Vietnam furniture stock

Solid wood dining set, Wood exports to hit annual target Viet Nam's wood industry is expecting to reach this year's export target of US$5.5 billion, thanks to a recovery in exports of its wood products, experts have said.

The Ministry of Industry and Trade said that the wood industry gained a year-on-year increase of 12.5 per cent, bringing the export value of this industry to $2.46 billion for the first half of this year.

Traditional markets such as the US, Japan and China also had a strong surge in export values.

Dang Quoc Hung, deputy chairman of the Handicraft and Wood Industry Association of HCM City (HAWA), said that exports of Vietnamese wood products to the US had strengthened over the first of this year, which signals a recovery.

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The stem of the ship is a black plank of wood, which is untouched after 700 years under the sea. Dr. Quan said the ship was built by manual methods and connected by steel nails. The gaps on the hull were plastered with lime and sugar baits. The wood was mainly from old trees, including pine.

The plank of wood in the stem is over 4m long, 30cm thick.

Dr. Nguyen Dinh Chien, deputy director of the Vietnam National History of Museum said archaeologists found traces of straw used to cover pottery items.

Experts said the 700-year-old ship was in fire before sinking in Binh Chau. The traces of the fire were left in some compartments.

Experts have collected thousands of ceramic artifacts from the ship.

The 700-year-old vessel

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dating to the 13th and 14th centuries, produced by different pottery villages.   At present, Vietnamese exporters now have to prove that their products use the materials with FSC certificates, or show the documents to prove their legal origin. Since Vietnam still does not have a FSC wood market, it has to import $1 billion worth of wood materials every year.

Since the import prices and the transportation costs are on the rise, Vietnamese wood exporters find it hard to compete with Chinese and Malaysian who can control their material sources.

Since March 2013, European countries, the biggest clients of Vietnam, have been applying a new regulation which aims to tighten the control over the imports and prohibit the import of the wooden products made of illegally sourced timber.

The wood suppliers, including Vietnam, will have to show relevant documents to prove the origin of the wood. For example, they would have to provide the descriptions about the wood materials, show the countries where the wood is exploited, and provide detailed information about the suppliers. Meanwhile, it seems to be impossible for Vietnamese exporters, who buy wood from different sources and through a lot of different parties, to show the origin of wood.

Coming back to the home market

Meeting big barriers in export markets, wooden furniture manufacturers have been trying to seek new markets. However, the results of the searching remain modest, while it is very costly to exploit a new market. The Middle East or North Africa, for example, maintain specific cultural characteristics which makes it difficult to approach for trade exchange.

Vo Dai Hai, Deputy Head of the General Forestry Directorate, has noted that domestic wooden furniture manufacturers have missed the domestic market which also has very high demand.

Coming back to the home market is really a good idea, but it is not easy to be done. Domestic firms have been focusing on making products for export, while they don’t have much information about the domestic market.

If enterprises focus on the domestic market now, they would have to spend money to start their business from scratch, i.e. they would have to spend money and time to learn about the market demand, make designs and establish the distribution network.

Wooden furniture manufacturers look puzzled in home market

The domestic wooden furniture market reportedly is worth three billion dollars, but it can bring only 20 percent of the total income of domestic wooden furniture manufacturers.

Vietnam expects to earn 4 billion dollars this year from wooden furniture exports. Its products have been present in 120 markets all around the world, while the US and EU consume 80 percent of the export turnover in 2011, worth 3.9 billion dollars. The exports bring 80 percent of the total income of the manufacturers.

Vietnamese wooden furniture exporters have committed that they still have not found the way to conquer the home market, because they do not understand the Vietnamese taste well. As a result, Vietnam has to import 2.4 billion dollars worth of wooden products every year.

CSIL, an Italian industry research center, in its World Furniture Outlook 2011 report, put Vietnam on the 12th position among the 70 surveyed countries. Meanwhile, it ranked the 22nd in terms of the domestic consumption market and 6th in terms of export market. The

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turnover in the fields were 5.17 billion, 2.23 billion and 3.12 billion dollars, respectively.

[Wooden furniture manufacturer Vietnam - kodasaigon - 1389578614]

It is estimated that the domestic and export consumption would be roughly 7 billion dollars this year.

Returning to home market

Analysts have commented that Vietnamese wooden furniture manufacturers have regrettably missed the home market which has a high demand, diversified taste (both low cost Chinese to high quality Italian products are available) and the people’s readiness to pay for furniture products.

Nguyen Truong Luu, Deputy Chair of the HCM City Architects’ Association, has blamed this on the lack of cooperation between manufacturers and designers.

The housing development holds up to 90 percent of the total demand of the total wooden furniture market. However, domestic manufacturers still cannot control the market. The problem is that they cannot understand the clients’ requirements in order to provide suitable products.

Vietnamese furniture enterprises prefer making products for export, because they can arrange production in a large scale and fulfill big orders. Meanwhile, if targeting the domestic market, they would have to diversify the designs continually to satisfy small orders.

“Vietnamese enterprises should get adapted in terms of production organization and try to cooperate with partners to develop the market,” Luu said. “It is really a paradox that European and American choosy