Vietnam wood furniture: "Gold forest" is the strength?

Since 2014, the Government has decided to close the natural forest, so the source of raw materials in the wood is only planted forest. This has caused many difficulties for Vietnamese wood enterprises in general and businesses producing and trading furniture in particular.

Vietnam is known for its abundance of natural resources, especially forest resources. According to the Ministry of Agriculture and Rural Development, by the end of 2016, the national forest area is 14.38 million ha, of which natural forest is 10.24 million ha and plantation forest is 4.13 million ha.

However, since 2014, the Government has decided to close natural forests, so domestic timber resources are only planted forests. This has caused many difficulties for Vietnamese wood enterprises in general and businesses producing and trading furniture in particular.

According to VIRAC's Industry Report and Vietnam Consultancy, the average occupancy rate of the furniture industry is 3% in 2016, which is equivalent to the industry average. manufacturing - but relatively low compared to other sectors in the economy.

Furniture production in Vietnam in the first half of 2017 reached approximately 50 million units of products and tends to decrease slightly compared to 2016. The cause is that the enterprises are facing many challenges in raw materials. export, especially wood.


Vietnam wood furniture: "Gold forest" is the strength? - Photo 1.

Despite the advantages of the forest, Vietnam's wood furniture industry now relies heavily on imported wood material (accounting for 80% of the wood used for production), mainly imported from neighboring countries. the Mekong sub-region (Laos, Cambodia) and Africa. The amount of timber that comes from these supplies is difficult to trace and the worry is that there are signs of depletion as the forest policies in the host countries continually change.

In addition, the change in China's forestry policy also has a significant impact on Vietnam's timber industry, such as the production of wood from Vietnam's plantation forest to China, through products such as wood saws, planks and planks / construction furniture. This creates competition for wood material inputs in the wood processing industry in Vietnam. Consequently, the price of wood in recent years has increased from 5-7%, especially the price of broadleaf has increased to 30-40%, leading to high production costs.

In 2014, the Minister of Agriculture and Rural Development (MARD) signed the Decision No. 957 / QD-BNN-TCLN approving the "Action Plan for the Development of the Timber and Wood Products Market 2014-2020" with a target of up to five 2020, wood export turnover of Vietnam will reach $ 10 billion and raw material supply will increase from 4 to 5 million m³ per year.

Meanwhile, large firms in the furniture industry with major wood products are finding it hard to find the source and control the source and origin of these supplies. This is posing a challenge for businesses to promote the growth of timber production, export of wood and domestic consumption.

Van Anh
According to Young Intellectuals

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