Imported and high grade furniture is now accounting for as many as 80 per cent of Vietnam’s market, a Trade Ministry website said.
This is seen as bad news for local woodwork sector which has strongly developed in recent years.
Vietnam exported US$1.56 billion worth of furniture in 2005 and US$1.9 billion in 2006, up 12 per cent from the set target.
The country surpassed the Philippines to be the fourth largest furniture exporter in ASEAN and is recognized as a potential rival of the world’s largest furniture makers.
But imported furniture, mostly from China, Malaysia, Taiwan and Italy is flooding Vietnam’s market.
Manager of Melinh Plaza supermarket, one of the biggest furniture markets in the north, said that despite high-sky prices, imported furniture is selling better than domestic furniture because it is plentiful and beautiful in design.
He said prices of imported furniture are usually 20-30 per cent higher than locally made products.
In 2006, Vietnam spent US$760 million importing wood materials for processing and finished furniture, some US$110 million higher than planned. The amount is forecast to reach US$680 million this year.
Meanwhile, the local furniture sector has moved to boost exports, aiming to gain US$5.5 billion in export revenue in 2010 or an average growth of 28.9 per cent per year.
To maintain the sector's sustainable growth, Vietnam has worked to increase the output of locally grown timber to around 22 million cu.m by 2020, accounting for some 70 per cent of total demand.
According to its current development strategy, the sector will boost the export of indoor and outdoor timber products in the 2005-2010 period, and turn planks into one of its export staples from 2010-2020.
The Vietnam Forestry Association also joined the effort, with its member businesses seeking new material sources and renewing technologies for the wood processing industry.
Three timber trading centers will be established in northern, central and southern regions in the near future to assist businesses in ordering materials and seeking export contracts.
The association plans to spend some VND5 billion (over US$310,000) organizing 7 trade promotional programs with the aim of improving local timber processors' competitive edge in the WTO-membership period.
It will build a database to provide businesses with necessary information about markets, material sources, technology and import-export policies of countries worldwide.
Vietforest will also set up an insurance fund for timber product exports to boost importing and exporting, and reduce risks in production, processing and export.
But little attention seems to be paid to diversifying furniture product design. (
www.vinanet.com.vn))
Vietnamese
