Vietnam Forest and Trade Network (VFTN) and the World Wildlife Fund (WWF) Vietnam have called on Vietnamese wood processing companies to pour more investment into growing forests in Vietnam to ensure sufficient material and expand export revenues in the coming times, the Saigon Times Daily reported.
Le Khac Coi, coordinator of VFTN and forest program manager of WWF Vietnam, said local wood processing exporters should take initiative in meeting overseas orders for furniture as well as saving much time and money by securing materials locally.
Figures show local companies earned US$2.4 billion from woodwork export last year, up 22 per cent over 2006. But they had to spend more than US$1 billion, or an on year of 33 per cent, on the import of timber and other wood materials from Malaysia, Indonesia, the U.S., and African countries.
Material imports are forecast to climb to more than US$1.2 billion this year, nearly US$1.6 billion in 2009, and US$2 billion in 2010, meaning that Vietnamese wood processing companies will be further dependent on overseas supply.
“Vietnamese wood firms will save a lot from wood import and generate more jobs for local people if they can develop timber supply right in Vietnam,” Coi said.
He emphasized the importance of local wood supply for Vietnamese firms to sharpen their competitive edge, particularly at a time when the price of timber import was on the rise due to higher transportation cost induced by increasing price of crude in the world.
Local wood supply will support the sustainable growth of Vietnam’s woodwork industry and enable local companies to boost their shipments.
Coi expected that Vietnam may earn US$2.9 billion from woodwork exports this year, some US$3.4 billion in 2009 and US$4 billion in 2010.
In the first two months of this year, Vietnam exported US$472 million worth of woodworks, up 28.3 per cent. But it also spent US$201 million on imports, up as many as 54.5 per cent.
Vietnam now has 16.2 million hectares of forests, with 8.5 million hectares are allocated for woodwork industry. (Saigon Times Daily)
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