Product diversity
According to the Department of Industry and Trade, the province has 390 enterprises and facilities processing planted forest wood. Of these, 8 are large-scale enterprises, processing wood for export to the EU, US and Japanese markets.
Production of plywood for export at Sao Viet Tuyen Quang Company Limited.
Woodsland Joint Stock Company is the largest enterprise in Tuyen Quang province operating in the field of processing interior and exterior wooden furniture. Since the beginning of the year, the company has produced more than 70,000 m3 of wood of all kinds, achieving revenue of 1,300 billion VND, contributing more than 47 billion VND to the budget, creating stable jobs for more than 2,500 workers with an average salary of 6 million VND/person/month. Mr. Ha Van Chinh, Deputy General Director of Woodsland Tuyen Quang Joint Stock Company, said that in order to adapt to the export market, the company has continuously changed its designs according to each order that partners need. This requires staff and workers to change their production mindset to keep up with the work, but in return, there are more orders. Up to now, the company has had orders until the end of 2024, expecting to reach the revenue target of 2,700 billion VND.
Thuan Gia Thanh Co., Ltd. An Thinh Industrial Cluster (Chiem Hoa) started operating in 2018, producing high-quality industrial film-coated plywood for export to the Korean and Taiwanese markets. Ms. Suy Thi Moi, Director of Thuan Gia Thanh Co., Ltd. said: “The unit has invested in the most advanced plywood production equipment today, combined with the good quality of the province's planted forest wood, the company's plywood products are highly appreciated by the Taiwanese market. After 6 years of exporting, the company has had stable customers, the export output in the first 6 months of the year is over 5,000 m3, striving to reach 10,000 m3 or more by the end of 2024, with revenue of about 50 billion VND, creating jobs for nearly 100 workers".
Ms. Ma Thi Hoai, a worker who has worked for 5 years at Thuan Gia Thanh Company Limited, said: "I am very happy because the company has stable jobs. We are currently working 2 shifts/day, with income ranging from 6-8 million VND/month depending on the working days."
According to the assessment of the Ministry of Industry and Trade, in the first 6 months of 2024, the picture of production, processing and export of planted forest wood has brightened up a lot. In the first 6 months of 2024, the export value of the wood industry was about 20 million USD, an increase of about 20% over the same period in 2023. Focusing on the highest value exported wooden furniture products, about 7 million USD, plywood reaching about 5 million USD, pulp about 2.85 million USD, base paper about 2.7 million USD...
The export market for Vietnamese wooden products is brighter, including Tuyen Quang wooden products which will continue to expand to many countries and territories. This will be an opportunity for the forestry economy - the province's strength - to accelerate.
Workers of Woodsland Tuyen Quang Joint Stock Company produce wooden furniture for export.
Still challenging
From the end of 2023, the wood export market has warmed up, with orders doubling compared to the end of 2022. However, according to the Ministry of Industry and Trade, in 2024, the global trade outlook is not forecast to be very bright, continuing to have an unfavorable impact on the export activities of many industries, including wood and forestry products. In addition, geopolitical conflicts between Russia - Ukraine, Israel - Hamas and the Red Sea issue are directly disrupting the supply chain, escalating transportation and delivery costs.
Major export markets are increasingly enforcing import regulations as an important technical barrier to many groups of products from exporting countries. For example, European countries (EU) have required the Carbon Border Adjustment Mechanism (CBAM), effective from October 2023. Accordingly, goods imported into the EU market will have to bear additional costs and convert to a less emission-intensive production model to earn carbon credits.
Huiling Wood Products Vietnam Co., Ltd. in Thang Quan Industrial Park (Yen Son) is a company with Chinese investment capital, with more than 40 years of experience in the field of manufacturing and exporting wooden furniture. Mr. Tiet Hieu Hoa, General Director of Huiling Wood Products Vietnam Co., Ltd. said: “Currently, the unit is exporting directly to the US market. This is the most stable market in the past 3 years, showing good signs of recovery for the wood industry. However, transportation costs have increased by about 30% compared to before due to geopolitical conflicts between Russia - Ukraine, Israel - Hamas and the issue in the Red Sea. In the first 6 months of 2024, the unit exported 7,620 m3 of various products, with revenue reaching over 133 billion VND, paying 13 billion VND to the State budget, of which transportation costs alone account for about 12% of revenue. Therefore, the unit's profit is not much. The unit is making every effort to maintain production, retain customers, and create jobs for workers."
Mr. Pham Xuan Huong, Chairman of the Board of Directors of Tuyen Quang Mechanical Joint Stock Company, said that in previous years, the company's oil-rubbed wood and flooring products were only exported to China. However, this year, the foreign markets do not have demand for these products, so the company's products are mainly sold in the domestic market, which also has certain difficulties. In the future, the company will study and invest in more production machinery in the direction of diversifying products to have an export market.
Reality shows that the value of the wood industry for industrial and forestry production in the province is very important, making a great contribution to the economic and social development of the province. However, the wood industry is also under a lot of pressure from the export market, requiring businesses to have flexible production and business development strategies to develop sustainably.
Source: https://baotuyenquang.com.vn/nganh-go-thich-ung-voi-thi-truong-xuat-khau-196019.html
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