15:58 | 26/08/2016 Trade
(VEN) - Vietnam wood producers need to focus on the domestic market to carve a niche at home.
According to the Ministry of Industry and Trade, in the first seven months of the year, export turnover of wood and wood products reached US$3.78 billion, an increase of 0.5 percent compared to the same period last year. Vietnamese wood products have been available in more than 160 markets around the world.
Despite being one of the largest exporters, local market share for Vietnamese wood business is still low. Statistics from the Vietnam Timber and Forest Product Association (Viforest) reveal that around 20 percent of domestic sales belong to Vietnamese businesses, while the remaining pertains to Malaysian, Chinese, Chinese-Taipei and Thai companies.
The domestic market maintains its potential development with sales of around US$3 billion a year, equal to nearly half of total export turnover of wood and wood products.
Exports of wood and wood products are facing many difficulties due to a fall in woodchip exports and the world’s declined demand on pulp, especially in the Chinese market. According to statistics from China Customs, Vietnamese woodchip has been gradually replaced by Australian and Thai products since the beginning of the year. In particular, Australia has taken a lead in providing woodchip for China. Therefore, businesses need to adopt solutions to gain the domestic market.
The Ministry of Agriculture and Rural Development is drafting a decree on domestic market development policies for wood and forest products with the goal of improving capacity of domestic businesses in the context of fierce competition by international economic integration. Accordingly, handicraft production facilities will be supported 30-80 percent of budget dependent on each specific issue.
The state will support 70 percent and 30 percent of budget for building and deploying domestic market development programs for wood and forest products, respectively. In addition, supporting 50 percent of budget for building inter-regional development programs for wood and forest products is included.
Businesses, organizations, households and inpiduals specializing in domestic market development for interior and exterior products, handicraft and non-timber forest products are subject to the decree.
Viforest Deputy Chairman, General Secretary Nguyen Ton Quyen said that the association is encouraging businesses to conduct research and development activities and reorganize production to persify products in accordance with domestic consumer taste, while promoting links between businesses and trade villages to improve competitiveness of wood products.