Promote links in the ASEAN Wood industry

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Wood Industry has made great effort to promote links between businesses and associations in ASEAN.

The Handicraft and Wood Industry Association of Ho Chi Minh City (HAWA) and ASEAN Furniture Industry Council (AFIC) held the "ASEAN Market Attraction" forum with the participation of Vietnamese wood enterprises, representatives of the Ministry of Industry and Trade and more than 40 enterprises from sevenAFIC member associations: Thailand, Malaysia, Indonesia, Singapore, Philippines, Myanmar and Laos.

With a population of more than 600 million people, Southeast Asia is a potential market for furniture in Asia and the world with great purchasing power. According to statistics from Global Furniture, furniture consumption in Southeast Asia increased by 18 percent in 2018. This is also an area with a developed wood processing industry with Vietnam as the leading country.

Nguyen Quoc Khanh, Chairman of HAWA, said that the ASEAN interior market has a high similarity in tastes and shopping demand andconvenient transportation as the gateway of goods circulation between Asia - Europe - Middle East- the US- Australia with many large seaports and convenience for global import-export. Along with that, the rapid development of the real estate market, increasing the population and housing, investing in resorts and tourism in ASEAN has also led to the demand for housing, interior - exterior products. This is an opportunity for businesses to exploit.

To exploit this potential, Khanh said that the cooperation - links - alliances between Vietnamese businesses and businesses and associations in ASEAN will create common prosperity forthe Southeast Asian wood industry.

According to experts, the export turnover of furniture and interior products in ASEAN is only US$730 million. While the region annually imports up to $3.3 billion of wooden and furniture products. This figure shows a great opportunity to increase intra-regional exports to replace imported goods. In addition, cooperation in the ASEAN Wood industry also helps to maximise the strengths of the countries in the region. Thereby increasing the value chain of the ASEAN wood industry.

At the forum, experts also pointed out opportunities to increase the wooden and furniture trade in ASEAN region in the trend of rapid development of electronic commerce and the consumption trends of the young population in ASEAN.

According to experts, the ASEAN wood industry has responded to changes from the global market, including national mechanisms and policies, and changes in business production of businesses. In particular, AFIC members are striving to promote the mutual linkage between Vietnamese enterprises, intra-regional enterprises and alliances among the member associations for a prosperous and sustainable ASEAN Wood industry.