Mrs. Dong Thi Anh (first from right), Anh Viet company’s representative, is speaking at the conference.

* Being difficult in many aspects

According to the Ministry of Trade, the export turnover of nationwide export woodwork processing industry in 2003 was 500 million USD, and up to 2 billion USD in 2006 ( the Government’s quota is for 2010). This is one of the industries gaining highest export turnover nationwide. Binh Dinh province is considered as one of the biggest export woodwork processing centers in Vietnam with the export turnover in 2001 gaining nearly 35 million USD, and increasing over 146 million USD in 2006 (19.6% increase averagely), accounted for 60% of the total province’s export turnover.

However, there have been many difficulties, limitation and inadequate in businesses’ export woodwork processing activities. Big problems include the mechanism, policy, market, raw material and human resource, competitive pressure, and integration, etc. According to many businesses, the development of export woodwork processing industry is quite high, but raw material resource is scarce, it is difficult to be active in importing wood, and the management and workforce resource are inadequate, etc. Trade promotion has been paid more attention but still in appearance, the workforce is scarce, there is struggle for workforce among businesses, and many businesses can’t be on their own initiative to find the raw material resource, especially spared raw material ( importing 95% raw material).

Alongside this, businesses also have difficulties in administrative formalities. For instance, according to Mr.Le Vy, director of  No.5 Quan khu joint stock company., “the seal of forest management hammer” for imported wood is out of date now, but still done with piles of documents, and complicated formalities, etc.

Furthermore, as for businesses, the biggest obstacle is the insufficient awareness of management agencies towards the export woodwork industry. Mr. Le Van Hong, vice-general director of Pisico Corp. analyzed: Being one of the industries having highest export turnover nationwide, but the export woodwork processing industry isn’t listed in the national programme like coffee, tea, or oil industries. Although the Government steered, almost central agencies and ministries haven’t got any specific solutions for the development of the export woodwork processing industry.

* Need synchronous solutions

With the above-mentioned difficulties, most businesses unanimously petition the Government, agencies, ministries, and Binh Dinh Province People’s Committee need to consider the export woodwork processing industry as one of key industries, giving more advantages for them, planning the afforestation for raw material, helping businesses in raw and spared material resources, enhancing the trading promotion, and consolidating the export woodwork processing and forestry product association, etc. Many businesses said that the export woodwork processing industry needed to be listed in a particular national programme, especially in penetration of European and the U.S markets; simultaneously, the Ministry of Trade should have an indirect supporting programme for these businesses in joining fairs and exibitions.

In addition, on setting up and promulgating policies for the export woodwork processing industry, the functional agencies and ministries need to coordinate synchronously, consistently, and feasibly, avoiding overlap. Many businesses also said that when Vietnam had integrated into WTO, Vietnamese businesses and the export woodwork processing industry in particular have to face severe competition from foreign ones. Domestic and provincial businesses, therefore, need to coordinate together to have enough power to compete. To gain this, the first thing is to consolidate Binh Dinh export woodwork processing and forestry product association.

Having the same idea, representatives of many companies such as Pisico Corp., Anh Viet, Tien Dat, Dai Thanh, Phu Tai- No.5 Quan khu, Phuoc Hung, etc. unanimously agreed that this association needs to be consolidated for more methodical operation, becoming the “same roof” of businesses. The association is not only a place for power-gathering of export woodwork processing companies and a mainstay of businesses, but also a businesses’ representative to deal with the copyright dispute, and lawsuit against dump, etc.

Simultaneously, to be active in raw material resources and spare parts, besides the strategy of afforestation for raw material, Binh Dinh should establish a joint stock company for raw material and spare parts to provide businesses, holding woodwork fairs. Alongside this, businesses need to suggest functional bodies to have supporting policies for the training of workforce in the export woodowork processing industry.

• Reported by Viet Hien
• Translated by Hong Quang