Some the country’s key export staples are assessed to reach a good growth in 2012 and 2013. However, businesses involving in the staples have faced many difficulties. Apparel and timber processing are among of the local key export staples.
Vietnam is a top furniture exporter in the Asia Southeastern region and 2nd exporter in Asia after China. In the first quarter of this year, furniture export turnover reached nearly US$1bil, winning an 18.3% growth. According to the Vietnam Wooden Furniture Association, the wooden furniture industry has faced many difficulties and furniture processors have struggled to seek out output for their products.
A furniture production line at a company in Binh Duong.
Difficulties remain
According to Tran Quoc Manh, vice chairman of the HCM City Fine Arts and Wooden Furniture Association (HAWA), one of the biggest problems facing the wooden furniture industry is unprompted development. Most of small and medium timber processors have a low capacity of production and are in shortage of market information and material source as well as poor management and design…
According to HAWA, the timber processors’ difficulty in this year is still problem of expense. Of this, production expense increases about 24% and interest rate expense jumps about 2% whilst selling price only raises 5-7%.
To minimize difficulties for Vietnamese businesses, management agencies should offer essential information for businesses, said Ph.D Pham Van Chat, arbitrator of Vietnam International Arbitration Center.
Optimistic signals
According to Manh, the wooden furniture industry has had advantages of labor and equipment. In addition, Vietnamese wooden furniture products have penetrated into the global market. These are advantages for Vietnam to soon become a furniture production center and ideal destination for international clients.
Manh added that furniture export has constantly developed over years. In the first quarter of 2012 alone, the furniture export turnover won US$986mil. Japan, the US, and EU are still key markets for Vietnamese wooden furniture industry.
At present, most of the domestic furniture makers have enjoyed orders till the end of the 2nd quarter of this year.
Furthermore, the State’s afforestation policy for wooden material source in replacement of imported material sources has showed bright prospect for the industry. Expectedly, the country will have about 22mil cubic meters of wood for exploitation by 2020 and Vietnam’s furniture value for export will reach $7bil by 2020.
According to experts, it is necessary to create a global supply chain, breakthrough of trade promotion, establishment of bonded warehouses at central markets in a bid to help Vietnamese furniture industry stand firmly on the international market. Additionally, the State should support businesses to expand new markets and build supportive programs of trade promotion, design and so on.
Reported by K.Tan – Translated by A.C
