Motivating the domestic furniture industry to reach out

Update: 16-08-2018 | 10:30:44

Vietnam's wood industry has developed strongly in recent years. From the processing, producing only some products according to customers' designs and orders, focusing on some specific groups of wood, up to now, the wood processing and manufacturing industry in the country has actively approached the market. update the new technology, take initiative in design design, production organization, market penetration, including the famous market, hard but fast potential as the US, Europe, Japan…

Wooden furniture production at Thuan An Wood Company (Thuan An town). Photo: Duy Chi

Wood enterprises are increasingly active

In 2017, despite the world economic situation still fluctuated after the recession lasted but it is the peak year of the wood processing industry, processing and export of Vietnam. For the first time, the wood processing industry in our country reached a turnover of $ 8 billion. According to the latest data from the Import-Export Department of the Ministry of Industry and Trade, in the first 6 months of 2018, the total wood export turnover of the whole country reached US $ 4.13 billion, an increase of 12.4% over the same period of 2017. In June 2018, the export turnover of wood furniture in Vietnam reached $ 750 million. Wooden furniture items occupying 61.6% of the total export value are furniture, dining room, bedroom.

The above figures and product groups show that production capacity, aesthetics, utility, especially the safety and cultural characteristics of each furniture made from Vietnam are no longer outside. The porch, which has deep into the house, living room, dining room and bedrooms of customers in the fastidious market.

In the process of development, access to technology, markets, local timber producers have soon mastered the technology, promoting creativity in production and processing, utilizing materials to produce the face. New products from wood such as sable, flooring, wood chips ... This group also accounts for 11-20% of the total export turnover of the wood processing industry in the country today. This shows that creative dynamics, production capacity, accessibility, development potential and ownership of technology, especially the management level, market access of manufacturers, Vietnam's timber industry has been constantly growing in the process of international economic integration.

At the meeting with leaders of localities and enterprises of wood production recently took place in Ho Chi Minh City, Prime Minister Nguyen Xuan Phuc praised the localities, enterprises, manufacturers about achievements. attainment; "Vietnam will become the world's center of furniture production in the next 10 years."

Experts say that with the current momentum, the Prime Minister's request is not too high and feasible. However, if the analysis of data and data on the number of enterprises producing, processing and turnover of each group of enterprises is analyzed, then the number of foreign invested enterprises will always be overwhelmed. In terms of proportion, the volume of direct export was not much. Among the FDI enterprises of the wood industry in Vietnam, the number of enterprises from Europe is very modest, the number of enterprises having Asian citizenship is overwhelming, with the focus on some countries in the list. Forbidding anti-dumping tariffs on European and American markets.

Motivation for the for industry to reach out

According to the Binh Duong Wood Processing Association (BIFA), the wood processing industry has advantages to affirm on the international market. For example, the ASEAN Free Trade Area helps the timber industry expand its market. In addition, in the last months of the year demand for furniture in many major markets in the world increased, this is the main factor to promote the growth of the timber industry.

However, leaders of many timber businesses in the province said that the opportunities for the wood industry is very big but the challenge is not less. The biggest challenge is the source material. For timber exploited in the country, enterprises must exclude illegal timber, such as timber originated from illegal forest, illegal timber from prohibited areas, wood from civil war zones ... This is This is a very important issue, as traditional markets such as Europe and the Americas ... have strict requirements on legal wood materials, along with the responsibility to protect the environment and preserve the environment. Biodiversity.

There have been many times representatives of associations and leaders of wood processing enterprises in Binh Duong province in particular, the whole country in general, pointed out the weakness of the domestic enterprises are always passive, lack of raw materials to produce. do not dare to sign orders far. Meanwhile, some foreign companies seek to "migrate" to the Vietnamese market to take advantage of certificates of origin (C/O) is organized in a very systematic way. The production - processing - finished products. That is the business of collecting raw materials to provide processing enterprises and then turn to specialized enterprises for export products.

Organizing in the style of "bamboo shoots" as above is the only way for the "giants" to master the situation, causing the fluctuation, unusual increase or decrease in order to cause difficulties in the implementation of the plan. And also as a "way to dodge taxes by art transfer.

Market access will no longer operate in the manner of "What is not managed is prohibited," but rather the provisions of law in accordance with international commitments and treaties. Therefore, the Prime Minister emphasized: It is necessary to further develop the national brand name of the Vietnamese timber industry. This demand will be a sustainable motive for Vietnam to become the center of furniture production in the world with the genuine products of Vietnam.

Looking back at the meeting with the Prime Minister showed that not only the leaders of enterprises specializing in furniture production but also the leaders of the local. This shows that in order to achieve the Government's objectives in the next 10 years, it is necessary to have a companion and listener between the leaders of enterprises and the State in order to promptly remove difficulties and support policies. Appropriate, encourage enterprises to invest in technology development, diversify and improve the quality of products to increase competitiveness in the market. Alongside that, protect the domestic production by reasonable barriers to ensure fair competition, in accordance with the law, effectively prevent the phenomenon of "big fish swallow" or take advantage of the legal loophole to "export risk".

Reported by Duy Chi – Translated by Vi Bao

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Motivating the domestic furniture industry to reach out

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