(VOVworld) – In the current economic difficulties, a rapid shift in operations and a realistic response to market changes have helped Vietnamese timber producers to continue to export rising volumes of timber. They are now likely to reach this year’s target of 4.6 billion USD. VOV’s To Tuan has more.

Customers visit a showroom of export timber products of Ho Chi Minh-based Thien An Company. (Photo: Hong Thuy)

So far this year, wood and wood-based exports have totaled 3.4 billion U.S. dollars, a year-on-year increase of more than 20%. If this growth rate remains, especially the rate over the past two months, the sector is likely to earn 4.6 billion USD this year. Earlier on this year, wood exports were seen by many as having been hit the hardest by the world economic downturn as many of Vietnam’s traditional markets have contracted. In this context, many domestic wood exporters including the Lam Viet Company have been looking for new markets, and have adapted to new market demands. Many have changed to exporting wood-based products that replace traditional items including floor boards and milled timber. Vietnamese exporters have also now turned to manufacturing indoor products. Nguyen Liem, Director of Lam Viet, says ‘A number of Vietnamese companies including Lam Viet, have had to restructure their exports. In the past, 80% of our exports to the EU and the US were for the construction industry but they have now been cutting half with the remained for indoor purposes. It is hard for companies to restructure if they don’t have any previous experience at this, especially in initial input costs. In addition, indoor products require more advanced techniques and must be aesthetically pleasing.’

The ability to adapt to market changes is key for businesses to keep growing. Do Kim Loan is Director of the Sao Nam Trading and Manufacturing Company ‘I think the US and Japanese markets have a lot of potential this year. We have already approached several Japanese clients who are construction companies. They have ordered bricks and tiles but also imported our timber products. Since the second quarter, we have continuously received a stream of Japanese businesspeople. With the US market, we expect a growth of 12% this year, and about 25% next year due to the increase in the construction sector there. Vietnam comes second after China in the export of wooden products to this market.’

Vietnam ranks sixth in global timber exporters. Its timber products are now available in 20 countries and territories with the US Vietnam’s biggest importer earning the country nearly 1.5 million USD. It is followed by China, Japan, the Republic of Korea, and the UK. An escalation in some markets, including the US, Japan, and China, has helped the Vietnamese timber sector to compensate from a fall in demand from the EU market. The current fierce competition has moved importers to set stricter conditions on exports while the restructuring of timber products has also changed in line with the national macro-economic model. All these have required enterprises to change to respond to the new conditions, according to Ha Cong Tuan, Deputy Minister of Agriculture and Rural Development. Tuan notes ‘First, we have to improve the quality of forests and the wood processing industry needs to invest more in new technology. Secondly, issues concerning the market must be prioritized and finally, it’s necessary to support exporters to maintain their markets and prestige by getting support from the government by issuing a new policy of ensuring safe materials. We are fine tuning the policy and the Ministry has also sent a circular on the management of multiple assembly lines’

Despite the continued difficulties in the global economy, that make the markets for exports unpredictable, the sharp response to market forces and the opportunities awaiting Vietnamese wood exporters, can help the sector reach this year’s target of 4.6 billion USD in revenue.

To Tuan