According to many experts, Covid-19 has a strong impact on the timber industry and forecast that the export growth of the industry in 2020 may be 0%.
At the online seminar “Recovery – Acceleration – Breakthrough – Development – Sustainable timber industry in the post-pandemic period” by Forest Trends, Ho Chi Minh City Association of Fine Arts and Wood Processing (HAWA), Wood Association and Vietnam Forest Products (VIFOREST) and Wood Processing Associations of Binh Duong, Dong Nai, Binh Dinh … co-organized, took place on the afternoon of April 28.
At the seminar, delegates said that Covid-19 had a strong impact on the wood industry and forecasted that the export growth of the industry in 2020 could be 0%.
Survey results with 124 enterprises in the industry at the end of March 2020 showed that 100% of enterprises were affected by Covid-19 epidemic. In particular, 75% of businesses said that the initial damage was estimated at VND 3,066 billion.
More than half of the businesses surveyed said that they had to downsize production. About 35% of businesses though operating normally but will have to suspend production in the near future; 7% of businesses have ceased operations and only 7% of businesses still operate normally.
Survey results with 124 enterprises in the industry at the end of March 2020 showed that 100% of enterprises were affected by Covid-19 epidemic.
Experts said that in order to overcome difficulties, the Government needs to promulgate new mechanisms and policies to support businesses, and businesses themselves must quickly change to adapt to the new situation. Vietnam’s timber industry needs to change its thinking, formulate and promote links between enterprises in the industry, build domestic supply chains and develop supporting industries …
The impact of Covid-19 shows that Vietnam’s wood export supply chains are not good at present, partly dependent on imported raw materials and accessories, especially from China.
The opportunities to reduce this dependence are the trade agreements signed by Vietnam over the years such as: CPTPP / EVFTA / VKFTA / AEC … From there, the timber industry can receive production shifts, orders, investments, restructuring supply chains from European countries and the US, Japan, … reduce dependence on China. This shift can create breakthroughs in future industry development.