Over the past year, domestic production and business have faced many difficulties but the woodwork industry has made a breakthrough by achieving a fairly high growth rate. Currently, furniture enterprises are preparing to participate in the race to export wooden products to the world.
Production activities are on-going at Tan Nhat Co. Ltd. in Nam Tan Uyen Extended Industrial Park
Growth targets assured
During 2020 and the first quarter of 2021, while many products still have difficulties in production and exportation, the woodwork industry is quite favorable with finding new purchase orders. Up to now, through online exchanges and the Vietnam Trade Office in other countries, many foreign corporations have made efforts to source wooden products from Vietnam. Thereby, many domestic furniture companies have signed contracts with customers from the United States, Europe, Korea, and Japan. In the first quarter of 2021, the woodwork industry continued to maintain a high growth rate, becoming one of the six industries with the largest export turnover in the nation.
According to the Vietnam Furniture and Forest Products Association (VIFOREST), for the first 3 months of 2021 alone, the industry's export turnover has reached 20% of the total turnover of the whole year of 2020. If the currently growing momentum can be maintained, the target of USD 14-14.5 billion of export turnover in 2021 will be completely achievable. In Binh Duong, wood export turnover in the first quarter of 2021 was estimated at USD 1,567 million, increasing by 51.5% over the same period and accounting for 20.2% of the total export turnover. In March 2021, the export turnover of wood products was estimated at USD 551 million, increasing by 38.8% over the previous month.
Deputy Minister of Industry and Trade Ha Cong Tuan assessed that furniture enterprises have adapted to the new situation to stabilize their production and increase online trade to find foreign partners to expand exportation. Although the epidemic has a great impact on production and business operations, Vietnamese furniture enterprises are still proactive and trusted by foreign customers.
“In 2020 and the first 3 months of this year, the woodwork industry has overcome difficulties and achieved a relatively high growth rate. Enterprises have successfully restructured as in the industry's export turnover, 70% are finished wooden products for interior use. Enterprises have applied technology in the production of wooden products to meet the requirements of customers and firmly step on the world race with the same products in the face of restricted exportation of raw materials,” Deputy Minister Ha Cong Tuan affirmed.
According to enterprises, many foreign customers and partners choose the Vietnamese wood industry thanks to the effective prevention of the Covid-19 epidemic in Vietnam. Wood companies invest in modern technology, have high-skilled labor, and can complete large orders with complicated designs. In addition, Vietnam has signed 13 free trade agreements, making goods produced and exported to countries that have a free trade agreement enjoy preferential tariffs.
Market connection
Phuoc Boi Quyen, General Director of Tan Nhat Company Limited in Nam Tan Uyen Expanded Industrial Park, said the company specialized in manufacturing furniture and cabinets for exporting to the US market. From the beginning of the year, the orders are stable, the output is large and the company has received orders until the end of 2021. The furniture export market this year is brighter than the previous year but the Vietnamese enterprises are also very endeavor to prevent risks. Currently, many furniture companies are boldly investing in machinery and equipment while training human resources to meet the high requirements of design and quality.
According to the leaders of the Department of Industry and Trade, in the world economic situation of heavy decline, the furniture industry is still developing stably and maintaining a fairly good growth rate because enterprises have made efforts and creativity to respond to the requirements of the the world markets. Over the past time, the industry and trade department has increased support for businesses to connect online commerce and not to be interrupted with the global supplying chain. Dien Quang Hiep, Chairman of Binh Duong Furniture Association (BIFA) affirmed that in Asia, Vietnam and Binh Duong have become an ideal destination for international buyers. In 2021, as the trend of global furniture consumption will increase, it is necessary to promote promotion and connection. In the meantime, businesses will have more opportunities to expand exportation and improve their position in the international market.
According to businesses, participating in online fairs is an opportunity to easily connect with foreign buyers without being restricted by geographical distance by opening up extensive and sustainable trade opportunities. At the same time, by participating in online fairs, businesses also update modern, advanced, and automated technologies suitable for the era of the 4th industrial revolution, looking for diverse and abundant sources of wood materials from markets for Vietnamese furniture enterprises.
Understanding the great competition in e-commerce, businesses digitize all contact points to interact with buyers; thereby, providing good support for stages from marketing to sales and customer services. On the basis of technology, BIFA has helped businesses in the industry with the model and way of organizing trade connections by responding to the challenges caused by the Covid-19 pandemic. In addition, the action opened up opportunities for furniture enterprises to boost revenue and long-term connection with potential and key markets.
Reported by Tieu My – Translated by Vi Bao
