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HomeSocio-Economic information

Find the solutions for sustainable development of wood-processing industry

Posted Date: 11/12/2018
​Dong Nai is one of the two major wood industry centers in the country. Exporting wood products plays a very important role in the province's trade balance as well as the country. Besides, the wood industry has created many jobs, especially for rural workers in the province.

Dong Nai is one of the two major wood industry centers in the country. Exporting wood products plays a very important role in the province's trade balance as well as the country. Besides, the wood industry has created many jobs, especially for rural workers in the province. 

Recently, the provincial People's Committee held a conference to find solutions for fast and sustainable development of wood processing and forestry products for export to further develop Dong Nai's strengths.
 
300,000 workers working in the wood industry
 
According to the Department of Agriculture and Rural Development (DARD), wood processing in Dong Nai has had a long-term development. In recent years, thanks to economic integration and transformation of the production model, the wood industry has grown in both production capacity and quality. 
VA-101218-TimGiaiPhatPhatTrienCongNghiepCheBienGo.jpgThe wood industry continues to be identified as a key manufacturing and export sector of the province.
 
In the province, there are 275 enterprises and 535 wood products processing plants distributed in all localities. In particular, the concentration in some localities such as: Bien Hoa with 280 units; Xuan Loc, Trang Bom each locality has more than 100 units ... The wood-processing industry creates jobs for about 110,000 workers in production facilities, and there are about 150,000-200,000 workers in forest plantation, exploitation and transportation. The contribution of the wood industry to the issue of employment, especially rural workers, is very important.
 
Along with the employment problem, the wood industry increasingly contributes to the export turnover and the province's annual export surplus. At present, enterprises and wood plants produce about 1.2 million m3 of products per year. In addition to the domestic market, wood products are mainly exported to countries such as the United States, Japan, South Korea and China. Specifically, in 2017, Dong Nai exported nearly $1.3 billion of wood products. In particular, the United States is the largest market accounted for about 60% of the value, followed by South Korea, Japan and China. Meanwhile, import of wood products is only about $243 million. According to the statistics of the first 9 months of 2018, the wood industry has the export surplus with $814 million, is the largest export sector of the province. "The enterprises, especially large and medium enterprises, have paid much attention to investing in modern production lines in order to improve their production capacity and improve their designs in line with the market trend. Some enterprises have become large enterprises in the country such as Tan Vinh Cuu, Scansia Pacific, Shing Mark ... create links from plantation to production and export.", Deputy Director of the Department of Agriculture and Rural Development - Dang Hong Tang said.
 
In 2025, Dong Nai wood export will achieve $2.6 billion
 
The mission of the Dong Nai wood industry is to ensure export value increases by 10% annually. Specifically, 2018 must reach at least $1.3 billion; By 2020 at least $1.6 billion and strive to reach $2.6 billion in 2025. About the structure, the wood industry should continue to focus on key commodities such as internal, external timber and non-timber forest products. The market will continue to be extended to the traditional markets of the United States, Japan, China, Korea, EU...
 
To make the wood industry development in right orientation
 
Playing an important role in creating jobs, adjusting the balance of import and export ... but in general, Dong Nai wood industry, as well as the country, is facing many difficulties. The majority of production facilities are small-scale and their production capacity is not enough to meet the demand, mainly for exporters. In addition, in fact, many policies to support enterprises have not been implemented. General Director of Ho Nai Company Limited, Nguyen Van Quy said that nowadays, the biggest difficulty of wood processing enterprises is the production area. Most of them are small and medium enterprises, located in residential areas, therefore, the area is narrow and difficult for production, especially for investment in equipment.
 
In addition, the procedures for building production sites are difficult and have to wait for a long time. Mr. Quy said, Ho Nai Co., Ltd. has a ground and the Land Use Rights Certificate, however, it takes 2 years to complete the paperwork and go into production. Some businesses also reflected that the revolving loan for wood processing was still inadequate. According to the regulations, the bank only lends money within 5 years, but with trees, only 5 years to cut trees to rotate capital, the value of exploitation will be low and the wood is not qualified to produce. Therefore, it is necessary to have specific policies for the wood industry when borrowing loans from banks.
 
Many ideas that in order to develop sustainable the wood industry, there should be close links between enterprises in supporting and sharing production experiences. However, this connection is still weak; many businesses are confused with the policies and regulations of the law…This would require state agencies to be a connector to promote the advantage of the country’s wood industry centers. Based on the recommendations of the business, Vice Chairman of the provincial People's Committee, Vo Van Chanh has assigned the DARD to investigate the real situation of the wood processing industry. And based on that, a Project for sustainable forest product production and processing will be built in Dong Nai. In addition, the DARD and Department of Industry and Trade soon review and set up new industrial clusters for the wood industry to relocate small production facilities to better manage the environment.
 
Wood Industry Associations should play a more important role
 
"The Association of Enterprises and Dong Nai Handicraft and Wood Association should improve their roles and functions; Create links, connection between businesses. As the association is the connector between enterprises, provide enterprises with the regulations and policies of the State on production activities of enterprises." said Vice Chairman of the provincial People's Committee, Vo Van Chanh.
 
To focus on developing the qualified plantation forests
 
Deputy Director of Department of Agriculture and Rural Development, Mr. Dang Hong Tang said that one of the solutions that the industry is paying attention to is planting forest to create raw materials for production. Accordingly, efforts to source timber from plantations in the province must meet at least 25% of demand for wood production. Striving to 2025, all planted forests in the province will be certified for forest protection (FSC). Dong Nai currently has 200,000 ha of forest and forestry land, including 40,000 ha of protection forest, 35,000 ha of production forest, nearly 40,000 ha of rubber trees and a significant area of diversified trees. 
Van Gia