Some woodwork processing enterprises in Vietnam are striving to purchase areas of forests in foreign countries and process timber on the premises instead of importing it, according to vice chairman of the Ho Chi Minh City Handicraft and Wood Industry Association, Ho Quoc Manh.
“This is a feasible solution for the timber shortage, which is considered the biggest challenge to Vietnam’s wood industry and has put pressure on the industry for a long time,” Manh said.
Manh also added that forests in Canada, New Zealand, South Africa, Australia and the US are targets for the industry because they are cultivated in accordance with industry methods and their products usually receive international forest certificates from the Forest Stewardship Council.
Vietnamtrancimex, one of the biggest woodwork producers in Vietnam, has recently established a 1.5 hectare woodwork processing plant in South America which facilitates the company in importing around 300,000-360,000cu.m of timber per year at much lower prices.
“This way, we can make use of abundant wood resources and low labor cost,” Vietnamtrancimex’s chairman of the management board said, adding that most of the products will be then completed in Vietnam before going on the market.
Also in an effort to relieve the timber shortage, the Ministry of Agriculture and Rural Development has already submitted a project to expand the country’s total natural production forest area by 4 million ha by 2020, which will be expected to supply 45million cu.m of timber and wood annually.
Since early this year, cities and provinces nationwide have zoned off protective, special use and production forests for economic development. The localities plan to turn 3 million ha of protective forests into production forests in one month’s time.
Last year, Vietnam raked in US$1.6 billion from woodwork product exports. But, the woodwork industry had to spend as many as US$667 million importing materials, accounting for 44 per cent of its total export turnover.
The expenditure for wood imports is estimated to reach nearly US$1 billion this year, making up 50 per cent of total export revenue.
Liberated Saigon
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