POSITIVE SIGN FOR EXPORT OF PLANTATION TIMBER
December 3, 2021
The Covid-19 pandemic has caused many difficulties in the production and business of plantation timber in Tuyen Quang. Photo: Dao Thanh.
Millions US$ revenue
Tuyen Quang province maintains stably more than 132,000 hectares of planting forest areas, of which the large timber forest area is more than 69,800 hectares, the forest area certified for sustainability (FSC) is 35,800 hectares.
The province has attracted many big enterprises to invest in large scale production and processing, help products meeting export standards.
Tuyen Quang has 9 timber processing factories. Prominent ones are An Hoa Pulp and Paper Factory, with the capacity of 1.3 million m3 per year; Woodsland Tuyen Quang Joint Stock Company's wood processing factory with the capacity of 680,000m3 per year; Factory producing bamboo chopsticks, base paper and pulp in Na Hang district, with the capacity of 25,000 m3 per year... Besides, there are 300 small and medium-sized plantation timber processing establishments.
Products processed from plantation timber of factories in Tuyen Quang province have been well received in many demanding markets such as the EU, the US, Canada, Russia, Japan, contributing to the increase of value of export and industry of the province.
The factories of Woodsland Tuyen Quang Company alone produce 150,000m3 of products each year on average, including chipboard, plywood and interior and exterior wood products for export, mainly to IKEA Group - the largest furniture trading group in the world.
According to the Department of Industry and Trade of Tuyen Quang province, the complicated developments of Covid-19 significantly affected the production and business activities of timber processing and exporting enterprises.
However, 2021 is considered a successful year for the timber industry of Tuyen Quang province. The industry runs smoothly while ensuring both anti pandemic measures and maintaining production and business activities. A series of timber products and wood-based products make significant contributions to economic growth and export value of the province.
Tuyen Quang also has many support policies to accompany timber manufacturing, processing and exporting enterprises to overcome difficulties during the Covid-19 pandemic. Photo: Dao Thanh.
In the first nine months of 2021 alone, the export value of goods in Tuyen Quang province reached US$ 117 million, equaling 82% of the year plan and increasing 41.5% over the same period in 2020.
Particularly for timber products and processed products from timber, the whole province has exported more than 3,300 tons of base paper, worth more than US$ 1.7 million; pulp export is nearly 8,000 tons, worth more than US$ 4.7 million; refined wood export with a total value of more than US$ 4.3 million; plywood export value more than US$ 4.2 million.
Facing difficulties
Like the general situation nationwide, the majority of large scale timber processing enterprises in Tuyen Quang province have encountered high transportation costs both by road and by waterway. Goods are stored at the port for many days, so the interest expense increases accordingly.
At the same time, another large source of costs is incurred, which is the cost of hiring highly skilled workers, because a number of skilled workers from other provinces such as Lang Son, Bac Giang, Phu Tho have returned home to work due to the pandemic.
Due to difficulties in the production and export of timber and timber products, many purchasing contracts for FSC certified timber with farmers of Woodsland Tuyen Quang Joint Stock Company have not been implemented.
Meanwhile, many low income households have sold thousands of hectares of forest timber that has reached the stage of being exploited to the market at the same price as ordinary forest wood.
On average, for every cubic meter of wood, forest owners will lose from 5 to 7% of the added value that FSC certified forests enjoy.
Despite many difficulties, many businesses and factories still receive millions of US$ in orders for exporting timber and timber products. Photo: Dong Thuong.
An Hoa Pulp and Paper Joint Stock Company is one of the largest forest product processing and production enterprises in Tuyen Quang province, with a capacity of 1,300,000 m3 per year. Due to the impact of the Covid-19 pandemic, the company's production and business activities faced many challenges.
In the 10 months of 2021, An Hoa Paper Company has exported more than 7,900 tons of pulp, 560 tons of printing and writing paper... These are positive results in the context of Covid-19 causing difficulties to many businesses.
However, due to proactively grasping and adapting to market changes, the company strives to carry out the task of pandemic prevention in parallel with production, and at the same time constantly researches and launches new product lines meeting the market needs.
Mr. Hoang Minh Son, Director for Administration and Personnel of An Hoa Pulp and Paper Factory, says that the impact of the Covid-19 pandemic caused the pulp and paper market to almost freeze, and product prices to record lows. The company also faced many difficulties in goods consumption, revenue decreased compared to 2020.
By the middle of 2021, when the pandemic broke out widely, thanks to the clear, flexible and sensitive strategic direction, the solidarity of the entire leadership team and employees in the company, the companionship and support of customers, production and business activities are not interrupted. An Hoa Paper Joint Stock Company has always strived to overcome difficulties, master the market to try to complete its goals in 2021.
Companionship with enterprises
Facing difficulties caused by the Covid-19 pandemic, the Tuyen Quang province government issued Decision No. 1474, dated September 27, 2021 on the establishment of a special working group to remove difficulties for businesses and people affected by the Covid-19 pandemic. Members of the working group met with businesses and people to grasp the situation, difficulties and problems to come up with solutions to overcome difficulties.
Along with that, implementing the national industrial promotion program, in 2020, Tuyen Quang province supported 8 rural industrial establishments including small and medium sized enterprises to support the application of machinery and equipment in the production of sewing, furniture, tea…, total supported capital was VND 2.2 billion. In 2021, the province supports 3 rural industrial establishments, with total supported is capital VND 800 million.
Implementing the program of local industrial promotion, in 2020, the province supported 7 rural industrial establishments to apply equipment in the production of tea, furniture, paper..., total supported capital was VND 560 million. In 2021, the province supports 5 rural industrial establishments, total supported capital is VND 400 million.
Following the direction of the Ministry of Industry and Trade in supporting electricity price reduction and electricity bill reduction for electricity users and businesses affected by the Covid-19 pandemic, Department of Industry and Trade of Tuyen Quang province has also issued a document to request Tuyen Quang Power Company to implement a policy to support electricity price reduction for people and businesses affected by the Covid-19 pandemic, in the months of April, May, June, October, December 2020, with the total amount is over VND 64 billion.
Translated by Khanh Linh
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