Vietnamese wooden furniture manufacturers face a shortage of workers, modern technology and money to upgrade technology.
The EU-Vietnam Free Trade Agreement (EVFTA) offers many opportunities to Vietnamese workers and just as many challenges. The country’s labour force must find ways to improve its quality in order to produce products that adhere to stricter standards in European markets, said policymakers and labour experts at a conference in Hà Nội on Tuesday.
Vietnamese wood processing companies need to rethink their production models and upgrade technology lines to increase their competitive capacity in face of the upcoming challenges.
As its labor cost is equal and even higher than other countries, Vietnam will have to replace the cheap labor advantage for the skilled workforce advantage in the coming time to raise the competitiveness.
Vietnamese wood and furniture firms need to improve their designs, distribution and brands to enable Việt Nam to become a global furniture hub, a conference heard in HCM City yesterday.
Vietnam’s wood and wooden product exports to the United States may be subject to higher import duties due to a surge in export revenues and China’s foreign direct investment in the local industry, experts said at a recent seminar in Hanoi.
Business owners operating in Vietnam have started sharing the difficulties of finding Vietnamese workers who understand and speak Chinese. Increased labor pay is also another stumbling block that they have yet to overcome.
Viet Nam’s exports to member countries of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) were expected to increase strongly through now to 2030, reaching 25 per cent of the country’s total exports, according to the Ministry of Industry and Trade (MoIT).
Although Vietnam has reported high growth in wood and wooden product exports in recent years, only 5% of the exported products were designed locally, stated Nguyen Quoc Khanh, chairman of HCMC Handicraft and Wood Industry Association.
Although Vietnam’s wood and wooden product exports to the United States in the first quarter of the year increased by over 34% year-on-year, insiders have expressed concern over tighter control measures potentially being applied to Vietnamese imports, triggered by the recent influx of Chinese wood processors into the country.