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Handicraft group to boost support
The Handicraft and Wood Industry Association of HCM City (HAWA) will continue work to help further develop the sector in the coming term.
The association held its fifth congress last week to review the 2007-10 period and set plans for the next three years.
Nguyen Chien Thang, HAWA's Chairman, said the association had been an effective bridge between the Government and businesses during the past years.
It had held professional training courses, trade promotions and seminars to help members become more competitive and expand their markets.
The up-to-date website had become a key source of information for businesses, said Huynh Van Hanh, a Hawa's Deputy Chairman.
The association admitted 138 new members in the last term, raising the total number to 323.
In the coming term, Hawa would work with local and foreign organisations to hold more seminars, fairs and training courses to support its members, and will co-operate with agencies to organise trade promotions and foreign market-research trips, Hanh said.
HAWA also planned to improve interactions with members and better communications between the Government and businesses.
Export target
The wooden product industry was expected to meet the export target for this year of US$3 billion, said Nguyen Quoc Khanh, another HAWA's Deputy Chairman.
"Wooden product exports and sales in domestic market in the first half of the year were much better than the same period last year, with orders recovering from many markets, especially the US," Khanh said.
"The situation is expected to become brighter in the remaining months of the year since many enterprises have export contracts until the year-end," he said.
But Khanh also cautioned against optimism, saying several challenges still lay ahead, including the rising cost of materials and new US and EU laws on the legal exploitation of timber.
Prices for materials have increased by 10-20 per cent over the same period last year.
Tran Van Hung, Director of Viet Duc Wood Processing Joint Stock Company, said his company had seen growth of 15 per cent for export revenue in the first half of the year, but the higher price of input materials had lowered the company's profit.
Despite no batch of wooden goods having been sent back to the country since the Lacey Act became effective, however, exporters should prepare all documents carefully in order to meet requirements of the US law that requires timber exporters and retailers to prove the origin of its timber and related materials.
Wooden product exports were worth $1.5 billion in the first half of the year, a year-on-year increase of 32 per cent, said Nguyen Van Vy, Hawa's office manager.
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