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Bac Giang’s wood export market is brighter with more orders

BAC GIANG - For about a month, many businesses in Bac Giang province in charge of wood producing and processing for export have received more orders after a quiet period. Although there are still many difficulties, this is a bright signal for a warmer consuming market and an opportunity for them to restore the growth.

Sign of improvement

Recently, the export market for wood pellets, wood chips and pressed wood... has prospered. Many wood processing facilities have resumed operations, recruited more workers to increase the capacity and compensate the previous shortages.

Bac Giang province, wood export market, brighter with more orders, wood producing and processing, warmer consuming market,  restore the growth

A wood processing facility for export in Vo Tranh commune (Luc Nam district).

Hung Manh Forest Products Processing Company Limited in Gia Khe Industrial Cluster, Doi Ngo town (Luc Nam district) specializes in producing all kinds of film-coated plywood. At this time, the company has hired more workers and operated at 80 percent of the capacity. Their employees work full day in the month. The company exports about 30 containers of goods per month on average.

Although unable to complete the set goals and annual plans, in order to meet market demand and take advantage of this opportunity to maintain customer relationships, Hoang Lam Joint Stock Company in An Ha commune (Lang Giang district) starts to employ workers again to increase operating capacity, gradually overcome difficulties, ensure stable income for nearly 100 employees.

The businesses now also have favorable sources of raw materials for production inputs. The price of wood materials decreased compared to previous years, partly compensating in the context of low export prices of products.

Continue to overcome difficulties

Although there is prosperity, difficulties for wood processing and exporting enterprises have not yet ended.

Ha Minh Quy, Deputy Director of the Department of Agriculture and Rural Development said: ‘‘The wood market is gradually improving again thanks to the demand of some countries that have opened their doors to Vietnamese wood products. Also, all levels and sectors from the central to local levels have exerted efforts in directing and implementing many solutions to overcome difficulties such as encouraging and supporting businesses to build their brands for the wood processing industry; creating conditions for businesses to promote trade, develop markets in new and potential areas such as Australia, Russia, Canada, India, Africa, South America and online sales"; implementing bilateral agreements and treaties that Vietnam has signed...

There are currently 992 forest product processing and trading establishments in the province, including 77 organizations, 915 households and individuals. It is expected that the wood export value in the last 3 months of 2023 will reach about 800 billion (up 71.6 percent compared to the average in the first months of the year); the whole year's export value will reach about 2.2 trillion VND (equal to 92 percent compared to 2022).

The legal system is also gradually improved, contributing to controlling and ensuring the legal origin of wood, thereby removing difficulties and obstacles and

In addition, the regulation that the local forest ranger agency can confirm the origin of forest products for planted forest timber at the request of the forest product owner is also a key to remove the bottlenecks for wood export enterprises.

There are currently 992 forest product processing and trading establishments in the province, including 77 organizations, 915 households and individuals. It is expected that the wood export value in the last 3 months of 2023 will reach about 800 billion (up 71.6 percent compared to the average in the first months of the year); the whole year's export value will reach about 2.2 trillion VND (equal to 92 percent compared to 2022).

Taking advantage to rapidly recover the wood processing, the businesses need to exert efforts to adapt and renovate themselves, particularly focusing on improving the processing techniques and applying high quality standards; promoting research and development of valuable and unique products, thereby attracting the attention of international and new markets.

Sustainable management and exploitation of wood is an important factor to help wood products export smoothly. Enterprises and state agencies build a sustainable forest management system and wood supply chain according to international standards such as FSC.

The province also pays due attention to investing in training and developing high-quality human resources, helping improve productivity, product quality and management efficiency while boldly restructuring the factory with unnecessary costs cut and productivity increased.

Local authority needs to support enterprises in the wood industry and agriculture sector to further tighten coordination with competent agencies to direct and grasp domestic and foreign consumption markets, promptly provide information for wood processing enterprises toward active product consumption.

Nguyen Huong
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Bac Giang province, wood export market, brighter with more orders, wood producing and processing, warmer consuming market, restore the growth
 
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