FPA Binh Dinh helps businesses overcome hardship

The Forest Products Association of Binh Dinh (FPA Binhdinh) has aided its members, wood exporters, to overcome hardship caused by the global economic recession. The association chairman, Mr. Nguyen An Diem, talks more about the issue.

Could you reveal difficulties affecting the operation of wood exporters in Binh Dinh?
Due to the global economic crisis, the wood industry was much affected. Among three wood processing hubs nationwide, Binh Dinh’s businesses are facing more difficulties than wood exporters in HCM City and Binh Duong province. Most businesses in Binh Dinh specialize in outdoor furniture. Their main markets are the US and European countries which have been most impacted by the global economic regression. No more contracts, price reduction, and high interest rates were main difficulties which wood exporters had to suffer.

What has FPA Binh Dinh done to aid its members?
Fortunately, the Government has promulgated some stimulus policies. With the support of the province, the association has effectively aided its member to an extent. The association asked bodies and commercial banks to grant subsidies to loans made by wood processing firms. The FPA Binh Dinh also suggested wood processors attend international woodwork fairs and try to penetrate new markets such as Russia and the Middle East.

How about the results?
The Government’s stimulus package has proved effective, helping businesses curb difficulties. Though the government is providing a 4-percent interest subsidy on loans to companies that export, import or produce essential goods, it takes four month for them to complete the procedure. They, therefore, hope the Government could extend the deadline for interest subsidy by June, 2010. The association is now striving to carry out measures to help companies overcome hardship.

What do you think about the operation of wood exporters in Binh Dinh this year?
This year will see many difficulties, I think. At present, markets in the US and European countries are showing signs of recovery. Some businesses signed new contracts, hoping for more in late 2009. Others are focusing on domestic markets and produce indoor furniture. The export turnover may be kept stable this year, but the profit won’t be high. It will be unavoidable that some firms have to be merged or re-organized.

Source: Binhdinh Online