Vietnam’s timber industry maintains its growth momentum despite Covid-19 | Business

The wood industry maintains its growth dynamic despite the Covid-19

According to Binh Duong Furniture Association (BIFA), in the first 8 months of 2021, the export turnover of wood products was estimated at nearly $ 4.78 billion, up 44.2 billion % compared to the same period last year; accounting for 21.5% of the province’s export turnover with key markets such as Japan, Singapore, Hong Kong, Taiwan (China), the European Union (EU), in particular the US market representing more than 65%.

Many years ago, companies in the region conquered the US market with stable orders and large production. An officer of Tan Nhat Company in Nam Tan Uyen Industrial Park said the company has received most of the orders for tables, chairs, cabinets and other interior products.

About 600 timber exporters in the southern province of Binh Duong are currently promoting the restructuring of production with emphasis on high value-added products as well as changes in the method of promoting trade from direct to online through channels. electronic commerce such as Amazon, Alibaba; thus, more new customers saw exporters placing orders until the end of 2021.

The Dong Nai Province lumber industry achieved export sales of over $ 1.3 billion in the first seven months, an increase of 7.72 percent from the same period in the region, ranking second in the province’s top five export products, significantly contributing to the growth of the province’s overall export turnover.

Vu Trong Manh, owner of a well-known lumber company in Bien Hoa town, Dong Nai province, said the company specializes in manufacturing furniture and cabinets for export to China. American market. Since the beginning of the year, the company has recorded stable production and orders and received orders until the third quarter of 2021. He concluded that the timber export market this year has been brighter than the previous year because many companies transferred their orders from China to Vietnam.

According to BIFA leaders, the export value of wood products could achieve such a realization because, from the second half of 2020, Vietnam has relatively controlled the Covid-19 epidemic, companies in the sector have promoted production after receiving many orders at that time. The trade war between the United States and China has caused many large companies around the world to move production and orders to Vietnam.

In the meantime, many other companies have also changed their methods of promoting trade from direct to online and have been awarded export contracts until the end of 2021.

In particular, since the official entry into force of the EU-Vietnam Free Trade Agreement (EVFTA), the timber industry has extended its market to EU countries. According to the Vietnamese Association of Timber and Forest Products (VIFORES), the value of the country’s timber exports will still reach 15 to 15.5 billion US dollars depending on the target set if the epidemic situation in the last months of the year is under control.

However, the complicated development of the Covid-19 epidemic and extended social distancing mandates also make it difficult to sustain long-term growth. According to the head of Minh Phat 2 Wood Company, one of the largest timber processing companies in Binh Duong province, most of the exported products are those in the company’s warehouses.

BIFA President Dien Quang Hiep said the growth of the timber industry in Binh Duong Province is potential; therefore, he believed that the province can meet the export target provided that employees in the sectors receive enough two vaccines.

Subsequently, BIFA asked for priority in vaccine distribution as well as policy, capital and pricing support to build a specific industrial park for the timber industry so that its companies can help each other to securing production assembly lines for global competition.

By staff editors – Translated by Uyen Phuong

Source link


Leave A Reply