Many wood processing enterprises are operating at a standstill due to lack of raw materials and markets.

According to information from the People's Committee of Cam Lo district, currently in the district there are 17 wood processing enterprises (including projects for producing energy pellets, processing wood and wood chips, and manufacturing wood products) that have been granted investment certificates/investment policies by the Provincial People's Committee.

Production of interior and exterior wooden products for export at Tien Phong Cam Lo Company Limited - Photo: Anh Vu

In general, investment projects carry out production and business in accordance with registered industries, initially promoting socio-economic efficiency, contributing to job creation, economic restructuring and consumption of planted forest wood in the area.

However, wood processing technology is simple, mainly businesses buy sawing machines, low quality production lines, and incomplete technology, so the products are made as raw materials for other production facilities.

Of the 17 enterprises, only Tien Phong Cam Lo Company Limited has invested and put into operation a project to produce and process wood for export with a complete and modern production line at Cam Thanh Industrial Park; the company's wood products for interior and exterior have been exported to the US, France and Germany markets. The remaining 16 projects are not operating at full capacity, some projects have had to stop operating due to lack of input materials.

In addition, market research by businesses has not been focused on, leading to unstable product consumption; consumer demand in major export markets such as the US and EU has decreased sharply, leading to a decrease in orders, forcing many businesses to reduce production scale or even close down.

Enterprises have not focused on connecting and promoting their products; market demand forecasting is limited; there is a lack of orders for production, while high production costs have reduced operational efficiency.

Mr. Vu