Many businesses in timber craft villages have switched their focus tothe domestic market in a bid to escape the current economic downturnwhich has forced foreign importers to reduce spending on timberproducts.
In northern Bac Ninh Province , there aremore than 15 timber trade villages operating, creating jobs forthousands of local labourers.
Wood products from Dong Ky, Phu Khe, Huong Mac and Tam Son have got its trademark and been exported for years.
However, vice chairman of the provincial Timber and Forest ProductsAssociation Le Van Cam said many businesses have stopped production oroperated in moderation due to the reduction in orders from China,the province's main importer.
In Dong Ky Village, for example,up to 70 percent of wood products were exported to China. Thus,these businesses are trying to supply wood products to the domesticmarket.
Chu Van Nhung, owner of a timber enterprise in thevillage said he used to hire six full-time labourers to produce anddeliver products to Chinese partners.
But due to fewer orders,high interest rates on bank loans and increasing costs of materials, hebegan to sell his products to domestic consumers since last year. Now, a large number of his products are sold in northern and central regions.
According to the village's estimation, up to 90 percent of woodproducts will be consumed domestically this year and the rest exported.
Nguyen Ton Quyen, General Secretary of the Vietnam Timber andForest Product Association said the domestic market had been left wideopen with the increasing demand of timber products for hotels, officesand new urban areas.
A survey conducted by the association inthe last six months of 2012 among 200 households showed that each familyspent about 6 million VND (288 USD) on average for wood furniture. A senior expert of non-profit organisation Forest Trends saidthat although trade villages' wood products were diversified, theindustry lacked policies for sustainable development.
Currently, Viet Nam has 302 timber trade villages. These villagessupply more than 80 percent of wood furniture and wood buildingmaterials for the domestic market with total turnover of 1.5 USD billionannually.
About 50 percent of the villages are located in the Red River Delta, creating jobs for 300,000 labourers. -VNA
In northern Bac Ninh Province , there aremore than 15 timber trade villages operating, creating jobs forthousands of local labourers.
Wood products from Dong Ky, Phu Khe, Huong Mac and Tam Son have got its trademark and been exported for years.
However, vice chairman of the provincial Timber and Forest ProductsAssociation Le Van Cam said many businesses have stopped production oroperated in moderation due to the reduction in orders from China,the province's main importer.
In Dong Ky Village, for example,up to 70 percent of wood products were exported to China. Thus,these businesses are trying to supply wood products to the domesticmarket.
Chu Van Nhung, owner of a timber enterprise in thevillage said he used to hire six full-time labourers to produce anddeliver products to Chinese partners.
But due to fewer orders,high interest rates on bank loans and increasing costs of materials, hebegan to sell his products to domestic consumers since last year. Now, a large number of his products are sold in northern and central regions.
According to the village's estimation, up to 90 percent of woodproducts will be consumed domestically this year and the rest exported.
Nguyen Ton Quyen, General Secretary of the Vietnam Timber andForest Product Association said the domestic market had been left wideopen with the increasing demand of timber products for hotels, officesand new urban areas.
A survey conducted by the association inthe last six months of 2012 among 200 households showed that each familyspent about 6 million VND (288 USD) on average for wood furniture. A senior expert of non-profit organisation Forest Trends saidthat although trade villages' wood products were diversified, theindustry lacked policies for sustainable development.
Currently, Viet Nam has 302 timber trade villages. These villagessupply more than 80 percent of wood furniture and wood buildingmaterials for the domestic market with total turnover of 1.5 USD billionannually.
About 50 percent of the villages are located in the Red River Delta, creating jobs for 300,000 labourers. -VNA
