Vietnamese furniture has been favoured by US distributors. (Photo: VNA) Insiders, however, have said that in order to gain the lion’s share of themarket and maintain its standing, the sector needs to adopt more effectivemeasures to help Made-in-Vietnam products meet international standards onsustainable development.
Moving ahead
Vietnam has overtaken China as the largest exporter of wood furniture to theUS, according to the US-based Furniture Today website.
Despite the trade disruptions, the country shippedover 7.4 billion USD worth of furniture to the US last year, up 31 percent comparedto 2019. By way of comparison, China’s export value was 7.33 billion USD, down 25percent.
While the gap is relatively small, Vietnam’s positionon the world stage reveals how it has grown in importance over the years.
A more dramatic shift has occurred over the past two and a half years, after theUS Government imposed tariffs as high as 25 percent on almost all furniturecategories exported from China, encouraging many manufacturers to move awayfrom the country.
In a recent online conference with Vietnamese businesses, US distributors saidthat since the US Government slapped tariffs on Chinese furniture they have soughtnew suppliers and Vietnam is the leading choice.
Most furniture for bedrooms, kitchens, and offices now comes from Vietnam, theyadded.
Sales of Vietnamese wooden products have enjoyed robust growth over recentyears and the US would import more Vietnamese furniture if not for COVID-19.
According to Tran Lam Son, marketing director and quality manager at the ThienMinh Production Trading Export Import Company Limited, in previous years,international buyers rushed to China in March and April to study their woodenproducts and place orders. Vietnam, meanwhile, was their second choice.
This year, Vietnamese furniture is more preferable, he said, adding that thecountry has substantial opportunities in the US, where the housing market is onthe rise.
Inside a furniture processing workshop of WOODSLAND Tuyen Quang company (Photo: VNA) Becoming a leading furniture supplier to the US is a major opportunity forVietnam to promote the production of wooden items, but manufacturers must meetrequirements regarding sustainable development and guarantee their timber is oflegal origin, experts have said.
Chairman of the Dong Nai Association of Wood and Handicrafts Le Xuan Quan said Vietnameseassociations need to take drastic action to raise awareness among localbusinesses about the significance of following international rules andstandards.
The State, meanwhile, should outline mechanisms to control input materials,shadow investments, and identify tax evasion activities, he said, saying that theseare crucial for Vietnam’s wood sector to sharpen its focus on marketdevelopment and affirm its existing position.
Several firms, he pointed out, have faced anti-dumping petitions from the USand the Republic of Korea and been accused of using illegal timber sources.
There was a time when Chinese-made exports masqueraded as Vietnam-made goods,threatening domestic production and legitimate exports, he stressed.
Julie Hundersmarck, a Programme Specialist at the US Forest Service, said thatthe US market is opening its doors wider to Vietnamese furniture exporters,adding that relevant authorities in the US have deployed various tools toensure exporters comply with legal timber rules.
Experts also noted that Vietnamese firms need to prevent origin fraud, sincethe US is a large and strict market in terms of trade fraud and tax evasion./.
VNA
