Dau Tieng Wood JSC operates the Long Hoa Wood Processing Plant, which consists of three main workshops:
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Rough processing workshop: capacity of 15,000–20,000 m³/year
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Laminated panel workshop: capacity of 3,000–4,000 m³/year
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Refined wood workshop: capacity of 1,000–1,500 m³/year
In 2020, the company produced over 27,000 m³ of rubberwood billets (75% of plan), 2,800 m³ of laminated panels(96%), and 1,800 m³ of refined wood (138%). Despite revenue reaching only 90% of the target, profit exceeded the plan by 22%, reflecting improved operational efficiency.
According to Mr. Nguyen Thanh Duoc, Director of the company:
“Our semi-processed and laminated rubberwood panels are mainly supplied to domestic markets such as Binh Duong, Binh Phuoc, Dong Nai, and Tay Ninh, while refined furniture products are primarily exported to the U.S. (50%), followed by Australia, the U.K., and New Zealand. Currently, our factory is operating at full capacity, and all production is pre-sold through June 2021.”
Focusing on High-Value Wood Processing
In 2020, production of rubberwood billets and laminated panels declined due to market fluctuations, while refined wood output increased by 26% compared to 2019.
In the first quarter of 2021, sales of rubberwood billets reached only 7% of the annual plan, laminated panels 27%, while refined wood products achieved 43% of the yearly target, showing a clear strategic shift toward high-value exports.
With key importing markets like the EU and the U.S. enforcing strict traceability and legal origin requirements for timber products, rubberwood has become one of the best options for export production, thanks to its clear legal source and sustainable supply.
Strategic Shift Toward Processed Wood Exports
Given the higher profitability of refined furniture exports, the company plans to continue expanding high-end refined wood and furniture production for export to the U.S., Australia, and the U.K.
Currently, Dau Tieng Wood JSC sources most of its raw materials from reclaimed rubberwood provided by Dau Tieng Rubber Company Limited, which manages over 24,000 hectares of plantations. However, by 2030, this area is expected to shrink to around 15,000 hectares to make way for industrial zones, residential areas, and high-tech agriculture.
Therefore, the company aims to reduce output of raw billets and increase refined wood production to maintain sustainable material supply and profit margins.
Investment in Expansion and Modernization
According to Mr. Duoc, the company’s refined furniture workshop is already running at 100% capacity. To ensure sustainable growth and stable employment, Dau Tieng Wood JSC plans to build a new refined wood processing planton a 10-hectare site at Doan Van Tien Farm.
The company will also invest in modern production technology, expand product designs, and intensify marketing efforts to enhance brand recognition and competitiveness in global markets.