Local producers of wooden furniture are struggling due to an increase inthe price of imported wood that has negatively affected theiroperations.
According to the Ho Chi Minh City WoodProcessing Association (HAWA), the cost of timber imported from the US, Europe and Africa rose by 20 percent in the last five months.
"Normally, import prices fluctuate from 5-7 percent,but 20 percent is a big hit and is eating into producers' profits," saidHAWA's vice president Huynh Van Hanh.
Hanh saidproducers have already fixed sale prices for the next 3-6 months, so thesudden hike in input materials is causing big losses.
He attributed the rise in import prices to the ongoing recovery of theUS construction industry which has increased demand there, and thenarrowing supply from Africa .
Nguyen Chien Thang,director of Scansia Pacific, a prominent furniture producer and exporterbased in HCM City , said his company is faced with bigchallenges.
"The demand for high grade woodenfurniture is rising, especially from Japan . This price hike ishurting our business," Thang added.
Vo Truong Thanh,chairman of the Truong Thanh Wood Group, said the price of local timberremained stable, so his company would use it as a substitute.
"However, we have to talk to our clients about changing the material," he added.
According to the General Department of Customs, the export volume ofwooden furniture in the first six months of the year reached 2.23billion USD, up 11 percent year-on year, while the import volume of woodfell 5 percent to 617 million USD.-VNA
According to the Ho Chi Minh City WoodProcessing Association (HAWA), the cost of timber imported from the US, Europe and Africa rose by 20 percent in the last five months.
"Normally, import prices fluctuate from 5-7 percent,but 20 percent is a big hit and is eating into producers' profits," saidHAWA's vice president Huynh Van Hanh.
Hanh saidproducers have already fixed sale prices for the next 3-6 months, so thesudden hike in input materials is causing big losses.
He attributed the rise in import prices to the ongoing recovery of theUS construction industry which has increased demand there, and thenarrowing supply from Africa .
Nguyen Chien Thang,director of Scansia Pacific, a prominent furniture producer and exporterbased in HCM City , said his company is faced with bigchallenges.
"The demand for high grade woodenfurniture is rising, especially from Japan . This price hike ishurting our business," Thang added.
Vo Truong Thanh,chairman of the Truong Thanh Wood Group, said the price of local timberremained stable, so his company would use it as a substitute.
"However, we have to talk to our clients about changing the material," he added.
According to the General Department of Customs, the export volume ofwooden furniture in the first six months of the year reached 2.23billion USD, up 11 percent year-on year, while the import volume of woodfell 5 percent to 617 million USD.-VNA
