Steady growth
According to the Ministry of Industry and Trade, export turnover of wood and wood products in the first seven months of this year reached about US$3.4 billion, an increase of 14.9 percent compared to the same period last year. Vietnamese wood and wood products have been available in over 100 foreign markets such as the US, the EU, China, Japan, Germany, the Middle East and the UK.
According to the General Department of Vietnam Customs’ statistics, during the 2009-2013 period, export turnover of wood and wood products to the Middle East increased by three times. In the first half of this year, its figure stood at US$37.3 million, an increase of 37.1 percent compared to the same period in 2013.
Vietnam remains one of the leading furniture exporters to the UK market. If finished products and raw materials are included, Vietnam will be among the top 20 countries. In 2012 and 2013, Vietnam ranked second in terms of Harmonized System 940330-60 furniture exports to the UK with total export turnover of GBP128.82 million and GBP142.44 million respectively, followed by China. In the first five months of this year, HS 940330-60 furniture exports to the UK reached a turnover of GBP68.36 million, an increase of 14 percent compared to the same period in 2013.
In terms of the German market, Consul General of the Federal Republic of Germany in Ho Chi Minh City Hans-Dieter Stell said that 50 percent of outdoor furniture products in Germany were originated from Vietnam. Consumers in developed countries often prefer to save, but thanks to lower prices, Vietnamese furniture products have engaged the interests of consumers.
Increasing demand on furniture and handicrafts in domestic and foreign markets in recent years has created favorable conditions for the wood processing industry. In addition, due to an economic recession, many wood processing plants in Italy, Germany and the US have stopped working. Chinese wood products have been applied tax on anti-dumping. Therefore, Vietnam should take advantage of its opportunity to promote furniture exports.
Opportunities
Opportunities for furniture exports are strongly growing as a series of agreements have been negotiating and signing such as the Voluntary Partnership Agreement (VPA) in the EU’s Forest Law Enforcement, Governance and Trade (FLEGT) Action Plan.
The Trans-Pacific Partnership (TPP) Agreement is expected to be concluded by the end of this year with many tax incentives, contributing to helping Vietnamese furniture products enter more markets such as Australia, New Zealand and Canada. In addition, when the ASEAN Economic Community (AEC) is formed, furniture products will be strongly consumed.
The Ministry of Industry and Trade’s Light Industry Department Chief Phan Chi Dung said that Vietnam should take advantage of opportunities for the development of the wood processing industry. According to forecasts, export turnover of wood and wood products would reach US$6.5 billion in 2014./.
By Lan Phuong