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Timber industry urged to go digital amid long-term impacts of COVID-19

 

Date: 2022-01-03

News Type: Marketing News

 

Source: VNA / Photo: VNA 

Forestry products are one of the few products seeing export growth despite COVID-19 threatening economic development in countries around the world.

However, the impact of the pandemic would be unavoidable in the long term which will force the Vietnamese timber industry to find a new direction to sustain development.

Data of the Ministry of Agriculture and Rural Development showed the export of wood and wood products brought Vietnam more than 13.2 billion USD in the past 11 months, up 20 percent over the same period last year, in which the export of wood products fetched 9.9 billion USD, up 16.6 percent.

“The rapid spread of COVID-19 has changed consumer behaviour, creating pressure and challenges forcing businesses to innovate and improve at all stages, from design and production to trade, in which digitalisation is the key,” said Amit Sharma, lead of researcher team in the report on Digitalisation Maturity Assessment of the Wood Processing Industry in Vietnam.

The report, conducted by the Handicraft and Wood Industry Association of Ho Chi Minh City (HAWA) and the Private Sector Development Research Board (IV Board) under the support of Asia Foundation in Vietnam, has studied the readiness of Vietnam’s wood industry to digital transformation.

The report found 58 percent of respondents confirmed their company has some form of a digital strategy in place and 80 percent said digital transformation is core for their future strategic business development. While 70 percent of firms confirmed their management team has the necessary skills for executing digital transformation, only 48 percent said their company plans its digital strategy for up to two years and 46 percent have a plan from 3-5 years.

Lack of knowledge, process and people are seen as the biggest challenges of developing and implementing a digital strategy, followed by budget and management. Most of the companies said increasing productivity and transforming the company are the core reason for shifting to digitalisation, besides rising revenues, reducing costs and finding new markets.

To achieve exports of 20 billion USD in 2025, it is necessary to approach new directions, multi-channel sales, and increase the value of products. Though e-commerce is the immediate solution, the report said complete digitalisation should be the mid-to-long-term focus of all wood processing Vietnamese enterprises.

According to Pham Thi Ngoc Thuy, director of the office of the IV Board, wood manufacturing businesses have made great efforts to find solutions for digital transformation, especially in the pandemic, business leaders sought many ways to interact with customers given lockdowns in both domestic and foreign markets.

Full article: https://en.vietnamplus.vn/timber-industry-urged-to-go-digital-amid-longterm-impacts-of-covid19/218296.vnp

 

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