Sep 06, 2005. /Lesprom Network/. The $1.5 billion target of Vietnam's woodwork export sector for this year seems attainable, but chronic problems must be tackled to keep growth on track. Two years ago when Vietnam's woodwork exports reached $580 million, it was considered a success. But the first six months of this year alone saw woodwork exports earning $728 million, registering a 50% growth rate year-on-year. Experts forecast the total export sales of the wood product industry will top $1.5 billion by year-end. Vietnam's wood products have made their presence felt in 120 countries and territories worldwide. The three main markets are the European Union, Japan and the U.S. Made-in-Vietnam wood products arriving in Japan, the world's largest interior woodwork importer, make up about 7% of total imports there. With the U.S. imposing anti-dumping tariffs on woodwork from China, woodwork exports from Vietnam to this market have soared. A report from the ministry of trade shows that during the first half of this year, Vietnamese shipments of bedroom furniture to the U.S. have grown robustly. The climbing export sales are the direct result of the mounting number of orders from abroad, says Tran Quoc Manh, vice-chairman of the HCM City Handicraft and Wood Industry Association. He says many wood exporters have signed big contracts with partners from the U.S., Japan and the EU. However, Mr. Manh also says Vietnamese wood manufacturers have also turned down many big U.S. orders because they are unable to meet importers' demand. One of the requirements is Forest Stewardship Council certification, which proves the timber has come from approved sources. Vietnam has to import up to 80% of its timber used in woodwork processing, about 2 million cubic meters a year. The rising price of timber imports, between 15% and 30%, is putting a lot of pressure on local woodwork producers. Indonesia and Malaysia, the two biggest timber exporters in Southeast Asia, are Vietnam's biggest timber suppliers. Yet, Vietnamese wood processors have found it increasingly difficult to get supplies because of stricter timber export controls in those two countries. If timber has to be imported from countries farther away, transport costs will be greater, especially with the very high oil prices. Vietnam has about 1,500 enterprises producing wood exports with a total annual capacity of 2.5 million to 3 million cubic meters. But only 200 of them are of a big scale. Estimates show that 90% of Vietnam's wood products are exported through a third company. Only a few dozen enterprises in HCM City can export their wood products directly. The shortage of timber will remain a hard nut to crack in the immediate future. However, some measures can be taken to alleviate the problem. Manh says one of them is to set up a timber market capable of providing approved timber. Some enterprises have developed projects to plant forests in Russia and South Africa. Yet in the long run, growing forests in Vietnam is the best policy. Studies by the forestry sector have identified key areas for timber, being the central coast, the central highlands, and the eastern part of the south. To diversify designs, also a weakness of Vietnam's wood exports, woodwork manufacturers in HCM City, Dong Nai, Binh Duong and Ba Ria-Vung Tau have employed foreign experts to work for them. In addition, these exporters are determined to provide better after-sales services for hard-to-please customers to attract larger orders.