The export of wood and wood products is expected to fetch US$8 billion this year, up from $7.3 billion last year.
Huỳnh Văn Hạnh, deputy chairman of the Handicraft and Wood Industry Association of HCM City (Hawa), said global demand for furniture will continue to increase, so the domestic industry can look forward to doing better.
According to preliminary statistics compiled by the Centre for Industrial Studies (CSIL), global furniture consumption is worth more than $460 billion a year. Supply from Việt Nam accounts for just 1.65 per cent of this figure, which means there is considerable room for Vietnamese firms to increase their market share.
China is the world’s largest supplier of wooden products, accounting for 37 per cent of the world’s total consumption.
But the Chinese Government cut its overall timber harvesting quotas by nine per cent, equal to 40 million cubic metres of timber, opening up more opportunities for Vietnamese firms to boost their exports, Hanh said.
In addition, a series of free trade agreements that the country has signed will offer greater export opportunities for domestic firms, he added.
Nguyễn Chiến Thắng, former Hawa chairman and director of Scansia Pacific, said all Hawa members enjoyed good growth last year, with more and more foreign buyers coming to place orders.
They have invested significantly in technologies to improve product quality and management, and this has increasingly gained customers’ trust, he said.
“Previously, large customers, especially those from the US, had mainly bought products from Taiwanese companies investing in Việt Nam, but now more and more US customers are contacting Vietnamese producers.
“This is a good sign,” he said.
Anticipating a good year for exports, many firms in Bình Dương and Đồng Nai invested in new facilities last year to expand production scale, Thắng said, adding that his company is also building a new workshop.
Cao Duy Tâm, director of Vĩ Đại Co., Ltd, which specialises in supplying machinery, equipment and solutions for the wood processing industry, said sales increased by 50 per cent last year and is expected to be higher this year.
Many businesses have invested in new technologies to improve their productivity and quality, solving the problem of labour shortage and getting ready to receive larger export orders, he said.
They have invested in automatic, high speed machines and even CNC (computer numeric control) machines, he added.
Hạnh said Vietnamese firms in the past years have accumulated valuable experiences in production, management and market access.
In the coming time, the industry needs to access market at a national scale so that foreign customers know “Việt Nam is a nation producing wooden products from legal timber sources,” he said.
- Control of legality of imported timber tightened
- Businesses looking to domestic market amid pandemic
- Vietnam signs Free Trade Agreement with EU, one year after VPA
- Timber businesses seek "aisle" between Covid-19
- China is largest plywood investor in Vietnam
- Diversifying wood export market to reduce risk
- Wood industry facing losses due to COVID-19
- Deals signed to promote wood processing sector’s digital transformation