Getting the wood chips back on track

In the first 7 months of 2020, the export value of wood chips reached US$923.01 million, down 1% in volume and 6.4% in value over the same period in 2019, but wood chips could not be fully resolved. his math problems in the past while standing alone.

In the last 2 months, PISICO's export of wood chips was only at 115-120 USD/ton, a few months ago the price of woodchips was over 130 USD for the Chinese market, now the company is trying to manage to solve your own problems

Explaining the decrease in woodchip export volume and turnover, experts said that one of Vietnam's largest woodchip import markets is China, which has shifted to buying woodchips from countries like Brazil and Chile with high quality. The quality of woodchips is better, the price is more reasonable because the oil price is falling, along with the Covid epidemic, causing the chip suppliers in Brazil and Chile to sell off.

At the same time, according to the assessment of world economic experts, the cause of the decline in the price of woodchips is weak demand in the Japanese market, because the pulp and paper industry in Japan has cut output, due to reduced domestic demand. Faced with that fact, Chinese woodchip importers have seized this opportunity to force down the purchase price of woodchips in the Vietnamese market.

Up to this point, tons of wood chips have remained dormant at ports due to a sharp drop in demand for paper, the Covid-19 epidemic causing pulp and paper companies around the world to have to stop working, or operate. Moderate action makes it difficult for Vietnamese enterprises to export wood chips.

There have been warnings since the woodchip export processing industry reached its peak about 5 years ago, but in the end, the woodchip industry could not avoid this challenge when the industry grew too hot, leading to unfair competition. strong.

According to Mr. To Xuan Phuc, Forest Trend Organization, the wood processing area planning is clearly out of balance, this is a consequence of the management's failure to control the hot development of wood chips, without key wood processing planning areas, such as the Southeast region has over 2,000 wood processing factories but only 5,000 hectares of forest, but the Northwest is the opposite, over 100,000 hectares of forest but the number of factories is only a few. hundred.

Another reason why the woodchip industry tends to plunge is that at the same time as the Covid-19 epidemic, the world oil price plummeted, helping to reduce transportation costs, many woodchip suppliers in Africa and America , Australia was able to reach the Chinese market.

Solving the story of the woodchip industry is to solve the problems of businesses and handle the concerns of each business is to bring hope to each planter, at this time, the management role of the state agencies Water needs to be maximized, in addition to the basic factors of quality of tree varieties, afforestation policy, also the cycle of afforestation and exploitation to bring the best effect and consider reducing/eliminating taxes. export for this item