Furniture products on display at the 2019 Vietnam International Furniture and Home Accessories Fair held recently in HCM City (Photo: VNA) HCM City (VNS/VNA) - Orders for furniture exports have risen stronglyso far this year as demand has risen, according to Huynh Quang Thanh, Chairmanand CEO of Binh Duong-based Hiep Long Fine Furniture Company.
“We have signed export contracts enough for the rest of the year. The worldfurniture market is huge and full of potential,” he said.
His company exports to many markets, with the EU, Japan, the Republic of Korea,North America and Argentina being its key markets.
Similarly, Nguyen Chien Thang, Chairman of the board of directors at ScansiaPacific Co., Ltd, which specialises in exporting indoor and outdoor furniture,said: “The export situation this year is better than last year, with our exportcontracts going up by 30 percent over last year.”
The US-China trade war has prompted US buyers to seek new suppliers, whileexisting US buyers have increased their purchase volume, resulting in a surge inorders from the US market, he said.
Huynh Van Hanh, permanent Vice Chairman of the Handicrafts and Wood IndustryAssociation of HCM City (HAWA), said international buyers have shifted theirorders with exporters from other countries, especially China, to orders withVietnamese firms since when Vietnam signed the Comprehensive and ProgressiveAgreement for Trans-Pacific Partnership (CPTPP).
However, the woodworking industry has not benefited much in terms of tariffduties from CPTPP and other free trade agreements because Vietnamese furnitureproducts are mainly exported to the US and EU markets, and import tariffs tothese markets were already very low and even at zero, Thang said.
But free trade agreements have indeed spurred interest from buyers who arethinking about Vietnam for the first time, he said.
“The CPTPP will help customers feel secure when they come to Vietnam to placeorders,” Hanh said.
Dien Quang Hiep, Chairman of the Binh Duong Furniture Association and General Directorof Mifaco, said: “Orders are increasing in 2019 and next year. This was not dueto Vietnam benefiting from the US-China trade war or the CPTPP. Even withoutthose things, the global wood processing industry would still have naturallymoved to Viet Nam, but just a little slower than now.”
The woodworking industry enjoyed good growth last year, with exports of woodand forestry products reaching 9.4 billion USD, up 16.8 percent from theprevious year.
“With the current growth rate, it will not be difficult for the industry tofulfil the export target of 11 billion USD set for this year,” he said.
However, a surge in export orders is not only an opportunity but also achallenge for wood processing firms, requiring them to improve their capacityto fulfil orders.
Thang said: “The most difficult task is how to meet an increase in demand. Wemust expand investment in new machinery lines, which will cost millions of USdollar.”
Similarly, Thanh said his company has already invested in automatingproduction, with the objective of increasing productivity and quality.
Hanh said that, with the market’s positive signals, many HAWA members haveexpanded production scale as well as invested hundreds of millions of dollarsin upgrading their machinery.
Hiep said that to improve the industry’s capacity, the Government shoulddevelop concentrated industrial parks so that enterprises can gather togetherto create strength. These firms will link together, with each company in chargeof a certain phase in the industry’s supply chain. By doing that, theindustry’s productivity and production scale will increase strongly.
Thang said that the industry would not face a lack of material sources forprocessing furniture for export, even though orders have gone up.
“Seven to eight years ago, we used 60-70 percent of imported timber forprocessing furniture to export, but now imported timber accounts for only 30percent and 70 percent is from local supply.”
Timber is a renewable material source, he noted. In developed countries, timberoutput has increased by 30-40 per cent compared to 30 years ago.
In addition, the Vietnamese Government has encouraged reforestation, with theforest coverage ratio now at 41-42 percent compared to 27 percent 20 years ago,he said.
Vietnam has about 4,500 wood and forest product processing enterprises, ofwhich private enterprises account for 95 percent.
Last year, the number of enterprises processing products for export reachedover 1,800, an increase of more than 300 compared to 2017.
Vietnamese timber and forest products are exported to more than 120 countriesand territories. Vietnam ranks fifth in the world’s wooden product exportmarket, second in Asia, and first in Southeast Asia.-VNS/VNA
“We have signed export contracts enough for the rest of the year. The worldfurniture market is huge and full of potential,” he said.
His company exports to many markets, with the EU, Japan, the Republic of Korea,North America and Argentina being its key markets.
Similarly, Nguyen Chien Thang, Chairman of the board of directors at ScansiaPacific Co., Ltd, which specialises in exporting indoor and outdoor furniture,said: “The export situation this year is better than last year, with our exportcontracts going up by 30 percent over last year.”
The US-China trade war has prompted US buyers to seek new suppliers, whileexisting US buyers have increased their purchase volume, resulting in a surge inorders from the US market, he said.
Huynh Van Hanh, permanent Vice Chairman of the Handicrafts and Wood IndustryAssociation of HCM City (HAWA), said international buyers have shifted theirorders with exporters from other countries, especially China, to orders withVietnamese firms since when Vietnam signed the Comprehensive and ProgressiveAgreement for Trans-Pacific Partnership (CPTPP).
However, the woodworking industry has not benefited much in terms of tariffduties from CPTPP and other free trade agreements because Vietnamese furnitureproducts are mainly exported to the US and EU markets, and import tariffs tothese markets were already very low and even at zero, Thang said.
But free trade agreements have indeed spurred interest from buyers who arethinking about Vietnam for the first time, he said.
“The CPTPP will help customers feel secure when they come to Vietnam to placeorders,” Hanh said.
Dien Quang Hiep, Chairman of the Binh Duong Furniture Association and General Directorof Mifaco, said: “Orders are increasing in 2019 and next year. This was not dueto Vietnam benefiting from the US-China trade war or the CPTPP. Even withoutthose things, the global wood processing industry would still have naturallymoved to Viet Nam, but just a little slower than now.”
The woodworking industry enjoyed good growth last year, with exports of woodand forestry products reaching 9.4 billion USD, up 16.8 percent from theprevious year.
“With the current growth rate, it will not be difficult for the industry tofulfil the export target of 11 billion USD set for this year,” he said.
However, a surge in export orders is not only an opportunity but also achallenge for wood processing firms, requiring them to improve their capacityto fulfil orders.
Thang said: “The most difficult task is how to meet an increase in demand. Wemust expand investment in new machinery lines, which will cost millions of USdollar.”
Similarly, Thanh said his company has already invested in automatingproduction, with the objective of increasing productivity and quality.
Hanh said that, with the market’s positive signals, many HAWA members haveexpanded production scale as well as invested hundreds of millions of dollarsin upgrading their machinery.
Hiep said that to improve the industry’s capacity, the Government shoulddevelop concentrated industrial parks so that enterprises can gather togetherto create strength. These firms will link together, with each company in chargeof a certain phase in the industry’s supply chain. By doing that, theindustry’s productivity and production scale will increase strongly.
Thang said that the industry would not face a lack of material sources forprocessing furniture for export, even though orders have gone up.
“Seven to eight years ago, we used 60-70 percent of imported timber forprocessing furniture to export, but now imported timber accounts for only 30percent and 70 percent is from local supply.”
Timber is a renewable material source, he noted. In developed countries, timberoutput has increased by 30-40 per cent compared to 30 years ago.
In addition, the Vietnamese Government has encouraged reforestation, with theforest coverage ratio now at 41-42 percent compared to 27 percent 20 years ago,he said.
Vietnam has about 4,500 wood and forest product processing enterprises, ofwhich private enterprises account for 95 percent.
Last year, the number of enterprises processing products for export reachedover 1,800, an increase of more than 300 compared to 2017.
Vietnamese timber and forest products are exported to more than 120 countriesand territories. Vietnam ranks fifth in the world’s wooden product exportmarket, second in Asia, and first in Southeast Asia.-VNS/VNA
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