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Report: 2018 was a successful year for the wood industry

Update: February, 22/2019 - 16:30
Workers process wood products. Last year was a successful year for the wood industry, with export value reaching 14.5 per cent higher than in 2017. - Photo
Viet Nam News

HÀ NỘI — Last year was a successful year for the wood industry, with the export value of wood products reaching US$8.9 billion, up 14.5 per cent from the previous year.

The good result is highlighted in the industry’s annual report, which was released at a workshop in Hà Nội on Thursday by the Việt Nam Timber and Forest Product Association (VIFORES), the Forest Products Association of Bình Định (FPA Binhdinh), the Handicraft and Wood Industry Association of HCM City (HAWA), the Bình Dương Furniture Association (BIFA) and Forest Trends.

At the workshop, VIFORES vice chairman Nguyễn Tôn Quyền said domestic enterprises accounted for 53 per cent of the total export revenue, and the sector has been able to source 75 per cent of wood material domestically.

According to Quyền, there are 867 foreign-invested (FDI) firms with total investment capital of $5.5 billion operating in the wood industry, with 63 per cent of them backed by firms from China, the Republic of Korea and Japan. Foreign-invested firms are mostly small scale, with capital averaging between $4 million and $5 million.

Among the FDI enterprises, 529 are involved in for-export production. They contributed nearly $4 billion, or 47 per cent, to the wood industry’s total export revenue last year.

Bình Dương Province has attracted the most FDI wood processors of any province in Việt Nam, accounting for 53 per cent of the total registered FDI enterprises in the province. Next is HCM City with 10.4 per cent of registered FDI firms belonging to the wood processing industry and Đồng Nai Province with 9 per cent.

This year, Quyền forecasted a two-digit growth rate for wood product exports, meaning the value is likely to reach $10.5 billion.

Tô Xuân Phúc from Forest Trends said the industry must keep a close eye on the legality of imported materials, especially those from high-risk sources.

He said that in the long term, the industry should shift to products with higher added value and quality-based growth, which will require reforming all the links in the production chain, training skilled workers and developing brand names. — VNS

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