Woodwork industry now makes great contributions to the country’s total export turnover. According to experts, the potential and opportunity for enterprises in the industry are very great. As a hub of the whole country’s woodwork industry, Binh Duong plays an important role in raising total export value of the industry.
According to Binh Duong Furniture Association (BIFA), the number of furniture manufactures in the province will continue growing up in the next five years as the province owns a lot of advantages for the evolution of the industry. In fact, foreign-invested woodwork businesses in the province have taken full advantage of the local favorable conditions for development. According to statistics, 70% of the province’s total export turnover in the industry has been contributed by them.
Flexibility needed
According to Luong Ngoc Kim, Vice-Chairman of BIFA, Director of Kim Thanh A Company in Thuan An town, most woodwork enterprises in the province are small or medium-sized ones with weak competitiveness in terms of capital, technologies…Therefore, domestic woodwork enterprises need to be more flexible and creative in making special products with high quality and diversification of design towards sustainable development.
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Production activities at Truong Thanh Furniture Corporation
The competitiveness on workforce between FDI and domestic woodwork enterprises in Binh Duong will get more severe in the coming time as the province is absorbing more and more investors in the industry.
It is known that the price of timber, especially rubber is on sharp reduction. Hence, province-based woodwork businesses have stockpiled more materials for their production in the following years. The price of timber is around US$200-US$300 per cubic meter. But, timber will get dear in according with the world’s increasing trend while the whole country has not had a plan for long-term development strategy to its timber areas yet.
Market being expanded
China now accounts for a great proportion of the global woodwork export turnover. But, the U.S and some European countries have imposed anti-dumping duties on Chinese wooden products and this will help domestic woodwork enterprises enjoy more opportunities for market expansion. Vietnam is also the second big woodwork exporter in the U.S. Hence, wooden products from Binh Duong also face a great opportunity to penetrate into the U.S.
According to Mr.Luong, BIFA will expand its market in African and Middle East countries. Domestic woodwork businesses need to generate products with high quality and diversification of pattern for good competitiveness at home and abroad. This gets more urgent when countries joining the ASEAN Free Trade Area (AFTA) will boost their woodwork export into Vietnam in the next years.
According to experts, functional agencies also need to create more favorable conditions in terms of tax, customs, finance…for domestic woodwork businesses to be able to more effectively work. Trade promotion activities in the industry also need to be improved for market expansion in the coming time.
Reported by T.Phong-Translated by K.T
