Planted forests in the US, Canada, South Africa, Australia and New Zealand are being targeted by Vietnamese businesses as they have Forest Stewardship Council certification and are suitable for industrial wood production.
The Viettrancimex Company Management Board is sourcing imported wood materials from South Africa. It has also joined forces with enterprises in Binh Duong province and Ha Noi to construct a 11.5ha bonded warehouse in the South African city of Port Elizabeth. Timber taken from South Africa and neighbouring countries would be semi-processed at the warehouse and then transported to Vietnam.
This will enable the Viettrancimex Company to import around 300,000 – 360,000m3 of timber a year, with import prices 15% lower than those of ordinary imported wood due to decreased production costs.
Meanwhile, the Truong Thanh Furniture Corporation in Binh Duong province is building a US$2m processing plant in Laos which again offers raw wood and low labour costs.
And the Saigon-Daklak Joint Venture Company has signed a Memorandum of Understanding (MoU) with Canadian timber supplier Canfor Corporation to build a plant in Vietnam.
The plant will be able to supply raw wood material worth US$30m in its first year and the value is expected to rise to US$150m in the next five years.
Under the MoU, Canfor would open a number of wood processing plants and provide training to Vietnamese businesses if required.
