Vietnamese woodworking firms increase investment in technology, machinery

Nguyen Phuong, sales director of Minh Thanh Co., Ltd, said his company plans to invest more than 50 billion VND (2.15 million USD) in a production chain for bedroom and living room furniture.

Vietnamese woodworking firms increase investment in technology, machinery

Vietnam's wood and forestry exports were worth over 7.9 billion USD in the first nine months of this year, a year-on-year increase of 18.1 percent

Besides installing a new machine, the company has also revamped its productionprocess to create the most compatible and efficient machine system, he said.

With this, Minh Thanh expects to reduce manpower by around 30 per cent andimprove productivity and quality.

Leslie Lye, sales manager at the Weinig Group, said: “Vietnameseproducers have been making more investment in technology than in otherSoutheast Asian countries.”

But with customer preference shifting to personalised furniture, the productioncosts of such customised furniture must be comparable with that of massproduced items, he said.

This is affecting furniture manufacturers globally and in Vietnam.

He said furniture manufacturers need to have factories with mass productioncapacity but also the flexibility to make small batches.

“To be profitable, they need to have a precise mapping of the productionprocess and easy and quick product changeover.”

Nguyen Chanh Phuong, Vice Chairman of the Handicrafts and Wood IndustryAssociation of HCM City (HAWA), said the high growth rates in recent years notwithstanding,the wood processing industry faces challenges like fierce competition due to anincreasing number of foreign enterprises investing in the sector but also ashortage of workers as a result, and a shifting of orders from China.

Firms in industrial parks pay 10-20 percent higher wages than previously, butstill find it hard to get workers, he said, adding that despite rising wages,labour productivity remains low.

The country’s wood and forestry exports were worth over 7.9 billion USD in thefirst nine months of the year, a year-on-year increase of 18.1 percent.

 

Nguyen Quoc Khanh, HAWA Chairman, said: “All enterprises in the industryare heading towards a bigger goal of 20 billion USD in 2025.

“The Government has set a clear direction of making Vietnam a world leadingwoodworking production centre. This has helped companies in the sector gainconfidence and motivation.”

To cope with current and prospective challenges and changes in customers’ demands,the industry needs to adopt effective business strategies and embrace advancedtechnologies, he said.

“With the progress in global machinery manufacturing, our woodworking companiesare able to get the latest technologies, especially precision productiontechnologies by using computer numerical control (CNC).

“Current emerging technologies such as AI, big data, cloud computing androbotics will surely enable us to improve product quality, better control theproduction process, reduce dependency on manpower and the time taken forproduction, and quickly meet customer demands.”

When investing in technologies, firms should base it on future needs and seekadvice from experts and machinery suppliers, he added.

Bernd Kahnert, senior expert at HOMAG, the world’s leading supplier of smartand integrated production solutions for the wood industry, said finding humanresources who can understand and operate these advanced technologieswould not be an easy task for Vietnamese firms.

Enterprises themselvescan resolve the human resource challenges but it needs closer collaborationbetween educational institutions and businesses, he said.

Training human resourcesfor the industry is an urgent requirement, he added./. VNA

VN enterprises see positive prospects for woodwork exports

VN enterprises see positive prospects for woodwork exports

The opportunities are great for Vietnam’s woodworks industry, but great challenges exist as well, experts say.

Vietnam warned its woodworks may be taxed by the US

Vietnam warned its woodworks may be taxed by the US

Vietnam’s woodwork industry runs the risk of being watched by the US government for taxation as its export turnover has soared, especially in the context of the sharp rise in Chinese investment.

 
 

Other News

.
Proper mechanism needed to attract investors to PPP projects
Proper mechanism needed to attract investors to PPP projects
BUSINESSicon  14/11/2020 

A proper mechanism is needed to attract investors to infrastructure projects implemented following the public-private partnership (PPP) model, experts have said.

Oil fields becoming depleted, difficulties lie ahead
Oil fields becoming depleted, difficulties lie ahead
FEATUREicon  14/11/2020 

Oil and gas companies are struggling to cope with falling prices, oil field depletion, and difficulties in seeking new fields.

Curbed inflation eases concerns
Curbed inflation eases concerns
BUSINESSicon  13/11/2020 

The big rise in public investment disbursement will not cause high inflation this year due to a decline in public and business demand and oil price, as well as government efforts to stabilise prices.

Focus on efficiency for new incentives
Focus on efficiency for new incentives
BUSINESSicon  13/11/2020 

A list of sectors that could benefit from special tax incentives in Vietnam would be utilised to grow enthusiasm for overseas investors and, as a result, help to contribute towards luring more high-quality foreign direct investment.

Pressure on the Finance Minister
Pressure on the Finance Minister
FEATUREicon  13/11/2020 

As the holder of the keys of the national treasury, Finance Minister Dinh Tien Dung is facing great pressure.

Demographics, rising income, geopolitical shifts to drive ASEAN’s growth
Demographics, rising income, geopolitical shifts to drive ASEAN’s growth
BUSINESSicon  13/11/2020 

10 ASEAN member states are on the cusp of a tremendous leap forward in socio-economic progress and their growth will be propelled by four mega-forces, including favourable demographics, rising income levels, geopolitical shifts and digital tailwinds.

Local firms told to prepare for RCEP export opportunities
Local firms told to prepare for RCEP export opportunities
BUSINESSicon  13/11/2020 

Vietnamese businesses should prepare to export their products to other ASEAN countries ahead of the possible signing of the Regional Comprehensive Economic Partnership (RCEP) this week. 

Pork prices drop after country flooded with imports
Pork prices drop after country flooded with imports
BUSINESSicon  14/11/2020 

Vietnam spent VND5 trillion ($214.78 million) to import pork in the first nine months of the year, leading to a drop in prices.

Hanoi authorities to inspect farmstay projects, land violations
Hanoi authorities to inspect farmstay projects, land violations
BUSINESSicon  13/11/2020 

The Hanoi People’s Committee has assigned the Department of Natural Resources and the Environment to set up a taskforce to inspect farmstay projects and deal with land law violations.

Daily visits to local e-commerce sites top 3.5 million: VECOM
Daily visits to local e-commerce sites top 3.5 million: VECOM
BUSINESSicon  12/11/2020 

Online shopping traffic in Vietnam so far this year rocketed over 150 percent against a year earlier, with daily visits to e-commerce sites growing to 3.5 million, 

RCEP - A new boost for regional enterprises
RCEP - A new boost for regional enterprises
BUSINESSicon  12/11/2020 

The Regional Comprehensive Economic Partnership (RCEP) agreement, expected to be signed on November 15 within the framework of the 37th ASEAN Summit in Hanoi, 

Enterprises need to be pro-active during the pandemic
Enterprises need to be pro-active during the pandemic
BUSINESSicon  13/11/2020 

Nguyen Bich Lam, former director general of the General Statistics of Vietnam, talks on what Vietnamese enterprises need to do to maintain their business production during the COVID-19 pandemic.

New regulations on cap on loan interest deductions released
New regulations on cap on loan interest deductions released
BUSINESSicon  14/11/2020 

The regulations on the cap on loan interest deductions will cause enterprises to face difficulty as they have small capital and operate mostly with borrowed money.

Black credit leading people to dead end, with no escape from debt
Black credit leading people to dead end, with no escape from debt
BUSINESSicon  12/11/2020 

Covid-19 has caused many people to lose jobs and has paved the way for black credit to emerge.

Pandemic causes bad debts to surge
Pandemic causes bad debts to surge
BUSINESSicon  12/11/2020 

Non-performing loans (NPLs) among commercial banks increased sharply in the first three quarters of this year due to the adverse impacts of the COVID-19 pandemic.

MoIT carries out solutions to boost domestic market growth
MoIT carries out solutions to boost domestic market growth
BUSINESSicon  11/11/2020 

The Ministry of Industry and Trade (MoIT) will promote domestic market consumption to contribute partly to enhancing socio-economic development.

VIETNAM BUSINESS NEWS HEADLINES NOVEMBER 13
VIETNAM BUSINESS NEWS HEADLINES NOVEMBER 13
BUSINESSicon  13/11/2020 

Hope for Vietnam's billion-dollar export industry at year’s end

Consumers in Asia-Pacific to benefit most from industry 4.0
Consumers in Asia-Pacific to benefit most from industry 4.0
BUSINESSicon  11/11/2020 

Shifting businesses and enterprises into an intelligent and connected virtual space is no longer an option but a necessity to survive, primarily due to the added pressure brought about by the pandemic, a study by Deloitte said.

Vietnam should have law on supporting industry: VCCI chairman
Vietnam should have law on supporting industry: VCCI chairman
BUSINESSicon  11/11/2020 

Vietnam needs to have a law on the supporting industry to aid its development, according to the chairman of the Vietnam Chamber of Commerce and Industry (VCCI).

Vietnam targets private-sector development
Vietnam targets private-sector development
BUSINESSicon  14/11/2020 

Vietnam needs to develop a strategy to promote the development of the private sector over the next decade to maintain growth, speakers said at a conference on socio-economic development from 2021 to 2030 held in HCM City last week.

 
 
 
Leave your comment on an article

OR QUICK LOGIN