Wood, furniture industry advised to improve added value
Wood and wooden products make up nearly 93% of Vietnam’s forestry value every year.
Experts gathered at the Vietnam wood and furniture forum in Ho Chi Minh City on March 6 to discuss ways ahead for the sector which is facing formidable challenges posed by global economic slowdown, widespread inflation and conflicts.
Director of the Department of Forestry under the Ministry of Agriculture and Rural Development Tran Quang Bao said that wood and wooden products make up nearly 93% of Vietnam’s forestry value every year, and export of the goods have maintained two-digit growth, even during the COVID-19 pandemic.
However, enterprises have experienced a fall in orders as consumers have tightened their purse strings, he said, adding Vietnamese woodworks depend largely on foreign markets but purchasing power from large buyers in China, the EU, Japan, the Republic of Korea and the US decline sharply.
Bao held that major export markets’ strict regulations on product legality and sustainability, trade fraud, complicated trade competition and limited production capacity of domestic firms also put Vietnamese wood exporters in hot water.
Meanwhile, Giovanna Castellina, a representative from the Italian Centre for Industrial Studies, said that global wood furniture market size is around 480 billion USD, with China being the leading exporter, followed by the US, Italy, Germany, India and Vietnam.
Geopolitical tensions, conflicts and supply chain disruptions will affect the sector’s growth scenario this year, she said, adding the sector is forecast to go sideways and not grow in 2023, and will rebound in 2025.
She suggested Vietnamese firms persify its market instead of a single one to reduce risks, elaborating as three fourths of Vietnamese furniture are absorbed by the US market, export value falls dramatically when demand from the market dwindles.
Sharing the same viewpoint, Chairman of the Handicraft and Wood Industry Association of Ho Chi Minh City (HAWA) Nguyen Quoc Khanh said that although Vietnam has been in the world’s top wood exporters, the country holds a small market share.
Against this backdrop, businesses should outline measures to reach new and potential markets, he added.
Despites short-term challenges, experts said wood enterprises should invest in R&D activities and create new designs to improve added values for the products with a view to expanding market share in the coming time.
Statistics of the Ministry of Agriculture and Rural Development showed that the sector’s export turnover reached 14.39 USD billion last year, down 15.8% year-on-year.
This year, the sector targets 15 billion USD in export revenue./.
Related News
Latest News
![Vietnam’s aquatic product exports reel in positive forecasts to year end](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/092024/07/18/croped/shrimp-144620240907183436.4919100.jpeg?240907063502)
Vietnam’s aquatic product exports reel in positive forecasts to year end
18:35 | 07/09/2024 Import-Export
![Vietnam-Sweden Business Forum 2024 opens](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/092024/07/18/croped/hinh-anh-1-414720240907183241.8732450.jpg?240907063321)
Vietnam-Sweden Business Forum 2024 opens
18:33 | 07/09/2024 Import-Export
![Industrial real estate - "Magnet" attracting foreign capital](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/092024/04/16/4-z5057864696649-9927657359836bc057d6000de04cc6f2202408161459212024082218451220240904160920.jpg?rt=20240904160923?240907090112)
Industrial real estate - "Magnet" attracting foreign capital
09:01 | 07/09/2024 Import-Export
![New markets help fruit exports grow to record revenues](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/092024/06/14/croped/qua-903020240906141844.6050400.jpg?240906021908)
New markets help fruit exports grow to record revenues
14:19 | 06/09/2024 Import-Export
More News
![Export-import through Mong Cai int’l border gate grows 24%](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/092024/06/14/croped/ming-cai-279320240906141603.6879800.jpg?240906021625)
Export-import through Mong Cai int’l border gate grows 24%
14:16 | 06/09/2024 Import-Export
![Seafood enterprises shift business and export](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/092024/01/22/croped/62024082708484520240901223914.jpg?240906091136)
Seafood enterprises shift business and export
09:11 | 06/09/2024 Import-Export
![Centre of raw materials for textiles and footwear expected to be launched in 2025](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/092024/05/16/croped/372356-raw20material20centre20120240905161522.1353050.jpg?240905041544)
Centre of raw materials for textiles and footwear expected to be launched in 2025
16:15 | 05/09/2024 Import-Export
![Binh Duong’s export revenue rises 11.3%](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/092024/05/16/croped/binh-duong-exports-456520240905161355.6659760.jpg?240905041420)
Binh Duong’s export revenue rises 11.3%
16:14 | 05/09/2024 Import-Export
![Vietnamese vegetables, fruits promoted at Asia Fruit Logistica](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/092024/05/16/croped/capture-195220240905161220.1649880.png?240905041241)
Vietnamese vegetables, fruits promoted at Asia Fruit Logistica
16:12 | 05/09/2024 Import-Export
![The key to opening new doors for agricultural enterprises](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/082024/30/14/croped/152024082710414820240830143119.jpg?240905100212)
The key to opening new doors for agricultural enterprises
10:02 | 05/09/2024 Import-Export
![Note for businesses when converting green and digital](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/082024/30/13/croped/142024082710321220240830135517.jpg?240905100039)
Note for businesses when converting green and digital
10:00 | 05/09/2024 Import-Export
![Việt Nam targets developing green steel products](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/092024/04/14/croped/370578-steel20240904144042.jpg?240904024143)
Việt Nam targets developing green steel products
14:41 | 04/09/2024 Import-Export
![Rice exports top 6.1 million tonnes in eight months](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/092024/04/14/croped/gia-gao-xuat-khau-giam-772027-200320240904142833.9542750.jpg?240904022853)
Rice exports top 6.1 million tonnes in eight months
14:28 | 04/09/2024 Import-Export
Your care
![Vietnam’s aquatic product exports reel in positive forecasts to year end](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/092024/07/18/croped/medium/shrimp-144620240907183436.4919100.jpeg?240907063502)
Vietnam’s aquatic product exports reel in positive forecasts to year end
18:35 | 07/09/2024 Import-Export
![Vietnam-Sweden Business Forum 2024 opens](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/092024/07/18/croped/medium/hinh-anh-1-414720240907183241.8732450.jpg?240907063321)
Vietnam-Sweden Business Forum 2024 opens
18:33 | 07/09/2024 Import-Export
![Industrial real estate - "Magnet" attracting foreign capital](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/092024/04/16/medium/4-z5057864696649-9927657359836bc057d6000de04cc6f2202408161459212024082218451220240904160920.jpg?rt=20240904160923?240907090112)
Industrial real estate - "Magnet" attracting foreign capital
09:01 | 07/09/2024 Import-Export
![New markets help fruit exports grow to record revenues](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/092024/06/14/croped/medium/qua-903020240906141844.6050400.jpg?240906021908)
New markets help fruit exports grow to record revenues
14:19 | 06/09/2024 Import-Export
![Export-import through Mong Cai int’l border gate grows 24%](https://english.haiquanonline.com.vn/stores/news_dataimages/2024/092024/06/14/croped/medium/ming-cai-279320240906141603.6879800.jpg?240906021625)
Export-import through Mong Cai int’l border gate grows 24%
14:16 | 06/09/2024 Import-Export