Vietnam Furniture Export in the Eyes of Experts

Being an enterprise specialising in manufacturing and exporting products made from coconut trees, Kim Boi Company not only makes a profits of billions of VND from its business, but also create jobs for thousands of labourers across Southern provinces, especially for those having close attachment to coconut trees. Having a pool of hard working and creative labourers is one of our great advantages. We, however, have not been able to bring into play that advantage since we still lack investment from the State and job orientation still exposes many weaknesses. “No buyers, no manufacturing and vice versa” is the current situation of the sector. Furthermore, production is still fragmented and weak. Long term and rational investment is needed. It is necessary that enterprises wishing to survive and develop cooperate with each other, thereby creating power.

 

Skilled labourers are a prerequisite for competitive products: Ms DINHTHI HUONG NGA – Director of HUONG NGA FINE ART OF LACQUER

With 20 years of experience in producing lacquer artworks and furniture for domestic and overseas markets, Huong Nga got no surprises when Vietnam joined WTO. Huong Nga’s products are now present in many countries in the world including EU, the U.S, the U.K, France, Japan, Malaysia and Australia. What is of most interest to Huong Nga, however, is the human resources issue. For the enterprise to survive, grow and be competitive on the market, it is necessary that we have highly skilled workers, since one experienced worker is capable of the same production as three untrained ones. Huong Nga’s policy is to create every favourable condition for workers to stay with the enterprise. Skilled workers are a prerequisite for products of high quality and artistic value.

Ceramic products are our core business. MIFACO is also expanding our business into other areas such as producing wood furniture and decorations. We aim at producing products of consistent quality and diverse shapes, colours and materials. Our goal is to bring customers modern products and continuously upgrade quality, so as to better meet their demands. Competition is unavoidable in a market economy. MIFACO is ready to compete in a healthy manner and is willing to cooperate as well. Currently, we have 60,000 square metres of land, 30,000 square metres of which are already used for factories. For further business expansion and development, we look forward to having partners to cooperate with each other in producing wood products for export.

Materials and human resource are two key factors for sustainable development: Mr NGUYEN CHIEN THANG – General Director of SCANCIA PACIFIC

Currently, labour is a thorny issue for enterprises operating in wood manufacturing and handicraft. This casts a great influence on the production capacity of enterprises, as well as the pace at which large orders are processed. Therefore, it is necessary that enterprises have suitable policies and conduct training courses for workers to ensure long term stability. Enterprises, however, should sit down together to discuss effective measures in employment. At the same time, through associations and potential enterprises importing materials, agents responsible for directing material distribution and exploitation are set up to ensure stable production to meet large orders in the future.

An encouraging environment for creativity is needed: Mr NGUYEN QUOC KHANH – General Director of AA Company

During the past years, AA has paid lots of attention to design through sponsoring awards (Apricot award) to search for initiatives as well as dynamic designers. This activity aims to bring ideas to manufacturers, so that they can make diversified and plentiful products, meeting domestic consumers’ demands in the short-term. Being an experienced producer of wood products for export, AA is finding a way for ourselves, avoiding too much dependence on design-orders that customers have long been giving us. If this job is well done, Vietnamese enterprises will be able to strengthen our position and the brand names of our products on the international market.

 

Trade promotion channel for wood processing sector needs maintaining and expanding: Mr NGUYEN BA TUAN – Director of Lien Minh Joint Stock Company

Lien Minh Joint Stock Company is an enterprise in HAWA (Handicraft and Wood Industry Association), playing a key role in trade promotion for members and non-members of the association. Despite just one year of operation, we have implemented lots of programmes to advertise the image and potential of Vietnam wood exporting in general, and of HAWA in particular. VIFA market fair is being held for the first time, receiving positive and encouraging results. It is estimated that 150 domestic and foreign enterprises will attend the fare, with 550 displays of international standard. It is also estimated that 356 delegations from 44 countries and territories will register for attendance. We aim to make this market fair an annual trade promotion event to create an information channel for enterprises.

 

Enterprises need to build brandnames for themselves: Mr VO TRUONG THANH – General Director of TRUONG THANH WOOD JOINT STOCK COMPANY

Almost all wood processing enterprises of Vietnam are small and medium sized. We, therefore, have not paid enough attention to establishing our brandnames. For Truong Thanh Company, we were aware of this issue from the beginning and so, besides manufacturing, Truong Thanh has succeeded in establishing an image and brandname recognised in both domestic and overseas markets. The “Asia Pacific” award is proof of our trade promotion and brand name establishment. Truong Thanh’s listing on HOSE is a remarkable event, drawing lots of interests from domestic and foreign investors.

Integrating into the global economy, Vietnamese enterprises are entitled to many opportunities, as well as subject to quite a few challenges from both inside and outside. So how can we help enterprise managers have specific long term and medium term goals, and the state to have suitable policies to manage the economy?

 

In “The world is flat” of Thomas L. Friedman, he describes the picture of globalization, and specialization, mobilizing resources of localities, surpassing the borders of geography, culture and ethnicity, to bring the highest profit for localities, and this is certainly the trend for economic development in today’s world.

 

When France is mentioned, people often think of a splendid Paris, luxurious perfume, and well-known Bordeaux wine; Italy brings to mind Valentino, Gucci, Versace and Bonia; and China, the world’s workshop with cheap labour. But how does the world look at Vietnam? It cannot be thought of as “golden forests, silver sea” and natural resource cannot be solely depended on. What Vietnam is currently recognized for by the world is the human resource factor. Vietnamese are known for creativity and cleverness. It is necessary that the State have powerful solutions for defining sectors which should be prioritized and the labour quality upgraded.

 

With the current pool of skilled and clever labourers, Vietnam can possibly become the world’s second workshop. Without labels, Made in China products have conquered global markets in almost all sectors, ranging from Lenovo computers, TLC, Haier, China Mobile to Shanghai Auto. Human resource development requires a roadmap. Given its current human resources, Vietnamese enterprises can simply be processors, or outsource for external resources for experience sharing and technology transfer, in the beginning and to a certain period, then domestic enterprises can stand on their own feet.