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.
"In the next 10 years, wood processing and export must become a key industry in Vietnam's production and export, and Vietnam will become a prestigious leading centre for woodwork production and export of the world," said Prime Minister Nguyen Xuan Phuc at the conference “Orientations and solutions for fast and sustainable development of wood processing and export". This is the first National Conference on wood processing and export held in Ho Chi Minh City.
The agriculture sector needed strategies to push wood export value beyond US$11 billion this year and to develop a production chain and value-added export products.