| Heilongjiang province is the largest province of forestry in China. Wood processing industry was once the dominant industries in Heilongjiang Province. However, with the development of economy, the dominant position of the wood industry in Heilongjiang Province began to decline and Wood products shared a substantial decline in the national market. In the period of2001-2011, the total output value of the second forestry industry of Heilongjiang province and output value of the main wood products showed a rise tendency as a whole, but the price fluctuated greatly, especially the price change of plywood. Currently, the wood industry has undergone many changes in the market such as the gradually widening gap of domestic forest resources and the wood industry development restricted by the materials. There are big differences in the development of wood industry of every area. To the east coast of Jiangsu, Zhejiang, Shandong, Guangdong and other provinces are the optimal regions, while the northwest of Gansu, Ningxia, Qinghai and others are the most backward areas. The wood industry of Heilongjiang province is relatively backward in Northeast scope. With the opportunity of the revitalization of northeast old industrial base, it has become necessary choice to enhance the competitiveness of the wood industry and guarantee wood security in Heilongjiang province.On the basis of the comprehensive competitiveness of the national wood industry analysis with the use of the software of grey correlation analysis, this paper researches the differences of wood industry between Heilongjiang province and other developed provinces and the weight of each factor which have an influence on the comprehensive competitiveness. The competitiveness of enterprises production is the largest impact on industry competitiveness, among them cost margin is accounted for the largest weighting of the three indicators. Forest resources are abundant in Heilongjiang province, but the wood processing industiy lags far behind the coastal provinces which resource conditions are relatively backward. Heilongjiang province has the advantage of basic resources, while the market competitiveness, industrial competitiveness and innovation competitiveness are severely depleted. For the main factors affecting the development of the wood industry in Heilongjiang province, ratio of profits to cost and the quantity of enterprises become the largest two indicators. According to the research results, some suggestions for the wood industries of Heilongjiang province are put forward to enhance the competitiveness of wood industry and industrial development.(1) Execute policy guidance to ensure a sustainable use of forest resources and the use of wood saving.(2)Execute industrial cluster development strategy and brand marketing strategy to improve the overall competitiveness of the wood processing industry.(3) Encourage industrial innovation and introduce advanced production technology and equipment to improve the competitiveness of innovation.(4) Increase the intensity of investment in security industry competitiveness. |