The wood sector is optimistic of meeting the USD 14-14.5 billion export goal

Maintain a clear focus on the target

Vietnam Administration of Forestry (MARD) organized a virtual conference in collaboration with timber and forest products associations and international organizations on "Wood industry businesses prepare for recovery in the new normal context," with the goal of reviving production following the Covid-19 pandemic.

Le Quoc Doanh, Deputy Minister of MARD, said that almost all firms involved in wood production and processing had been impacted by the Covid-19 outbreak, particularly in the southern area. From August through October, Vietnam's wood exports were USD 2.55 billion, down 30% year on year.

Despite obstacles, the wood sector has become more flexible to changing conditions. After 10 months, wood exports totaled USD 12.8 billion, up 24 percent from the same period last year.

According to the agriculture industry's head, the Government and MARD initiated a series of synchronized initiatives to boost the wood sector during the early months of 2021, particularly Q3. MARD has always been devoted to assisting wood and forestry organizations in enhancing the sector's value and reputation in an international and regional arena.

"We must prioritize attempts to restore manufacturing and reform the operations of wood firms. How to educate all members of them about the challenges and opportunities inherent in the new normal circumstance," Deputy Minister Le Quoc Doanh said.

Numerous corporations and organizations backed the deputy minister's approach. Mr. Do Xuan Lap, Chairman of the Vietnam Timber & Forest Products Association (VIFORES), stated that the policy of "safe adaptation, flexibility, and control" in dealing with the Covid-19 pandemic lays the groundwork for wood businesses to re-establish growth momentum and meet the USD 14.5 billion export target.

Mr. Dien Quang Hiep, Chairman of the Binh Duong Furniture Association (BIFA), presented proposals for firms to be proactive in anti-epidemic and post-inspection activities, such as being permitted to assume responsibility for disease-safe labor resources in order to alleviate production congestion.

Numerous efforts

Dr. Vo Hai Son of the Ministry of Health's HIV/AIDS Prevention and Control Department recommended a mobile health station concept to address the problem of "three on-sites" and to guarantee that workers get health checks on a regular basis in the new normal.

According to Mr. Son, this model will be affiliated with the district health center, assisting in the prevention and control of Covid-19 in the community while also offering rapid primary health care, first aid, and transfer services.

"Based on Binh Duong's high immunization rate against Covid-19, we effectively constructed a mobile medical station model, assisting local enterprises in immediately stabilizing production," Mr. Son said.

While there are several benefits, Dr. Son acknowledges that this strategy is not appropriate for company groupings outside industrial parks and export processing zones. Additionally, cost and organizational processes are impediments for this group of small and medium-sized businesses.

Mr. Dien Quang Hiep, President of BIFA, stated that the majority of firms are presently restoring production in the "3 green" path (green factory, green inn, green workers). It is essential to provide the firm with a sterilization chamber, which will assist personnel in ensuring sanitation prior to entering the manufacturing line.

Deputy Director-General of Vietnam Administration of Forestry Bui Chinh Nghia noted the remarks and said that the effort in the group of wood processing firms aided the forestry sector in October in making beneficial improvements. "With strong association commitment, I am convinced that the aim of USD 14.5 billion USD is achievable," he stated.

Mr. Nghia also urged that businesses be more proactive in using state procedures and policies, such as Resolution 128, which the Government released on October 11.

Until recently, the Covid-19 outbreak was mostly contained in regions and cities. Numerous places have progressively reopened, allowing for the resumption of regular manufacturing and economic activity. That is the concept upon which the wood sector operates in order to capitalize on opportunities.

"At the moment, MARD is pursuing a program of assisting local governments in developing raw material regions, particularly by establishing more than 200,000 hectares of huge timber forests capable of supporting both processing and manufacture of quality wooden furniture. We will continue to build a plan to grow the wood processing sector in the next months and will present it to the Prime Minister in the fourth quarter of 2021," Mr. Nghia stated.