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In 2023, the production of Dai Phat Group Import-Export Company Limited - Lang Chanh district encountered many difficulties due to the increase in raw material prices, transportation, and decreased market demand... In order to stabilize production and business, the company has proactively researched customer needs, invested in modern technology lines to produce wood pellets, and from October 2023 to now, the company's production has been bustling again due to the signing of wood pellet orders with Japanese enterprises. Currently, the factory is operating at a capacity of 10,000 tons/day to ensure the progress of export orders required by partners.
Mr. Pham Tien Nam, Director of Dai Phat Group Import Export Company Limited, Thanh Hoa province
Mr. Pham Tien Nam, Director of Dai Phat Group Import-Export Company Limited, Thanh Hoa province said: " Export orders to Japan have very strict requirements, so we have to invest in machinery and train people. Official export orders will be more convenient and have high value."
With Ngo Huy Dung Co., Ltd. - Nhu Xuan district, the company previously specialized in producing panels for the domestic market, however, recently due to difficulties in the consumption market due to the construction industry facing many difficulties, the company has changed direction, focusing on producing wood chips. With this product, the unit has signed an export order with China to ensure stable production until the end of 2024; at the same time, participating in the panel production chain to the US and Singapore. Currently, the company is building an additional factory in Thanh Lam commune, Nhu Xuan district to ensure the signed order.
Mr. Bui Chi Cong, Ngo Huy Dung Company Limited added: "In 2024, almost all orders have been signed, but plywood is still facing difficulties due to its dependence on the recovery of the construction and real estate industries."
In recent years, bamboo products of Bamboo Vina Production and Trading Company Limited, Yen Son Commune, Ha Trung District, have gradually affirmed their position with domestic and foreign customers. However, recently, this unit has also been affected by the decline in orders. In the face of fierce competition among wood enterprises, in order to attract orders, the company has invested in and put into operation a system of machinery for processing furniture and household items from bamboo and rattan. This line has bamboo cutting, bamboo splitting, rough slat shaving, fine slat planing, glue rolling, pressing, to drying, steaming, and anti-termite treatment systems. The final products of the production line are bamboo cutting boards, tables and chairs, table tops, trays, boxes, bamboo floors... Having strategic products, the company has made efforts to find outlets, with many forms from direct sales to online, participating in e-commerce platforms such as Lazada, Tiki, Shopee, Sen Do... Along with that, the company always actively participates in promotional activities, introducing products at fairs in and outside the province. Through actively searching for markets, along with highly applicable products, eye-catching designs, products of Bamboo Vina Production and Trading Company Limited have been conquering demanding markets such as: USA, Japan, Korea... Currently, bamboo and rattan products have been introduced on the shelves of international e-commerce platforms Amazon, Alibaba.
Ms. Hoang Thi Luat, Deputy Director of Bamboo Vina Production and Trading Company Limited
Ms. Hoang Thi Luat, Deputy Director of Bamboo Vina Production and Trading Company Limited shared: "OCOP products are favored by domestic and foreign markets, because of their unique characteristics such as beautiful designs and high applicability. The factory's orientation is to invest in more modern machinery to meet the high demands of customers, meeting daily needs in life".
Through the review and statistics, Thanh Hoa currently has more than 200 wood and wood product processing and exporting establishments. In order for wood industry enterprises to maintain and develop the market in the context of fierce competition as today, the Department of Agriculture and Rural Development and the Department of Industry and Trade are guiding wood and forestry processing enterprises to closely monitor market developments to develop appropriate business strategies. At the same time, focus on improving product quality, completing legal requirements to increase export turnover and meet domestic consumption demand, increasing revenue for enterprises. Relevant provincial departments, branches and units continue to accompany enterprises in trade promotion, creating conditions for wood industry enterprises in particular and enterprises in the province to seek and expand markets. Along with that, wood processing enterprises in the province are also making efforts to reduce operating costs and reduce prices to maintain traditional customer markets such as the US, EU, and China. Focus on standardizing production processes, improving product quality, and moving towards green production to exploit more orders from new markets such as Asia and the Middle East.
Mr. Pham Van Thanh, Chairman of Thanh Hoa Province Timber and Forest Products Association
Mr. Pham Van Thanh, Chairman of the Wood and Forest Products Association of Thanh Hoa province said: "Currently in Thanh Hoa there are more than 200 wood processing facilities. The most important thing now is that we must build a value chain, including linking existing wood processing facilities and building large wood processing hubs, especially orders for refined wood, kitchen cabinets, decoration, interior, plywood for export, from which we can bring maximum value to the wood industry in Thanh Hoa".
According to statistics from the Thanh Hoa Department of Industry and Trade, in the first quarter of 2024, informal exports and exports to enterprises outside the province are estimated at 13.1 million USD, up 23.4% over the same period and equal to 21.9% of the plan. Of which, wood chip exports reached 131 thousand m3, up 76.8% over the same period. This is a positive signal showing signs of recovery compared to the same period. However, many economic experts believe that the difficulties of the wood industry will continue to last throughout 2024 due to decreased global consumer demand and many countries tightening trade defense to protect domestically produced products and goods. Therefore, Thanh Hoa wood industry enterprises need to continue to closely monitor market developments to develop appropriate business strategies at each time.
Source: Foreign Information Column April 4, 2024
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