After reaching $8 billion worth of export turnover, Vietnam’s wooden furniture manufacturing enterprises are now entering the high-end market segment.
At the beginning of second quarter, but now most wood processors and exporters have "ripped" export orders until the end of the year. However, the concern and anxiety of the whole industry is how to handle enough raw material wood.
Enterprises planting forests and supplying, processing, trading and exporting wood and wooden products will be classified into two groups: compliance and non-compliance with the law in line with Vietnam’s timber legality assurance system (VNTLAS).
Wooden furniture manufacturers have been warned that they will face more trade barriers as export markets have applied new policies to restrict imports.
Wood processing and export businesses of Vietnam hold many opportunities to expand market and increase export value in the time ahead, experts said at a workshop in Ho Chi Minh City on March 7.
Vietnam earned 8 billion USD from exports of wood and timber products last year. The sector is taking full advantage of market and production materials to aim for higher export value this year.
Amid the world’s growing demand for wood products and with many key foreign markets tightening their wood material exports, Vietnam’s wood industry may reach a new record export turnover of US$9 billion this year, thanks to firms’ purchasing the materials from new markets.
Vietnam is Canada’s fourth largest supplier of wood furniture with a market share of 12.9% of the country’s total wood furniture imports.
Besides the certain achievements of wood industry last years, and new opportunities coming from Law on Forestry and free trade agreements, there are various difficulties and challenges this industry has to overcome to reach the target set forth.
Việt Nam’s woodworking industry can expand exports but to expand market share and increase value, it needs to keep pace with market trends and capitalise on opportunities, experts have said.