Vietnam Earns High Rewards from Handicraft and Woodwork Exports

2:25:08 PM | 11/11/2005

Vietnam fetched hundreds of millions of US dollars from handicraft exports in the early months of this year while its woodwork exports have surpassed the USUS$1-billion mark.
 
According to a recent survey, Vietnam has around 1,500 enterprises involved in wood processing and the same number in making handicrafts, showing its sharp growth in recent years.
 
At present, earnings from woodwork shipments reportedly rank fifth after those of exports of crude oil, seafood, garment and textiles, and footwear.
 
Vietnam's woodwork exports mostly go to Japan, the US, EU and Taiwan, of whom Japan is the number-one importer.
 
Local wood processors have to import around 2-2.4 milliom cubic meters of timber annually to statisfy their production demand as the country fails to ensure sufficient materials for the sector. Vietnam has more than 12 million hectares of forest trees which can to provide 2.4 million cubic meters of timber per annum, fulfilling just 20 per cent of the demand. The remainder is, thus, completely dependent upon imports.
 
Indonesia and Malaysia are the two major timber exporters to Vietnam. However, forest fires and overexploitation have recently driven the two countries to move to abandon supplying timber for Vietnam.
 
The director of Ho Chi Minh City-based Lac Phuong Nam Ltd. Co., Thai Ho Hai, said that the quality of home-made handicrafts, whose styles have also been being copied from those made in Thailand and China, is the top concern at the moment. Tourists to Vietnam often buy handicrafts for souvenirs or decorations so that materials and styles of the products will be their biggest interests.
 
"In order to enhance the competitiveness of home-made handicrafts, it is necessary for Vietnam to further modify styles, diversify its handicraft items, pay attention to making skilful products, and to encourage domestic enterprises to get more internationally-recognized certificates, " many experts said.
 
Due to low capacities, the domestic wood processing factories are always unable to fulfil worthy foreign export contracts.
 
To deal with the situation, Vietnam should become more active in supplying sufficient input materials for the local woodwork processing industry. According to the Vietnam Timber and Forest Product Association, local enterprises will join hands in setting up three timber import centres in the three regions of the north, the central, and the south. The move is aimed at minimizing any possible risks to timber imports. Moreover, there have been an increasing number of woodwork enterprises investing overseas in growing forest trees to make materials for their productions.
B.T