Binh Dinh's wood industry shows signs of recovery

Not subjective, passive

Binh Dinh is one of the provinces with a large number of wood processing factories, concentrated in Phu Tai and Long My Industrial Parks (Quy Nhon city). About 245 businesses are operating in the province, with a total investment capital of around VND 12,000 billion. Among these, 130 businesses are members of the Forest Products Association of Binh Dinh (FPA Binh Dinh).

Since the beginning of 2024, Binh Dinh's wood industry has shown signs of growth again after a long period of difficulty. Although there are still many difficulties ahead, with positive signs, Binh Dinh's wood industry faces the prospect of recovery.

According to Mr. Le Minh Thien, Chairman of FPA Binh Dinh, in the first 5 months of 2024, this province's wood industry has had good growth thanks to increased demand for importing wood chips and wood pellets from the Chinese and Japanese markets. According to the Binh Dinh Statistical Office, in the past 5 months, this province's exported wood products were estimated to reach USD 215.9 million, up 22.5% over the same period. Particularly, interior, exterior, and garden wooden furniture products consumed in the US market were estimated at USD 110.7 million, up 6.3% over the same period.

The above figures show that the wooden furniture export market of Binh Dinh wood businesses has "warmed" again. However, wood businesses in this province are not subjective or passive but still strive to continue to seek and expand more markets. At the same time, promptly grasp all information from markets and promote strong product segments to boost exports and increase revenue.

Mr. Phan Hong Quy, Director of Hoang Giang Trading Co., Ltd. (Binh Dinh), shared: "At the Quy Nhon International Outdoor Lifestyle Fair 2024 (Q-FAIR 2024) that just took place in March 2024, the company had many opportunities to meet partners to seek new orders. Our company has proactively negotiated with customers to reduce product prices, offer exclusive designs, diversify designs suitable for each customer. At the same time, strictly controll economic and technical norms and minimize costs to have competitive selling prices."

"Wood businesses in Binh Dinh not only improve product quality but also link up to create community strength in product production and consumption. From there, businesses have more conditions to meet the increasingly high standards of demanding markets in the world, helping to enhance the Binh Dinh wooden furniture brand," said Mr. Le Minh Thien, Chairman of FPA Binh Dinh.

Proactive about raw material sources

According to Mr. Do Xuan Lap, Chairman of the Vietnam Timber and Forest Products Association, the Quy Nhon International Outdoor Lifestyle Fair 2024 (Q-FAIR 2024) has brought Binh Dinh's wood businesses the opportunity to promote trade, introduce outdoor wood products to partner businesses and consumers, create more relationships, and promote product consumption.

"I realize that Binh Dinh wood businesses have quickly explored, researched, and produced products according to consumer trends and tastes in the current context of tightening spending. Many newly launched products are both affordable and convenient for consumers, instead of product segments that are more expensive than before," said Mr. Do Xuan Lap.

Faced with the high requirements of large wooden furniture consumption markets such as the US and Europe, many wood businesses in Binh Dinh, such as PISICO Binh Dinh Corporation, Tien Dat Furniture Corporation, Dai Thanh Furniture JSC, Hoang Hung Co., Ltd., Phu Tai JSC, etc., have restructured and reorganized production, focusing on technological innovation and perfecting the management system to improve efficiency and quality of human resources. Besides, some businesses have promoted the production of products using domestic raw material sources to reduce costs and improve product competitiveness.

According to forecasts, 2024 will open up opportunities for market development in the wood industry. However, Binh Dinh's wood industry is still worried that it is still dependent on imported raw wood sources for nearly 80%. This is a disadvantage for wood businesses because the cost of purchasing imported raw wood is very high, and it is passive and poses many risks, affecting the production and income of the business.

Faced with the above actual situation, Mr. Nguyen Tuan Thanh, Standing Vice Chairman of the Binh Dinh Provincial People's Committee, said that this province is focusing on developing large timber forests associated with sustainable forest management certification (FSC) and carbon certificates. With a vision to 2030, the area of planted large timber forests in the province will reach more than 50,000 hectares.

"Binh Dinh calls on domestic and foreign businesses to cooperate with the province in the policy of developing large timber forests to gradually be proactive about raw materials. The Binh Dinh Provincial People's Committee will remove the mechanism and create conditions for wood businesses to participate in developing large timber forests, especially with credit support. The Forest Products Association of Binh Dinh needs to do a good job of connecting member businesses to create strength for the province's wood processing industry to grow stronger," Mr. Nguyen Tuan Thanh emphasized.