Panels & Furniture Asia March/April 2018

10 NEWS
VIETNAM’S FORESTRY PRODUCTS TRADE
CONTINUE ON GROWTH TRAJECTORY,
TO REACH US$9 BN IN 2018
VIETNAM’S wood and wood products
industry will remain strong this year with
export turnover expected to hit US$9
billion, a 13 per cent increase, according
to the Handicraft and Wood Industry
Association of HCMC (HAWA).
The industry has been on a growth
trajectory in recent years, achieving an
annual average growth rate of 12.9 per
cent in the last seven years. It is forecast
to accelerate in the next three years, said
HAWA Chairman Nguyen Quoc Khanh.
Last year, the industry posted
export earnings of US$8 billion, up from
US$7.3 billion in 2016 and exceeding
the US$7.5 billion target set by the
Ministry of Agriculture and Rural
Development. The unprecedented target
was expected to be met only in 2020,
Khanh added.
The country is the fifth largest
furniture exporter in the world, claiming
a global market share of six per cent. It
is the largest exporter in Southeast Asia
and ranks second in Asia, behind China.
Much of this furniture goes to the
U.S., which accounted for 39 per cent of
Vietnam’s total export volume in 2017.
Other major importing countries are
Japan, the EU, China and South Korea.
“[The U.S.] will continue to be the
most promising market this year thanks
to its GDP growth,” Huynh Van Hanh,
standing deputy chairman of HAWA, said.
Furthermore, with a population
of over 90 million and a booming real
estate sector, the domestic market
will also demand furniture, offering
further opportunities for growth, Hanh
added.
Minister of Agriculture and Rural
Development Nguyen Xuan Cuong also
hailed the sector’s achievements at an
event honouring export firms for their
business achievements. Wood and
wood-based products rank sixth in the
list of the country’s largest export items.
However, to achieve the export
target this year, firms must invest
more in technology and business
management to raise productivity and
meet consumers’ demand for quality
and design. They should also source
timber from a variety of suppliers to
mitigate the risk of high prices and avoid
buying from dubious sources.
For instance, companies can consider
enterprise resource planning (ERP)
solutions to optimise their resources and
improve their efficiency, Phi Anh Tuan,
deputy chairman of the HCMC Computer
Association and CEO of PAT Consulting,
said at a Business Automation seminar
organised by HAWA.
ERP allows managers to access data
at their fingertips, expediting planning,
productivity and production, and
ultimately, competitiveness.
If they streamline their management,
Vietnamese businesses can save up
to 76 per cent of administrative costs,
according to Tuan.
“The market is good but competition
is fierce. Enterprises have to invest
in management systems and specific
machinery to manage orders,” Nguyen
Chanh Phuong, director of Danh Moc
Co Ltd, said.
With global demand for furniture
rising on the back of a recovering
economy, there is plenty of room for
Vietnamese firms to increase their
market share.
Phuong added, “To capture this
potential, Vietnamese manufacturers
must also seek new markets and exploit
opportunities in niche products.” ℗
Source: Edited from VN News
March / April 2018 • Issue 2 • PANELS & FURNITURE ASIA