HCM City Handicraft and Wood Industry Association: Important Bridge for Exports

According to Mr. Nguyen Chien Thang, chairman of HAWA, the time when enterprises were encouraged to join the association has gone by. Currently, associations should consider members as investors and shareholders. Their participation into the association means that they voluntarily exchange an investment in the association for recognition. Members will be subjects who contribute fees, times and efforts to the association. Similarly, they will also have rights to ask for certain value provided by the association. In general, the material value is necessary information related to the economic and political events inside and outside the country that can have impact on the whole industry; or experience and mutual cooperation among members in the association.

 

The spiritual value is the relationship and exchange among members, opportunities that members contribute to the industry, and a belief in a sustainable foundation in their joint development strategy. Along with the increasing number of members, the quality of members and their professional skills have been also improved and strengthened as any organisation will also have to cut down their membership during its development process.

Thang also said that HAWA is focusing on strengthening and maintaining the relation among members, which is considered as priority task, in order to deserve the role of a representative of members in an industry. An association can not survive without members or with too few members. HAWA is now proud of representing 300 enterprises which account for more than 25 per cent of the export output in the country.

The role of a bridgeWood processing industry is facing new challenges due to falling export markets amidst the global financial crisis originated from the U.S. which has been biggest woodwork importer of Vietnam. Although wood is an only renewable natural resource on the planet, the uncontrolled exploitation of natural resources of some countries is affecting the ecological environment. On the other hand, once tariff barriers are removed, technical barriers will be built, and the U.S. is applying Lacey Act which bans the trade of species of plants and related products with illegal origins.

The European countries are applying FLEGT plan on "strengthening the enforcement of laws on forestry, forest management and timber trade." Both laws force enterprises to identify the origin of illegal timber and apply the system on ensuring the timber legality. Facing this challenge, HAWA has often visited members, especially those in remote areas, to learn their desires and demands to seek proper measures.

This is the only thing that HAWA can do for enterprises to contribute to developing the industry. Since then, workshops and training courses have been held not only in HCM City, but also in the north, the central and the south, with an effort to bringing the association’s services to its members. Therefore, the role of the association in linking enterprises involved is greater and greater.

Over the past time, HAWA has directly or indirectly organised many seminars to provide members with information related to Vietnam’s commitments to WTO. At the same time, the association has also invited Vietnam’s WTO protagonist negotiation chief, experts and lawyers from Europe, the U.S., and ministries to have lectures on related issues that the U.S. and the European Community can apply, including the process that foreign countries sue on dumping and Vietnam’s ordinances against dumping. Besides, HAWA has also taken opportunities from various means of communication and forums to actively and effectively respond to improper allegations saying that Vietnam is using illegal timber originated from forests in Laos.

 

The association has coordinated with many other units and specialists to organise workshops on technical standards, product safety, methods to identify the origin of timber and the process of timber management. In addition, HAWA has actively contributed its ideas to help the Ministry of Industry and Trade build up import and export policies by 2010, participated in carrying out the project on trade promotion, proposed the government and the Ministry of Agriculture and Rural Development to remove difficulties for businesses such as amending the Decision No. 44 2006-BNN, solutions to support export and limit trade deficit. Recently, the association has proposed the Ministry of Finance delay the implementation of the official dispatch No. 12270/BTC on imposing tariff on export of floor plank and combined plank made of imported materials.

 

The current trend asks to attach the quality of ecological system into products in order to protect the living quality. The requirement is that products must be made from natural timber or planted forest timber exploited under the control of law. The production environment will also be carefully assessed before making orders. Enterprises should properly use sources of materials, not violate the law and affect the ecological environment. HAWA has also recommended the government allows to import timber to maintain production, encourages potential enterprises to plant forests to gradually reduce the dependency on import in the long term. Privatisation of planted forest is also an effective solution. Using timber originated from planted forests will not only contribute to reducing trade deficit, but also help stimulate forestry development, improving people's lives upland.

 

In addition, HAWA is among main organisers of EXPO HCMC since its conception, and HAWA members are always key participants in the exhibition. The association is aware of the fact that domestic exhibitions and fairs will be more efficient than international fairs thanks to low costs and the opportunities offering even small-sized enterprises to attend. Due to the increasing demand to promote products of members, the association will organise itself VIFA fair in annual March since 2008. However, VIFA has an importance of an international fair, HAWA has proposed the HCM City’s People’s Committee and the Ministry of Industry and Trade put the fair into the national trade promotion programme to help spread information and attract more customers to the fair. Customers visiting the fair can both see products and meet enterprises to self assess their capacity, and then they can make orders, and travel around the country which can help increase foreign currency collection, reducing the trade deficit.

 

VIFA Expo 2008 received 356 delegations of visitors from 44 countries and territories nationwide. Up to now, the organisation board of VIFA Fair 2009 has received subscription of nearly 600 international missions, including dealers and importers from 57 different countries, mainly the U.S., Canada, UK, Holland, Malaysia, Japan, Australia, Germany, China, Philippines, etc. In addition to traditional markets such as growing Japan, Europe and the U.S., in order to minimise risks, HAWA has suggested to expand to Russian and Eastern European markets to exploit these Vietnamese traditional partners that the wood processing industry has not paid due attention so far.

 

In Mid September of 2008, five member enterprises of HAWA surveyed these markets and are now promoting next steps to join the fair. Taking advantage of broad relations and information channels, HAWA has introduced to its members many business opportunities to access to customers. Opportunities are always created equally to members if they regularly keep close watch on information posted on the association’s website. HAWA has also set up a dedicated company to help organise the fair and carry out other services for members.

 

HAWA always listens to its members’ desires, and seeks ways to help them equally through training and seminars to equip them with necessary knowledge such as designing, marketing, administration, quality testing, market information, and legal knowledge. Many courses and seminars held by HAWA have showed their effectiveness.
Anh Dao