The wood industry achieved a miracle of export turnover of 15.6 billion USD

The wood and forest product manufacturing industry has achieved an export turnover of 15.6 billion USD in 2021

Photo - QUANG THUAN

According to statistics of the General Department of Forestry (Ministry of Agriculture and Rural Development), the export of wood and wood products has reached 15.6 billion USD, up 18% compared to 2020, including: Wood of all kinds reached 3.6 billion USD, up 28%; wood products reached 10.87 billion USD, up 14%, non-timber forest products reached 1.1 billion USD, up 29.5%. In which, strong growth products such as furniture reached US$ 9.46 billion (up 7.7%), construction furniture reached US$ 461 million, (up 17.1%), wood chips gained 1.73 billion USD (up 18.4%), wood pellets reached 425.7 million USD (up 17.4%), logs and sawn timber reached 48.4 million USD (up 24.5%), all kinds of boards reached 1 .38 billion USD (up 58.1%), products from rattan and bamboo reached 841 million USD (up 38.1%), products from cinnamon and star anise reached 265.4 million USD (up 8.1%).

Regarding the market, Vietnam's wood and forest products are exported to over 140 countries and territories, of which the main markets are the US, Japan, China, EU and South Korea with a total export value estimated at 13 .98 billion USD, accounting for 89.5% of the country's export value of forest products. Specifically: exports to the US reached 9.1 billion USD, up 21.4% compared to 2020; exports to Japan reached 1.45 billion USD; exports to China reached 1.5 billion USD, exports to the EU reached 1.1 billion USD; Export to South Korea reached 950 million USD, up 5.7% compared to 2020...

Following the growth momentum in 2021, the Ministry of Agriculture and Rural Development set a target of exporting wood and forest products to over 16.5 billion USD in 2022.

Shipping costs reduce competitive advantage

At the conference, representatives of wood business associations in Ho Chi Minh City, Dong Nai, Binh Duong, Binh Dinh all raised the biggest difficulty is the lack of transport ships and the increased cost of raw materials. According to the associations, transportation costs have increased fourfold compared to the time before the epidemic took place. A container of goods to the US currently costs an enterprise from $20,000 to $30,000, logistics costs are high, even unable to find a temporary warehouse for goods. A representative of Binh Dinh Timber and Forest Products Association reflected: The high cost added to the price makes Vietnam's wood and wood products inferior to competition in the market. Vietnam's advantage is cheap labor, but when transportation costs increase, this advantage is no longer available. For example, if compared to other manufacturing countries like Mexico, their labor costs are higher than Vietnam, but they are close to the US, so transportation costs are low. Regarding the source of imported wood materials, suppliers have not yet quoted prices for 2022 but are still considering due to unpredictable market movements. The domestic source of wood materials, the circulation is not really smooth, the high gasoline price also affects the product price, so the forecast in 2022 will still be very difficult.

In addition to logistics and transportation issues, associations also pose the issue of digital transformation to increase competitive advantages and overcome current weaknesses. Mr. Nguyen Chanh Phuong - Vice President and General Secretary of the Ho Chi Minh City Handicraft and Woodworking Association (HAWA), assessed: The impact of the Covid-19 epidemic requires the wood industry to find new directions, including transformation. number. However, up to now, the transformation of the wood industry has not been positive, businesses are still hesitant to implement it, although most are aware of the need to convert. Compared to developing countries such as Germany, China, Poland..., Vietnam is still far behind. Many businesses are afraid of digital transformation because of great cost pressure, do not know where to start, and do not have a specific solution.

Digital transformation, increasing gray matter content, promoting research and design are solutions to increase the competitiveness of Vietnam's wood industry in the coming time.

Photo - QUANG THUAN

Mr. Do Xuan Lap - Chairman of the Vietnam Timber and Forest Products Association - said that in improving capacity and corporate governance, the core issue is implementing the digital transformation program. Currently, the competitiveness of Vietnamese wood industry enterprises is still low compared to other enterprises, as well as to FDI enterprises. In the coming time, wood industry associations will organize a large scale for businesses to develop digital transformation content, improve the position of Vietnamese businesses on the 4.0 technology platform and improve the management platform. enterprise.

Nguyen Quoc Khanh - Chairman of the Ho Chi Minh City Handicraft and Woodworking Association (HAWA) suggested: Of the total export turnover of the wood and forest product industry in general, FDI enterprises account for high sales and large market shares. Vietnamese enterprises, although large in number, are of lower value. One important thing is that newly established businesses are very modest, especially young people who rarely have start-up projects related to the wood industry. If the wood industry is to develop sustainably, it must have the attention of young people, there must be a succession of entrepreneurs to increase the content of gray matter, invest in smart, high-end design products that meet the requirements of the industry. increasing demand for customers, not just outsourcing and assembly.