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Wood processing sector faces market risk: expert

Vietnam, a world wood processing centre, is facing a high market risk as the country’s wood sector remains dependent on imported materials while its export markets are becoming stricter in wood origin and legality, said an expert in the sector.
Vietnam, a world wood processing centre, is facing a high market riskas the country’s wood sector remains dependent on imported materialswhile its export markets are becoming stricter in wood origin andlegality, said an expert in the sector.

The growthof wood chip processing and exporting is another threat to the woodprocessing sector as inputs from both sectors are sourced fromVietnamese wood. Up to 80 percent of domestic input materials arecurrently used for wood chip processing, according to To Xuan Phuc fromthe Forest Trends organisation.

However, many woodprocessors agreed that exporting wood chips brings about modestsocio-economic efficiency, he said during a conference in Hanoi on May13 that focused on the role of imported materials and orientations forthe wood chip processing sector.

Meanwhile, woodchip processors at the event argued that the expansion of the wood chipprocessing has stimulated the planting of forests and improved thelivelihoods of millions of households who live on forestry.

Participants at the conference also discussed State policies relatedto the management and development of forest resources towards reducingdependence on imported materials by limiting exports of wood chips andincreasing large tree planting.

Phuc raised hissupport to the policies, arguing that they help enhance value forexported products and improve incomes of forest planters.

However, he suggested that more support in saplings and capital is needed to encourage farmers to plant big wood trees.

Le Cong Can, Director of Cat Phu Vung Tau Company, held that thepolicy of planting forests and increasing technology in export productsare on the right track and need support.

Nevertheless, wood chip export tax increases will affect forest farmers,he said, adding that new policies should be designed to foster forestplanting and productivity.

They also pointed to theneed for in-depth research on whether to prioritise the wood processingor wood chip processing sector.

Currently,Vietnamese wood products are available in 120 countries and territories.Last year, the country imported 2 million cubic meters of sawn timberand 1.4 million cubic meters of log timbers from 115 countries andterritories.

Total wood imports of the country reached 1.72 billion USD, or 27.5 percent of total exports of wood and wooden products.

The country plans to reduce wood chip exports to 3 million tonnes in 2020, or a drop of 50 percent from 2015.-VNA

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