The recovery rate of the wood industry is faster than forecast.

46% of wood businesses said that revenue in 2021 will not change compared to 2020, while 37% of enterprises plan to reduce revenue, and only 17% of businesses expect to increase revenue.

The results of the survey of wood processing enterprises of the Vietnam Timber and Forest Products Association (Viforest) have just been announced at the online conference "Wood industry enterprises strive to recover in the new normal context", organized by the Ministry of Agriculture and Rural Development in collaboration with Viforest on October 29, 2021.

EXPORTS OF WOOD PRODUCTS INCREASED BY MORE THAN 30%

Mr. Do Xuan Lap, Chairman of Viforest, said that the 4th Covid-19 epidemic has negatively impacted the entire wood industry in Vietnam, both in terms of export supply chain and import supply chain. The center of the epidemic is located in the Southeastern provinces, including the provinces: Ho Chi Minh City. HCM, Binh Duong, Dong Nai… This is also the center of wood processing of the whole country.

However, by this time the Covid-19 epidemic has basically been gradually controlled in provinces and cities; Many localities have gradually opened their doors and allowed the reopening of production and business activities. "The actual signals and results have shown that the recovery rate of wood businesses has been faster than we expected in the last 2-3 months. This is a very positive sign for the industry," Mr. Do Xuan Lap said.

Ts. To Xuan Phuc, an expert at Forest Trends, said that although the export turnover of wood and wood products in 9 months increased compared to 9 months of 2020, this growth was mainly due to the turnover from the first half of 2021.

Export turnover of wood products through each month of 2021

In 9 months, Vietnam's exports of wood and wood products reached 10.76 billion USD, up 30.5% over the same period in 2020. However, in September due to the impact of covid-19, the export turnover of the industry reached only 691.49 million USD, down 14.1% compared to August 2021 and down 38.3% compared to September 2020. Although there are no official figures, it is estimated that the export turnover of the wood industry has recovered to the same level as in October 2020.

In particular, furniture exports reached 4.83 billion USD, up 21.4% over the same period; Seats alone reached $2.68 billion in nine months, up 55.8 percent.

Wood chip exports in the three quarters reached 10.49 million tons, bringing in 1.33 billion USD, up 19.4% in volume and 16.6% in value compared to the same period in 2020. For tablets, the export volume was 2.63 million tons, reaching 299.60 million USD, up 18.3% in volume and 23% in value. In plywood and laminated wood, exports in the three quarters were 2.05 million m3, equivalent to 760.53 million USD, up 38.0% in volume and 49.1% in value. With peeling boards, exports in 9 months reached 1,579 million m3, equivalent to 151.65 million USD, up 298.8% in volume and 173% in value over the same period in 2020.

Export developments according to each product of the wood industry

Referring to the export market, Dr. To Xuan Phuc said that the value of exports to the US market reached 6.50 billion USD, up 40.5% over the same period in 2020. The next markets were: China reached $ 1.13 billion, up 23.4%;  Japan reached $1.01 billion, up 11.7%; EU reached 438.3 million USD, up 22.3%; South Korea reached $650.1 million, up 10.7%; The UK reached $193.44 million, up 23.9%; Canada reached $174.75 million, up 21.3%; Australia reached $110.61 million, up 3.3 percent.

In the nine months of 2021, 3,254 enterprises were directly involved in exporting wood and wood products, including 2,583 domestic enterprises and 671 FDI enterprises. Export turnover of domestic enterprises reached 5.197 billion USD, accounting for 48.1%; while the value of FDI enterprises reached 5.58 billion USD, equivalent to 51.9% of the total export turnover of the whole industry.

Value of wood industry exports to some key markets

MANY PRODUCTION RECOVERY SOLUTIONS

According to Viforest, the association conducted a quick survey of wood enterprises between October 10 and 21, 2021, showing that 46% of wood enterprises said that revenue in 2021 will not change compared to 2020, while 37% of businesses plan to reduce revenue, Only 17% of businesses expect to increase revenue compared to the previous year.

Businesses have implemented many solutions to restore production. That is, refining the apparatus, reducing fixed costs, investing in upgrading machinery. At the same time, there are good policies on supporting retention, attracting good workers by doing: building houses to steal workers, salary and bonus regimes. For epidemic prevention, strictly apply the regulations of the authorities, create a safe working environment, apply appropriate medical measures.

"However, we are also facing some great difficulties, especially in terms of competition, such as: Products produced in Vietnam can cost more than being produced on facilities in the country of consumption, or produced in neighboring countries in Europe. This requires us to have new strategies on the market, product types, technologies and labor," said Do Xuan Lap, Chairman of Viforest.

At the conference, the wood industry business community made three recommendations to the Government and ministries. For the health sector, there should be appropriate epidemic prevention guidance procedures, including the handling if there is F0, there should be a unified process from central to local.

Regarding labor policy, it is recommended that local authorities support enterprises to access labor resources and support workers.

Regarding material assurance, it is necessary to have a solution to stabilize input materials, have appropriate policy mechanisms to develop large timber plantation forests. At the same time, unifying the process of goods circulation, no faults in the transport stage

Speaking at the direction, Deputy Minister of Agriculture and Rural Development Le Quoc Doanh said that in recent years, all life and social activities have been heavily affected by the Covid-19 epidemic. The National Assembly and the Government have had many solutions on mechanisms and policies to support people and businesses to overcome difficulties such as policies on extending tax payment deadlines; reduction of corporate income tax; reduction of credit interest rate; Money support for many workers…

The Government has issued Resolution No. 128/NQ-CP unanimously directing the prevention of epidemics in the direction of "safe, flexible and effective control of covid-19 epidemic"; organizations, enterprises and business households are facilitated to actively develop production plans and take responsibility for implementing measures to ensure epidemic prevention.

"The Ministry of Agriculture and Rural Development is committed to continue to accompany and listen to the proposals and recommendations of wood industry enterprises to overcome difficulties and challenges, join hands to build and develop the sustainable, prestigious and branded wood and forest products processing and export industry in the domestic and international markets," he said. Deputy Minister Le Quoc Doanh emphasized.

Source: vneconomy.vn