Prime Minister Nguyen Xuan Phuc (left) held the conference about wood industry development
PM Phuc said this was a chance to evaluate the wood processing industry. Vietnam earned USD8bn from exports of wood and timber products, accounting for 21% of the forestry and agriculture industry's total export value. The annual growth rate of the wood industry was 15% over the past 18 years. More than 4,500 firms have created jobs for 350,000 employees and an average value of USD23,000 per worker. It is forecasted that the wood processing industry will continue to experience fast growth in 2019.
However, PM Phuc also warned of several shortcomings such as ensuring legal sources of timber. Most firms are small and scattered so quality products are also lacking. Vietnam is still unable to build a brand for its products or compete with other firms worldwide. PM Phuc recently approved a decision to provide over 50,000 tonnes of rice to poor households in Thanh Hoa Province who voluntarily care for forested land and urged for better logistics, technology and human resources.
The wood processing industry and forestry exports must become one of the spearhead sectors that can make Vietnam into a leading wood processing and export global centre, PM Phuc suggested. In order to realise that goal, local authorities and central departments were asked to follow the Forestry Law to wisely use forested land.
The Ministry of Agriculture and Rural Development must review and revise legal documents to improve the environment for investors and promote afforestation. The PM encouraged firms to take advantage of the real estate boom and trade agreements to introduce Vietnamese wood products to the world while raising public awareness about using legal timber to reduce the destruction of forested land.
The government will issue directives to boost the sector's sustainable development.