According to experts, Quang Ninh is a place that has all the favorable factors to become a center for processing, importing and exporting wood and forest products to the international market. However, up to now, the development of the province's wood processing industry has not developed as expected.
There are currently 278 forest product processing establishments in operation in Quang Ninh province and they have made many important contributions to the development of the forestry sector. In recent years, the province's wood processing has received attention from enterprises for investment in innovation in equipment, production lines, science and technology, and training of human resources for the forest product processing industry. The province's wood and wood product export turnover has recorded steady growth over the years. Specifically: In 2020, it reached over 221 million USD; in 2021, it reached 238 million USD; in 2023, it reached 242 million USD. In particular, the main export markets are Japan, China, and Korea, gradually moving towards the EU market.
It is noteworthy that although the province has a great advantage in terms of transportation system and the planning of industrial parks and industrial clusters has been proactively implemented by the province very early, the reality of the wood processing and forestry industry in the province still has many shortcomings and limitations. Currently, most wood processing establishments produce wooden furniture and sawn timber on a household scale, small-scale, located in residential areas, operating spontaneously without planning or development orientation. The number of workers is mainly low-skilled, seasonal, and not professionally trained. The companies are small-capitalized, and there is no connection in business. The technology is backward, mostly raw processing, monotonous products (mainly wood chips), and low product value.
In particular, many businesses have not yet thoroughly understood the legal regulations and legal basis in the process of carrying out production and business activities, especially the regulations in Decree 120/2024/ND-CP of the Government issued on September 30, 2024 on promulgating amendments and supplements to a number of articles of Decree 102/2020/ND-CP dated September 1, 2020 of the Government regulating the Vietnam Timber Legality Assurance System, leading to many difficulties and problems regarding the records of forest product origin in exploitation, circulation, transportation, processing and export.
A representative of Quang Ninh Wood Chip Import-Export Company Limited said: According to Decree 120/2024/ND-CP, from November 15, 2024, when carrying out procedures to export wood chips originating from domestically grown forests to non-EU markets, businesses need to have confirmation from local forest rangers. Therefore, we hope that the confirmation will be implemented quickly because when a contract for the sale of goods has been signed with a foreign partner, if the goods have not been loaded onto the ship on the delivery date due to waiting for forest rangers' confirmation, the contract will be fined due to late delivery, which is a huge loss for the business.
Many other wood processing enterprises also said that the unit is struggling to complete the necessary documents for enterprises and individuals purchasing raw wood, purchasing and producing wood chips, regulations on subjects that must confirm the list of origins of planted forest wood, and classifying enterprises. At the same time, they hope that the province will soon have a mechanism to support enterprises in linking, cooperating, applying science and technology, building and applying product chain certificates; prioritizing land areas for wood processing enterprises, especially raw material storage and warehouse areas; having a mechanism to support the chain of linkage in wood processing with the core being wood furniture factories in industrial parks and industrial clusters, building and supporting the chain of linkage of non-timber forest products with some key non-timber forest products of the province; policies to support wood processing establishments moving into industrial parks and industrial clusters, etc.
To strengthen the wood and forestry processing industry in the province, Mr. Mac Van Xuyen, Head of the Forest Protection Department, said: The Department is coordinating with relevant agencies to develop and perfect mechanisms and policies to support capital, land, and apply scientific and technological advances to the production and processing of wood and non-timber forest products. On the other hand, in order to help businesses fully understand and properly implement the Regulations on the Vietnam Timber Legality Assurance System, in early November 2024, the Department also organized a Conference to deploy Decree 120/2024/ND-CP with the participation of experts from the Forest Industry Research Institute (Vietnam Forestry Science Institute). Another solution that we think is very important is that businesses need to soon establish the Quang Ninh Province Wood and Forestry Processing Association. Because only the Association can join the common playground of timber associations and forestry associations nationwide. Thereby, there are many opportunities to find partners inside and outside the industry to form joint ventures and partnerships to share orders, reduce product consumption costs, cooperate in training human resources as well as provide and share legal information, markets, customers, technology, suppliers... to support members in planning business strategies. The Forest Protection Department is ready to accompany and assist businesses in implementing the procedures for establishing the Association.
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