Wood industry proactive to promote trade, seeking development opportunities

In the first months of 2024, the export situation of enterprises in the wood industry has recorded many positive signs. Enterprises have made good use of trade promotion opportunities to continue maintaining traditional markets and finding customers in new markets.

Orders returning

By the end of January 2024, according to statistics from the Ministry of Industry and Trade, the country's wood exports reached US$ 1.5 billion, an increase of 72.5% over the same period in 2023. For wood export enterprises, this is a positive signal, showing that the market is recovering. In Binh Duong, according to preliminary data from provincial Department of Industry and Trade, the export turnover of wood and wood products was estimated at US$ 447 million, accounting for 18.5% of the province's total export turnover. According to the assessment of wood industry enterprises, this was a positive result in extremely difficult conditions, due to the impacts from geopolitical conflicts. However, compared to previous periods, wood export is now different. There are no longer annual orders, but enterprises follow samples, with short-term delivery and need to be proactive to seek customers.

The wood industry strives to develop technology and improve competitiveness in the market’s difficult context. In picture: Enterprises attend the 2023 provincial Woodworking Industry Fair

Pointing out more about this issue, Duong Tu Trinh, Director of Thuong Nguyen Wood Processing Factory in Tan Uyen city said that the signs of inflation in the US, Vietnam's largest wooden furniture import market has been less harsh. In addition, the inventory in this country that was accumulated before the pandemic has now been almost sold out and enterprises in the country will turn around to order again in 2024, especially in the third quarter of this year. At Duc Thien Wood Co.Ltd. in Tan Uyen city, where Duong Tu Trinh is holding the position of Deputy Director, the company currently has orders until June 2024. With current development, it is expected that the company will achieve export growth of about 20% in 2024.

Dien Quang Hiep, General Director of Minh Phat 2 Co., Ltd. in Thuan An city said that compared to last year, the company's orders for the first quarter of 2024 are more stable. However, this year, wood exports still have to face the continuing problems of 2023 such as political conflicts, wars...Currently, transportation interruption is increasing the cost of shipping goods to Europe and America.

In the face of the situation, wood enterprises have consolidated their machinery and found ways to reduce production costs. Accordingly, even though facing difficulties, we still have to set aside a certain source of State budget to invest in machinery to reduce labor costs while carrying out communication with workers to create consensus and determination to develop together.

Ta Thanh Hoi, Deputy Director of Quang Hiep Tien Co.Ltd. in Tan Uyen city said that the company specializes in manufacturing wooden furniture such as beds, cabinets, tables, chairs and supplying them to domestic and foreign markets. Amid the general difficulties of the wood industry, the company still strives to produce with technological innovation, increasing productivity and product quality.

 “In the face of the difficult situation affecting global production, company leaders quickly assessed and had quick adaptive solutions. The company has diversified consumption markets while negotiating discounts for domestic customers to maintain production. The company has connected with large export enterprises, namely Minh Duong Wood Joint Stock Company, Sudima Joinery Co.Ltd., receiving many orders...", said Mr. Hoi.

Proactive to participate in fairs and exhibitions

Orders are now very different from the previous period, so enterprises no longer exported massively in large quantities. They focus on sample products to suit market needs. According to Duong Tu Trinh, in the current context, enterprises all share the same opinion that one of the urgent things to focus on is to expand new markets, increasing the diversification of sales channels from traditional and non-traditional levels. Therefore, trade promotion for the wood industry through participation in domestic and international fairs and exhibitions is very necessary.

Province-based wood enterprises need to increase participation in specialized fairs and exhibitions to connect and find development opportunities

Also according to Mrs. Trinh, participating in fairs is quite expensive. It is difficult to quantify the percentage of profits gained from fairs. However, if an enterprise meets a new customer and the customer like products on display, results from this will be unexpected. If the customer continues introduce the enterprise to other customers, that's ideal. “However, organizing delegations to attend domestic and foreign fairs still faces certain difficulties. Particularly, the number of enterprises participating in fairs is not many. They mainly concentrate in the local fairs, without the opportunity to access markets in other regions, especially foreign markets. Many enterprises focus too much on sales at fairs, but disregard the longer-term goals of finding markets and orders", Mrs. Trinh analyzed.

Sharing this opinion, Mr. Hiep also said that participating in fairs is the best way to promote enterprises’ brands, especially in the current market. Through wood industry fairs, they have found customers and signed contracts. In addition, participating in trade promotion will help enterprises update new trends and grasp customer tastes to have appropriate business strategies.

Reported by Tieu My-Translated by Kim Tin