Developing Supporting Industries for the Wood Sector

​(News Portal – Dong Nai) - The wood sector holds a significant position within Vietnam's industrial production, particularly in the Southeast region, known as the "hub" of wood production and export. Alongside the development of wood manufacturing and processing enterprises, supporting services for the sector have also emerged, including the supply of raw materials, packaging, machinery, and other auxiliary products.

Enterprises are eager to foster more connections, leverage each other's advantages, and turn one company’s products into another's input to enhance overall competitiveness and production capacity. 

​

Manufacturing packaging for the wood industry at Nhat Tin An Packaging Co., Ltd. (Bien Hoa City)

Expanding Supporting Services
Nhat Tin An Packaging Co., Ltd., located in Bien Hoa 2 Industrial Park, specializes in producing various types of carton packaging for industrial manufacturers within and outside the province.

Ms. Nguyen Huyen Trang, the company's Director, shared that recognizing the demand from wood manufacturers for carton packaging for export products, the company established its production facility to meet these needs. Initially, its primary customers were wood manufacturers in Dong Nai, Binh Duong, and Ho Chi Minh City. Over time, the company expanded its reach to international markets, with 20% of its products currently exported directly to Canada for a wood processing company.

However, a bottleneck lies in the underdeveloped domestic mechanical manufacturing industry and supporting industries, making it challenging for businesses to select advanced technological production lines to improve their capabilities.

In the hardware sector, Mr. Duong Hai Dang, Director of DXD Viet Nam Industrial Company Limited (Bien Hoa City), stated that his company has over a decade of experience serving hardware customers. The company specializes in producing and supplying hardware components such as hinges, screws, and metal fittings for the wood and mechanical industries. To meet customer demands and enhance product quality, the company has invested in standardized machinery and implemented strict criteria for even the smallest details in the design and manufacturing process. This approach has gradually earned customer trust. Currently, the company's hardware products mainly supply the two largest wood processing and manufacturing centers in Viet Nam: Binh Duong and Dong Nai.

Similarly, providing machinery for the wood manufacturing industry is also crucial. Jaguar Trading and Import-Export Co., Ltd. (Long Thanh branch) specializes in supplying air compressors. These compressors not only enable efficient operation of manufacturing centers but also ensure product precision and quality. Additionally, air compressors are widely used in processes such as surface cleaning, painting, and more, contributing to increased productivity and cost savings.

Mr. Hoang Tien Dung, a representative of the company, noted that the wood sector is a large-scale industry, driving increased demand for air compressors. Furthermore, many other industries require such machinery, creating opportunities for the company to expand the market for Jaguar-branded products.  
Strengthening Business Connections

Like other sectors, the packaging market is developing, but product consumption remains challenging during this period. Ms. Nguyen Huyen Trang explained that while the market has contracted, competition among suppliers has intensified. Businesses are compelled to compete on both quality and price, though price competition is limited. With increasing production costs and raw material prices, profitability during this phase is low. Nonetheless, businesses must maintain operations to secure jobs for employees and sustain partnerships while awaiting market recovery.

Ms. Trang emphasized that as a local enterprise, Nhat Tin An aims to collaborate with more wood sector partners within the province in the future to diversify products and expand its market. Dong Nai boasts a vibrant wood manufacturing sector, along with other industries requiring packaging solutions. Collaborating with local businesses will help build the reputation of Vietnamese manufacturers and enhance brand recognition.

As a new member of the Dong Nai Wood Association (Dowa), Mr. Hoang Tien Dung hopes to establish more connections with businesses in the sector. His company is ready to collaborate with the association in trade promotion programs and other sector-related activities. These efforts aim to build partnerships and create opportunities for mutual growth.​

Ms. Nguyen Thi Thu Hoai, Chief of Staff at Dowa, stated that to develop a robust local wood sector community, the association will work to strengthen links, expand its membership, and welcome new members. Dong Nai's wood sector strives to develop a production ecosystem encompassing raw material supply, sawing, processing, commercialization, and connections with supporting industries. This approach aims to enhance production capacity, increase domestic and export sales, and benefit both the sector and individual businesses.