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Timber industry misses export target

Update: June, 11/2011 - 09:30

Workers at the Binh Duong Province-based Hoan Vu Wood Processing Co stack wooden chairs for export to Europe. Experts forecast the timber industry cannot reach its target of $4.5 billion for this year. — VNA/VNS Photo Thanh Long

Workers at the Binh Duong Province-based Hoan Vu Wood Processing Co stack wooden chairs for export to Europe. Experts forecast the timber industry cannot reach its target of $4.5 billion for this year. — VNA/VNS Photo Thanh Long

HA NOI — The wood industry could not reach its target export this year due to obstacles in production and trading, said experts.

Nguyen Ton Quyen, deputy chairman of the Viet Nam Wood and Forest Product Association (Viforest), said total export value of wood products for the first five months of this year had a yearly increase of 20 per cent, or US$1.5 billion; this fell short of its 28 per cent target growth.

"By the end of this year, if the export value remains at its current growth rate, the industry will not reach its total goal of $4.5 billion for the year," Quyen said.

The long-term domestic inflation reduced Vietnamese exported wood products' competitive edge because processors had to increase export prices to match the higher production cost, he said.

But growth did not increase alongside the production cost. Therefore, they limited production to reduce their losses.

Nguyen Chien Thang, general director of Scansia Pacific Ltd Company, said producers must delay expansion until next year due to the high interest rate on banking loans at present and the upcoming increases in price of petrol and electricity.

Representative of Long Tuan Kiet Ltd Company said lack of capital made the company cut workforce and advertising cost.

By the end of this year, the company would focus on implementing signed export contracts and discuss with partners ways to increase export price, he said.

Meanwhile, Quyen said, local wood product exporters should boost exports to Japan because demand was expected to increase after the natural disaster in March. The exporters must pay attention to quality of products exported to Japan.

Nguyen An Diem, chairman of Fisico company based in central Binh Dinh Province, said that besides signed export contracts, the company would also trade at local markets to maintain growth in production and trading for this year.

Long Tuan Kiet Company said it wouldl increase trading at the domestic market within several months as a means of increasing volume of sales.

Ngo Thi Hong Thu, deputy general director of Truong Thanh Wood Joint Stock Company, said that besides exports, the company would implement a long-term investment strategy for the domestic market. The domestic market has so far accounted for 30 per cent of total revenue of the company.

The association also made a proposal to reduce the import tariff on wood materials and lower interest rates on banking loans to support production enterprises, said Quyen.

During this difficult period, the enterprises should cut production cost, increase export price and strive to expand its export market, he said. — VNS

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