Wood industry towards export links

VCN - Although many results have been achieved, the penetration and direct export of Vietnam's wood industry to international markets in recent years has not been as expected. The establishment of a "common home" for export enterprises (enterprises) abroad will make this more favorable.
Risks surrounding the wood industry in the coming quarters Risks surrounding the wood industry in the coming quarters
Wood industry struggles to reach the target of 18 billion USD Wood industry struggles to reach the target of 18 billion USD
Wood industry towards export links
HawaExpo has become an important link representing Vietnam in the chain of furniture export fairs in Southeast Asian countries. Photo: TL

Many new opportunities are opening

A lot of positive information about the export of wood products was raised by experts and businesses at the Vietnam Furniture and Wood Industry Forum in Ho Chi Minh City last weekend. Ms. Tran Nhu Trang, representative of SIPPO Program in Vietnam, said that the major export markets of Vietnam's wood industry such as the US, Europe, the UK, Japan, and South Korea... have shown signs of recovery as people Consumers are starting to return to shopping after a long period of saving. Besides, Ms. Trang also pointed out potential new markets for Vietnam's wood industry such as the Middle East, India, Australia, Canada, and ASEAN. In particular, the Middle East market has a very fast growth rate with cultural diversity and people are willing to pay high prices to buy good quality products. The Canadian market also has a high level of spending on interior and exterior furniture and the market is also showing signs of warming up for home construction and repair activities.

Sharing the same opinion with Ms. Trang on new markets for the wood industry, Mr. Nguyen Quoc Khanh, Chairman of the Ho Chi Minh City Handicraft and Woodworking Association (HAWA), said that the Middle East region is being considered as an investment destination of the decade. This is the land that is being planned for the construction of super projects. Typical can be named as super project NEOM in Saudi Arabia with 4 complexes Sindalah, The Line, Trojena and Oxagon; super project The Mukaab (New Murabba) worth USD 800 billion; Mirror Line super project with an investment of USD 1 trillion... All projects need furniture, and also high-end furniture.

Information from the Vietnam Trade Office in the UAE shows that furniture imports in countries of the Gulf Cooperation Council (GCC) have a growth rate of more than 45% per year while almost these countries do not manufacture furniture for export. Faced with these great potentials, the big brands of the Vietnamese furniture market such as Tran Duc, AA, Minh Thanh... have signed contracts to buy large booths at furniture exhibitions serving the Dubai market. Khanh said that through the exhibition, businesses have signed a lot of contracts, helping to offset the decline of traditional markets.

According to experts, Vietnam's furniture industry has always been actively supported and accompanied by trade promotion agencies. Vietnamese Trade Offices abroad always create favorable conditions for Vietnamese enterprises to access new markets. With enough tools and potential, Vietnamese enterprises can completely penetrate and seek opportunities in other potential markets.

Besides the good news about the market, from an investor's perspective, Mr. Chad Ovel, General Director, Mekong Capital shared, with big examples such as AA Corporation, An Cuong, Truong Thanh... Vietnamese furniture industry is quite impressive in the eyes of investors. Accordingly, Vietnam's furniture industry has the opportunity to receive the investment wave and post-inflation growth wave.

Connecting, converging resources

The opportunities are huge and businesses have clearly identified, but how much they can grasp depends on the vision and strategy of enterprises as well as of the Vietnamese wood industry. Despite having good quality, high sophistication and having been present in many of the world's most high-class projects, for many years the wood industry has still been biased towards processing but has not been able to exploit the higher values in the supply chain. . Many businesses are constantly looking for solutions to reach end-users and penetrate directly into the furniture supply chain in international markets, but they are still not really successful.

For example, when starting to work as a distributor in the US market, businesses face many difficulties and problems related to legal issues. According to US law, businesses are required to establish a business here so that they can be responsible if they want to sell goods. Next is the problem of warehouse, goods management, human resources... Most especially, the culture of return goods is completely different from Vietnam. The completion of the business apparatus and processes in the US requires enterprises to be expensive and takes a long time, and the legal risks are high, so the investment costs are also very high.

From those difficulties, from the perspective of the association, Mr. Nguyen Quoc Khanh proposed the idea of a logistics center - promoting Vietnam's furniture trade right in the main market. Accordingly, this model will act as a representative office, businesses converging in this model can be legally orthodox in doing business in the host market; there is space to approach customers, receive contact information from official employees with the company's company name, secretarial services upon request... Along with that, the warehousing system will help businesses be able to store goods to promptly meet customer needs, delivery, feedback, customer care... In addition, the center can also deploy other services such as helping businesses do market research market, product development, showroom, customer access, marketing, etc. Thereby, it will help to remove some difficulties in costs and risks, help improve professionalism… This model is completely to meet the online export needs of enterprises as well as create favorable conditions for enterprises to export projects.

In addition to the association plan to dominate the international market, over the past time, the association between wood industry associations in trade promotion has also brought many positive results. Accordingly, the Ho Chi Minh City Furniture and Furniture Export Fair (HawaExpo) organized by the 5 largest wood associations in Vietnam earlier this year attracted more than 16,000 visitors, including more than 2,600 international visitors from 101 countries and territories. According to preliminary statistics of the organizers, 64 contracts and cooperation minutes were signed at the fair with the total value of orders recorded at USD 3.6 million.

On the basis of those positive results, HawaExpo 2024 will continue to be held on the largest scale ever. It is known that most of the enterprises participating in the 2023 exhibition have re-signed their contracts to participate in HawaExpo 2024, in addition, a large number of new exhibitors have registered to participate. This shows the practical effect that this event brings to businesses.

By Nguyen Hien/Bui Diep

Related News

Import and export turnover increases to US$ 51 billion

Import and export turnover increases to US$ 51 billion

VCN – Import-export turnover in June saw a slight decrease but remained at a high level, the General Department of Vietnam Customs announces.
Export of denim fabrics quickly recovers

Export of denim fabrics quickly recovers

VCN - The export market for Vietnam's denim products (the fabric used to make jeans) has experienced a swift recovery and positive growth potential. To anticipate this trend, businesses are actively investing in and expanding their factories to enhance production capacity and meet market demands.
Opportunities for Vietnam’s exports to Mercosur

Opportunities for Vietnam’s exports to Mercosur

VCN – Vietnam is promoting negations on the Free Trade Agreement (FTA) with the Southern Common Market (Mercosur) to leverage it as a driving force for exploring export markets in Latin America.

Latest News

Pepper export turnover up over 30% in H1

Pepper export turnover up over 30% in H1

Vietnam exported 142,586 tonnes of pepper in the first half of this year, down 6.8% in volume but up 30.5% in value, the Vietnam Pepper and Spice Association (VPSA) has reported.
Dong Nai remains FDI magnet in H1

Dong Nai remains FDI magnet in H1

The foreign direct investment (FDI) influx into the southern industrial hub of Dong Nai in the first six months of this year was equivalent to 138% of the locality’s plan for the whole year.
Vietnamese agricultural products, food expected for deeper engagement in global supply chain

Vietnamese agricultural products, food expected for deeper engagement in global supply chain

Vietnam boasts advantages and potential in agricultural production and export, yet domestic firms need to do more to join the global food supply chain more intensively, insiders have said.
Developing export markets along with trade promotion

Developing export markets along with trade promotion

VCN - Import and export of goods in the first 6 months of 2024 continue to record positive results, total turnover is estimated at USD 369.6 billion, up 16% over the same period last year.

More News

Building the Vietnamese brand associated with green and sustainable development

Building the Vietnamese brand associated with green and sustainable development

VCN - According to experts, in the current context, branding becomes even more urgent, helping to increase endogenous resources for businesses, helping businesses move towards strong development, gradually reaching further in the domestic and world markets.
Improving the competitiveness of businesses is an important factor

Improving the competitiveness of businesses is an important factor

VCN - Local competitiveness is not only based on economic management capacity, the favorable and friendly business environment and efforts to improve administrative reform efforts of provincial and city governments (PCI) but also relies on the competitiveness of local businesses.
Malaysia to boost exports to Vietnam

Malaysia to boost exports to Vietnam

The Malaysian Ministry of Investment, Trade and Industry (MITI) on July 11 announced that the country has secured potential exports worth 3.3 billion RM (about 717 million USD) to Vietnam.
Exporters advised to update trade policies of Singapore

Exporters advised to update trade policies of Singapore

The Vietnam Trade Office in Singapore has advised Vietnamese exporters to carefully study and keep updated on new regulations in Singapore, a market that is becoming more cautious in trade policy, in order to further exploit this market.
Green logistics – a key for sustainable development

Green logistics – a key for sustainable development

Green logistics development is no longer a trend, it is an inevitable requirement with activities throughout the stage of purchasing raw materials, production, distribution, delivery, waste treatment - throughout the entire business life cycle.
Manufacturing enterprises need to adapt to trends to develop: experts

Manufacturing enterprises need to adapt to trends to develop: experts

Besides the factors of price, product quality and delivery time, green and sustainable development are competitive criteria that more and more markets are requiring from suppliers in Ho Chi Minh City as well as across the country.
Rubber exports grows sharply in June

Rubber exports grows sharply in June

VCN - According to Import – Export Tax Department (Ministry of Industry and Trade), Vietnam's rubber exports in June 2024 reached about 150 thousand tons, worth 238 million USD, up 77.6% in volume and 76.6% in value. Price compared to May 2024.
Prioritize stimulating domestic consumption to promote economic growth in 2024

Prioritize stimulating domestic consumption to promote economic growth in 2024

VCN - According to General Director of the General Statistics Office Nguyen Thi Huong, in the context of many difficulties in the world economy, the export growth rate is slowing down, many businesses are facing a shortage of orders..., priority should be given to stimulating demand. Domestic consumption is considered an important solution to promote economic growth in 2024.
Exports fruit and vegetable expects to exceed US$ 7 billion

Exports fruit and vegetable expects to exceed US$ 7 billion

VCN - In the first half of 2024, fruit and vegetable export turnover reached nearly US$3.5 billion. Key markets recorded an increase of 10-50% over the same period in 2023. This is also the industry that holds the leading position in exports of agricultural products.
Read More

Your care

Latest Most read
Pepper export turnover up over 30% in H1

Pepper export turnover up over 30% in H1

Vietnam exported 142,586 tonnes of pepper in the first half of this year, down 6.8% in volume but up 30.5% in value, the Vietnam Pepper and Spice Association (VPSA) has reported.
Dong Nai remains FDI magnet in H1

Dong Nai remains FDI magnet in H1

The foreign direct investment (FDI) influx into the southern industrial hub of Dong Nai in the first six months of this year was equivalent to 138% of the locality’s plan for the whole year.
Vietnamese agricultural products, food expected for deeper engagement in global supply chain

Vietnamese agricultural products, food expected for deeper engagement in global supply chain

Vietnam boasts advantages and potential in agricultural production and export, yet domestic firms need to do more to join the global food supply chain more intensively, insiders have said.
Developing export markets along with trade promotion

Developing export markets along with trade promotion

VCN - Import and export of goods in the first 6 months of 2024 continue to record positive results, total turnover is estimated at USD 369.6 billion, up 16% over the same period last year.
Building the Vietnamese brand associated with green and sustainable development

Building the Vietnamese brand associated with green and sustainable development

VCN - According to experts, in the current context, branding becomes even more urgent, helping to increase endogenous resources for businesses, helping businesses move towards strong development, gradually reaching further in the domestic and world market
Mobile Version