Wood processing industry exports: Confused by lack of funds

Embarrassing and developing markets

According to the Ministry of Agriculture and Rural Development, the export of timber and timber products in the month from 8/2013 turnover of 432 million, bringing the export value of the industry first 8 months of 2013 to $ 3.34 billion, up 11.6 % compared to the same period in 2012. Imports of timber and timber products fell 3.5 % in the first 8 months of the year , with a turnover of 918 million USD.
In the past eight months , market except Germany 14.4 % , France down 2.2 % , commodity groups exported furniture to large consumer markets are strong growth : 7.2% U.S. , China China increased 14.7 % , Japan 20.3 % , South Korea 48.2 % .
Mr. Nguyen Ton Quyen , general secretary of the Association Vietnam Timber and Forest Product ( Viforest ) said , synthesizing information from the wood processing enterprises , the volume of orders this year increased by 20-30 % compared to 2012 . For example , from the beginning of the year , orders from Japanese customers Bao Hung increase of 60 % . Last year , Bao Hung export revenue reached $ 5 million , this year is expected to increase to 8 million. TAVICO Company has received orders increased by 50 % compared to the same period last year . According Company Sign Long , orders rose 30 % in companies , mainly U.S. customers .

Wood processing industry exports : Confused by lack of funds

The major export markets of Vietnam wood as the U.S. , Japan and Europe are on the rebound . Along with global demand growing again , DN Vietnam also received contracts from China passed export . According to Mr. Right , Chinese labor costs rise , strong local currency and the other elements of Chinese policy making cost incurred in making wood processing companies are investing in China have moved to other countries for processing .However , the current problems is the wood processing companies are worried not take full advantage of market opportunities . Many businesses even in the state of " overload " orders , so not enough to receive large orders . According to Le Win , Director General of Duc Loi Company Limited ( Binh Duong ) , the past few months , the unit had to refuse many orders from overseas due to production capacity can not meet .

According Viforest , the market has many positive signs but the companies are so embarrassing . The reason leads to this situation is due , in previous years (2009-2011) , Vietnam's furniture exports decline by affecting world economic recession caused many companies layoff off workers , sell machinery to have the money to pay the bank interest , restructuring production . This year , as orders surge , not in investment in machinery , worker recruitment , workforce training . Now most companies do not dare to take the timber industry short -term contracts due to insufficient financial capability , labor and materials .

Do not let customers walk away

In fact, the activity of the furniture export processing enterprises in our country are still many shortcomings : the direction of spreading investment , not investment intensive , higher production costs , on-time delivery to customers no schedule ... Most companies linked to lack of production and business . Even happened situation unfair competition , trample each other for personal gains and ignoring community . Export turnover in 8 months woodwork early 2013 but market share increased primarily fall into enterprises with foreign investment , because they have stable customer source , plant size and large funds .

Foreign visitors learn at furniture fair

The biggest risk for many companies today is wood , while rejected orders , many foreign customers will leave , orders in other countries . Mr. Nguyen Quoc Khanh , chairman of the Handicraft and Wood Industry recommends Ho Chi Minh City : " Enterprises should seek to enhance production capacity and skilled staff ... This year is a good time to refresh , catch the chance . "

According Viforest , the market policy needs to focus on strategy : "Customers do not have to give up ." Businesses need agile , daring to accept large orders and ensure delivery time . At the same time, enhance competitiveness , customer insights , market understanding to match the actual output of the power companies . With enterprises are still weak , difficult to meet large volume orders , need link building companies support group model in production , processing , there is a specialized division of product categories and details product ... businesses large , potentially , need attention and support , to share with you about orders DN , experienced management , venture capital , manufacturing links with small businesses ...

In 2012, the export value of furniture and forestry products reached U.S. $ 4.67 billion , an increase of 15.3 % over 2011. Ministry of Agriculture and Rural Development forecast , furniture export turnover reached $ 5.5 billion in 2013 , making Vietnam become the country 's largest timber exports to Southeast Asia , Asia's No. 2 and No. 6 in the world . However , the total value of the global timber trade industry each year up to 96.7 billion U.S. dollars , accounting for 2.68 % new Vietnam . Therefore , the State should have a policy to mobilize material and human resources of manufacturing technology and industrial policy support . If there are policies and appropriate measures , the wood processing industry can achieve export turnover of U.S. $ 15-20 billion in the period 2025-2030 .

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