The world’s woodwork market is still subject to fluctuation this year. The local woodwork exporters need to make all-out efforts to overcome the difficulties. Vice Chairman of Forest Products Association of Binh Dinh (FPA Binh Dinh), Le Van Luong, talks more about the issue.
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Luong (sitting in the middle) talks with his foreign partner. Photo V.H
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Could you brief us on the operation of woodwork exporters in Binh Dinh?
The province’s woodwork exporters have to face many challenges in recent years, including trade and technical barriers to the U.S and EU markets, the global financial crisis and economic recession, as well as disasters.
However, they have strived to overcome the difficulties, stabilizing their operation and expanding new markets.
The operation of businesses in Binh Dinh, therefore, has kept rising. The export turnover value of forest products was estimated to reach USD145.4 million in the first six month this year, accounting for 71.3 percent of the yearly target and a rise of 50 percent against the previous year’s corresponding period.
Many woodwork exporters also saw a surge in export turnover, such as Tien Dat (US$18.1 million), Dai Thanh (US$9.5 million), Phu Tai (US$6.9 million), PISICO (US$4.1 million).
How about the shortcomings?
The biggest disadvantage is that most enterprises focus on outdoor wooden furniture which is only produced within 6-8 months each year. Moreover, its customers who are from the U.S and European countries often require high quality products and other standards.
Also, manufacturing outdoor woodwork asks for a large amount of working capital, aiming to meet the demand for the long-time timber storage and purchase.
Are woodwork exporters still facing many difficulties this year?
The world’s woodwork market is still unstable in 2010. On one hand, the domestic market will continue to see negative changes in the remaining months. On the other hand, the devaluation of the EUR in relation to the USD will also make retail groups lower or not increase the cost price when purchasing Vietnamese wooden products with USD.
Besides, as the dong tends to increase in value as compared to the US dollar, woodwork exporters have less favorable conditions.
Alongside these, it also seems that the input cost has gone up in recent months, whilst, the price for wooden products exported to the EU market sees no increase, let alone the shortage of laborers and the surge of manpower price.
Vietnam’s woodwork exporters have to continue facing trade and technical barriers, particularly the Lacey Act. Notably, the exporters couldn’t benefit from preferential policies anymore while the interest rate and the price for land lease have dramatically increased recently.
What have FPA Binh Dinh done to back woodwork exporters?
FPA Binh Dinh always provides the enterprises with the update information about market and new seasons as well as other issues, meeting the mutual benefits between the manufacturers and providers.
We will also coordinate with our members and other domestic and international organizations to open short-time training courses related to the FSC CoC programme, woodwork design, and EU market access requirement.
The manpower training will be given special attention. Suitable training courses are expected to open annually, aiming to meet the demand for qualified laborers in the woodwork sector.
The FPA Binh Dinh planned to boost the development of indoor furniture production, helping maintain the regular operation of businesses and create stable income for laborers.
The association was also assigned to build the “Developing indoor furniture production for the 2010-2015 period” project, aiming to support woodwork exporters.
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