Vietnam wood products exports forecast to rise this year

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Wood products exports from Vietnam are forecast to increase during 2018. Handicraft and Wood Industry Association of HCM City (Hawa) have very optimistic views on the market situation for the whole year.

Nguyen Chien Thang, Director of HCM City-based wood products maker Scansia Pacific, said his company has export orders for the whole year, which are 25% up from 2017, Vietnam Net reported. “The orders are from existing buyers. There are many new buyers who want to place orders with us, but we dare not take them because we are afraid we cannot fulfil them. Currently we are focused on buying more machines to ensure production for export,” he said.

Huynh Van Hanh, Permanent Vice Chairman of the Handicraft and Wood Industry Association of HCM City (Hawa), told a press briefing to introduce the Vietnam International Furniture and Home Accessories Fair 2018 (VIFA-EXPO 2018): “We are very optimistic about the market situation this year since most enterprises have export orders for until middle of the year and some have orders for until the end of this year like Cam Ha in Da Nang and Scansia Pacific.

“We fully believe that the target of earning 8.66 billion USD from exports of wood and wooden products is easy to achieve.”

For the past seven years, the wood and wooden products exports have went 12.3% up, amounting to US $7.66 billion. At the same, the global furniture demand reached US $428 billion in 2017, while trade in furniture reached US $141 billion.

China was the top exporter, sending off 35% of all exports, followed by Germany, Italy, Poland, and Vietnam. Yet, among the main furniture production areas, only the Asia-Pacific saw positive production growth.

As Hanh said, with reasonable economic growth, global furniture consumption and trade are forecast to grow by 3.5% and 4.1% this year. Exports from Vietnam accounted for only 6% of the figure, meaning there is considerable scope for Vietnamese firms to increase their market share, he added.

To capitalize on the demand, woodworking firms need to invest more in upgrading their production technologies and embrace automation to improve productivity, ensure consistent quality and resolve their labour shortage problem. Also, they need to improve their design capacity to add more value to their products and improve their management skills, Vietnam Net reported.

Hanh explained that the private businesses in the wood products sector should pay more attention to the middle high-end segment and be developing multi-functional products for the US and EU markets.

Moreover, there are no worries regarding the timber supply in the country, because the forests grown on public lands and rubber and fruit trees provide 50% of the timber needed for the industry and the rest is imported from many countries with clear origins.

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