return icon Vietnamnet.vn

Vietnam wooden furniture products now target high-end market

VietNamNet Bridge - 2017 is the first year Vietnam gained a 2-digit growth rate in wooden furniture exports thanks to heavy investment in technology and design.
VietNamNet Bridge - 2017 is the first year Vietnam gained a 2-digit growth rate in wooden furniture exports thanks to heavy investment in technology and design.


{keywords}

Vietnam exported $5.55 billion worth of wood and woodwork in first nine months



According to GDC (General Department of Customs), the export turnover of wood and woodwork in the first nine months of the year reached $5.55 billion, an increase of 11.3 percent over the same period last year. 

Meanwhile, according to the Handicraft and Wood Industry Association of HCMC (Hawa), Vietnamese companies usually export more in the last months of year. Therefore, it predicts the total export turnover in 2017 will reach $8 billion, or 14 percent higher than 2016.

In 2016, the export turnover of wood, non-wood forestry products and woodwork was $7.3 percent, of which wooden exports brought $5.12 billion, up by 7.1 percent over the year before.

In 2016, the export turnover of wood, non-wood forestry products and woodwork was $7.3 percent, of which wooden exports brought $5.12 billion, up by 7.1 percent over the year before.

Hawa’s deputy chair Huynh Van Hanh commented that Vietnamese enterprises obtained two-digit export growth rate this year because they invested in technology and design. 

Many enterprises expanded their factories and set up more production lines with advanced technologies. Others increased investment capital by two or three times. The moves helped them obtain more orders from importers.

In the past, Vietnamese enterprises simply did outsourcing according to the designs given to them. But now, they design new products and export products under their own names.

Hanh said modern technologies now are affordable for Vietnamese enterprises, and, even small manufacturers can also install new production lines. With old technologies, every worker can create productivity value worth $20,000 per annum. The figure is $35,000 with new technologies.

Huynh Quang Thanh, general director of Hiep Long Wood Processing in Binh Duong province, said he has invested in new technology and set up a design division. 

The products designed by the company are priced at 10-20 percent higher than products made in accordance with designs provided by clients. Thanks to this, the company usually obtains orders from resorts in the US and Japan, worth $3-4 million each order.

In the domestic market, Vietnamese manufacturers are targeting the high-end market segment, which was previously dominated by imports. At some construction works, 80 percent of woodwork is made in Vietnam.

According to Hawa, the domestic market grew by 5-6 percent per annum and the consumption is expected to increase to $2 billion this year. 

Unlike previously, the domestic market is being controlled by Vietnamese enterprises. Vietnam only imports $68 million worth of wooden furniture products every year, mostly from China.

Imports have become less favored because the products are not as diverse, and they are more expensive.

MORE NEWS

Central bank not tighten real estate credit: Deputy Governor

The State Bank of Vietnam (SBV) has never issued any documents or statements ordering credit for real estate be tightened, Deputy Governor Dao Minh Tu said on February 8.

Vietnamese Prime Minister starts official visit to Singapore

Prime Minister Pham Minh Chinh, his spouse, and a high-ranking Vietnamese delegation arrived in Changi Airport on February 8 afternoon, starting a three-day official visit to Singapore.

Businesses discuss ways to overcome challenges in 2023

Warned that uncertainties will still exist in 2023, businesses need to prepare well to weather the storm.

Vietnam's bond market remains quiet this year

The scale of debt in the corporate bond market is less than 15 per cent of GDP.

Organ trafficking in Vietnam driven by high demand, low rate of donation: experts

A conference on organ donation registration and the prevention of human organ and tissue trafficking was held on Monday.

VCCI proposes allowing businesses to set fuel retail prices

The Vietnam Chamber of Commerce and Industry (VCCI) has written to the Government suggesting fuel retail prices be decided by businesses based on supply and demand to prevent fuel shortages.

VIETNAM NEWS HEADLINES FEBRUARY 8/2023

Vietnam puts children at centre of development policies, strategies: Ambassador

Gov’t issues action plan to realize Hanoi’s development vision until 2045

The Government has issued an action plan to realize Politburo’s resolution on the objectives for Hanoi’s development until 2030, with a vision to 2045.

Commercial sidewalk use may be charged by HCMC authorities

HCMC is planning to allow the paid use of sidewalks for commercial purposes such as vending goods or parking if these business activities leave a space of at least 1.5 meters wide for pedestrians.

CAAV advises caution when buying air tickets

The Civil Aviation Authority of Viet Nam (CAAV) has received feedback on the fact that passengers have to buy air tickets higher than the specified prices on domestic routes, especially during the peak of the Lunar New Year (Tet).

Prime Minister leaves Hanoi for official visits to Singapore, Brunei

Prime Minister Pham Minh Chinh, his spouse and a high-ranking delegation of Vietnam left Hanoi at noon on February 8 for official visits to Singapore and Brunei from February 8-11.

US war veteran wishing to return wartime diary to Vietnamese family

Pater Mathews, a US war veteran, has emailed relevant agencies of Ha Tinh province, central Vietnam, expressing his desire to fly to Vietnam and return a Vietnamese martyr’s diary he came across decades ago to the martyr’s family.

VIETNAM BUSINESS NEWS FEBRUARY 8/2023

January payment transactions via national public service portal valued at 11.8 mln USD

Vietnam needs new products, services to reach tourism targets

To realise the targets of attracting 110 million tourists and earning some 650 trillion VND (27.5 billion USD) in revenue this year, Vietnam is recommended to develop more products and services to offer new experiences to visitors.

PM Chinh’s Singapore visit expected to advance bilateral trade ties

Prime Minister Pham Minh Chinh’s Singapore visit from February 8-10 aims to affirm the determination to elevate the bilateral economic ties to a new height in the context of many free trade agreement (FTAs) coming into force.
back_to_top