Up to 356 delegations from 44 countries and territories worldwide registered to join the Vietnam International Furniture and Home Accessories Fair (VIFA) as of February 28 this year, according to the event’s organising board. The fair, slated to take place from Mar 14-18, is an opportunity for companies to seek business opportunities.
Around 150 enterprises from inside and outside the country will display their products in 550 stalls, showcasing interior and exterior wooden products, fine art handicrafts and ceramics, as well as machinery and equipment for the fast-emerging industry. Among exhibitors, 70 per cent operate in wood processing, 20 per cent in fine art handicrafts and the rest specialising in providing products and services for these areas. According to the organising board, the new content of VIFA 2008 is the fair tour of wooden products (Singapore – Vietnam – China). Notably, by participating in VIFA 2008, customers can survey exporters’ capacity via tours to see Vietnamese enterprises’ workshops.
Vietnam wood processing has been rapidly developing to become a key export items, and the country is expected to stand among the four biggest wood product exporters in Southeast Asia. Nguyen Chien Thang, Chairman of the HCMC Handicraft and Wood Industry Association (HAWA) said, “Vietnam’s wood products have been present in nearly 120 countries and territories in the world, mainly focusing in the key markets of the US, the EU and Japan. The country’s achievements in the production of wood products and fine art handicrafts have proved local exporters’ capacity. The country’s export market for wood products has been expanded, and product quality has been enhanced, with high competitiveness in the region.” Over the past years, the wood product sector has made big breakthroughs with export turnover estimated to reach USD 2.4 billion in 2007, compared to USD 1.94 billion in 2006 and USD 1.58 billion in 2005 and up three times against 2003. The sector gained annual growth of 49.1 per cent in 2004 – 2006. Vietnam is now home to 148 exporters recognised with the Chain of Custody standard, accounting for 61 per cent in the coastal the South-central region, 28 per cent in the South-eastern region and 9 per cent in the Central Highlands region. In addition, the wood industry has also lured the participation of foreign investors. As of late 2006, the country had attracted 420 foreign producers operating in this area with total investment capital of around USD 330 million. They mainly came from Asia, such as Taiwan, Singapore, Malaysia and China, and other countries including Sweden, Norway, Denmark and France.
The US is the leading importer of wood and interior products in the world. The country spends around USD 70 million to import these products annually, with the focus on wooden tables and chairs, kitchen wood furniture and office furniture. The majority of imported wooden products are for domestic consumption, though some of these are for re-export. Despite the wood industry’s advantages such as large scale, increasing demand and diversified products, it is still difficult for enterprises in developing countries including Vietnam to meet big orders. Vietnam entered the US market with the Vietnam-US Bilateral Trade Agreement inked in late 2001, and stood among the 15 biggest exporters in the US with turnover of USD 774 million in 2006.
The European Union (EU) is considered another attractive market for countries exporting wooden products, including Vietnam. The EU is the biggest consumer of interiors annually and ranks second in consuming wood products after the US, not only serving for domestic demand but also re-export. Interiors for offices and sitting rooms are mainly exported to this market.
Vietnam exports many wood products to Japan, including wood material, planks, wooden statues and decorations, chairs, picture frames and many others. Of those, interior products account for the highest ratio of Vietnam’s total turnover of wood products to Japan, at 56.1 per cent.
According to Nguyen Chien Thang, it is very important to raise added value in exports, besides maintaining and developing export markets, through actively planning material areas to provide input materials and reduce export pressure. In addition, the shortage of skilled labour must be dealt with, as well as acquiring equipment for the sustainable development of the industry.
P.V
Vietnamese
