Editor’s pickThe rising star in Vietnam
Vietnam,Southeast Asia,BIFA Wood Vietnam,BIFA,Panels & Furniture,Prime Minister,William Pang,Nguyen Xuan Phuc,Huynh Quang Thanh
Orgnaiser of BIFA Wood Vietnam and Managing Director of Panels & Furniture Asia, Mr William Pang, shakes hand with Mr Nguyen Xuan Phuc, Prime Minister of Vietnam. In the centre, is Mr Huynh Quang Thanh, Chairman of Binh Duong Furniture Association, welcoming the prime minister too.
In 2017, Vietnam wood processing industry turnover hit US$8billion, a 10 per cent growth from the year before, and is expected to rise to US$20 to 25 billion over the next decade.
The number of enterprises has grown from 2,500 in 2008 to 4,500, including 3,900 domestic enterprises and 600 foreign-funded investment enterprises. In fact, of these enterprises, 1,500 are both processing and exporting their products to overseas markets. These wood enterprises have also started placing more emphasis on investing in advanced equipment to modernise production lines in order to produce complex products while growing sustainably.
Understanding this, the government of Vietnam organised a wood processing conference known as “The orientations and solutions for a rapid and sustainable development of the timber and forest product processing industry and export”.
The conference saw the attendance of Mr Nguyen Xuan Phuc, prime minister of Vietnam; Mr Trương Hòa Bình, deputy prime minister of Vietnam; and Mr Nguyễn Xuân Cường, minister of Agriculture and Rural Development.
Together with key leaders of the wood processing industry in Vietnam, the ministers facilitated the conference to find out about the key challenges that the industry is facing while exploring solutions.
According to Mr Phuc, there was a need to have more support provided for the wood processing and forestry production industry in order to realise goals and create jobs in the rural and mountainous areas.
Also, in line with the growth and development of the industry, the Prime Minister encouraged the sector to apply science and technologies in forest planting, wood processing and forestry exports while driving growth in the sector and leveraging on the international trade agreements that Vietnam has signed.
He also emphasised the need to ensure that high-quality raw material wood is legally sourced such as raising awareness among the industry to shift from extensive forestry practices to intensive practices by using high-level techniques and high-yield plant varieties. This is on top of enhancing competitiveness of the wood and forest product processing industry and export in the world market; and to supplement and finalise mechanisms and policies to create a legal corridor for supporting timber and forest product processing and exporting enterprises. For instance, restricting the export of raw wood materials to sustain domestic raw materials through tax policies and monitoring the practical implementation.
The Vietnam wood processing industry has been growing drastically. In the last decade, the industry has grown 2.7 times — placing Vietnam as the fifth biggest wood exporter in the world, second in Asia and first in Southeast Asia. In fact, the first seven months of 2018 saw a turnover of US$5.3 billion, a 13.6 per cent increased as compared to the same period in the year before. Progress is expected to remain the same in the next five months, thus, hitting the target of US$9 billion for the year 2018.
Mr Nguyen Xuan Phuc, Prime Minister of Vietnam, looking through Panels & Furniture Asia magazine
How BIFA Wood Vietnam helps?
Jointly organised by Panels & Furniture Group of wood magazines and Binh Duong Furniture Association (BIFA), BIFA Wood Vietnam will be held in the heart of Vietnam’s furniture cluster, Binh Duong.
With its plentiful labour force, a dynamic team of businessmen and ideal connections to key timber areas in the Southeast and Central Highlands of Vietnam, Binh Duong has become a favourable business and investment environment.
The province attracts wood processing enterprises and has an annual growth rate of 12.6 per cent. Wood products capacity and export turnover was more than US$4 billion in 2017, which accounts for more than half of Vietnam’s total.
In addition, with the government’s support to drive the industry forward, BIFA Wood Vietnam 2018 is set to unlock endless possibilities for businesses looking to tap into Vietnam or to expand in the country.
BIFA Wood Vietnam will take place from 24th to 27th October 2018 at Binh Duong Convention in Binh Duong.