Vietnam becomes sixth largest furniture exporter to the UK

Experts say wooden furniture represents one of the key export industries that are anticipated to greatly benefit from the impending UK-Vietnam Free Trade Agreement (UKVFTA).

Once the trade deal comes into effect, a range of timber and wooden products are poised to enjoy a preferential tariff of 0% in line with the five-year roadmap from the current tax rate of between 2% and 10%.

Most notably, there appears to be plenty of demand for Vietnamese wooden products as these items have tended to sell well in the UK market, largely due to their highly-competitive prices and high quality.

Several major companies operating in the wood industry in the UK have moved to establish production facilities, or have signed long-term partnership contracts with manufacturers operating in Vietnam, including IKEA, the world’s largest furniture retailer.

According to economists, the UKVFTA will not only help to increase the export of this commodity to the UK, but will also serve to create a favourable business climate that can attract FDI inflows into Vietnam, especially with regard to the local wood processing industry.

Throughout the opening 11 months of the year, the timber and wooden product industry has witnessed robust growth of 14.1%, despite the facing a range of adverse impacts caused by the novel coronavirus (COVID-19) epidemic, grossing a revenue of nearly US$10.9 billion.

Data compiled by the International Trade Center (ITC) shows the leading exporters of wooden furniture to the UK market are currently China, Italy, Germany, Poland, and the United States.