High growth in export wood industry

Producing wood for export at Asy Vietnam Co., Ltd. in Bien Hoa 2 Industrial Park.

In 2020, the export turnover of wood and wood products of the country reached more than 12.37 billion USD, up more than 16% compared to 2019. It is estimated that in 2021, the wood industry will continue to achieve a growth rate of 15% compared to 2020. In Dong Nai, in 2020, the export turnover of wood products reached more than 1.68 billion USD, up over 11% compared to 2019. Wood products are one of the 6 main export sectors of Dong Nai.

*Moving orders to Vietnam.

Over the past 1 year, despite the Covid-19 epidemic, Vietnam's wood industry has been quite favorable with finding new orders. Due to the Covid-19 epidemic, many timber factories in China and other countries had to close, so orders moved more to Vietnam. Dong Nai is the place receiving many orders from foreign partners.

According to foreign customers, Vietnam has 3 great advantages for them to choose to sign a cooperation contract and move orders to because of good prevention of Covid-19 epidemic; wood enterprises invest in modern technology, highly skilled, can complete large orders, complex designs quickly; Vietnam has signed 13 free trade agreements, so goods produced here, export to countries that have signed free trade agreements will enjoy tariff incentives.

Mr Ha Cong Tuan, Deputy Minister of Agriculture and Rural Development said: "In 2020 and the first 3 months of this year, the wood industry had overcome difficulties to achieve quite high growth. The above result was the successful restructuring of enterprises, in the export turnover of the wood industry, 70% was finished wood products used for furniture. This showed that enterprises had applied technology in the production of wood products to meet the requirements of customers in the world, firmly on the world track with products of the same type, limiting the export of raw materials". According to Vice Minister Ha Cong Tuan, wood enterprises had adapted to the new situation, stabilized production, strengthened online trade to find foreign partners to expand exports. Despite the Covid-19 epidemic threatened great production and business, Vietnamese timber enterprises still retained the active, foreign customers trust and find supply in our country increasingly.

Wood production for export at Asy Vietnam Co., Ltd in Bien Hoa 2 Industrial Park.

Switch to deep processing.

In recent years, wood enterprises have gradually reduced the export of wood materials, switch to deep processing, perfect products before export. Many wood enterprises boldly have invested in machinery and equipment, trained human resources to meet orders that required high design and quality. Dong Nai is one of the 5 provinces with the largest wood export turnover in the country and leading in applying modern technology in production. The above shift of wood enterprises in Dong Nai as well as the whole country in accordance with the Government's requirements is to increase deep processing, reduce the export of raw materials, in order to increase the value of products.

Ms Phan Thi Thanh Truc, Deputy General Director of Nhat Nam Joint Stock Company in Bien Hoa 1 Industrial Park (Bien Hoa City) said: "The company specialized in manufacturing of tables and chairs and cabinets for export to the US market. Since the beginning of the year, orders have been stable, output was favorable, and the company had received orders until the beginning of the third quarter of 2021. This year's wood export market was brighter than it was of the previous year, as many foreign enterprises had shifted orders from China to Dong Nai". ​​