World's Major Producers and Wholesalers of Timber Takes Root in Vietnam

Dalhoff Larsen & Horneman A/S (“DLH”) and Indochina Wood Limited have signed a joint venture to provide logs, sawn timber, timber-based sheet materials, components and finished products to Vietnam’s wood processing industry.

 

The company will operate through its local logistics and warehousing company Go Dong Duong (Indochina Wood Company Limited) located in Song Than Industrial Park, where it operates a logistics center and warehouse for “just-in-time” stock for sale of imported [sawn] hardwoods from North America, South America, Europe, Africa and Asia.

 

Indochina Wood provides a range of service packages suited for the “cottage industry” to the “ultra-large producer.” “We feel that with the explosive growth of Vietnam’s furniture producing industry, now among the world’s top five producers, that the industry is moving towards a greater dependence on “key“ supplier-partner relationships where value-added services are a must. With Vietnam currently able to supply, domestically, 15 per cent of what the industry requires in order to sustain its’ growth, and end-user markets increasingly demanding both in terms of materials and legal and sustainable products we feel that these supplier-partner relationships will only become more important. And what better supplier-partner relationship than a global player whose strength is its value chain of “sawmill to factory” and “forest to end customer”” comments Indochina Wood’s General Manager.

 

Indochina Wood/DLH further feel that though Vietnam’s wood processing industry is relatively young in comparison to similar, competing, markets it has come a very long way in a short amount of time. Furniture producers will benefit from a “hand’s on” supply chain that can work together with factories to meet raw material demand as well as offer advice and support on new species that come available that may be more cost effective in wood processing.

 

DLH’s Vietnam Chief Representative, Moray Iles, observes that “DLHs decision to take this step is consistent with DLH corporate objectives to expand its presence in developing markets while at the same time promoting sustainable and renewable forestry as the company takes serious its responsibilities towards humanity and the environment.”

 

DLH, headquartered in Denmark, owns much of its own forests and timber production facilities, and has been trading timber and wood products all over the world since 1908. Including Vietnam, DLH currently has operations in 35 different countries around the globe.