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Four major groups of solutions for wood and forest product export growth in 2020

At the conference “Discussions of solutions to recover and process wood and forest products after the COVID-19 epidemic” organized by the Ministry of Agriculture and Rural Development on May 15 in Hanoi, the Minister of Agriculture and Rural Development. Rural Development Nguyen Xuan Cuong emphasized that we must focus on four major groups of solutions for the growth of export of timber and forest products in 2020.

Producing wooden products exported to EU market by WOODSLAND Tuyen Quang Joint Stock Company. Photo: Vu Sinh / VNA

According to Minister Nguyen Xuan Cuong, the first solution was to focus on solving and immediately removing difficulties for 4,600 enterprises and production facilities. Those groups of policies are credit, security, policies, taxes, late payment of land use fees. All these policy groups and industries will accompany to remove and create conditions for enterprises to recover production as quickly as possible.

Secondly, we must focus on quickly exploiting open markets in the coming time. Markets, regions and countries which are capable of controlling the COVID-19 epidemic must immediately exploit that market.

The third solution is that all industry associations and businesses must review their business strategies to ensure that they have the resources and the best conditions so that when the third and fourth quarters are likely to explode to achieve results. tallest.

The fourth solution is that we continue restructuring the industry towards modernization and sustainability. Raw material areas must be organized for sustainable development and sufficient to supply diverse raw materials. Regarding the processing area, we must form large corporations, large gathering places, large industrial parks specializing in producing furniture with regional and global stature, and can participate in global value chains. .

Before the COVID-19 epidemic, it was still complicated in many countries around the world, especially in the United States and European countries, this will have a great impact and impact on trade activities of wooden and forest products, Mr. Nguyen Quoc Tri – General Director of the General Department of Forestry said that the General Department and associations forecast that the export value of wood and forest products in 2020 will reach about 11.75 billion USD, an increase of 3 , 9% compared to 2019, down 6.6% compared to the growth target set earlier in the year.

Specifically, the total export value of these goods is forecasted to reach about US $ 2.18 billion in the second quarter, down 20% compared to the same period in 2019.

In the third quarter, if the countries basically control the disease, all production and business activities will be stabilized again. The total export value of the third quarter will reach about US $ 3.12 billion, up 10% over the same period in 2019 and up about 43% compared to the third quarter.

Inspecting and perfecting products that meet export standards to the EU market. Photo: Vu Sinh / VNA

The fourth quarter will be the time of the highest growth, and the export value of wood and forest products will reach 3.82 billion USD, up 15% over the same period in 2019.

In the first quarter, exports of timber and forest products have grown at a double-digit rate, consistent with the rule of recent years. However, by April, due to the impact of the COVID-19 disease impact on some countries, the main market of the timber industry is the United States, European countries, Australia, Canada … so the value of wood exports and forest products dropped sharply, down 19.2% over the same period in 2019 and over 20% compared to March.

The reason is that the major market countries of Vietnam’s timber industry, partners and distributors all announce cuts, indefinitely postponed or canceled signed orders. A quick survey of Associations and General Department of Forestry in more than 200 enterprises showed that 80% of buyers stopped or canceled orders; Almost all enterprises have their production scale narrowed, with only 7% of enterprises operating normally, 86% of enterprises having partial production cessation and about 7% having ceased operation entirely due to lack of orders or lack of raw materials. materials and production capital.

Evaluating the State’s supportive policies to reduce translation difficulties such as credit policies, Mr. Nguyen Quoc Tri said that the level of implementation of policies differs between banks. Due to the need to ensure the effectiveness of the credit source, avoid increasing bad debts … so far very few wood enterprises can access.

With the policy of extending the time of paying tax and land rent, up to now, 100% of enterprises have been extended to pay VAT and corporate income tax, 80% of enterprises have been extended to pay the land rent. However, the extension of the time for payment of corporate income tax only applies to the missing amounts of 2019 and the provisional tax paid of the first 3 months of 2020. While most businesses have fully paid 2019 taxes.

Or the extension of the land rental payment term only supports a very small part, because the cost of land rent accounts for a very small proportion in the capital structure of production. On the other hand, for businesses in the wood industry, mainly renting the ground and factories in concentrated industrial parks, the payment of land rent is usually made from the beginning of the year or for a period of 3-5 years.

Talking about the support policies, Mr. Vu Hai Bang, Chairman of the Board of Directors of Woodsland Company, said that the support policy for employees is still problematic and unreasonable. This policy only supports deferred payment, but the conditions are delayed very hard. Typically, the condition of an enterprise to reduce its total assets by 50% – thus only bankruptcy; or businesses must have 50% of unemployed workers to receive social insurance support while the Government and ministries encourage enterprises to support workers to stay and work alternately. Thus, the policy goes against the spirit of direction.

Besides, employees go to work 15-16 days / month but businesses must also pay all insurance in the month. This not only does not support but makes businesses more difficult. Even more stressful when enterprises pay late insurance for workers, they will not be entitled to other preferential policies, Mr. Vu Hai Bang said.

Agreeing with Mr. Vu Hai Bang, Mr. Dang Van Tuan, Deputy General Director of Nam Dinh Forest Products Joint Stock Company, proposing to ministries and branches to reconsider the factor of having 50% of new employees leave to support. The pandemic caused the company to cut the remaining 40% of workforce alternately.

Facing these problems, associations suggested the Government pay attention, consider supplementing new policies to support enterprises such as extending the deadline for paying social insurance premiums, exempting social insurance payment for laborers during the period. time off work due to epidemics, refund VAT immediately after exporting goods; extend the time of paying unemployment insurance, have more credit packages to support interest rates … to support businesses and workers to recover and boost production.

With the recommendations of the enterprises on supporting policies for the enterprises, Minister Nguyen Xuan Cuong said that the Ministry of Agriculture in coordination with relevant ministries and agencies continued to remove unreasonable points. Units will summarize the report to propose the Prime Minister and branches to soon adjust to suit the practical situation of enterprises.

Bich Hong (TTXVN)

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