Wood industry seizes opportunities when orders get back

Many businesses in the wood industry have so far got orders, serving the world market’s year-end furniture shopping season. In addition, many US and European customers have encountered difficulties with neighboring partners so they find new suppliers for replacement, including Binh Duong enterprises.

Good signal

Duong Thi Tu Trinh, Deputy Director of Duc Thien Co., Ltd. in Tan Uyen city said that orders have returned. The company has resumed production activities, ensuring working days for workers. "From the beginning of the year to July, the company operated moderately, having to cut workers at times. However, it has so far recruited new workers, operating at its 50%-60% capacity. In the fourth quarter of 2023, the amount of the company’s orders increased again by 20%-25% compared to the previous 3 quarters", Mrs. Trinh shared.

Wood enterprises focus on investing and innovating production technologies. In picture: Enterprises learn about new technologies at the 2023 Binh Duong International Wood Materials and Machinery Fair

It is known that the company has had enough orders until the end of the first quarter of 2024. Employees have fully taken working days in a month. On average, the company exports about 100 containers of goods per month. In the coming time, the company will focus on the criteria of good prices, suitable for the market taste, quality products and good after-sales policies... Those are the top solutions to increase orders.

Huynh Quang Thanh, Director of Hiep Long Co.Ltd. in Thuan An city said that the wood export market has gradually recovered. It is forecasted that in 2024, wood and wood product exports will see faster recovery and wood enterprises must be ready to welcome opportunities. “Although not returning like previous years, we are in contact with a number of customers and the order situation in 2024 is quite feasible. This is good news for the wood industry. We hope that wood exports will recover in 2024", Mr. Thanh expected.

Although there are bright spots, wood enterprises are still facing many challenges as orders are now more competitive and requirements for design and quality are much higher. For example, customers require wood and auxiliary materials to be recycled, but their quality must be guaranteed. This is considered as pressure on businesses. Mr. Thanh also shared that although having positive signs of recovery, the wood industry has still faced many difficulties. The growth momentum of the wood industry is still hindered by many obstacles because the global economy is still weak with persistent inflation amid serious risks. This requires businesses to be proactive in production, partnerships and risk management, seizing opportunities amid difficulties and challenges.

Paying attention to market requirements

Although the export of wood and wood products is showing a positive recovery trend, according to leaders of Binh Duong Furniture Association (BIFA), it is very difficult for the province to fulfill the export target of US$ 17 billion in 2023. Nguyen Liem, Chairman of BIFA said: "If we compare the export sales of the first 6-7 months of the year, the whole year export target of USS 17 billion is difficult to achieve. I think the figure of US$ 15 billion is more feasible...".

Businesses believe that with the shift in orders from neighboring countries, the potential to expand the export of wood and wood products in the coming time is huge. This is because the scale of the world’s furniture market is up to US$200 billion. To date, although Vietnam is in the world’s Top 5 largest wood exporters, its export turnover has only reached over US$16 billion per year.

According to Huynh Thanh Trung, from BIFA’s Trade Promotion Board, currently wood enterprises are actively offering many solutions to ensure sustainable development. “These difficulties are also opportunities for businesses to renew themselves. From making traditional orders, shifting to products that protect the environment and have a variety of designs..., they can compete and dominate the market", Mr. Trung said.

Many businesses and craft villages have grasped and converted towards environmentally friendly products, but they have to further make more efforts to meet the world's requirements. Especially, we must pay attention to technological innovation, perfecting their production management system, improving the efficiency and quality of human resources while promoting the use of domestic raw materials to reduce costs and improve product competitiveness.

Reported by Tieu My-Translated by Kim Tin