Wood industry strives to regain growth momentum

Faced with a slump in export orders, woodworking firms have been striving to stay afloat in various ways.

Wood industry strives to regain growth momentum hinh anh 1

A wood processing plant in Binh Duong. The wood processing industry is making efforts to regain growth momentum. (Photo: VNA)

Faced with a slump in export orders, woodworking firms have been striving to stay afloat in various ways.

Do Thi Kim Loan, General Director of Sao Nam Trading and Production Co., Ltd, which makes wooden flooring, said the company’s export orders are down 35-40% year-on-year this year as orders from the US market, its major export market, drop sharply.

“With exports to the US plunging, we seek to export to Canada and accept outsourcing orders from Australian customers.

“Australian wood flooring importers ship materials to my company, we carry out the final processing stages, pack and re-export them.

“This is an adaptation to partially offset the decline in our major market.”

Binh Duong-based furniture company Bao Hung has also seen a sharp drop in orders from the US, its key market, this year.

Phung Quoc Cuong, its marketing director, said to cope the company has adjusted prices and developed new products.

“Demand from the US, EU and Japan has reduced. But if businesses come up with new designs and products, it will change customers' perceptions and might spur a recovery in demand."

Nguyen Phuong, merchandise director of Minh Thanh Co., Ltd, said while in general consumers are tightening spending there are still some who have a need, but they have higher requirements in terms of quality and design differentiation. So businesses that invest a lot in design and developing their own products would surely attract international buyers.

Besides developing new products, Vietnamese enterprises are also increasingly setting up sales teams and attending local and foreign fairs to try and find a way into new markets, Phuong added.

Do Xuan Lap, Chairman of the Vietnam Timber and Forest Products Association (VIFOREST), said exports had been strong in the first half of last year, but orders have dropped sharply thereafter, and companies have gotten just a few orders this year.

“In the past exports would usually go up by 15-20% in January, but there was no growth this year.”

The gloomy housing market due to monetary tightening and interest rate hikes globally to fight inflation has affected demand for furniture, he explained.

Enhance trade promotion

To enable the industry to find new customers in both traditional and new markets, five associations in Vietnam (VIFOREST, HAWA, BIFA, DOWA, and FPA) joined hands to organise the 2023 Ho Chi Minh Export Furniture Fair – HawaExpo 2023 in HCM City from February 22 to 25, he said.

The event attracted 210 exhibitors, of whom 80% were Vietnamese furniture manufacturers while the rest coming from China, the US, Germany, Singapore, Japan, Thailand, Indonesia, the Philippines, and Denmark.

Nguyen Hoai Bao, an executive board member of the Handicraft and Wood Industry Association of HCM City (HAWA), said: “The fair was successful, attracting 16,062 visitors, including 2,653 visitors from 100 countries and territories.

“Sixty four contracts and MoUs were signed at HawaExpo 2023 and the estimated value of transactions at the fair is 3.6 million USD.”

Dang Rang, manager of A&M Industry Vietnam Co., Ltd, said HawaExpo was an effective forum for his company to advertise products and seek new partners.

“Through the fair, besides getting new orders from foreign customers, it was quite surprising that we received an order for wooden sofas from the domestic market.”

To add more value to furniture products, local manufacturers need to make further investment in design to produce their own products instead of manufacturing furniture to designs provided by buyers, he said.

Nguyen Liem, Chairman of the Binh Duong Furniture Association and founder of Lam Viet Furniture, said HawaExpo took place at a unique time when the wood industry lacked export orders, and so participating in the fair gave businesses a good opportunity to access new customers.

Bao said the organisers have also created a virtual exhibition on Hopefairs.com that showcases 28,000sq.m of the fair. It will remain there for three months.

“Buyers and visitors who missed the physical fair will be able to see every single booth and product and continue to make B2B connections through the virtual exhibition.”

This year the industry has set an export target of 17.5 billion USD, a year-on-year increase of 2.5%./.

en.vietnamplus.vn

Related News

Despite recovery, wood and product exports face new challenges

Despite recovery, wood and product exports face new challenges

VCN - The market is recovering positively, the number of wood orders that businesses receive is increasing, especially with the main export market of the United States, the export value in the first 8 months of the year increased by 26.2% compared to the same period in 2023.
Despite recovery, wood and wood products export face new challenge

Despite recovery, wood and wood products export face new challenge

VCN - The market is recovering positively, the number of wood orders that businesses receive is increasing, especially with the main export market of the United States, the export value in the first 8 months of the year increased by 26.2% compared to the same period in 2023.
Wood industry faces many variables in key markets

Wood industry faces many variables in key markets

VCN - Vietnam's wood exports are recovering positively, but there are still many potential risks in terms of trade defense as well as policies to control wood origin in key markets.
Wood exports started well

Wood exports started well

VCN - After a year of missing the growth target, the year of 2024 exporting wood and wood products has had a good start, but there are still many potential risks.

Latest News

VN

VN's food processing industry struggles to improve quality and value chain integration

Despite accounting for 19.1 per cent of Việt Nam’s processing sector, the food processing industry has been struggling with major issues such as poor-quality raw materials and subpar value chain integration, said industry insiders and economists.
Approach strategy of the seafood industry when implementing UKVFTA

Approach strategy of the seafood industry when implementing UKVFTA

VCN - As one of Vietnam's strong export industries to the UK, especially when the Vietnam - United Kingdom of Great Britain and Northern Ireland Free Trade Agreement (UKVFTA) comes into effect, with a detailed information approach strategy, it has created a great driving force to promote the export of Vietnamese seafood products to this market.
Mid-November: Vietnam

Mid-November: Vietnam's trade volume matches 2023 total, eyes record-breaking growth

VCN - By mid-November 2024, Vietnam's total import-export turnover reached an impressive US$681.48 billion, equaling the full-year trade figure for 2023
Vietnamese enterprises facing challenges from cross-border e-commerce platforms

Vietnamese enterprises facing challenges from cross-border e-commerce platforms

VCN – In recent years, with the rapid development of cross-border e-commerce (CBEC) platforms, domestic enterprises in Vietnam have been facing numerous difficulties and challenges.

More News

Vietnam, Malaysia eye new milestone in trade ties

Vietnam, Malaysia eye new milestone in trade ties

The official visit to Malaysia from November 21-23 by Party General Secretary To Lam is expected to open up new opportunities for and mark a new milestone in the economic and trade cooperation between Vietnam and Malaysia. Vietnam and Malaysia are key economic, trade, and investment partners. Their economic and trade ties have steadily grown since the two nations established diplomatic relations in 1973.
Shrimp exports surge in 10 months, generating 3.2 billion USD

Shrimp exports surge in 10 months, generating 3.2 billion USD

Vietnam’s shrimp exports in October reached US$394 million, a strong 24% increase year-on-year, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).
Vietnam’s exports to the U.S. near US$100 billion milestone

Vietnam’s exports to the U.S. near US$100 billion milestone

VCN - By the end of October, Vietnam's exports to the United States approached US$100 billion, reaffirming its position as Vietnam's largest export market.
From the “abnormal” coffee price, worries about the new crop

From the “abnormal” coffee price, worries about the new crop

VCN - The Vietnamese coffee industry enters the new crop with the question of what is a reasonable price to ensure benefits for coffee growers while still retaining international consumers.
What obstacles limit the market share of Vietnamese goods in the UK?

What obstacles limit the market share of Vietnamese goods in the UK?

VCN - Vietnamese goods account for only about 1% of total imports into the UK market. One of the reasons is that they have not yet built their own brands and have not focused on effective strategies and approaches to market information.
Why seafood exports to some Middle Eastern Countries are stalled

Why seafood exports to some Middle Eastern Countries are stalled

VCN - Several shipments of seafood exported to certain Middle Eastern countries have been delayed due to legal challenges related to consular legalization procedures. This has created significant bottlenecks in accessing these markets.
Storm No. 3 destroys profits of many insurance companies

Storm No. 3 destroys profits of many insurance companies

VCN - Due to the impact of storm No. 3, the business results of the third quarter and the first 9 months of 2024 of the insurance sector have been significantly affected. This requires more efforts from businesses for the results of the whole year 2024.
Vietnam, Malaysia eye golden partnership opportunities in Halal industry

Vietnam, Malaysia eye golden partnership opportunities in Halal industry

Cooperation in the Halal industry can help Vietnamese products reach nearly 2 billion Muslim consumers worldwide, representing over 24% of the global population, according to Malaysia’s Minister of Investment, Trade, and Industry Zafrul Abdul Aziz.
Tra fish sector aiming for production, processing greening for sustainable development

Tra fish sector aiming for production, processing greening for sustainable development

Greening production and processing to meet export requirements is both a trend and a necessity for many industries, including the tra fish sector.
Read More

Your care

Latest Most read
VN

VN's food processing industry struggles to improve quality and value chain integration

Despite accounting for 19.1 per cent of Việt Nam’s processing sector, the food processing industry has been struggling with major issues such as poor-quality raw materials and subpar value chain integration, said industry insiders and economists.
Approach strategy of the seafood industry when implementing UKVFTA

Approach strategy of the seafood industry when implementing UKVFTA

VCN - Mr. Nguyen Hoai Nam, Deputy General Secretary, Vietnam Association of Seafood Exporters and Producers (VASEP), said that the advantage that UKVFTA brings is that the main products of the seafood industry enjoy 0% import tax to the UK, especially key
Mid-November: Vietnam

Mid-November: Vietnam's trade volume matches 2023 total, eyes record-breaking growth

By mid-November 2024, Vietnam's total import-export turnover reached an impressive US$681.48 billion, equaling the full-year trade figure for 2023
Vietnamese enterprises facing challenges from cross-border e-commerce platforms

Vietnamese enterprises facing challenges from cross-border e-commerce platforms

VCN - E-commerce platforms have emerged as crucial distribution channels, enabling goods to reach consumers quickly and conveniently.
Vietnam, Malaysia eye new milestone in trade ties

Vietnam, Malaysia eye new milestone in trade ties

The official visit to Malaysia from November 21-23 by Party General Secretary To Lam is expected to open up new opportunities for and mark a new milestone in the economic and trade cooperation between Vietnam and Malaysia. Vietnam and Malaysia are key economic, trade, and investment partners. Their economic and trade ties have steadily grown since the two nations established diplomatic relations in 1973.
Mobile Version