Timber industry today is facing many advantages and challenges.According to Association of Woodworking Pacific (BIFA), Vietnam’s timber industry ranked 4th among the top countries exporting timber and timber products leading. Next time, businesses need to increase productivity wood to more competitiveness in the market
CHALLENGES FROM RAW MATERIALS
Mr. Luong Ngoc Kim-Kim Thanh A Joint Director said timber and timber products from rubber wood market is now very popular. A lot of enterprises in Binh Duong wood are missing rubber wood resource service export orders. According to Mr. Kim some countries in the region such as Malaysia, Laos, Cambodia … has restricted exports of raw materials to ensure production of raw materials in the country.
China also prohibits the exploitation of natural forests, demand for raw materials for production of this great nation. The last time many companies wood fidgety when the Chinese traders to boost purchasing rubber wood materials.
Mr Huynh Quang Thanh-sharing BIFA chairman, DN timber country has suggested the government should issue sanctions needed to keep domestic raw materials. Anyone aware of the export of raw materials provide less value than making products for export. But this will affect the interests of the farmers participating in reforestation, as rising raw material prices can not prohibit farmers sell raw materials for foreign traders.
Rubber wood raw material prices have increased 20-30% now compared with the same period in 2016, along with providing lumber market in North America, northern Europe, China … also increased from 6-13%, the so companies need to be proactive about the long-term raw materials sources. Not active ingredients will cause a lot of difficulties for the enterprises.
Mr Luu Phuoc Loc – director Co. Mtrade adds, firstly businesses can only use wood Melaleuca on some details of the products, rubber wood materials are essential for the production activities of enterprises. According to the Vietnam Rubber Group, liquidated rubber wood sources to peak in the period 2020-2025 with the volume of 12,000 hectares per year, over the period of rubber wood material sources will decline sharply to 6,000 hectares each year. While waiting for the government to adjust the development strategy of growing areas of wood materials, enterprises should accelerate the improvement of labor productivity to reduce costs, production costs increased the competitiveness … when the source material is gradually become scarce.
ACTIVE RESTRUCTURING AND LINKS
Mr Liem Nguyen-Lam Vietnamese wood Company, according to statistics, labor productivity is very low throughout the country just by 1/10 compared with South Korea, Malaysia, 1/5, 1/15 than Singapore … therefore the “restructuring” of enterprises, personnel adjustments to increase labor productivity is much needed employment in the current context.
According to Nguyen Phuc BIFA Secretary-General, there are many measures to promote productivity growth: expansion of plant, machinery and equipment investment; enhance the quality of labor, quality of governance: continuous innovation of new products … However prioritizing investment pouring is not the most effective measures.
The fact that some timber companies in Binh Duong with rudimentary equipment could produce high labor productivity, greater efficiency and profitability. These companies need to determine whether their businesses have exploited all available potential, yet weak stitching, sewing does reduce labor productivity to facilitate the restructuring, restructuring enterprises.
Mr Huynh Quang Thanh said, BIFA has made trips to Italy learning experience. The survey showed that the size of their manufacturing plants inferior even some wood enterprises of Binh Duong. Machinery and technological equipment of Italian enterprises not than domestic firms, but their productivity is very high.
The main reason is the Italian furniture sector are assigned very professional. Each enterprise producing only undertake a detailed two of the production chain, so even if a large-scale group of enterprises Italian factory was much smaller than the timber DN Pacific. Many cost-saving factories, labor … the Italian wood industry under the top of the export market.
The idea of promoting links in the context of the timber industry is in trouble all aspects are wood enterprises in Binh Duong are approved. According to BIFA upcoming link will gradually work to be carried out, firstly focus on raw materials for production. The next step is to learn BIFA link model of Italy, assignment and specialization product detail … for each DN. This linking can only be successful when the business community toward the common wood is wood industry throughout the country, but also puts faith in each other.
WOOD VIETNAM No. 93