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Wood chip export in masses threaten domestic industries
Paper and wood processing enterprises have voiced their concern about the wood chip exports in large quantity recently, warning that the massive exports would lead to the material shortage to domestic industries.
In 2011, a new record in wood chip export was made when the export volume reached 5.4 million tons. However, the fact that Vietnam has become the biggest exporter in the world has caused worries than joys. The increasing exports would put a harder pressure on the paper and wooden furniture industries which have been crying about material shortage for years.
Statistics show that Vietnam’s eucalyptus and hybrid acacia wood chip exports have increased by 10 times over the last decade. In 2001, Vietnam exported 400,000 tons of wood chips, while the figure soared to 5.4 million tons in 2011. The export volume in 2011 was 36 percent higher than that of 2010, and triple that of 2007.
Australia, the biggest wood chip supplier in the world in the last 20 years, has given the Number 1 position to Vietnam with the export consignments accounting for 20 percent of the total transaction volume in the globe in 2011.
Experts believe that the expansion of the pulp plants’ capacity in China is the main reason behind the sharp increase of the hardwood plantations and shaving processing workshops in Vietnam. The product has been exported to China mainly through the Hai Phong port and the central region’s ports.
Bulk carriers regularly dock at the ports in the central region, such as Ky Ha in Quang Nam province, Dung Quat in Quang Ngai and Chan May in Thua Thien-Hue, just to ship wood chips to South Korea, Japan and China. With the limited domestic supply, China would have to rely on the supply sources from neighboring countries for the production in the future.
The forest growers in Dak Lak province said that due to the lack of capital, they have to harvest trees sooner and chop them into pieces for export instead of growing the trees for some more years to get lumber which is much more valuable.
One tone of wood chips is valued at 500,000 dong on the market, while one ton of lumber is four times more expensive. Meanwhile, the wood chip export in masses would not only affect the wood material total demand in the future, but also affect the wood processing and paper production industries.
According to Vu Ngoc Bao, Secretary General of the Vietnam Paper and Pulp Association, domestic paper plants have to import pulp at the prices higher by 9-10 times higher than the wood chip export prices.
Vietnam earns 110-120 dollars per ton from the wood chip exports to China and Japan, while it has to pay 900-1000 dollars for every ton of pulp imported.
The low export price explains why the huge volume of exports can bring the modest turnover of 300 million dollars a year. Meanwhile, Vietnam has to spend 700 million dollars a year to import pulp.
The An Hoa Paper Company has asked to raise the wood chip export tariff to 20 percent from the current 5 percent so as to reserve materials for the domestic pulp industry. Bao agreed with the idea, saying that the higher export tariff would help restrict exports, thus allowing domestic pulp producers to buy domestic materials for their production.
The HCM City Association of Fine Arts and Wood Processing (Hawa) has also proposed the Ministry of Finance to impose high tariffs on wood chip exports. It said that the domestic wood chip demand has been increasing rapidly when there have been more and more floorboard companies which make products from chopped timber.
Besides, Vietnamese enterprises have received big orders from Europe and South Korea and need more materials for production
vietnamnet
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