Plywoods manufactured for export at Minh Duong Wood Processing Company in Bac Chu Lai Industrial Zone, central Quang Nam Province. Viet Nam's wood industry is expecting to reach this year's export target of US$5.5 billion. — VNA/VNS Photo Tran Viet

HA NOI (Biz Hub)— Viet Nam's wood industry is expecting to reach this year's export target of US$5.5 billion, thanks to a recovery in exports of its wood products, experts have said.

The Ministry of Industry and Trade said that the wood industry gained a year-on-year increase of 12.5 per cent, bringing the export value of this industry to $2.46 billion for the first half of this year.

Traditional markets such as the US, Japan and China also had a strong surge in export values.

Dang Quoc Hung, deputy chairman of the Handicraft and Wood Industry Association of HCM City (HAWA), said that exports of Vietnamese wood products to the US had strengthened over the first of this year, which signals a recovery.

The industry expected that the export of wood products would continue to increase in the second half of this year, Hung said. The export value of wood products to the US is estimated to reach $1.7 billion for the year.

In the second half of this year, Chinese demand for wood exports would surge due to competitive pricing, he said. China will import $800 million of woodchips from Viet Nam this year.

The ministry said that the export value for wood products was expected to increase by 10-15 per cent, which would reach its export target of $5.5 billion for the year.

However, Hung said, almost all of the wood processing businesses had faced higher import prices for their materials, yet they could not increase their selling price, so they must have huge losses or might be even forced to stop production.

On the other hand, large businesses have managed to keep up production because they have modern equipment which reduces labor costs.

Companies have said that the Government should supports them with low interest rate loans so that they can upgrade their equipment and technology and overcome production difficulties. The Government should also not increase land rent to allow business to focus on their capital and to make investments in equipment and technology. — VNS