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Workers of My Tai Co., Ltd produce export wood products. Photo N.T |
At present, there are 102 export wood processing enterprises in Binh Dinh with the total capacity of over 150,000 cubic meter per year. What can be done to make the sector stably and sustainably develop is of a great concern.
Limitations
The export wood processing sector is a provincial key export item, but its scale, output, and export turnover are still limited, compared with other provinces, such as HCMC, Dong Nai, and Binh Duong. The main reasons are that over 90% of the raw material is mainly imported, and the supply of other material for production comes from HCMC and other customers.
Besides, most of wood processing enterprises in Binh Dinh are small and medium-sized and technologically backward. They, therefore, can't meet big contracts. Enterprises mainly focus on producing according to customers' orders instead of paying attention to advanced technologies and newly designed models.
Not many of them produce indoor wood products. Alongside this, promotion activities haven't been intensified.
By now, the human resource for the export wood processing sector proves problematic. Many enterprises are lacking highly qualified staff and skilled workers. They don’t closely coordinate and support each other; meanwhile, the wood processing association hasn’t played as a firm mainstay for enterprises to build up strength in a serious competition.
Solutions
The output of refined wood products is planned to attain 350,000 cubic meter per year, of which the indoor wood products account for 50%, and the export turnover will reach US$480 million by 2020, according to the industry development scheme approved by Chairman of Binh Dinh Province People's Committee. To meet the long-term target, it needs to carry out the following solutions.
The supply of raw material must be ensured. The development of factories in Binh Dinh, neighboring provinces, and southern provinces of Laos providing the raw material for wood processing industry need to be encouraged. And the investment for developing technologies in artificial plank processing should be promoted to gradually reduce the imported planks.
The infrastructure of vocational training schools also need to be upgraded to supply the highly skilled labor force to enterprises. Enterprises must apply advanced technologies and focus on designing new models.
The trademark of Binh Dinh's wood products needs to be widely advertised by strengthening promotion activities and market expansion. The cooperation among associations aims at penetrating the distribution systems in foreign countries and neutralizing measures against dumping.
The role of Binh Dinh wood processing association should be promoted in order to reinforce the link among enterprises and the administrative reform continues being conducted to make enterprises run smoothly.
The export wood processing sector in Binh Dinh has particular potential and advantages. It can, therefore, resolve problems for a stable and sustainable development.
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Binh Dinh, HCMC, Dong Nai, and Binh Duong are provinces where the wood processing sector strongly develops. In Binh Dinh, the annual growth of refined wood products is 25.8% in the 2001-05 period. In 2006, the output was 137,800 cubic meter, a rise of 27% over 2005, the industrial production value of wood processing accounted 19% of the total industrial production value, and the export turnover recorded at US$149 million, accounting for 61.5% of provincial export turnover. In the first nine months of 2007, the output was 123,810 cubic meter and the production value was up 51% over 2006. Binh Dinh's wood products have been exported to over 55 countries and territories in which European market accounts for 89%. | | 
