Classification of Wood Processing Enterprises by Economic Sector



From 10 to under 50

6.73%

From 50 to under 200

1.38%

Over 500 billion

0.12%

From 200

under 5

0.42

From 5 to under 10 billion

7.19%

From 1 to under 5 billion

45.62%

under 0.5 billion

18.02%

from 0.5 to under 1

20.52%

Source: Current status of enterprises - General Statistics Office; NCS survey 2011

Table 2.2. Structure of wood processing enterprises divided by capital scale

The number of enterprises with capital from 50 billion to under 200 billion accounts for a very small number. Although in 2000 there were 12 enterprises, in 2005 it increased to 30 enterprises, meaning an increase of 2.5 times, but it still only accounts for 1.74% of the total number of enterprises. In 2010 there were 36 enterprises, an increase of 0.83 times compared to 2005. The number of enterprises with capital over 200 billion is even more modest.

Table 2.4. Scale of human resources in Vietnamese IT enterprises

Unit: person


Region

2005

2010

2011

Total number of employees


Female number

Number

Labor Union

Total number of employees


Female number

Number

Labor Union

Total number of employees


Female number

Number

Labor Union

Nationwide

113304

51192

64

253914

136553

99

259054

140640

99

North

37095

16760

41

22503

12102

45

23509

12763

45

Red River Delta

26500

11973

50

5282

2841

38

5738

3115

38

Winter

North

4125

1863

25

8029

4319

37

8103

4399

37

Northwest

740

335

37

612

330

36

828

450

36

North Central

set

5730

2589

30

8580

4614

65

8840

4799

65

Southern

76209

34432

89

231411

124451

113

235545

127877

113

South Central University

15004

6779

124

38335

20616

205

40180

21814

205

West

original

7210

3256

70

20570

11062

110

21230

11526

110

Winter

South

49543

22382

103

16849

8

90618

111

17060

7

92623

111

Mekong Delta

4452

2011

42

4008

2155

24

3528

1915

24

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Classification of Wood Processing Enterprises by Economic Sector

Source: Viforest 2011 and Enterprise Status, General Statistics Office 2005-2011


Therefore, it can be said that the scale of the BOT enterprises in terms of capital and human resources is mostly small and medium-sized. The market is mostly dominated by medium-sized enterprises. The remaining enterprises with large scale in terms of both capital and human resources are very few and do not have the power to dominate the whole industry.

The number of employees working in the industry in 2005 increased 2.24 times compared to 2000. In the North, the number of employees decreased but gradually increased in the South. The number of employees in a Southern enterprise was 2.5 times higher than that in the Northern enterprise. The Southeast region had the highest concentration of employees in the CNCBG industry in the country. The highest number of employees in an enterprise was in the South Central Coast - an economic region with 6 provinces and the most concentrated CNCBG enterprises was Quy Nhon with Phu Tai industrial park. This is also the region with the second largest number of employees in CNCBG enterprises among the 8 economic regions of the country.

b

h

Red River Delta

2.21%

Northeast 3.13%

Northwest 0.32%

Mekong Delta

1.36%

North Central

3.41%

Fate

Central

Southeast

Central Highlands

Source: Viforest 2011

Table 2.3. Human resources in CNCBG divided by economic region

The participation and role of economic sectors in CNCBG have changed: Private sector participates and plays a leading role in processing and supplying wood products. In 2000, the proportion of state-owned enterprises accounted for 40.85% of the total number of enterprises nationwide, of which the North had a rate of 45.86%, the Northeast 52% and the Red River Delta more than 50%, the South had a rate of 35.6%. The rest were non-state enterprises and joint-stock enterprises (collectively called private enterprises).

Currently, the division of state-owned enterprises by economic sector has changed significantly. The proportion of state-owned enterprises accounts for 4% and private enterprises 96%. The region with the most state-owned enterprises is still mainly in the Southeast, South Central Coast, and Red River Delta. The region with the fewest state-owned enterprises in the country is the Northwest with 3 northern mountainous provinces: Lai Chau, Son La, and Hoa Binh.


Table 2.5. Classification of wood processing enterprises by economic sector

Unit: enterprise

Region

Year 2000

2010


Total

number

DN

NN

DN

NNN

DN

LD

Total

DN

NN

DN

NNN

DN

LD

Nationwide

896

355

514

27

2564

108

2043

413

North

351

161

184

6

505

40

423

42

Red River Delta

118

60

56

2

139

6

118

15

Northeast

72

38

32

2

217

16

184

17

Northwest

10

10

0

0

17

2

15

0

North Central

151

53

96

2

132

16

106

10

Southern

545

194

330

21

2059

68

1620

371

South Central University

124

60

62

2

187

16

159

12

Central Highlands

125

57

68

0

187

45

141

1

Southeast

254

70

165

19

1518

4

1159

355

Mekong Delta

42

7

35

0

167

3

161

3

(Source: Viforest, 2011 and General Statistics Office 2010

With the fluctuations of the socio-economic situation in general and the economic sector in particular, after 10 years, the state-owned enterprises decreased from 40% in 2000 to 4% in 2010. This proves the strength of the people in participating in economic activities.

Non-state enterprise

57%

Joint venture enterprise

3%

State-owned enterprise

40%

Enterprise ownership structure in CNCBGVN in 2016


Joint venture enterprise

16%

State-owned enterprise

4%

Non-state enterprise

80%

Enterprise ownership structure in CNCBGVN

(Source: Viforest 2011)

Table 2.4. Structure of business types in Vietnam's CNCBG industry


Currently, Vietnamese wooden products are present in the markets of 120 countries around the world. The price and quality of products are relatively suitable to the requirements and tastes of consumers. From 2005 to now, the US has always been the country that imports the most Vietnamese wooden products with 25.8% of the total output of exported wooden products of Vietnam, followed by Japan with 16%; UK with 11%; Taiwan with 6.1%; France with 4.6%; Germany with 4.3%; Australia with 3.5%; Netherlands with 3.2%; Korea with 3%;

China 2.8%; Belgium 2%; Spain 1.7%; Denmark 1.6%; Malaysia 1.4%; Other countries 17.8%.


Denmark

1.60%

Belgium

2%

Spain

1.70%

Malaysia

1.40%

Other countries

17.80%

America

25.80

China

2.80%

Korea

3%

Older brother

11%

Netherlands

3.20% Australia

3.50%

Virtue

4.30%

France

Taiwan

6.10%

(Source: Viforest 2011)

Table 2.5. Export market structure of Vietnamese wooden products


Characteristics of human resource classification in Vietnamese wood processing industry enterprises

Indirect human resources in enterprises often fluctuate little, but direct human resources have a high level of fluctuation each year. Indirect human resources usually account for about 5%-7% of the human resources of each enterprise, which are cadres with college, university and intermediate degrees, very few cadres with post-university degrees. Every year, enterprises recruit new human resources, accounting for about 7%/year. Level 5 workers and above are technical workers who can do most of the work and technical operations of the CNCBG industry, this number accounts for about 15%. The rest are seasonal or short-term contract workers [122] .

To understand the characteristics of direct NNL classification in modern Vietnamese enterprises, we must first understand the production process in enterprises. Normally, the process is often divided into the following stages:

- The process of making blanks (pre-processing) from round wood includes sawing, drying, gluing, and bending to get rough blanks. The blanks must be produced according to the correct specifications and ensure accurate machining allowance. To be able to cut,


To mill, carve, and join accurately and according to technical design, the wood needs to be drawn before processing.

- The machine stage (refining) has the following stages: planing, milling, cutting fine details, mortising, drilling holes, rough sanding, fine sanding. This is the stage that determines product quality, requiring workers in the production line to understand and correctly implement the production process as well as have a sense of responsibility and comply with labor discipline. The processed details must be in accordance with the technical design drawings and samples issued by the technician. Workers at each production stage must be responsible for the products they operate, checking the quality of sawn wood brought in from previous stages before carrying out their work operations. All wood surfaces processed at this stage must be carefully sanded before being transferred to the assembly stage.

- The assembly and finishing stages include: planing, milling, cutting fine details, mortising, drilling holes, rough sanding, fine sanding. This is the stage that determines product quality, requiring workers in the production line to understand and correctly implement the production process as well as have a sense of responsibility and comply with labor discipline. The processed details must comply with the technical design drawings and samples issued by the technician. Workers at each production stage must be responsible for the products they operate and are also responsible for checking the quality of sawn timber brought in from previous stages, before carrying out their work operations.

From this production process, enterprises arrange direct production workers in each stage depending on production requirements.

Assembly and completion

36% good

Preliminary processing

24%

Refined

40%

Source: NCS 2011 survey

Table 2.6. Percentage of human resources working at wood processing stages in the production process at modern wood processing enterprises in Vietnam

When comparing the theoretical stages and the actual survey at enterprises, the researcher found no difference between the production stages. The three basic stages above include many


Many stages can be classified into preliminary processing or refining sections. The preliminary processing section usually includes stages in the blanking and machine stages. The refining section also includes stages in the machine stage, assembly and finishing stages. These are technical production stages, some of which are performed on machines and some of which are performed manually (scraping, scraping, caulking, wiping glue at joints, etc.). Each stage requires different implementation capabilities, techniques and skills, and requires human resources to have certain skills for each production stage.

2.1.4. Production and consumption situation of wooden products

Along with the development of the Vietnamese CNCBG industry in recent times, the actual demand for raw wood has grown strongly. The total volume of wood used in 2000 was over 8.8 million m3 , of which 51.61% was used for CNCBG. In 2005, the total volume of raw wood used was 10 million m3 and 53.4% ​​was used for CNCBG. In 2010, the total volume of raw wood used was about 11 million m3, of which raw wood for CNCBG accounted for 57.34%. Vietnam's source of raw wood is domestic plantation wood and imported wood. In the 2000s, the amount of raw wood from

Domestic forests meet about 60%-70% of the demand. However, the output of exploited wood is gradually decreasing and becoming increasingly scarce, leading to the amount of imported wood for production currently being about 80%.

Southeast

4.47%

Mekong Delta

3.69%

Northwest

2.20%

Northeast

23.18%

Central Highlands

34.20%

Red River Delta

0.23%

Central University

North Central Coast

Source: Vietnam Timber and Forest Products Association - Viforest 2011

Table 2.7. Distribution of forests - raw material sources for Vietnamese wood processing enterprises

By 2010, imported raw wood used for industrial enterprises accounted for up to 80%. The reason for the large import is that Vietnam's exploited forest area is low and the quality of exploited wood is not high, small wood and young wood account for the majority of exploited wood, so the processing of raw wood pushes up production and business costs.


Table 2.6. Structure of wood material usage of Vietnamese wood processing enterprises


Content

2000

2005

2010

1. Total volume of raw wood used (million m 3 )

8.8

10

11

2. Usage structure (%)




- Wood used for CBG industry

51.6

53.4

57.34

- Wood used as raw material for particle board, MDF

20.19

20.19

24.2

- Wood for pulp and paper processing industry

25.52

25.52

17.6

- Wood used for mine pillars

0.68

0.89

0.86

Source: Viforest 2011 The countries exporting the most wood to Vietnam are Malaysia, in descending order are Laos, the US, China, Myanmar, Cambodia, Thailand, Brazil, New Zealand, Taiwan and about 20 other countries. The volume of imported wood is large but in Vietnam, there is currently no centralized raw wood market, making the transaction and purchase of raw materials for production inconvenient. Therefore, the import of raw wood materials by enterprises of wood processing and exporting enterprises depends entirely on direct transactions through foreign partners, lacking

uniformity and synchronization in importing wood materials among Vietnamese wood processing enterprises.

The main export products currently include: outdoor furniture 32%; furniture, living room, dining room 31.4%; bedroom furniture 4.1%; kitchen furniture 3.25%. Other types of wooden furniture 17.8% and wooden furniture combined with other materials 5.1%. The export market is 120 countries but the 3 main export markets of the BCG enterprises are the US, EU and Japan.

Table 2.7. Export turnover of wood products in 3 main markets

Unit: million USD


Market Year

2000

2005

2010

America

115.46

566,968

930

EU

160.74

457.63

630

Japan

137.91

240.80

300

Source: Viforest 2011

The period from 2003 to 2007 was a period of strong development in the export of wood and wood products in Vietnam. In 2003, the export turnover of wood and wood products nationwide reached 567 million USD, in 2004 it was 1.1 billion USD. In the following years, the export turnover of wood and wood products of


Vietnam continues to maintain a high growth rate, increasing by 35% in 2005, increasing by 23.5% in 2006. In 2007, it reached 2.4 billion USD, an increase of 24.5% compared to 2006 and in 2010, it reached 3 billion USD. This proves that Vietnam has found a foothold, gradually asserting its position in the world wooden furniture market. With domestic production and consumption, finding data for analysis is extremely difficult. Objective reasons: due to socio-economic development leading to a very rapid growth in demand for wooden products, the development of wooden production facilities to serve domestic needs is almost spontaneous without complete statistics. Subjective reasons: in the past ten years, there have been only a few small studies on production and domestic consumption of wooden products, the statistics are not specific and inaccurate. Therefore, the NCS focuses on researching export-oriented enterprises, using documents from typical enterprises in the industry for research and analysis.

2.2. Current status of human resource quality in Vietnamese wood processing industry enterprises

2.2.1. Quality of human resources through intelligence

2.2.1.1. Education level

With 8 economic regions in the country, the South Central Coast is the region with the largest number of laborers in an enterprise, including 6 provinces: Da Nang, Quang Nam, Quang Ngai, Binh Dinh, Phu Yen and Khanh Hoa, of which Binh Dinh is the province with the largest number of enterprises. Binh Dinh has Phu Tai Industrial Park, Long My Industrial Park and Nhon Hoi Economic Zone. All three of these industrial parks have enterprises with many different industries, but mainly forestry enterprises and are mostly concentrated in Phu Tai Industrial Park. This is the largest industrial park in Binh Dinh province with laborers participating in labor and creating a large volume of products as well as export value of Binh Dinh province.

According to the data of Binh Dinh Economic Zone Management Board, the number of human resources in enterprises of all sectors in 2010 in the province was 21,789 people, of which the CNCBG industry alone accounted for 17,657 people (81.03% of the total number of human resources in all enterprises of all economic sectors). This shows that the CNCBG industry in Binh Dinh has developed very well and attracted human resources to work in recent years.

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