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Ministry of Agriculture & Rural Development

CARD Project Report

027/06/VIE


IMPROVEMENT OF OPERATOR SKILLS AND
TECHNOLOGY IN SMALL RURAL SAWMILLS
IN VIETNAM


Sawmillers Survey Report


Date October 2008
TableofContents
Executive Summary and Commentary 6
1. Introduction 15
2. Method 15
3. Survey Results: 16
3.1. BUSINESS INFORMATION 16
3.2. TYPE OF BUSINESS 16
3.3. BUSINESS FINANCING 17
3.3.1. Northern Region 17
3.3.2. Central Region 17
3.3.3. Southern Region 17
3.4. VALUE OF BUSINESS 18
3.4.1. Northern Region 18
3.4.2. Central Region 19


3.4.3. Southern Region 19
3.5. BUSINESS OPERATION 19
3.5.1. Northern Region 19
3.5.2. Central Region 20
3.5.3. Southern Region 20
3.6. BUSINESS EXPANSION PLANS 21
3.6.1. Northern Region 21
3.6.2. Central Region 22
3.6.3. Southern Region 23
3.7. EQUIPMENT/MACHINERY 24
3.7.1. Vertical bandsaws. 24
3.7.2. Horizontal Bandsaws 25
3.7.3. Circular Saws 26
3.7.4. Saw sharpening equipment 27
3.7.5. Drying Kiln 28
3.8. EQUIPMENT AND MACHINERY MODIFICATION 28
3.9. UPGRADING OF MACHINERY 28
3.10. IS ANY FURTHER PROCESSING OF SAWN TIMBER CARRIED OUT BY THE
BUSINESS? 29

3.10.1. Air Drying 29
3.10.2. Kiln Drying 29
3.10.3. Preservation of timber 30
3.10.4. Production of products. 30
3.11. DO YOU HAVE ANY PROBLEMS WITH KILN DRYING? 31
3.12. LOG SUPPLY 31
3.12.1. How long are logs kept for before sawing? 31
3.12.2. How many different suppliers of logs do you have? 32
3.12.3. Do you have any problems with supply? 33
3.12.4. Do you have problems with log quality? 33

3.12.5. Do you have problems with decay in logs? 34
3.12.6. Do you have problems with log staining? 35
3.12.7. Do you have problems with the diameter of the logs? 35
3.12.8. What is the distance from your supplier? 36
3.12.9. What is the length of the logs supplied? 36
3.13. LOGS DIAMETERS, VOLUMES SAWN AND PRICE 36
3.13.1. Acacia species 36
3.13.2. Eucalypts 37
CARD Project Report 027/06/VIE
IMPROVEMENT OF OPERATOR SKILLS AND TECHNOLOGY IN SMALL RURAL SAWMILLS IN VIETNAM
Sawmillers Survey Report


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3.13.3. Other plantation species 37
3.13.4. Imported logs 41
3.13.5. Species not specified 41
3.14. SAWN TIMBER 42
3.15. THE VALUE OF THE SAWN TIMBER IN VIETNAM D/MONTH 43
3.16. END USE OF SAWN TIMBER. 43
3.17. QUALITY REQUIREMENTS FOR SAWN TIMBER. 46
3.17.1. Do your customers have quality requirements? 46
3.17.2. Do they have sawing tolerances? 46
3.17.3. Is there a limit to the amount of defects? 46
3.17.4. Is there a limit to the amount of stains? 47
3.17.5. Are there any other quality requirements? 47
3.18. WASTE 47
3.18.1. Slabs 48
3.18.2. Rejected Timber 48
3.19. WORKERS 48

3.19.1. Total number of workers. 48
3.19.2. Fulltime workers. 48
3.19.3. Workers aged less than 15 years old. 48
3.19.4. Workers aged between 15 and 24. 49
3.19.5. Workers aged between 25 and 40. 49
3.19.6. Workers aged over 40 years old. 49
3.19.7. Part-time workers. 49
3.19.8. Workers less than 15 years old. 49
3.19.9. Workers between 15 and 24. 49
3.19.10. Workers aged between 25 and 40. 49
3.19.11. Workers older than 40 years. 49
3.20. SAFETY 49
3.20.1. Have any workers had injuries in the last 5 years? 50
3.20.2. Type of injuries 50
3.20.3. Cut 50
3.20.4. Break 50
3.20.5. Strain 50
3.20.6. Crush 50
3.20.7. Other. 50
3.20.8. Position of these injuries. 50
3.20.9. Head 50
3.20.10. Body 50
3.20.11. Arm/hand 50
3.20.12. Leg/foot 51
3.20.13. Eyes 51
3.20.14. Other 51
3.20.15. Did the injury cause loss of working time? 51
3.20.16. How long was the loss of time? 51
3.20.17. Was the injury permanent? 51
3.20.18. Could the person return to work? 51

3.21. TRAINING. 51
3.21.1. Has anyone from your business attended any formal training other than on the job
training? 51

3.21.2. Number of people who have attended training. 51
3.21.3. Are you interested in having anyone from your business attending training? 51
3.21.4. Are there any problems with the current training 52
3.21.5. What training would you be interested in having? 52
3.22. DO YOU HAVE CONCERNS FOR THE FUTURE OF YOUR BUSINESS- 52
3.22.1. Skills 52
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3.22.2. Knowledge 53
3.22.3. Attitudes 53
3.23. HOW GOOD IS THE OPERATION OF YOUR SAWMILL IN TERMS OF: 53
3.23.1. Efficiency (productivity) 53
3.23.2. Effectiveness (meeting the customers’ requirements) 53
3.24. IN TERMS OF YOUR BUSINESS 54
3.24.1. What do you think are the constraints for your business succeeding now? 54
3.24.2. What do you think will be the constraints for your business succeeding in the future?55
3.24.3. What are the major issues that affect your business now? 56
3.24.4. What are the major issues that will affect your business in the future? 57
3.25. WHAT ARE THE DRIVERS IN YOUR BUSINESS? 58
3.25.1. What are your businesses strengths? 58
3.25.2. What is your businesses weakness? 59
3.25.3. What are the opportunities for your business? 60

3.25.4. What are the threats to your business? 61

ListoftablesandFigures

Table 1. Percentage number of sawmills operating full time. 6
Table 2. End uses of acacia sawn timber in Vietnam by region. 8
Table 3. Past training experience by sawmills 9
Table 4. Ranking of training topics 10
Table 5. No. of years that sawmills had been in operation by region (North, Central
and South Vietnam) by ownership type 17
Table 6. Sources of funding for rural sector sawmills (millions VDN.). 18
Table 7 Estimated Value of each sawmilling business (millions VDN.). 19
Table 8. Maximum minimum and average storage times for logs 32
Table 9. The difference methods by which sawmill obtain logs 32
Table 10. The problems sawmillers have with log supplies 33
Table 11. Range of Acacia log diameters sawn by volume and prices paid / m3 38
Table 12. Range of eucalyptus log diameters sawn by volume and prices paid / m3 38
Table 13. Range of “other species” log diameters sawn by volume and prices paid / m3
39
Table 14. Range of native species log diameters sawn by volume and prices paid / m3
40
Table 15. Range of Non specified species log diameters sawn by volume and prices
paid / m3 41
Table 16. Range of Acacia log diameters sawn by volume and prices paid / m3 42
Table 17. Value of sawn timber (,000,000VDN) 43
Table 18. End use of sawn Timber as percentage of production 45


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Figure 1: Meeting with officials in Bin Dinh to discuss the survey 14
Figure 2: Map of Vietnam showing regions where the survey was undertaken 15
Figure 3:(a) Mr Chien undertaking survey with sawmiller (b) Survey being lead by Mr
Ngoc in the work area of the sawmill. 16
Figure 4: Some sawmillers have diversified and also made furniture. An occupational
hazard for this sawmill was wondering cattle. 22
Figure 5: Typical Vertical sawmill with carnage that moves the logs past the saw 25
Figure 6 (a) & (b): Typical horizontal sawmill with operators pushing the saw over the
log which is fixed to timber base blocks 25
Figure 7: Horizontal bandsaw mill being manufactured near HCMC 26
Figure 8: Typical circular saw benches with no guarding, riving knife or fences. 26
Figure 9: Sharpening a bandsaw freehand on grinding wheel. 27
Figure 10: Typical grind used to sharpen bandsaw blades 27
Figure 11: A metal and cardboard sun shade has been fitted this was not considered to
be a modification by the owner 28
Figure 12: Two methods of air drying typical for sawmills in Vietnam 29
Figure 13: Kiln being hand unloaded onto a wheelbarrow 30
Figure 14: Pressure treatment vessel in large sawmill, exporting to china. 30
Figure 15: Furniture produced at sawmills 31
Figure 16: Inside a kiln the (a) empty kiln viewing fans and heat exchangers (b) looking
in the door into a kiln loaded with timber. 31
Figure 17: A log supply typical of sawmiils using garden trees 32
Figure 18: The log is showing the release of growth stresses 33
Figure 19: The log is not straight – therefore recovery is low if straight timber is to be
produced 34
Figure 20: Problems with water in the log yard increases the likelihood of staining and /

or decay. 34
Figure 21: Log with sap stain 35
Figure 22: Sawmill using very short acacia logs (900mm) 35
Figure 23: large diameter and long length acacia logs obtained from 20 year-old
plantation. The sawmiller paid a premium price for these logs 36
Figure 24: (a) Acacia trees planted at My Son (b) Accassia logs cut for use in
construction 37
Figure 25: Pine plantation being thinned and logs ready to be delivered to a sawmill 38
Figure 26: Typical plantation of eucalyptus. 40
Figure 27: Imported logs at very large sawmill near MCMC 41
Figure 28: Acacia being used for furniture 42
Figure 29: Coffin manufacture in Northern region using local species. 43
Figure 30: A chair manufactured at a sawmill, domestic furniture produced when
sawmill activity was slow 44
Figure 31: (a): Flooring using local species. (b) Flooring drying in sawmill 45
Figure 32: Timber being used in a new building, built in traditional style in Hoi An 46
Figure 33: Knots have been filled to use timber with defects 46
Figure 34: splitting and shrinkage are a problem. This board has been filled but is
continuing to open up 47
Figure 35: Timber off cuts to be used as fuel wood being loaded onto a trailer pulled by
a motorbike 47
Figure 36: Pallets can be produced from waste or in many cases as the main production
for sawmills using low grade logs 48
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Sawmillers Survey Report


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Figure 37: This sawmill had houses on both sides. This picture shows the neighbours

house. The owner is unaware of environmental and noise regulations that may
apply to his sawmill 57


Executive Summary and Commentary
In July-December 2007 an intensive survey was undertaken of the rural saw-milling industry
engaged in the processing of acacia and eucalyptus species in North, Central and South
Vietnam. The total number of sawmills interviewed was 74, 24 in the North, 25 in Central
Vietnam and 25 in the South. This represented approximately 5% of the total population of
rural sawmills in Vietnam engaged in processing (MARD 2007)
1
. In addition 15 furniture
manufacturers were interviewed, 5 in the North Vietnam, 5 in Central Vietnam and 5 in South
Vietnam. A total of 17 log suppliers were also interviewed, 7 in the North, 5 in Central and 5
in South Vietnam.
Approximately 90 % of the rural sawmills operating in Vietnam are family businesses. Ten
percent are private companies. The growth in rural sawmills has been relatively recent. Of all
the sawmills interviewed none had been in operation longer than 18 years. The average time
that sawmills had been in operation was 5.3 years thus indicating that the expansion of the
rural saw-milling industry has been very recent. This probably reflects the maturing of acacia
plantations that forms the raw material base for this industry and the freeing up of the
economy to promote entrepreneurial activity.
Sources of business finance were primarily from existing family businesses with funds
supplied ranging from VDN 25-700 million (average VDN 165 million), Private finance loans
ranged from VDN 2-2500 (average VDN 144.7) and relatives VDN 10-100 (average VDN
43.6). None of the sawmills interviewed had received government grants for establishing
enterprises. Sources of funds between regions ranged enormously. Banks loans were more
prevalent in the Central Vietnam (on average VDN 259 million), whereas the average loan in
the North was VDN 50 million and VDN 48 million in South Vietnam. The total estimated
investment in rural sawmill equipment was VND 335,300 million. The average investment in

each saw milling enterprise was VND 161million in the North, VDN 150 million in Central
Vietnam and VDN 249 million in the South of Vietnam.
The survey identified that a large number of the rural mills only operated part time.
Table 1. Percentage number of sawmills operating full time.
Region Full time operation
North 25
Central 52
South 47
However, of those mills that indicated that they were operating full time a large number
identified reasons as to why there were substantial periods of down time. Key issues
comprised:
• Lack of a continuity in the supply of logs and
• Inconsistent markets.
Other reasons identified included:
• That they only supplied local needs that were seasonal or
• That they supplied specialised end uses such as coffins, joinery etc.
• Bad weather and
• Inconsistent power supply.

1
Personal Communications Tran Huu Thanh, Ministry of Agriculture and Rural
Development, Department of Agro-Forestry Products Processing and Salt Production
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Despite a potential over capacity for sawing the available raw material and inadequate
markets, 44% of sawmills indicated either plans to expand or a wish to expand their

activities. Target expansion areas were primarily furniture manufacturing (78% of
respondents) of whom 21% indicated that they would like to focus on high value export
markets. Other markets included handicrafts, and kiln drying of timber. Reasons forwarded
for identifying these potential opportunities related to a perception that there were substantial
market opportunities in these particular sectors. The main obstacles hindering expansion
related primarily to a lack of funding followed by the lack of available skills. Other issues
included the availability of quality raw material, lack of good managerial skills, a lack of
knowledge and unstable market conditions. In most instances, there was a perception that
there was an expanding market for furniture and that expansion into such areas would
stabilise demand for sawn timber.
Saw-milling equipment (horizontal and vertical bandsaws) have been manufactured almost
exclusively in Vietnam. A few mills were imported from China. Most of the mills surveyed
owned only 1 mill. Mill expansion usually involved purchasing addition mills. Most sawmills
also owned circular saws. These have been introduced more recently for recutting flitches
into sawn timber for furniture and other end uses. Virtually all mills had rudimentary saw
doctoring capability. The equipment was purchased new. However, skills in saw doctoring
varied enormously between mills. None of the mills surveyed indicated any modifications to
purchased equipment indicating that in general the saw-milling equipment was suitable for
the sawing of acacias. Only 12% of mills surveyed have plans to upgrade equipment.
Emphasis on replacement focused on:
• Purchasing vertical bandsaws because these were more suitable for sawing small
logs,
• Establishing furniture manufacturing equipment,
• Replacing old circular saws.
Further processing undertaken by sawmills to add value include:
• Air-drying. Only a third of all sawmills engage in drying.
• Kiln drying is undertaken by relatively few mills, although a number of mills send their
timber to enterprises that specialise in kiln drying,
• Preservative treatment was being conducted by 13 enterprises
• Integration of sawmills into manufacturing was reported and focused mainly on

furniture (16 companies) pallet making (9 companies) and construction (9
companies).
Those companies involved in kiln drying were experiencing very serious problems
particularly in relation to drying to a consistent moisture content and identifying suitable
drying schedules for eucalypts and some native species. The Australian team observed
some larger enterprises who were not covered by the terms of this survey have invested
heavily in kiln drying equipment. These kiln were not operated correctly and results for the
more difficult to dry species were unsatisfactory, the main cause was lack of training of the
operators and limited understanding of the principles of timber drying. Discussions with the
kiln operators revealed a genuine interest in learning and getting an understanding of how
they could improve the quality of the finished products.
Log storage times at the sawmill were on average 1 month in the South 1.1months in Central
Vietnam and 0.6 months in the North. The total elapsed time from tree felling and transport to
the log storage yards was not identified. However, storage in extreme cases at the log yard
was reported to be as long as 6 months. Strategies need to be implemented to streamline
the logistics of supply to reduce log storage time particularly given the incidence of decay
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Sawmillers Survey Report


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that was reported by 29% of respondents. Log supply was identified as a problem for 57% of
respondents, mainly because of “availability”. The wet season also compounded the problem
often resulting in a discontinuity in supply. Research needs to address the whole question of
log supply. Techniques need to be developed to reduce sap-stain including proper
housekeeping techniques at the sawmill to lift logs off the ground and provide timely rotation
of the stockpile. This is needed to avoid the development of a decay environment in the yard.
The biggest problem (25% of respondents) in relation to log quality was the presence of
sweep (i.e. bent logs). Inevitably sweep resulted in the crosscutting of logs into short lengths.

The most common log length was 2.4 metres.
Just over 60% of the sawmills interviewed in the survey processed acacia species (Acacia
mangium and Acacia auricliformis). The minimum log diameters specified comprised 10cm
(24%), 12cm (59%) and 15cm (17%). These sawmills reported volumes of between 2 and
300m3 of logs milled per month with prices paid between 0.6 and 2.5 million VDN per m3.
Eucalyptus camaldulensis and Eucalyptus urophylla were sawn in 38 % of sawmills, about
25% of the volume of acacia species. Ten sawmills indicated the use of other plantation
species. Six were sawing Pine; one was sawing Khaya tonkinensis; three were sawing
rubberwood with one of these mills also milling Sau, Rieng and Dieu. Only two sawmills in
the north indicated the use of imported logs with a combined consumption between 3-6m3
per month.
The conversion efficiency of sawlogs into sawn timber was very consistent between regions
53%, 50% and 53% respectively for the North, Central and Southern regions. These
recovery rates are high given the small diameter of logs and indicate that the sawmill
technology is relatively efficient in maximising value from the logs. The recovery results
calculated would be considered to be very high, this may be due to the method of using the
volume of sawn timber as a percentage of the volume of logs. All sawmills used a flat
sawing method which gives the greatest recovery and width were usually the maximum
possible and may contain wane (The presence of bark or lack of wood from any cause on the
edge or corner of a piece of wood. ) on one or both edges.
An end use analysis of timber highlights the dominance of furniture manufacturing and
construction.
Table 2. End uses of Acacia sawn timber in Vietnam by region.
End use Total Vietnam North Central South
Furniture 42% 57% 48% 27%
Construction 26% 34% 28% 21%
Flooring 2% 2% 5% 0
Pallets / Crates 24% 2% 19% 42%
Unknown 1% 1% 1% 0
Other 5% 5% 0 10%

TOTAL 100% 100% 100% 100%
These statistics highlight a very high proportion of timber being used in furniture
manufacture, particularly in North and Central Vietnam. In the South, pallets and crates
dominated the market. The percentage end-use contrasts with other markets, for example
Australia, Europe and North America, where timber in construction would tend to dominate
the market (probably greater than 70% whereas furniture and packaging might comprise and
15 and 5% each). The current analysis indicates that there is potential for substantial market
expansion in the construction and building industries.
In construction, timber is used mostly for formwork (shuttering for concrete). This is a
relatively low value (but important) end use and the life cycle for the product is relatively
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Sawmillers Survey Report


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short. Pallets and crates representing 51% of the market in South Vietnam comprise low
value markets. Timber is usually rough sawn with no value adding in terms of drying or
machining. Quality requirements for this market are also relatively low. Once again the life
cycle is relatively short. Furniture and flooring represent high value markets. Expansion in
these markets is hampered by an apparent shortage of suitable logs. Limitations in the
availability of longer logs, which is also frustrated by the logistics of transport and man
handling will also limit market development in construction. There is an expectation that the
domestic furniture market will continue to develop as marketing and distribution become
more sophisticated and better quality logs become available. Approaches to providing longer
lengths of timber have been addressed to some extent by State enterprises in Hanoi by
introducing finger jointing. The technology (imported from China) is relatively cheap and
appears to be successful. Short random lengths of sawn timber are purchased from a myriad
of sawmills located in the Hanoi area for drying and reprocessing into longer lengths.
Customers specify quality requirement. Forty-eight percent of saw millers who answered this

question indicated that there are quality requirements that they have to meet. Forty-two
percent of respondents indicated that they work by agreement. Only a relatively small
number of mills (11%) indicated that they have sawing tolerances. Nine percent work to
agreements. The presence of stain in timber, whilst a very prevalent defect, was either not
considered as being important, or was tolerated as being inevitable. Only 8% of respondents
indicate that there is limits placed on the amount of stain and only 3% have stain limits
specified in agreements or contracts
The survey analysis of past training experience poses a serious problem, firstly because of
the low incidence of staff receiving any training, secondly because of the number of sawmills
indicating that the quality of training was a problem and thirdly because of the number of
enterprises that felt that the training available wasn’t relevant to their needs. On the positive
side, 73% of enterprises indicated interest in receiving training. Data has been amalgamated
for all regions (i.e., North, Central and South).
Table 3. Past training experience by sawmills
Staff receiving training in the past 13%
Enterprises interested in receiving training 73%
Enterprises indicating that the quality of existing training courses was a
problem
53%
Enterprises indicating that the training in the past wasn’t relevant to their
needs
63%
Table 3 illustrates very clearly that employees of rural sawmills have received very little
training in the past. What training was potentially available was mostly irrelevant to their
perceived needs and the quality of training that was available in the past was potentially
poor. However, it should be noted that given the low number of staff receiving training, the
perception of “poor quality” was probably based on here-say rather than experience.
The same questionnaire attempted to prioritise the topics that enterprises felt were important.
The topics have been ranked in order out of 10 based on the priority accorded by those
enterprises interested in receiving training (table 4.).

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Table 4. Ranking of training topics
Topic Ranking
Further manufacturing 13.4
Saw Sharpening 12.2
Sawmill Practices 11.8
Marketing 11.5
Business management 9.1
Air Drying 9.1
Preservation 8.7
Equipment 8.7
Kiln drying 7.5
Wood properties 4.7
Sawmill safety 4.0
Saw-maps 3.2
Sawmill owners clearly identify further manufacturing as the highest priority, followed closely
by saw sharpening, sawmill practices and marketing. We believe that this highlights concerns
on the part of sawmill owners who are focussing on how they can add value to their current
sawmill businesses, through better hands-on skills; how marketing can improve their sales
performance and how their day to-day performance can be lifted through improved saw
sharpening and better sawmill practices.
A second tier of skills focuses on business management, drying (air drying - followed by kiln
drying), preservation and equipment handling.
Fundamental knowledge of wood as a raw material and OH&S were ranked as a low priority.
Similar surveys conducted in Australia, the US and Europe would potentially have ranked

training these in these topics as most important. There is possibly a lack of appreciation of
the value or need of such information in understanding practical forest industry operations,
the value of solving problems from first principles. Such information provided by the survey is
valuable in highlighting where demand for courses will arise. Clearly a strategy that identifies
these topics as study areas in their own right would be unsuccessful and highlights a need
for weaving the principles of wood-science, OH&S and saw-maps to the more practical skills
identified by the survey.
All respondents to the survey completed a swot analysis (strengths weaknesses,
opportunities and threats). To a greater extent many of the strengths were also identified as
weaknesses
Strengths
included:
• Cheap labour
• Experience
• Easy to run business
• Cheap equipment
Weaknesses

• Technology and equipment is old
• Lack of knowledge in marketing, business and management skills
• Lack of finance
• Unstable market demand
• Space for expansion is limited
Opportunities

• Expanding into furniture manufacture
• Government policy that allows a sawmill to run its own business
• Increasing plantations
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• Increasing demand for products
• Open markets.
The opportunities identified were similar between each of the regions. There was a sentiment
that the industry was becoming better known to the general public; that the work associated
with wood processing was in general relatively easy to learn; that a culture of shared learning
could be achieved and that the business was relatively cheap to invest in.
Threats

• Competition
• Unstable markets
• Policy change
• Unstable log supplies
• Safety,
• Unstable log supply,
• Simplicity of products
• Lack of skilled workers,
• Small size of business
• Limited investment funds
Conclusions
The survey provides a snap-shop of a rural industry that has expanded very rapidly in the
last decade following the maturing of acacia and eucalypt plantations. There are similarities
in the responses to the survey conducted in North, Central and South Vietnam. The
expansion has arisen as a result of government policy that has encouraged entrepreneurship
and market freedom, a cheap labour force, cheap raw materials (logs), cheap robust saw-
milling equipment that has coped with the relatively small diameter logs and a Vietnamese
work ethic that has succeeded in building an important rural industry that has flow on benefits

to the local community.
The first question that arises is whether the “old fashioned” saw-milling equipment has
served its purpose and whether more sophisticated saw-milling equipment should be
encouraged. In the short and medium term the answer to this is probably no. Sawmill
efficiency (conversion of logs into sawn timber) is amazingly high given the quality of logs
that are available to most of the rural sawmills. It is unlikely that an improvement in yield
could be achieved by introducing more sophisticated equipment. Secondly a very high
proportion of sawmills are not operating to full capacity. Equipment breakdown was not
identified as a core reason for equipment working below capacity; rather raw materials
supplies and inconsistent markets were identified as primary reasons. Higher cost more
sophisticated sawmills would exacerbate this problem. The capital cost for establishing a
horizontal Vietnamese sawmill is very low, US$3-4,000. The fact that the sawmill is not
operating to capacity is unimportant in terms of paying off capital, whereas the introduction of
more sophisticated in-feed and out-feed systems and automation would see more than a
hundred fold increase in the capital investment needed. This changes the nature of the
business from being low cost, rural, part time, seasonal and flexible to being full time, ideally
3-shift, inflexible labour reducing industrial production. Transportation costs for logs to larger
fewer mills would increase. Many of the locations currently used by small horizontal sawmills
would be totally unsuitable for expansion into larger mills since many are on sites that can’t
expand or are located adjacent to dwellings.
Visits to a number of integrated forest industry complexes in Central and South Vietnam, that
were established in the last 2-3 years to produce very high quality furniture, solely for export
identified some very interesting features.
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Firstly, there was a very high level of occupational health and safety applied to workers. This

is reported separately.
Secondly, very high quality logs of beach and oak from Germany; oak from Russia; cherry
and pine from the US, teak from the Philippines and tropical hardwoods from South America
etc. were being imported as raw materials for furniture manufacture.
Thirdly, some of the most sophisticated computer controlled furniture manufacturing
equipment (in one enterprise valued at $US80million) had been imported for manufacturing
knockdown furniture components for export. Saw milling however, employed a bank of
Vietnamese horizontal sawmills (in one case, 20 horizontal bandsaws in a row) to provide
primary conversion of very high value logs into high value sawn timber for subsequent
processing into high-value quality furniture. Very clearly it would be relatively easy to write a
case for employing a US$2-5 million sawmill complex to undertake this function. Such a
decision had not been made primarily because the cost of 21 horizontal bandsaws is still a
fraction of the cost of a fully integrated sawmill and the conversion rate achieved using the
horizontal mill coupled with low labour costs couldn’t justify such an investment. On balance
at this point in time there is no justification for trying to encourage a departure from the
rudimentary home-grown saw milling equipment currently being used. Improvements can be
made to the Vietnamese bandsaw type mills and these will be highlighted in a separate
report.
Fourthly, value added kiln drying and wood treatment facilities had been established, as well
as very well maintained air-drying practices. This is reported separately.
Potentially there is no value to be achieved from the government providing financial
incentives for establishing more low cost sawmills. The investment needed to establish new
mills is low and is best left to market forces. However, at the same time as the survey was
conducted audits were undertaken of kiln drying operations. Many of the kilns inspected were
imported and of high quality. In addition Vietnamese manufactured kilns ranged from were
well-designed units that met the requirements for drying acacia and eucalypt species,
through to poor quality in-house built units, which produced questionable quality material.
However, operation of these kilns was sub-optimal due to the failure to use fairly basic drying
principles and utilisation of standard monitoring equipment (i.e. wet bulbs sensors) to ensure
correct operation. In other words drying was achieved using an oven or ‘hot box’ rather than

a properly controlled dry kiln. The inevitable consequences of this resulted in drying degrade,
non uniform moisture content and / or over drying. This is a training issue since most of the
kilns audited had the equipment available for monitoring relative humidity via wet bulb
sensors which inexplicably at times had been disconnected. Most drying operation failed to
use baffles. This inevitably led to inefficient energy use and variable wood moisture content
both within and between boards, on completion of drying. In addition their appeared to be a
lack of adherence to species-specific drying schedules. Whether the best kilns are being
used for Vietnamese conditions is also an issue (a research and technology transfer issue).
Whilst many sawmills interviewed in the survey identified kiln drying as a business
opportunity, clearly there is not enough sawing capacity for each individual mill to justify
establishing its own drying facilities. Air-drying requires a great deal of skill and a surprisingly
low percentage of sawmills engage in air-drying. Space is an issue for many mills as is
training in air-drying practices. There is also a question of the minimum moisture content that
could be achieved using air-drying. It is anticipated that this would be approximately around
or just below fibre saturation point (fsp).
The utilisation of solar drying technology is considered to be a viable and economic
alternative option. Initial research results indicate that significant savings can be obtained. All
of these issues will be reported separately and recommendations made to facilitate an
industry improvement in drying. High quality seasoning and drying are prerequisites for
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successful furniture manufacturing. Many small rural sawmills have their sight set on furniture
manufacturing as a logical extension of their sawmill activities.
Sap stain, decay and insect attack are important issues in Vietnam primarily because of
climate. As soon as a tree is felled it becomes susceptible to this rapid process of
colonisation. The lesson is that trees should be left standing until the supply processing chain

has been organised and timetabled. Both the survey and quality auditing of the stored logs
and finished products indicate an industry–wide problem. Sap-stain is common in logs. Pines
and rubber-wood are particularly vulnerable to sap-stain, much more so than acacias and
eucalypts. But it is still a problem with these species. Apart from the delays in log transport,
other issues identified include proper housekeeping of logs at the mill site; the need in some
severe cases for prophylactic treatments at the sawmill to alleviate stain and decay. A high
volume of acacias is used in furniture and the survey indicates that this market will continue
to grow and substitute the use of acacias in low value uses such as packaging, crates, boxes
etc. Much of the domestic furniture uses a dark lacquer finishes. This is an effective strategy
in masking stain in wood. However, as the market expands, fashion may change to bring
about a demand for furniture that displays the intrinsic species characteristics. This is the
case for short clear lengths of rubber wood for export. The market requires a light colour.
Export rubber-wood is inevitably preservative treated to prevent sap stain. Ten years ago this
would have involved treatment with relatively high concentrations of PCP (Pentachlorophenol
– (5%) mixed with borax- (1.5%). Fortunately given the dioxin impurities in PCP this practice
appears to be history and treatment now focuses on the use of boric acid plus borax that is
benign from an environmental and human toxicity perspective, although the preservative is
still quite toxic to fish. Given the trend towards using acacia for furniture, preservative
treatment is potentially not an issue for most sawmills.
A visit to a treatment plant manufacturer in South Vietnam identified that highly sophisticated
treatment plant was being manufactured. The owner of the foundry was concerned about
potential future markets for the plant and this concern is probably justified. A separate report
produced by the research team highlights needs in terms of training and research; the
opportunities for niche markets in treated timber and round wood for construction, but also
the design of a simple treatment plant that can be used by rural sawmills without exposing
workers or the environment to toxic chemicals.
Occupational Health and Safety is a key issue for rural sawmills. Fortunately the survey
identified less of a problem in terms of accidents than was anticipated given some of the
work practices and the total absence of any work-place control for the prevention of
accidents. These issues have been evaluated, reported and recommendations made to

improve the working environment. Survey results as to sawmill owner preferences in relation
to training, placed a low priority on OH&S. Whilst this could possibly be justified based on
survey results, issues such as noise and dust were not considered by the survey of owners
but were audited at the time of the survey. Long-term health issues (nose, lung capacity
hearing and eye-sight) are of concern. Implementation of current Vietnamese legislation in
relation to OH&S needs to be taken on board by mill owners. OH&S training is obviously one
of the key strategies in implementing change in the work place. Future education training and
research needs will be reported separately but will take into account the findings from the
survey. Clearly apart from the basic elements of training in wood processing, this survey
identifies a clear demand for training in business, bookkeeping, marketing and management.
The survey provides some quantification of the basic needs of rural saw milling in Vietnam.
The exercise provides invaluable information from which strategies can be developed for
improving the performance of the industry. Key issues identified by the survey that require
further investigation include the lack of information in relation to log supply. This is an issue
that needs to be addressed by the Vietnamese Forest Service. Secondly the inconsistent
market demand reported by many sawmills needs to be addressed. This needs an industry
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wide or cluster approach to providing collective information and quality standards and finally,
mechanisms to promote the development of value adding industries such as kiln drying and
furniture manufacturing.

Figure 1: Meeting with officials in Bin Dinh to discuss the survey.
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1. Introduction
Seventy-four sawmills were interviewed, 24 in the North, 25 in Central Vietnam and 25 in the
South. This represented approximately 5% of the total population of enterprises involved in
wood product processing in Vietnam (MARD 2007)
2
. The areas or providences that were
surveyed were selected because they were close to plantations and it was felt that they
would give the best representation of sawmilling activities using the plantation estate that
have been developed over the last twenty years or so.
To investigate the upstream supply and downstream processing further surveys were carried
out. Fifteen furniture manufacturers were interviewed, 5 in the North, 5 in Central and 5 in
South Vietnam. A total of 17 log suppliers were also interviewed, 7 in the North, 5 in Central
and 5 in South Vietnam. The results of these surveys are in separate reports.

Figure 2: Map of Vietnam showing regions where the survey was undertaken
2. Method
A “Structured interview” type survey was considered to be the most appropriate for this
project. The survey questionnaire was prepared by Mr Philip Blackwell after input from the
participants present at the inception meeting and by staff from both FSIV and the University
of Melbourne.
The questionnaire was then trialled in a number of sawmills in the north by Mr Doan Van
Thu, Dr Phan Duc Chien and Mr Bui Duy Ngoc from the FSIV and Philip Blackwell from the
University of Melbourne. After some minor changes, the survey questionnaire (as attached)
was used for all the survey questions.
Prior to the commencement of the survey the questionnaire was submitted for and obtained
ethics approval from the University of Melbourne Ethics committee. This was to ensure
privacy and personal data were to be held in the strictest confidence and persons rights are

not compromised by this survey.
Due to the lack of language and difficulties in obtaining permission to travel in rural areas the
bulk of these surveys were carried out by Dr Phan Duc Chien and Mr Bui Duy Ngoc without
the presence of any university of Melbourne staff.

2
Personal communications Tran Huu Thanh, Ministry of Agriculture and Rural Development, Department of
Agro-Forestry Products Processing and Salt Production (2007)

Northern Re
g
ion for Surve
y
Central Re
g
ion for Surve
y
Southern Re
g
ion for Surve
y
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Figure 3:(a) Mr Chien undertaking survey with a sawmiller (b) Survey being lead by Mr
Ngoc in the work area of the sawmill.

3. Survey Results:
Analysis of the survey results focuses on the total population of sawmills interviewed (74)
unless otherwise stated. Where appropriate the results are segmented by region (North,
Central and South Vietnam). In addition to the surveyed sawmills a number of other sawmills
were visited to gain qualitative information.
3.1. BUSINESS INFORMATION
The first question related to confidential business information and the identity of the
respondent. This information has been excluded from the results to ensure anonymity of
those who responded to the survey. The information was collected so that the participants
could be revisited should extra information be required and for sampling verification.
3.2. TYPE OF BUSINESS
This question was use to identify the type of business and to establish how long they had
been operating. Respondents were asked which of the following categories best fitted their
enterprise: State owned sawmill, Private company sawmill, Community cooperative, Family
Business or Other.
The survey had no response from 4% of the respondents to this question. Of the enterprises
that responded to this question 90% indicated that they were Family Businesses and 10%
were Private Companies.
The maximum that any enterprise has operated is 18 years. On average the companies had
been in operation for 5.3 years. Four sawmills had been operating for less than 6 months.
The Family Businesses had been operating longer than the Private companies and no
private companies were reported in the Northern region of the survey.
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Table 5. No. of years that sawmills had been in operation by region (North, Central
and South Vietnam) by ownership type

Type of Business max min average median
All Regions
Private company sawmill (Years)
10 3 4.9 4
Family Business (Years)
18 0.1 5.3 3
Northern Region
Family Business (Years)
18 0.5 4.8 3
Central Region
Private company sawmill (Years)
5 3 4.9 3.5
Family Business (Years)
17 0.1 5.7 5.0
Southern Region
Private company sawmill (Years)
10 4 6.3 5
Family Business (Years)
17 1 5.7 4.5
3.3. BUSINESS FINANCING
This question related to the amount of capital required to start and operate the business.
3.3.1. Northern Region
One respondent did not answer this question; of the 23 respondents, who answered this
question, 5 were existing family businesses, 19 obtained private finance of which 9 received
part of the money from relatives and only one obtained a bank loan. The capital raised was
between 20 and 120mill VND with a median of 40mill VND. Relatives supplied over 25% of
the total capital for the businesses ranging from 10 to 60mill VND with an average of 20mill
VND over the 9 businesses.
3.3.2. Central Region
All participants responded to this question and only 1 was an existing family business. 84%

obtained private finance of which 20% received additional finance from the family. Relatives
supplied the business finance ranging from 10-100mill VDN, with an average of 58mill VDN.
Only 8% received finance from a bank. The capital raised by the enterprises was between
20mill -2,500mill VDN
3.3.3. Southern Region
In the South, 92% of people responded to this question with 36% of the respondents
borrowing finance from two sources and 5% obtaining money from three sources.
Existing family businesses supplied 18% of the finance. The maximum amount of money
borrowed from existing family businesses was 250mill VDN and the minimum amount was
30mill VDN. Overall the average amount borrowed from family businesses was 145mill
VDN.
Private finance was obtained by 86% of businesses in the south region with the maximum
amount borrowed being 500mill VDN and the least amount borrowed being 2mill VDN.
No one sourced finance from government grants and 5% received finance from other
relatives. The largest amount lent by relatives was 100mill VDN and the least amount was
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30mill VDN. Overall the average amount lent by relatives was 67.5mill VDN. A summary of
the sources of funding for rural sector sawmills is given in table 2.
Table 6. Sources of funding for rural sector sawmills (millions VDN.).
Sources of Business Finance max min average median
All Regions
Existing Family Business (Million) 700 25 165 85
Private Finance 2500 2 145 50
Bank Loan 500 20 107 50
Government Grant

Other -Relatives 100 10 44 30
Northern Region
Existing Family Business 700 50 209 70
Private Finance 120 20 44 40
Bank Loan 50 50 50 50
Government Grant
Other -Relatives 60 10 25 20
Central Region
Existing Family Business 25 25 25 25
Private Finance 2500 20 259 70
Bank Loan 500 70 285 285
Government Grant
Other -Relatives 100 10 58 50
Southern Region
Existing Family Business 250 30 145 150
Private Finance 500 2 104 52
Bank Loan 100 20 48 50
Government Grant
Other -Relatives 100 30 67.5 70
3.4. VALUE OF BUSINESS
Many respondents gave a range for the estimated value of their business. Where this
occurred the average was used to compile these statistics.
The estimated value of the 73 enterprises surveyed was VND 16,765,000,000. As this is
estimated to be about 5% of the total number of small rural sawmills it would make the total
sector’s value about VND 335,300,million (US$20.5 million). Whilst this represents a very
modest investment, it should be remembered that the cost of purchasing a new horizontal
sawmill is of the order US$2,500 – 3,500. A summary of the value of business for each
region and for the whole of Vietnam is given in table 3.
3.4.1. Northern Region
Respondents estimated the value of their businesses to be between 30mill and 750mill VND

with the average 161mill VND and median of 100mill VND.
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3.4.2. Central Region
The respondents estimated the value of their businesses to be between 40mill-1,000mill
VDN with the average being 335mill VDN and a median of 150mill VDN.
3.4.3. Southern Region
The respondents estimated the value of their businesses to be between 35mill-1,350mill
VDN with the average being 249.3mill VDN.
Table 7 Estimated Value of each sawmilling business (millions VDN.).
Estimated Value of the Business max min average median
All Regions 2500 30 250.2 135
Northern Region 750 30 161.5 100
Central Region 2500 40 336.04 162.5
Southern Region 1350 35 249.3 125
3.5. BUSINESS OPERATION
This question asked the respondents to identify if their business operated full time and if not
why. In some cases the response was that they operated full time. Some respondents then
gave some reasons as to why there were limitations to a full time operation. It was felt by the
interviewers that this response was given when the enterprise desired to operate full time but
because of factors outside their control they were forced to have an unscheduled halt to
production for varying periods.
A summary of the reasons given for not being able to work full time includes:
• Lack of reliable markets for sawn timber; (identified by 75% of respondents and of
these about 50% supplied the local people or their own builders).
• 31% indicated that a lack of log supply was one of the key reasons

• Lack of contracts, work or unstable markets 31%
• They supply sawn logs for pallet making or coffin making 8%
• The weather 8%
• Other reasons given were interruptions to power supply, lack of space to operate or
store their materials and lack of capital.
These results indicate conclusively that a combination of problems limit full time production:
• A lack of raw material (log supply) and
• Unstable and unreliable markets for the sawn timber comprise very limiting factors for
rural sawmillers.
3.5.1. Northern Region
Only 25% of sawmills surveyed operated full time, the remaining mills operated 40-65% of
the time. Three of the sawmills said they operated full time but then said they stopped due to
lack of markets or resources.
Some individual comments or reasons given for not being able to work full time include:
• The sawmill is mainly producing timber for coffins
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• Sometimes stop because of lack of resources
• Serves both itself and local people
• To fulfil local needs only
• Lack of markets
• Mostly sawing for local people needs
• Lack of saw logs and undertake contract sawing only
• For local market only
• Serve its carpenters, serve local people
• Sawing for local carpenters and people

• Mostly for carpenters, local people and selling sawn timber to meet local needs
• Lack of work (only serve local people and carpenters)
• Sawing for local people and carpenters only
• Serve local people and carpenters, run by the owner
• Serve local people and their carpenters
• Lack of consistent markets to sell products
Thus is general, one can conclude that the industry has evolved primarily from individuals
meeting their own needs for timber in the first instance and then needs of other local
industries within an environment where there has been a lack of consistent log supply and
where markets may be seasonal or fairly haphazard.
3.5.2. Central Region
52% of respondents claim to operate their mills full-time; the remaining enterprises surveyed
operated 25-60% of the time.
Reasons given for not operating full-time were
• Not enough saw logs or could not sell products
• Mostly working to contracts
• Serving 2 carpenters and local people (nor for selling sawn timber)
• To produce pallets and serve local people through contracts, sometimes there is a
lack of work.
• Serve local people, and sawing to manufacture pallets under contracts, not much
sawing for sale
• To serve local people so depend on their requests, lack of inputs and markets
• Working seasonally, serving local people (sawing for them)
• Lack of capital, lack of sawlogs, unstable market
• Lack of space to operate, lack of space to store sawn timber.
• Lack of sawlogs and markets, depends on the requirement of local people
• Mostly serve local people and carpenters
3.5.3. Southern Region
Of the businesses surveyed 47% answered yes to operating on a full time basis. However, of
these businesses only 7% operated full time since 40% of these mills then gave reasons why

they did not work full time. Reasons included:
• There was an insufficient supply of logs,
• Power supply was disrupted frequently,
• The weather was too wet
• There were insufficient orders.
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Those who operated on part time basis operated between 25-60% of the time with the
average time of operation being 49%.
Reasons given for not operating full-time did not vary between the areas surveyed and
included the following comments:
• Depends on log supply and customers
• They operate full time except when the power is cut off
• Lack of log supply, unstable market
• Depends on weather and log supply
• Sawn timber demand is unstable
• Market decreasing, lack of log supply
• Lack of work, lack of log supply
• Lack of log supply, unstable market
• Serve local people, depends on local demand
• Lack of work, old machines
• Depends on local people and furniture market
• Only sawing for local people
• Sometime stop due to lack of work or market for sawn timber
3.6. BUSINESS EXPANSION PLANS
This question asked; ‘Do you have plans to expand or improve your business?” If yes; in

what areas?
In general 44% of the mills surveyed showed an interest in expansion with the majority
desiring to expand into furniture manufacturing. Four enterprises indicated their desire for
high quality furniture manufacturing and 4 respondents indicated kiln drying as an area for
expansion.
• If yes; what are the main factors causing the change?
• If yes what at the main obstacles hindering change?
3.6.1. Northern Region
In the Northern region
58% of respondents indicated that they have plans for expanding or
improving their business; Eight percent did not respond or have not yet decided, while 33%
have no plans for expansion or improvements. A high proportion of respondents (78%) of
those wanting to expand indicated that furniture manufacture was the desired area with 21%
of these indicating high quality and exports as the desired market.
Of the remaining participants who responded (22%), interest ranged from diversifying into
handicrafts, into kiln drying, and ‘wood material trading’ i.e. either growing plantations for sale
or importing logs for resale.
If yes; what are the main factors causing the change?
There was a 58% response to this question. Of these, 71% of respondents indicated that the
main reason for change was high demand, market availability and expansion opportunities.
Seven percent want to provide for the next generation. Seven percent wanted more work.
Fourteen percent wanted to diversify their products and another 7% stated that it depended
on the people involved.
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If yes; what are the main obstacles hindering change?

There was a 58% response to this question. A number of obstacles were forwarded by each
respondent identified as hindering change. Fifty percent of respondents identified lack of
money as a hindrance to change. The lack of a skilled workforce was identified by 38% of
respondents as a problem. Mill location was identified as a problem by 14% of respondents.
Lack of suitable technology was a problem, lack of knowledge and unstable market
conditions were identified by 14% of respondents as problematical. The availability of quality
wood was identified by 7% of respondents.

Figure 4: Some sawmillers have diversified and also made furniture. An occupational
hazard for this sawmill was wondering cattle.
3.6.2. Central Region
In Central Vietnam fewer enterprises have plans to expand their businesses with only 32% of
respondents indicating that they wish to expand. Only 8 respondents specified how they
would like to expand. Two companies saw the demand for dry timber as the reason for
change and would like to have a kiln for drying. However, one of these sawmills had limited
space in which to expand. Two sawmills recognized that there was a demand for sawn
timber and were considering developing another sawmill. Three sawmills would like to move
into furniture manufacture because of the demand and because suitable sawn timber was
available. One sawmill would like to vertically integrate into plantation growing as a means of
securing access to long term timber resources. One enterprise realized that noise was a
problem and that in the future this would require him to move to a less densely populated
area.
If yes; what are the main factors causing the change?
In Central Vietnam only 8 enterprises answered this section of the question. Four identified
the demand for furniture as the reason for change, with 2 saying that the timber is available
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one mill recognised the value of cheap labour and felt that there was adequate experience
available. Two mills identified that the demand for sawn timber was increasing. One
respondent recognised the need for dry wood and wished to expand into kiln drying.
Individual comments included:
• The demand for furniture is increasing
• The demand for sawn timber is increasing
• The demand for wood drying is high, particularly in the rainy season
• The market is good and labour is cheap
• The availability of sawn timber
• There is a high demand for products, labour is cheap relationships are good and the
experience is available
• There is a high demand for furniture, sawn timber and the equipment is available
If yes what at the main obstacles hindering change?
The main obstacles to change in the Central region were identified as:
• The lack of skilled workers (4)
• The lack of finance (5)
Other reasons given included:
• The lack of space available
• The market requires high quality product
• Lack of good management
• Lack of technology for drying
• Instability of the market and policy
Individual comments were as follows:
• The market requires high quality products
• Lack of money to invest
• The need to establish new relationships in new areas
• Competition
• The lack of investment
• The availability of skilled workers

• The demand for high quality
• The lack of capital, space, technology for drying and the need for high quality
• The lack of money and skill workers.
• The lack of skilled workers and good management
• The lack of money to invest and unstable markets, also policy
• The lack of skilled workers and marketing
3.6.3. Southern Region
Fifty percent of the sawmillers in the south have plans to expand their businesses. Of the 12
who answered this question 10 would like to go into furniture manufacturing with 2 of the
respondents identifying the desire for high quality furniture manufacture. One enterprise
would like to focus on pallet making and one would like to develop kiln drying.
If yes; what are the main factors causing the change?
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In the south 12 people responded to this section of the question. They identified factors
causing change as:
• The demand for furniture (9)
• The sawn timber is available (4)
• Cheap labour is available (2)
• There is not enough work for the sawmill so they need to move into furniture making
since the demand is there (1)
• The demand for dry sawn timber (1) (this is the person who wants a kiln)
• The increased demand for pallets (1)
If yes what at the main obstacles hindering change?
The responses for each of the 12 responding sawmillers are show below:
• Lack of money to invest, expensive to employ skilled workers

• Skilled workers n strong competition
• It takes time to be familiar with the new market
• Not familiar in this field, lack of skilled worker
• Unstable market
• Narrow working place
• Management
• Lack of capital for investment, skilled workers, working place
• Lack of money to invest, expensive to rent skilled workers, high demand for high
quality products
• Techniques and money to invest
• Hard and expensive to have skilled workers, high demand for high quality products
• High risk, need to divert product
3.7. EQUIPMENT/MACHINERY
This question was asked to identify the type, age and condition of the equipment being used
by rural sawmills.
3.7.1. Vertical bandsaws.
Forty-three of the mills surveyed own vertical bandsaws. The majority of the Vertical
Bandsaws in the survey have been manufactured in Vietnam. China was the only other
country of manufacture. Only four vertical bandsaws were imported from China. Three of
these were located in Northern Vietnam.
Thirty-seven of the participants owned a single vertical bandsaw, four enterprises owned two,
one owned four and one owned five.
The age of the bandsaws varies between 1 and 12 years with the average age being 4.7
years.
The respondents were asked to choose a number between 1 and 5 to describe the condition
of their vertical bandsaws. (One is the best condition and five the worst condition). Answers
to this question varied between 1 and 4 with the average being 2.3.
Thirty-eight of the vertical bandsaws were purchased new and only three were purchased
second hand.

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