Binh Dinh strives for first position in forest - product export

In 2020, the world economy has suffered negative impacts due to Covid-19 pandemic. In the first quarter of 2020, wooden - product export markets were badly affected which caused many difficulties for wood processing industry for export.

In the second quarter of 2020, thanks to partial recovery of export markets, wood processing industry for export of Vietnam has begun to overcome difficulties. As the result, Vietnam’s forest - product processing enterprises have tried to prevent Covid -19 and at the same time actively doing their business.

As a result, in 2020, Vietnam’s wood exports reached nearly US$ 12.5 billion which is beyond expectation of the Government and Ministry of Agriculture and Rural Development. In 2020, Binh Dinh’s forest product processing industry for export also achieved the highest level in many years with a turnover of US$ 540 million, up 14% compared to 2019, accounting for 51% of total export turnover of the province.

According to statistics of Binh Dinh Department of Industry and Trade, in the first two months of 2021, export turnover of wooden products of the province reached US$ 69.5 million, up 13.4% against the same period of 2020. This result manifests the great efforts of Binh Dinh forest - product enterprises and plays as a motivation for enterprises to maintain the leading role for export of the province.

According to Mr. Le Minh Thien, Chairman of Binh Dinh Timber and Forest Product Association, the above - mentioned positive results in the first days of the new year was attributed to the consensus of enterprises in striving for the export turnover of US$ 595 million in 2021, rising more than 10% against 2020. To achieve this result, enterprises must build the trademark “Binh Dinh Wooden Products” for outdoor furniture and interior wooden furniture, make great efforts to increase market share in traditional markets that have stable development, high purchasing power and Covid – 19 being under control.

According to Mr. Do Xuan Lap, Chairman of Vietnam Timber and Forest Product Association, to achieve sustainable development of wood industry, in the coming time, enterprises of the industry must proactively grasp opportunities, promote linkages and reduce commercial risks. The first is to clearly identify strategic products and markets to serve as the foundation for a breakthrough development of the wood industry. The strategic products identified are kitchen cabinets, bathroom cabinets and decorative boards. The strategic market is the US, the “huge” market of Vietnam which imports 90% of the above strategic products.

In addition, enterprises must diversify products from planted forest timber and enhance the efficiency of the forestry development chain. Especially, the Central Coast Region has a very large area of planted forests, however, there is an imbalance between the material areas of planted forests and the deep processing capacity. One of the reasons is the boom of wood chip processing for export while materials for wood chip can be processed and create higher value products.

“Under the direction of the Vietnam Timber and Forest Product Association, this year, forest - product processing enterprises in the province will join hands to make Binh Dinh become one of the production centers of kitchen cabinets, bathroom cabinets and decorative boards for the US and UK markets; increase investment in deep processing products such as particle boards, fibreboard and pellets. Especially, Binh Dinh Timber and Forest Product Association also encourages members to invest strongly in planting large and internationally - certified timber forests so as to penetrate high - end markets.”, shared Mr. Le Minh Thien.