Wood industry to achieve prior to planning

Binh Duong Furniture Association (BIFA) member companies have implemented their production and business plans for 85% of the plan in 2018. The encouraging thing is that purchase orders from now to the end year of the business are quite plentiful, gaining trust to the target soonest of the year plan.

Plentiful purchase orders

According to BIFA, the situation of production, business and export activities of enterprises in the association in the last 6 months of 2018 will be favorable as orders from traditional customers are stable. It is expected that in 2018, production and business activities of enterprises in the association will continue to be stable.

Over the past six months, BIFA’s main export markets are the United States, 40%, the European Union 20%, Japan 10%, South Korea 10%. Huynh Quang Thanh, Chairman of BIFA, said that up to now, most of the enterprises in the association have signed production and export contracts until September 2018. Recently, the Chamber of Commerce and Industry of Vietnam (VCCI) in Binh Duong province has been actively supporting member enterprises. BIFA also proactively connects its members in order to exchange market information, disseminate and update legal policies, provide training to improve skills, improve production processes …; Together with the ILO’s support projects, Score, the Food and Agriculture Organization (FAO) on the FLEGT project … have contributed to improving the efficiency of the business of wood processing industry in Vietnam. Wood businesses also invest in technology, machinery and equipment, automation from the United States, Germany, Italy and so on in order to improve labor productivity and ensure stable quality, meet customer’s request.

Thanh said that the wood enterprises in the province have made great efforts to promote trade promotion activities, connect customers and participate in big furniture fairs in the world. Recently, the delegation of Binh Duong wood enterprises attended the Shanghai Furniture Fair (China) 2018. This is the opportunity for the wood industry to shape the market for wood exports in the future and identify the main competitors of the domestic wood industry on the international market.

Enterprise management effectiveness improved

 Luong Ngoc Kim, Director of Kim Thanh A Wood Company, shared the wood industry in the country is ranked No. 5 in the international market, but not so that the business is ignorant, subjective. The exporting countries have certain advantages and disadvantages. Attending the exhibition, the events of the new wood industry saw the country’s wood is very limited. For example, Italian woodworking companies are very good at technology, they are closely linked to the global production and supply chain. China’s wood industry has the advantage of machinery, good production lines, large export markets, accounting for 60-70% of global export market share

According to Kim, a difficulty for domestic timber enterprises is that business management skills have been improved by enterprises, but still far from developed countries. It has not increased the competitiveness in the market.

Thanh said that the difficulty for wood enterprises is not less, because most of them are small enterprises, financial and machinery so many orders fell into the hands of foreign enterprises. Besides, raw materials are still causing much pressure for businesses. At present, wood materials imported for domestic production of wood enterprises account for 90%. It is worth mentioning, the price of wood for manufacturing enterprises from the beginning of the year increased 15% over the same period in 2017. For domestic materials are also targeted by many businesses, but supply Not enough demand, besides many other inadequacies.

At present, the wood enterprises in Binh Duong are focusing on improving, improving the efficiency of production management and corporate governance, applying modern production management methods of advanced countries. Developed to improve labor productivity, reduce costs, lower costs, increase competitiveness in the market. It can be seen that the active participation in trade promotion, international trade exhibition last time help wood enterprises in the province accumulate more experience, saw the limitation of the domestic timber industry to have solutions for appropriate development of sustainable and stable timber industry in the coming time.

Reported by Phung Hieu – Translated by Vi Bao

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