To develop wood industry: Need to have an overall plan
If there is a foresight, Vietnam’s materials or forest areas develop due to the development of woodworking industry. But the woodworking industry uses the large quantity of labors, it only takes a certain time, not long-term employment. This is the comment of Mr. Dien Quang Hiep - Director of Minh Phat 2 Company (MIFACO).
According to Mr Hiep, the woodworking industry tends to shift from European, American countries to China, Malaysia, Thailand and then to Vietnam, it will later shift to India where have full of labor and low labor costs. At present, Vietnamese timber industry is using these advantages. Until now India has not developed the woodworking industry, because they have not had the concentration and development, but after Vietnam, this industry will move to India. Myanmar, Cambodia and Laos are the countries which do not have enough competitive factors to shift the industry, but India are including all those factors.
Therefore, in order to develop the sustainable timber industry, it requires the resources of stable materials and has a strategy to develop it, as the woodworking industry shifts, it still develop well. To do that, you have to learn the forest governance patterns from other countries around the world. This can be learned from well-governed countries such as New Zealand, the US etc how they organize to create sustainable development forests, which trees they grow, how they develop and orient.
The current material resource from Vietnam’s forest plantation is very simple with only acacia and rubber. For these two popular species of timber, Vietnam has not had the strategies to develop them sustainably. Their current quality is very poor and messy, in order to use, the enterprises must check each shipment as importing to manufacture exports. These two species of timber in Vietnam have not had any standards to be applied now, how to classify lumber, now there is no standard to control the lumber species of Vietnam.
To build and develop the material resources not only meet the demand for this decade, but also for other decades, as woodworking has had the shift, the forestry still develop and exist. This development relates to what trees and varieties should be planted? Currently only rubber and acacia/melaleuca in Vietnam have large area, when determine what trees should to plant, the first thing continues to develop these trees and along with tha, the Institutes and the agencies shall continue to study what other trees can develop in Vietnam for the woodworking industry. If not, to concentrate on developing these two species trees, their strong development relates very much to the variety, so it is necessary to have study which areas are suitable for making the high productivity and the standardization of the material area to classify, as logging later, it shall be based on the standard of classifying timber to sell, it is very difficult to sell without standards.
For example, for the timber in Russia, due to its lack of standards, it is very difficult to sell in Vietnam, only selling logs, but as selling whole trees, the cost of transportation is very high.
So what should be done to develop the current Vietnamese wood industry?
This is now the period which the State must set up the peculiarity of the industry, so it must have a unique mechanism for the industry to develop. The general policies, such as the Law on Investment, etc has the effect of promoting development but only in a certain period of time. To develop, there should be separate policies for each sector.
For the wood industry, in order to develop it, firstly it should be focused on materials resources, because they account for 40-60% of the cost of produt. If the raw materials are stable, they will create the products with the stable prices and quality. How much does the export value belong to Vietnam in the US$8 billion? If 40% in price structure belongs to Vietnam, then the remaining 60% in price structure of raw materials also belongs to Vietnam, the value of product gets the most of export value. However, this is just an assumption.
In the future, market will adjust the materials resources, and we have many advantages for the plants to grow. Rubber and acacia/melaleuca have favorable land conditions for the growth and with competitive prices, so the concentration on developing these two timber species will basically meet a huge amount of goods.
Need to diversify material resources
Vietnam has been selling on the global market, the market and the family loves the products made from oak, so we have to import the oak to sell. It is not important to use only one or two species of timber materials for manufacturing but diversify the used materials, we have to push up our potentials and take competitive advantages of these two available species of timber. The current import materials are very large, which proves the value flowing the foreign countries a lot, the retained value in Vietnam is declining.
Businesses refer to the market, they say about selling to whom, selling to which suppliers. The enterprises in the countries have used the trade fair to develop their partners. But at this period, Vietnam must transfer to develop stronger. As Vietnam is one of the manufacturing and export centers of furniture, the world has known Vietnam. So how to let other companies come to Vietnam and participate in the trade fair, how to reduce the cost of the trade fair attendance for Vietnamese companies. The number of Vietnamese enterprises which participate in the exhibition will increase a lot, compared with the display their products in foreign exhibitor. If there is a fullservice trade fair center in Vietnam, it will attract a lot of customers, this shall be an effective marketing channel. At present, Vietnam has not had the large trade fair center yet.
Binh Duong province is leading the country in export, they are calculating the plans to build the Center, but they are still having concerns, the timber industry agrees but if other industries agree or not? If the State co-ordinates with the province to build up a large center, then many industries shall participate in promoting. Marketing has many ways, can be via the trade fair, website etc.
Origin: No. 99. VIETNAM TIMBER & FOREST PRODUCT ASSOCIATION.