Woodwork export market is great, but difficult to penetrate

Vietnam’s woodwork industry in the first half of 2015 reached US$3.13bln in export turnover. Amid difficulties, the result was a great effort by ministries, sectors and especially woodwork businesses. Binh Duong-based woodwork businesses also had important contributions to this.

Big market

Huynh Quang Thanh, Chairman of Binh Duong Furniture Association (BIFA) said that Vietnam’s woodwork industry in the first half of 2015 reached US$3.13bln in export turnover. Binh Duong-based woodwork businesses made great contributions with predicted level of 55%-60% to the result.

Export flooring planks being manufactured at a woodwork processing company in Binh Duong

Currently, there is a gradual increase in woodwork export orders from the U.S. Many great potentials in the field are also found from EU market. According to statistics, Binh Duong-based businesses’ woodwork export into U.S over the past 5 years reached US$211mln, up 39% compared to last year’s same period.

Especially, China is being imposed anti-dumping duties from the U.S, so there is a shift on export woodwork orders from China to Vietnam. This has opened up opportunities for Vietnam’s woodwork businesses to deeply penetrate into the U.S market. According to Luu Ngoc Kim, Vice-Chairman of BIFA, the U.S market is very potential as its annual demand for timber and wooden products always grows up.

BIFA also said that businesses needed to pay attention to the issue being against the use of illegal timber. It is expected that the Voluntary Partnership Agreement on Forest Law Enforcement, Governance and Trade (FLEGT) between Vietnam and EU will be signed by the end of the year. Therefore, preparations need to be early done to help domestic woodwork businesses easily penetrate into EU market.

Removing businesses’ obstacles

According to province-based woodwork businesses, the exchange rates of the U.S dollar and euro are higher than Vietnam dong. This has also made domestic exporters face difficulties. 

In terms of businesses’ query relating to exchange and interest rates, Vo Minh Tuan, Deputy Head of the Credit Department under the State Bank of Viet Nam (SBV) explained that the SBV would adjust a policy on exchange rate based on harmony about benefits of all industries.

To BIFA, it is time a part of industrial rubber trees should be used as timber on site for woodwork businesses. This is very necessary as Binh Duong has a large area of growing rubber trees while the price of rubber latex is plunging. Changing the goal of using rubber trees not only brings rubber growers benefits, but also help woodwork businesses solve a thorny problem on timber, promoting their production and business activities.

Reported by Phung Hieu-Translated by K.T

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