In the wood manufacturing industry, wood chip production is an indispensable industry in the past few years. It brings huge profits to the manufacturers as well as the effectiveness of its products. It is for this reason that wood chips manufacturer in Vietnam has actively developed and used this resource reasonably to make a big splash in the foreign market.
In the past few years, wood chips are an extremely important product of Vietnam’s wood industry. According to research information, the average export of wood chips to the market brings revenue up to 1.5 billion USD. Accounting for 15 to 18% of the total export value of wood products of Vietnam. But those are numbers that have been greatly reduced from the original. According to estimates, the production of wood chips is showing signs of starting to decline. The export price of woodchips in recent years has decreased to 120-140 USD/ton depending on the export market. And vice versa compared to wood chips, the price of wood for planting materials increased from about 0.6 million VND/m3 to about 1.2 million VND/m3 now. This will greatly affect the revenue of businesses in this field. Leads to unfair competition between businesses.
Wood chips manufacturer in Vietnam think that they will need to step up further in research and create efficient, high-quality end products that meet all criteria. We need to focus more on converting our output into pellets to serve the domestic and export markets. We are having the second-largest export volume of wood chips in the world, but we are too dependent on a type of market that cannot be developed and gradually lead to product price devaluation.
Problems to be solved by wood chips manufacturer in Vietnam
For us to develop well and bring the woodchip export industry back, we need to understand the problems that need to be solved at the moment. First, we will talk about using multiple resources to create a product.
Our contradiction lies in the use of timber grown between regions because it depends on the manufacturing capacity of each region. In the central region, the afforestation area accounts for about 40.8% of the total planted forest area of the country. Meanwhile, processing facilities account for only 23.2% of processing facilities across the country. But chip processing establishments account for 60.3% of establishments nationwide. This shows that the wood chip processing and exporting industry not only exports raw products with low economic value but also uses small wood as input material. Thereby limiting the creation of wood.
The imbalance between plantation material areas and processing capacity has dragged down the wood chip export industry very low. That is why we need to make drastic changes to improve product quality, product quality and diversify products.
Expand export market
Facing difficulties at present, except for improving the mistakes that are still being made. We need to think about how we can both develop and overcome it so that we can bring this wood chip export industry back to life.
In recent times, when the price of wood chips has dropped sharply, it has had a great impact on the activities of the afforestation household enterprises and the export value of the wood industry. Part of the reason is also from the sharp decline in the paper market along with the impact of the Covid-19 epidemic, so the transportation of goods is at a disadvantage.
For the wood chip industry to develop sustainably, wood chips manufacturers in Vietnam must actively integrate internationally. When international integration we will be rubbed and will work with higher requirements. From there, our products will be before, better quality and more diverse. The wood chips can be put into the production of MDF boards, pellets, and pulp. It’s a new step, but it also needs to be very cautious. Each product has its objects and requirements, so we need to learn carefully before starting to implement it. Creating favorable conditions for infrastructure and linkages in supply chains to make it easier to expand overseas markets.
Influencing the future
Even though it’s been tough times, that’s only for now. If you dare to invest in the present time, later when it has recovered, the production of wood chips will bring a great economic source for you. This energy source affects many different industries. So when it receives big investment and grows big it can pull more investment into other industries. Let’s boldly invest in this material to help the country develop, to bring this material to the world market and it will help you bring in a stable economic source year after year.
Through this article, we have shared with you the difficulties as well as the ways that wood chips manufacturers in Vietnam are facing. If you want to learn more, log in to the Farmers® website to find out more information. This is a reputable website with the most accurate information to help you find out more information. Thank you for reading our article. Have a nice day.