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Imported lumber at Quy Nhon Port. Photo K.T |
The Vietnamese export wood processing industry has dramatically developed over the past three years. However, Binh Dinh’s export wood processing industry still lacks the stability, particularly the raw materials for production.
Difficulties
There are about 100 wood processing enterprises in Binh Dinh, including 4 State-owned ones. 80 percent of raw materials are made up by imports from international and regional countries, accounting for 60 percent of cost. This has badly affected the domestic production industry.
Also, the competitiveness and processing capacity are other difficulties affecting the development of export wood processing industry in Binh Dinh.
It’s every man for himself when enterprises have to import raw materials for production. Large-scale enterprises can directly import raw materials from other countries; meanwhile, small-scale ones have to depend on importers.
Currently, costs of imported lumber have increased averagely 10-30 percent. Small-scale enterprises, therefore, frequently suffer the raw materials shortage.
Due to the inefficiency of afforestation planning, the domestic raw materials haven’t met the development of export wood processing industry.
Types of timber are not varied. The afforestation and management haven’t been licensed to meet the demand of import markets. The raw materials exploitation and use are inadequate. These showed disadvantages of domestic raw materials.
* Need to set up a hub
Binh Dinh has many advantages, such as Quy Nhon port or highways 1A and 19. These can be favorable conditions for Binh Dinh to become a hub in import and export.
According to experts, the population increase and economic growth will require a large number of agricultural and forest products, particularly wood products.
The Vietnam’s export wood processing industry, including Binh Dinh’s, now has many advantages. Also, Binh Dinh is at the centre of the wood market, having many favorable conditions to strengthen the wood products purchase with other markets.
The development of wood market is expected to impact on the establishment of technology market and cooperation among countries, creating favorable conditions for Vietnam’s export wood processing industry.
It’s, therefore, necessary to establish a hub of raw materials to sustainably develop the wood processing industry, reducing the costs and increasing the competitiveness.
A hub will provide the raw materials for enterprises in Binh Dinh and neighboring provinces, helping them to promote the processing capacity, reduce the cost, and improve the competitiveness.
The establishment of hub of raw materials also helps prevent the illegal competitiveness among enterprises. The hub, however, is required to ensure the source of raw materials and forest products, avoiding the illegal timber purchase.
An association of wood and forest product export and production was established in Binh Dinh. It needs to play a key role in setting up a hub by calling on its members as well as wood processing enterprises to make a financial contribution to establish a join stock company or limited liability one. Annually, it will import the raw materials to meet the enterprises’ demands.
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