Wood processing enterprises strive to increase the proportion of individually designed goods

VCN - Many wood and furniture processing enterprises are promoting investment in design activities, helping to increase the proportion of individually designed products (ODM) in exports, thereby affirming the industry's capacity Vietnamese wood in segments with higher added value.
Gia Lai to build wood processing industry on solid foundation Gia Lai to build wood processing industry on solid foundation
Vietnamese businesses spend US $ 240 million per year importing wood processing machinery Vietnamese businesses spend US $ 240 million per year importing wood processing machinery
Wood processing industry to see slow export growth in 2024 Wood processing industry to see slow export growth in 2024
International visitors highly appreciate Vietnamese interior designs. Photo: N.H
International visitors highly appreciate Vietnamese interior designs. Photo: N.H

Moving forward to ODM method

Converting from manufacturing (OEM) to developing custom-designed products (ODM) to enhance the value of wooden products and "made in Vietnam" furniture is one of the goals set at the Association. Ho Chi Minh City Furniture and Wooden Furniture Export Market - Hawa Expo 2024 is taking place at the Saigon Exhibition and Convention Center (SECC). Mr. Nguyen Quoc Khanh, Chairman of Ho Chi Minh City Handicraft and Wood Processing Association, Head of the Organizing Committee of Hawa Expo 2024, said, taking advantage of the time when Vietnam is attracting global attention with a series of new factories being started. This year, Hawa Expo 2024 will showcase the industry's current capabilities.

“The fair introduces groundbreaking designs from furniture - accessories - material brands, building a community of talented designers. Besides hundreds of trade connection sessions, the fair also "shows off" many new strengths of the industry, so that customers can properly understand the national capacity and expand the list of cooperation" - Mr. Nguyen Quoc Khanh added.

Mr. Nguyen Chanh Phuong, Vice Chairman of Ho Chi Minh City Handicraft and Wood Processing Association, said that the growth of wood and furniture export turnover in January 2024 showed a positive signal about the market resilience. However, although orders have begun to return, many businesses are operating below capacity. Seizing the opportunity from the return of orders, Mr. Phuong recommends that businesses need to quickly stabilize the workforce, prepare finances, raw material sources... In particular, the issue of price is always a concern. A headache for businesses in the battle to compete with competitors from other countries as well as FDI enterprises. Accordingly, Mr. Phuong believes that businesses need to develop their own, unique designs to create added value for themselves.

Mr. Tran Quoc Manh, Chairman of the Board of Directors of Sadaco Company also said that in the trend of shifting supply chains in the wood and furniture industry, many international buyers are looking for new suppliers in Vietnam and some Asian region countries. Accordingly, recently there have been many orders for sample products from new customers. If you can create a difference, excel in design as well as have competitive prices, businesses can sign larger orders from these customers. According to Mr. Manh, at Sadaco, there was a time when sample goods accounted for 40-50% of the total export volume. This requires great effort and perseverance from businesses because making samples requires a lot of effort and meticulousness, while profit margins are lower than other large orders.

Investing heavily in design

Talking about the current trend of investing in design in the wood and furniture industry, Mr. Nguyen Chanh Phuong revealed that in 2023, a number of businesses will emerge that have achieved success thanks to investing in fairs, design, and retail. There are especially businesses that achieved growth rates of over 300%. “Investing in design has helped many businesses achieve outstanding sales. This is also a lesson for many other businesses to learn" - Mr. Phuong emphasized.

In fact, many Vietnamese wood processing enterprises have methodically invested in design activities and are gradually moving from OEM to ODM methods. As one of more than 500 exhibitors at Hawa Expo 2024, Mr. Dang Rang, Sales Director of ASAHI Furniture Company, said that participating in Hawa Expo 2023, when introducing products designed by Vietnamese people, The company has received very positive feedback from customers. Thanks to that, the company has signed an order with a very large customer in Japan and many other customers. From this positive result, at Hawa Expo 2024, ASAHI continues to bring a new product line with its own design to introduce to American and European customers.

Through observing the booths at Hawa Expo 2024, Mr. Nguyen Liem, Chairman of Binh Duong Wood Processing Association, assessed that this year's fair has an outstanding level of investment in booths with many new designs, the quality is significantly improved.

Typically, the booth of Lam Viet Joint Stock Company has all new models. Mr. Nguyen Thanh Lam, General Director of Lam Viet Joint Stock Company, said that currently the proportion of ODM goods in Lam Viet's total exports accounts for 50%. In particular, Lam Viet's designs are always highly appreciated by international customers with about 70-80% of designs accepted by customers.

Mr. Nguyen Ngoc Tinh, Director of Tan Hoa Co., Ltd. also said that the company has proactively designed about 80% of exported goods. This gives the company a huge advantage against customer changes in shortening delivery times. “Previously, delivery time could be from 3-6 months, but now there are orders that require delivery within just one month. By being proactive in design, the company will prepare some stages for best-selling models. When the customer buys, the company only needs to complete and deliver the goods" - Mr. Tinh said.

At the perspective of an expert in the furniture field, Mr. Zilahi Imre, Chairman of the alliance of publications writing about the wood furniture industry, sees interior design as always a double-edged sword, because beautiful designs can easily copied. Therefore, businesses need to create designs with their own identities. "Businesses need to create products that customers are willing to spend money to buy instead of making products that customers just want to buy at cheaper prices" - Mr. Zilahi Imre emphasized.

By NguyenHien/Quynhlan

Related News

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
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.
Businesses need support from vietnamese representative offices abroad

Businesses need support from vietnamese representative offices abroad

VCN - Several heads of Vietnamese representative offices abroad believe that Vietnamese businesses need to prepare solutions to respond to the changing global economy and meet the increasing demands of the international market.

Latest News

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.
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.
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).

More News

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.
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.
Developing supporting industries for the billion-dollar export commodity groups

Developing supporting industries for the billion-dollar export commodity groups

VCN - Electronic products and components are one of export commodity groups with turnover exceeding one billion USD, but the supporting industry for this group is still modest.
Village craft products conquer the world

Village craft products conquer the world

VCN - Vietnam's handicraft products have significant potential to captivate international customers, enhancing export value and revenue.
Enterprises urged to tap potential to expand exports to EU via official channels

Enterprises urged to tap potential to expand exports to EU via official channels

The Vietnam Trade Promotion Agency under the Ministry of Industry and Trade (MoIT) on November 18 organised a seminar on promote trade in the European market, focusing on potential for expanding exports to the European market via official channels.
Read More

Your care

Latest Most read
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.
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).
Mobile Version