Wood exports will reach USD 20 billion by 2025

Sunday, January 12, 2020  21:04

Long An -  At a meeting with Vietnam Timber and Forest Products Association (Viforest) and southern wood processing associations at AA Factory Joint Stock Company (Long An) took place on January 9, according to the Minister of Agriculture and Rural Development Nguyen Xuan Cuong, in the context of many agricultural and aquatic products facing difficulties in exporting, forest products including wood and wood products continue to maintain a high growth momentum. into one of three industries with export value of over 10 billion USD.

                  

According to a representative of the Ministry of Agriculture and Rural Development, in 2019, forestry is one of three industries with export turnover of over 10 billion USD. The total export value of the industry reached 11.2 billion USD, up 19.4% compared to 2018, with the group of wood and wood products reaching 10.5 billion USD, up 18%. In the structure of agricultural and forestry export items, which have become increasingly important and become an important source of contribution, sustainable growth has been at more than double digits for the past 20 years. "If the current growth rate is maintained, Vietnam's wood processing industry can fully achieve its export target of US $ 20 billion by 2025," the Minister of Agriculture and Rural Development said.

The wood processing industry is one of the fastest growing industries and has a very good market acumen. Each year Vietnam has about 1 million m2 more products designed hotel infrastructure from 3 to 5 stars. In such designs, wood products and wood furniture account for 20-30%. Along with that, the development speed of the world market opens up great opportunities for the wood processing industry. While the amount of raw wood in Vietnam reaches 30 million m3 / year (including scattered timber and rubber wood). ”These factors together with the Government's interest in the development strategy of the wood and furniture industry. timber opens a great opportunity to achieve export turnover of US $ 20 billion by 2025 ”- Mr. Cuong affirmed.

                    

Mr. Do Xuan Lap, Chairman of the Vietnam Association of Wood and Forest Products, said that the timber processing and export industry was developing well, but for the timber industry to develop sustainably, commensurate with the potential and available advantages. There is a need to complete each "puzzle piece" for the value chain of the timber industry. The demand for furniture consumption market is forecasted to continue to increase, but businesses are having difficulty in finding land to build factories, expanding production to increase the size of the processing industry. Specifically, the market of production space for Vietnam's wood industry is most concentrated in the Southeast with Ho Chi Minh City, Binh Duong, Dong Nai, Long An, Tay Ninh, Ba Ria - Vung Tau, with factory rental rates. prebuilt buildings with USD 2.5 - 5.5 / m2 / month with minimum rent of 3-5 years.

Minh Ngoc