Changes in the Vietnamese Timber Processing Industry: A Case of Quang Tri Province, North Central Region

• Published in: Forests 2021-08, Vol.12 (8), p.984
• Main Authors: Iwanaga, Seiji, Hoang, Dang Thai, Kuboyama, Hirofumi, Duong, Dang Thai, Tuan, Hoang Huy, Minh, Nguyen Van
• Format: Article
• Language: English
• Subjects: Bans; Coasts; Economies of scale; Farms; forest certification; Forest management; Forest resources; Forestry; forestry company; Forests; Furniture; glued laminated timber; Glulam; Households; Lumber; medium density fiberboard (MDF); Pellets; Plantations; Planting; Processing industry; Procurement; Raw materials; Sawmills; Timber; Timber supply; Tree planting; Trees; Trends; Wood; wood pellets
• ISSN: 1999-4907; 1999-4907
• DOI: 10.3390/f12080984

Vietnam’s forestry policies have expanded the area of planted forests in order to meet the supply of raw materials for the timber processing industry. However, the diversity and volume of demand in the industry have also increased, and a shortage of raw materials can be assumed. For clarifying the correspondence of stakeholders, we explore changes in the resource supply behavior of forestry companies and procurement strategies of companies that manufacture lumber for glued laminated timber, medium density fiberboard (MDF) and wood pellets. Next, we discuss issues and future developments surrounding the supply and demand for timber from planted forests. According to a survey of Quang Tri Province, both industrial and on-farm tree planting play an important role in Vietnam’s wood industry. The origin of the supply has been categorized according to its purpose (products). On the other hand, with the declining supply of imported timber and natural forest timber, inquiries from sawmills and glued laminated timber factories for timber from planted forests have increased, and wood pellet manufacturers are facing competition for raw material procurement with MDF manufacturers, and the supply of timber from planted forests is becoming scarce. The key to the solution lies in improving the low productivity of current on-farm tree planting. To this end, forming farmer groups upon the acquisition of forest certification will help achieve economies of scale and bargaining power.