights, challenges FSC certified wood, PEFC will put businesses and clues provided both material into the narrow gate. As for plantation timber, in Vietnam there are only about 200,000 hectares have been certified FSC (accounting for 8% of planted acreage of the national production), that figure is too small compared to the actual needs . And in the coming years, the supply of wood to ensure 100% FSC certified is the biggest challenge for Vietnam timber businesses. 
Meanwhile, the search provider legally sourced wood is also causing headaches problems with the business, while Vietnam buy wood from more than 70 countries and territories around the world, but there are still sources not really under control. Every year, Vietnam imported an average of 7, 5-8 million m3 of log and annual increases as create greater pressure for the timber industry. 
FIND ADVANTAGES IN 2017
According to Duong Phuong Thao - Ministry of Industry and Trade, the current furniture market is worth about 400 billion dollars, and Vietnam have a lot of chance to develop. But there are many signs that, the world economy is entering a new crisis, and the global market will go more negative direction, it's a business issue to be calculated wood Vietnam cost to build the roadmap development, reasonable prices of products in the coming year. 
Thao said that the demand for wood raw material sources will increase, but supply will be short, and more importantly, the industry's growth in 2017 likely to increase a number (under 10%), and exports Vietnam's wood products need an accurate assessment of the price, quality and supply. And the Government will have a reasonable mechanism to protect the interests of enterprises linked materials on the market. 
It Bui Nhu Vietnam - Vice Chairman of the Binh Duong Woodworking recommendations, afforestation policy, including taxes on embryonic rubber wood products, improved varieties of Acacia, Melaleuca and rubber and other solutions will address synchronization challenges portion of the timber industry in 2017.
and according to Tran Le Huy - Representative timber and Forest product Association of Binh Dinh (FPA), the advantages of wood processing enterprises Vietnam exports will be the Government's decision to restrict exports of wood raw materials efficiently, to protect the source material timber plantations are provided adequate and sustainable in the coming year, as well as help processing enterprises to reduce pressure from supply, 

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HUY VU