At present, Vietnam’s timber companies are going through many hardships, but the hardships are temporarily over. How do you feel about the opportunities for Vietnamese timber companies in this year 2023?

In the past three years, the wood processing and export industries have faced difficulties due to lack of capital, shortage of input materials and high prices, and the product consumption market has been affected. Many timber export companies have had to lay off workers and limit production because they cannot sell their products.

But the Vietnamese timber market also has very good development signals at the beginning of 2023. Vietnam is also the fourth largest country in the world in terms of timber export sales. In order to achieve the above results, we have accumulated a lot of experience, so the difficulties are temporary. Last year, Vietnam’s timber export turnover was USD 16.5 billion. In my opinion, on good signals, the entire industry is expected to be worth $21 billion by 2023.

Currently, Gemmy Wood System manufactures all furniture products for export, including indoor (indoor) and outdoor (outdoor) furniture, from tables, chairs, beds to all types of flooring. Outdoor/Indoor. We are very confident to compete fairly with competitors in other countries. I think most companies in Vietnam share the same belief.

However, at present, many companies not only in Vietnam, but also in other countries such as China and some other countries, are not really fully complying with European and American standards.

In the last three years, when the timber market has slowed down, they will have more time to tighten the requirements in a more stringent direction. The traceability of wood in particular will be very strict. When companies do not strictly comply with their partners’ requirements to use planted forest timber of clear and legal origin, the entire timber industry is likely to be affected.

You have just addressed a very sensitive issue of wood procurement. There used to be a story that many wood products were said to have come from China. Do reputable companies have any recommendations to the authorities to rectify this situation?

In fact, there are many recommendations, but in general, now that lumber companies are doing serious business, people also understand that wood traceability is very important.

In order to do justice to the demanding markets such as Europe or the USA, it must be taken seriously. And if you are not serious, sooner or later you will be discovered. Therefore, I believe that with long-term business, established positions and stable foreign markets, no one would be stupid to import wood and disguise it for export to Vietnam.

Where do your company’s raw wood products and raw materials currently come from?

The wood material for Gemmy Wood comes from two sources. One source is from domestic forest wood sources such as melaleuca acacia, rubberwood or pine matured for plastic recycling. In Vietnam, the source of this wood is very large, with enough legal certification for companies to purchase and process it for export.

The second source of wood is that we import pine, ash and walnut wood from USA, Germany, New Zealand, Brazil, Argentina… These are the markets that supply clear-origin timber to Vietnam, their companies process, and then export to other countries in Europe and America.

Although many good signs are forecast for the timber industry in 2023, the cost of gasoline, electricity and labor are still factors that cause many difficulties for the timber companies. What does Gemmy Wood do to keep her stable?

The 2021 period is severely affected, because the logistics costs increase very sharply, even the logistics costs are sometimes higher than the value of the whole shipment. Up until now, many costs such as coal, electricity, water…

However, we believe established and potential companies know how to better manage costs. For example, we cannot increase the prices of the raw materials, we can only have better cost management in production to compensate for the increased costs of the raw materials.

In the past, timber exporting companies have petitioned seaport infrastructure many times, including the history of tolls. If the cost of seaports can be reduced, it is also a favorable factor for businesses.

In addition, timber and forest products companies must promote the use of domestic forest wood on a larger scale, reduce the use of imported wood; Applying scientific and technological advances to improve labor productivity; Promote digital transformation to reduce production costs; promoting low-emission production; coordinate with communities to establish concentrated processing industrial parks; Promotion of trade promotion activities, organization of major international fairs… These are important channels to find customers, thus helping to stabilize production and secure jobs for workers.

In terms of technological innovations and new product launches, Gemmy Wood is currently collaborating with Xwood, a company founded by scientist Tran Hoai Nam, who developed a woodworking technology based on common principles of open space and the penetration of organic polymers into the pores of the Holzes has been patented by USA, Gemmy Wood is the place where woodworking and processing equipment is located. Wood for XWood.

Wood modified with organic polymers is a new and breakthrough product in the engineered wood industry with great growth opportunities due to its quality advantages and can replace existing natural woods, now like nails, glue, cheese, tuu…

Modified wood also has the ability to meet different standards for indoor and outdoor furniture as it can withstand harsh natural conditions so there is a great opportunity for growth.

I believe that with more promotion, modified wood will gradually win the trust of Vietnamese consumers and even conquer many other demanding foreign markets.

VnEconomy 05/04/2023 08:00

The content of the article was published in Vietnam Economic Review No. 14-2023, issued on April 3, 2023. Welcome readers to read The:

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