Facing a series of difficulties and challenges in the wood industry, MDF VRG Kien Giang Joint Stock Companyhas proactively implemented multiple solutions to maintain operations, stabilize employment, and ensure income for its workers.
Proactive in Raw Material Sourcing and Cost Reduction
In the first half of 2023, raw material procurement faced significant obstacles due to prolonged drought and low canal water levels, which made harvesting and transportation difficult. In addition, fierce competition for acacia wood has intensified as factories in the Southeast began sourcing timber from the Mekong Delta to serve their own production needs.
Meanwhile, brick kilns in An Giang Province also purchased wood as fuel, further reducing supply. As of the end of June, the company had purchased 19,700 tons of raw timber, fulfilling only 35% of its annual target.
General Director Nguyen Anh Tuan shared:
“The company has actively coordinated with local boat operators and encouraged farmers to increase harvesting on embankments and mixed gardens to offset the shortfall. We have launched support programs to boost procurement from neighboring provinces and completed the sustainable forest adjustment project for Hon Dat forest area. The appraisal phase is now underway and expected to be approved soon, enabling us to begin implementation in the third quarter. This will help us gradually secure a stable raw material source for the factory.”
In addition, MDF VRG Kien Giang has strengthened the application of technology to reduce input material consumption in MDF board production. The company has invested in digital management software for equipment maintenance, utilizing Industry 4.0 technologies to track repair history, access real-time technical drawings, and ensure spare parts availability to avoid production downtime.
Efforts to Secure Product Markets
Mr. Nguyen Anh Tuan emphasized that in the face of weak consumption demand, the company has seized every possible sales opportunity—from small, low-value orders to large, export ones—to keep production running.
“We focus on expanding export markets, strengthening marketing activities, and building brand reputation to ensure reliability and quality in every delivery,” he added.
The company has also sought new customers, maintained relationships with long-term partners, and reviewed coststo reduce production expenses and lower prices. By pursuing small and niche orders, MDF VRG Kien Giang aims to sustain operations until the market recovers, while striving to meet its assigned production and financial targets.
As of June 2023, the company had produced and sold over 10,000 m³ of MDF boards (reaching 54% of last year’s volume) and recorded revenue of over VND 55 billion (44% of last year’s level), with profits exceeding VND 32 billion (55% of the annual plan).
In the coming months, the company plans to mobilize all available resources to overcome market challenges, complete its business plan, and secure stable employment for over 300 workers, whose average monthly income remains above VND 8 million per person.