Wood industry faces hurdles ahead in remainder of 2021
VOV.VN - The complex nature of the COVID-19 pandemic impacting southern cities has led to 60% of enterprises operating in the wood sector to suspend their operations, leading to severe difficulties in fulfilling export orders for the EU and the US.
According to details released by the Handicraft and Wood Industry Association of Ho Chi Minh City (HAWA), only between 30% and 40% of 600 HAWA enterprises are operating with a production capacity reaching between 35% and 40%.
Most notably, there has been a sharp decline in the number of businesses operating in Binh Duong province due to the locality recently being ravaged by the Delta variant of SARs-CoV-2, with an increasingly rapid rise in COVID-19 cases.
Furthermore, a number of difficulties occurring in input materials and high operating costs have forced local businesses operating in the locality to suspend their operations.
Nguyen Chanh Phuong, vice president of HAWA, said with the country’s major markets such as the US and Europe in the process of rebounding, there has been a significant rise in the consumption demand in these markets.
He noted that in the event that local businesses have not supplied enough products under the signed orders, foreign partners will instead seek out alternatives.
Sharing this viewpoint, Nguyen Tan An, deputy director of Sao Nam Flooring Company in Binh Duong province, expressed his concern regarding the loss of orders caused by the late delivery process.
Currently, Ho Chi Minh City and provinces such as Binh Duong and Dong Nai have devised plans in order to establish "green zones" for businesses to resume their production activities.
Simultaneously, businesses have suggested that the Government allocate and prioritise vaccinations for workers to allow them to return to production as soon as possible.
