{"id":78874,"date":"2020-03-13T06:22:47","date_gmt":"2020-03-13T06:22:47","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/vietnamese-wood-companies-seek-alternative-materials-suppliers-due-coronavirus-crisis\/"},"modified":"2025-09-19T08:52:50","modified_gmt":"2025-09-19T08:52:50","slug":"vietnamese-wood-companies-seek-alternative-materials-suppliers-due-coronavirus-crisis","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/vietnamese-wood-companies-seek-alternative-materials-suppliers-due-coronavirus-crisis\/","title":{"rendered":"Vietnamese wood companies seek for alternative materials suppliers due to coronavirus crisis"},"content":{"rendered":"<ul>\n<li><em>Local wood processing enterprises need to widen supply chains with a focus on seeking suppliers from domestic and overseas markets to ease disruptions from China due to the coronavirus (COVID-19) outbreak, experts said.<\/em><\/li>\n<\/ul>\n<p>Do Xuan Lap, chairman of the Vietnam Timber and Forest Product Association (VTFPA) said that this year may be a bumpy one for the wood processing industry as the fast-spreading virus outbreak have been impacting trade between Vietnam and China, as well as Vietnam\u2019s exports to other countries.<\/p>\n<p>The wood product industry is affected since certain materials used are from China. Lap said in terms of cost prices of producing wood products, wood materials account for only 35 per cent, while other cost comes from auxiliary materials such as paint products, which are usually made in China even if the brands are from the U.S.<\/p>\n<p>To Xuan Phuc, an expert from Forest Trends, also agreed. \u201cChina is an important source of auxiliary materials for Vi\u1ec7t Nam\u2019s wood industry with items such as straps, accessories, sliders, hinges, paints and chemicals. Businesses also need to find alternative sources of supplies, especially when the materials imported from the previous period are only enough for 2-3 months of production,\u201d Ph\u00fac said.<\/p>\n<p>Lap urged local enterprises to seek out alternative raw material suppliers in Vietnam and other countries as soon as possible.<\/p>\n<p><strong>More collaborations between enterprises needed<\/strong><\/p>\n<p>\u201cDomestic enterprises also need to connect with each other so that their products can join the supply chains of export products. When they collaborate to produce products that meet the importers\u2019 demand, they can quickly join the global supply chain,\u201d he told a seminar on prospects for Vietnam\u2019s timber industry in 2020 last Friday in Hanoi.<\/p>\n<p>However, Lap stated that as of now, the links in the value chain of the timber industry \u2013 vertically or horizontally \u2013 are very limited. The newly-formed links are small in scale and mainly limited to links between the forestry plantation households and some wood processing companies such as Scancia Pacific, Woodsland and Nam D\u1ecbnh Forest Products Joint Stock Company.<\/p>\n<p>Foreign direct investment (FDI) still plays an important role in exports with half of Vietnam\u2019s wood export value coming from this sector. The links between the FDI sector and domestic companies are almost non-existent, Lap said.<\/p>\n<p><strong>Slowdown in Chinese demand of wood materials<\/strong><\/p>\n<p>The coronavirus has also slowed down China\u2019s demand for wood materials. Phuc said COVID-19 has driven down demand from Chinese paper and pulp companies. At the same time, halts of some ports in China and stringent inspection of loading goods activities by ships have also hampered Vietnam\u2019s exports to this country.<\/p>\n<p>Wood chips are Vietnam\u2019s main export products to China with a turnover of more than US$972 million in 2019, or 79.2 per cent of total export turnover of wood and timber products. Meanwhile, Vietnam imported $400 million worth of wood planks last year.<\/p>\n<p><strong>Expanding export opportunities<\/strong><\/p>\n<p>Vu Hai Bang, chairman of Woodsland Joint Stock Company, said the epidemic will have a major impact on wood companies in the early stages but with the dynamic and quick solutions, they will overcome difficulties. He also called on enterprises to search for domestic suppliers.<\/p>\n<p>The United States is currently the largest importer of wood and wooden products from Vietnam. In 2019, the US imported $5.1 billion of wood products, accounting for nearly 50 per cent of Vietnam\u2019s total exports and up 42 per cent year-on-year.<\/p>\n<p>\u201cThere are opportunities to expand exports for the timber industry, mainly to the US market, but the risks of trade and investment fraud in the timber industry still go hand in hand with these opportunities,\u201d Bang said.<\/p>","protected":false},"excerpt":{"rendered":"<p>Local wood processing enterprises need to widen supply chains with a focus on seeking suppliers from domestic and overseas markets to ease disruptions from China due to the coronavirus (COVID-19) outbreak, experts said. Do Xuan Lap, chairman of the Vietnam &hellip; <a href=\"https:\/\/www.timberindustrynews.com\/ro\/vietnamese-wood-companies-seek-alternative-materials-suppliers-due-coronavirus-crisis\/\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":57909,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[4716,4715],"tags":[4292,3525,3655],"class_list":["post-78874","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-trends","category-market-analysis","tag-coronavirus","tag-vietnam","tag-wood-industry","topic-forestry","topic-sawmilling","topic-wood-based-panels","area-asia-middle-east","area-china"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Vietnamese wood companies seek for alternative materials suppliers due to coronavirus crisis - Timber Industry News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.timberindustrynews.com\/ro\/vietnamese-wood-companies-seek-alternative-materials-suppliers-due-coronavirus-crisis\/\" \/>\n<meta property=\"og:locale\" content=\"ro_RO\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Vietnamese wood companies seek for alternative materials suppliers due to coronavirus crisis - Timber Industry News\" \/>\n<meta property=\"og:description\" content=\"Local wood processing enterprises need to widen supply chains with a focus on seeking suppliers from domestic and overseas markets to ease disruptions from China due to the coronavirus (COVID-19) outbreak, experts said. 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