In addition to the good land areas concentrated in Ham Tan, La Gi, Ham Thuan Nam that can develop large timber forests, the remaining areas in the province such as Bac Binh, Tuy Phong can develop small timber material areas.
Efforts to switch to large timber
Recently, Binh Thuan Forestry One Member Co., Ltd. and Hao Hung Co., Ltd., the unit that received the investment memorandum at the Planning and Investment Attraction Announcement Ceremony on February 28, had a working session with each other. The content is about cooperation in investment in forest planting and investment in wood processing factory projects in Binh Thuan province, aiming to create a closed value-added chain from nursery - forest planting - harvesting - processing wood for export. Most specifically, investing in converting large timber plantations for some suitable areas by investing capital to retain areas that are 5-6 years old to be exploited according to the company's annual approved plan. On a larger scale, it is cooperation in investment in building factories to process products from planted forests such as specialized wood processing factories for interior and exterior products for export suitable for the business line; Factory processing high-quality plywood for interior and exterior products: 50,000 m3 /year; Wood chip factory: 50,000 dry tons/year. Further, Hao Hung Company Limited will study the criteria and capacity according to the instructions of the relevant agencies to consider registering to become the second member of Binh Thuan Forestry Company.
Although it is just a plan, it has more or less opened up the prospect of implementing the Company's restructuring project for the period of 2021 - 2025 according to Decision 2484 of the Provincial People's Committee in the right direction, which will create a breakthrough. Because this is a partner that pays attention to investing in large timber forests. This destination, with the current situation of the company, is considered a bottleneck in production and business, taking advantage of the company's 9,340 hectares of forest according to FSC international standards, certified by GFA with FM/CoC forest certification since 2017 to attract investment and the forest area in Ham Tan alone has very high quality, meeting the conditions to create a breakthrough as expected. However, this strength has not been able to be promoted, because every 5th and 6th year, the company has to exploit, even though it knows that it only needs to extend for 2-3 more years to increase the profit value very high through deep processing and selling to earn money.
Mr. Le Ngoc Cuong, Chairman of Binh Thuan Forestry One Member Co., Ltd., said that due to the pressure of taking care of the company's employees' lives as well as implementing the annual plan, after 5 years of planting, the forest must be regulated for consumption to meet the cash flow needs according to the plan. Although it is difficult to mobilize capital and find suitable joint venture partners to grow the forest longer; however, up to now, the company has made efforts to convert small wood forest business to large wood business of nearly 50 hectares and planted large wood business forest with sparse density of 22 hectares. The aim is to create a source of raw materials for processing indoor and outdoor wooden furniture in and outside the province, gradually replacing raw wood from natural forests and imported raw materials. In the near future, the company will boldly adjust the annual production and business plan associated with the sustainable forest management plan and submit it to the relevant authorities for approval and appropriate adjustments.
Flexible "the land suits the tree"
The story of gradually replacing raw materials purchased from other provinces with imported raw materials is emphasized in the Project on developing wood raw material areas and sustainable processing in Binh Thuan province for the period 2021 - 2030, which will be approved by the Provincial People's Committee at the end of March 2024. The current state of wood processing in Binh Thuan, the results of interviews with 203 establishments with information answered in the project show that wood processing establishments in the province mainly use domestic wood sources (accounting for 63.5%), from imports (accounting for 36.5%). Through specific analysis of import forms, 24% of enterprises import directly, 74.7% of establishments buy imported wood through other companies or buy back through enterprises in other provinces. Only 1.3% of establishments use both methods of direct import and purchase imported wood through other companies.
This shows that the source of raw materials exploited in the province is not enough to meet the needs of wood processing facilities in the province. Especially with the import of wood materials, which has caused many negative impacts on the stability of production and business such as the price of raw materials often fluctuates, it is difficult to take the initiative in the source of raw materials, not knowing the origin and quality of imported raw materials, reducing the competitiveness of enterprises. The main reason is that the planning of raw materials in the province is still limited; there is no policy to support enterprises in building raw material sources; the construction of a wood processing network in the whole province has not received attention...
Therefore, with 10,544 hectares of existing plantation forests of Binh Thuan Forestry One Member Co., Ltd., which have been assessed by GFA to be re-certified with FSC FM/COC forest certification for the next 5 years (2023 - 2027), it is considered a "reserve" for proactively sourcing raw materials for export processing in the coming time. Because forest certification is a favorable condition for plantation wood materials to have the opportunity to be included in the supply chain, exporting to some demanding markets such as the EU...
Meanwhile, the wood product market is currently not only aimed at developing large wood materials for processing interior and exterior wood products, but also developing raw wood for paper, pellets, etc. As in 2023, the trend of consuming forest wood as the main raw material for green energy in the production of exported pellets, that is, small wood forests are chopped into pellets to replace coal, etc. is an opportunity for poor land areas in Binh Thuan. In fact, Binh Thuan has a very diverse land fund for developing wood materials. In addition to the good land areas concentrated in Ham Tan, La Gi, Ham Thuan Nam, which can develop large wood forests to create diverse raw materials for deep processing, the remaining areas in the province such as Bac Binh, Tuy Phong can develop small wood material areas to serve the production of products such as pulp, pellets (developing green energy sources). In these places, with harsh climate conditions, drought, and arid land, planted forests can only grow for a maximum of 5 years. If not exploited, the trees will begin to die, making it impossible to trade large timber. The total area for developing small timber resources by 2030 in the whole province is 26,156 hectares.
Currently, Binh Thuan Forestry One Member Co., Ltd. is reviewing and evaluating the current land status of the entire company, gradually allocating and planning regions and sub-regions to ensure that they are suitable for the conditions of "each land has its own tree". At the same time, arranging and shaping the long-term development of each planted forest area to suit the planning of the raw material area for planted forest in the entire Binh Thuan province according to the approved project.
According to the project, from 2021 to 2030, the whole province will develop a large wood material area of 1,000 hectares, specifically in Ham Tan district 500 hectares, Ham Thuan Bac 100 hectares and La Gi town 400 hectares. Of which, the period up to 2025 is 300 hectares and the period up to 2030 is 700 hectares. This entire area is under the management of Binh Thuan Forestry One Member Co., Ltd.
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