VIFA Woodmac 2017 opens up opportunities for woodwork industry

Over the years, Vietnam's furniture industry has grown steadily, becoming the second largest exporter of wood products in Asia and the first in Southeast Asia. Binh Duong is considered one of the provinces and cities of the country with great potential for developing the woodwork industry.

Opportunities offered

Huynh Van Hanh, General Director of Lien Minh Wood Handicraft Joint Stock Company (the unit coordinating with Pablo Publishing Pte. Ltd. of Singapore, organized the Fair of Vietnam Machinery and Wood Material 2017 in Binh Duong, informed that Vifa Woodmac Vietnam 2017 was organized to facilitate production enterprises access to new technologies and legal raw materials. Contributing to the implementation of the Voluntary Partnership Agreement on Forest Law Enforcement, Governance and Trade in Timber and Wood Products (VPA/FLEGT) signed by Vietnam and the European Union (EU).

"Binh Duong is the center of industrial zones and the largest furniture production center in the country. Therefore, the location is a convenient place for organizing this fair to serve the wood processing industry in the region as well as the country," said Hanh.

Enterprises are present at Vifa Woodmac 2017. Photo: Thoai Phuong

According to Tran Thanh Liem, Deputy Chair of the provincial People's Committee, in 2017, our economy is recovering positively due to the Government's promptly promulgation of many policies and specific solutions to remove difficulties for the businesses. Binh Duong province has also implemented many solutions to support business development of production and operations, thereby contributing to socio-economic development in the area. Binh Duong always strives to promote trade promotion activities, especially giving priority to the wood processing industry. He also appreciated this fair, with the aim of creating favorable conditions for production enterprises to access new technologies and legal resources of the world right in Vietnam. The fair would not only create opportunities for industry players to meet, exchange information and collaborate more, but also create vertical linkages within the industry from suppliers of materials, accessories and supplies, level of machinery and technology to manufacturers, providing an opportunity for businesses to grow together in a sustainable way.

Sustainable development perspective

Expanding the market associated with the commitments of international cooperation is helping Vietnamese wood processing enterprises have a chance to reach a strong international market with the great challenge of constant improvement quality of products to compete. According to statistics of the General Department of Customs, export turnover of wood and wood products in Vietnam in the first 6 months of 2017 reached US$ 3.66 billion, up 13.9% over the same period in 2016. In Binh Duong with about 500 wood processing enterprises, the wood processing industry accounts for a high proportion of the province's economic structure. Export turnover of wood and wood products in the first 6 months of 2017 of enterprises in the province reached US$ 1.46 billion, up 15% over the same period last year, accounting for 39.9% of total export turnover of wood products of the nation.

Woodwork industry development prospects are expected to continue to grow in the future thanks to the impact of the Vietnam-EU Free Trade Agreement (EVFTA), which is expected to take effect in early 2018 and the VPA/FLEGT . This is a favorable condition for domestic enterprises to boost exports of wood and wood products.

Do Thi Kim Loan, General Director of Sao Nam Company (Nam Tan Uyen Industrial Park), said that the potential of the wood processing industry in Vietnam is still highly appreciated, will develop further in the future. Efforts by industry associations such as the establishment of a legally-sourced (Hawa DDS) legal origin system, the signing of a non-illegal timber declaration, etc., have been remarkable. It will be the foundation for Vietnam's furniture industry to develop more sustainably and permanently when competing in the international market.

Vifa Woodmac 2017 has gathered 109 businesses, exhibited 420 booths. Of these, 30 were from the provinces of Vietnam (26%) and 79 foreign enterprises from 14 countries and regions such as China, Hong Kong, Taiwan, Austria, Canada, France, Germany, Italy, Malaysia, Singapore etc.

Reported by Thoai Phuong – Translated by Vi Bao