Dong Nai ranks first in forest product processing

Diversified handicraft wood products are produced at a facility in Trang Bom district. Photo: Phan Anh

In 2020, the Covid pandemic - 19 outbreaks had a great impact on the economy. Although the wood processing industry also faced with common difficulties, it still grow up to affirm its leading position contributing to the overall economic development.

Top export.

The Covid pandemic - 19 affected the raw wood import and forest products processing as well as the domestic and export markets. Specifically, according to many wood processing and exporting enterprises in Dong Nai province, in the first months of 2020, more than 50% orders of many enterprises were cancelled or suspended causing the revenue of enterprises strongly declined, many businesses were forced to shrink production, even suspend operation  and take a few years to recover for this industry sector.

However, the total export turnover of wood and wood products of the country still reached nearly 13.2 billion USD in this year, increased 16.4% compared to 2019, contributed 31% of the total export value of the industry, reached nearly 5% of the country's total export value. In particular, Dong Nai is the province with the leading wood processing industry in the country. According to Dong Nai Statistical Department, the export turnover of wood products in 2020 reached more than 1.68 billion USD, increased over 180 million USD (equivalent to more than 11% increase) compared to 2019. This is one of nearly 10 items of Dong Nai that still maintains a quite high positive growth in the difficult export situation due to the Covid-19 epidemic.

The whole province has 1,454 forest product processing units, 904 businesses, mainly located in Bien Hoa city, and districts like Trang Bom, Nhon Trach, Dinh Quan, Long Thanh ... Of which, there are 115 enterprises allocated in industrial  clusters and parks, accounting for 12.7% of the total number of businesses in the wood industry, concentrated in Tam Phuoc, Bien Hoa 1 and Song May Industrial Zones (Trang Bom district).      

An art wood producing workshop in Trang Bom district. Photo: Phan Anh 

The potential is still great

The production and processing of wood and forest products in Dong Nai have a long tradition, many production areas have a reputation in the domestic and international markets not only for their quality but also for their strengths in beautiful designs and types that meet consumer needs well. The export market of  forest products has been continuously expanded to 5 continents and over 120 countries and territories, including large and difficult markets like the United States, Europe, Japan, Korea ...

Chances for development of the forest products processing industry still remain, especially when many free trade agreements open up opportunities to improve the competitiveness of Vietnamese wood products in general and wood products of processing enterprises in particular, continue to expand the export markets.

Accordingly, Dong Nai's target for the 2021-2022 period, the province's forest product export turnover will increase by 3-5% per year and from the period 2023-2025 the average growth will reach 6-8% per year, bring the export turnover from wood and forest products to over 2 billion USD by 2025. By 2030, the target is that export turnover will reach 2.8 billion USD per year, the average growth rate will reach 8% per year. In addition, this industry also employs about 200,000 workers and the the number of on-site trained workers reach 70% by 2025 and continue to increase to 250,000 by 2030.

The wood processing industry is also developing in efficient and sustainable use way of forest resources and friendly with the environment. Build and develop wood material and forest product areas beside the sustainable wood that associated with the processing industry to form forest product processing industrial clusters applying modern technology, automation and that suitable with potential and markets. Step up the processing of wooden furniture, high-quality wooden products, laminated wood, flooring wood, tables and chairs and high-value wooden finishing products. Develop mechanization-oriented traditional wood-processing and production zones in rural areas where there is potential for raw material supply.

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