HAWA on Integration Roadmap

The wood processing industry and export handicraft industry in Vietnam have strongly developed in recent years. The Ministry of Trade has added wood products to the national key trade promotion programmes. In the wood processing field, most enterprises have taken the initiative in integrating and seeking markets by various channels. However, the wood processing sector still encounters challenges such as low productivity and pressures to keep skilled labourers from attractive big foreign companies. Besides, the investment capacity of Vietnamese companies is medium or small. Especially, more than 70 per cent of materials are imported, while timber price has increased 7-10 per cent in the last two years. Meanwhile, local forests are unable to meet the demand.

Handicraft is a labour intensive sector, requiring diligent and skilful of workers and partisans and using local available materials like rattan, bamboo and even water hyacinth to make products for export. However, the weaknesses of this sector are small sizes, limited market approach, undiversified models to meet increasing market demand, and small business orders.

From the criteria of “association” and “internal force promotion,” HAWA is really an opportunity for many enterprises to afford big business orders, exploit capacities of small and medium enterprises, and associate with vocational schools to train workers, especially organisational and production management staff. It also helps associate handicraft units with wood processors to diversify materials and models and to expand business opportunities. In addition, the association continues improving the working capacity of the HAWA steering committee and its specialised apparatuses to develop the operations of member companies. It also joins hands with Ho Chi Minh City University of Agriculture and Forestry, Ho Chi Minh City Economics University, vocational schools and foreign organisations to open short and medium-term courses on management, techniques, and professional skills. It also cooperates with enterprise managers and technicians to build suitable training programmes.

 

Additionally, the enterprises themselves help disseminate experience in management, production, worker training, organisation or coordination in organising seminars and symposiums to strengthen internal forces and create collective strength to grasp new opportunities in the new era. Especially, the association will also improve the efficiency of internal communication and trade promotion by popularising websites and other media.