Wood furniture, handicrafts exports show recovery signs, but challenges persist

While optimistic about a recovery in wood products exports, industry insiders also cautioned about the challenges ahead and said businesses should adopt flexible strategies and enhance promotions to retain their traditional customers and get new ones.
Wood furniture, handicrafts exports show recovery signs, but challenges persist ảnh 1A large number of visitors visit VIFA EXPO held last year in HCM City. (Photo courtesy of the organisers)
HCM City (VNS/VNA) - While optimistic about arecovery in wood products exports, industry insiders also cautioned about thechallenges ahead and said businesses should adopt flexible strategies andenhance promotions to retain their traditional customers and get new ones.

Speaking at a meeting held to introduce the 2024 VietnamInternational Furniture & Home Accessories Fair (VIFA EXPO) in Ho Chi MinhCity on February 20, Director of the Vietnam Chamber of Commerce and Industry’sHCM City branch Tran Ngoc Liem said exports of wooden products declinedfor the first time in 2023 after two decades of impressive growth.

But there have been positive signs since the fourth quarter oflast year, and especially in January, he said.

In January, exports topped 1.49 billion USD, a 72.5% increase year-on-yearand accounting for 29% of all agricultural product exports, he said.

With inflation easing in the US, the biggest importer of Vietnam’swooden products, demand is expected to go up, he said.

Executives attending the meeting said they have export orders foruntil the end of the second quarter.

But buyers now order smaller volumes than before, and requireproducts to come in more new designs or product samples since they are alsostriving to find the right products, they said.

Tran Quoc Manh, Vice Chairman of the Vietnam Handicraft ExportersAssociation, said: “Making product samples would result in higher costscompared to mass production, but we have to get used to it.

“Firms need to coordinate with customers to create new designs toconquer target markets.”

They also expressed concern about the rising logistic costs andshipping times due to the Red Sea tension, saying it would adversely impact theindustry’s export, especially to the US and EU.

Liem said the market still faces potential difficulties due tocomplicated and prolonged geopolitical conflicts.

"In the current context trade promotion is extremelynecessary."

VCCI HCM City will organise the 15th VIFA EXPO along with theVietnam Association for Construction Materials and the Alliance Handicraft& Wooden Fine Art Corporation (Lien Minh Company) from February 26 to 29.

The fair is expected to provide opportunities for businesses toshowcase their products and connect with more potential partners, he said.

Dien Quang Hiep, General Director of Binh Duong-based Minh Phat 2Indoor Furniture and Sofa Co., Ltd, said businesses could no longer depend ontraditional customers but need to proactively seek new export markets and alsoinvest in increasing capacity, productivity and competitiveness.

Fairs and exhibition are effective promotion channels that helpwood industry enterprises meet prospective partners from all over the world andkeep abreast of market trends, he added.

VIFA EXPO 2024

Dang Quoc Hung, General Director of Lien Minh Company, one of thefair’s organisers, said VIFA EXPO would be held at the Sky Expo VietnamInternational Exhibition and Convention Centre in HCM City’s District 12,marking the start of a chain of furniture fairs in Asia.

It has attracted more than 600 exhibitors who would set up over2,000 booths, he said.

The exhibitors are from 17 countries and territories, includingthe US, Canada, China, India, Hong Kong, Taiwan (China), the Republic of Korea,Malaysia, Thailand, Indonesia, Singapore, Cambodia, the Netherlands, the UK,Denmark, France, and Australia, besides the host Vietnam, he said.

It would showcase a wide range of furniture and wood products,home decoration items, handicrafts, machinery, and supporting services.

The organisers have received more than 3,500 registrations from 83countries and territories, including some new markets such as Norway, Oman,Nepal, Ecuador, Jamaica, and Iran, indicating the global interest in Vietnam'swood, interior and exterior industry, he said.

Last year the fair had attracted more than 18,000 visitors,including nearly 6,000 from 117 countries and territories, and 80% ofexhibitors had signed contracts and MoUs worth 100 million USD right at thefair, he added.

Le Ha Trong Chau of Duc Thien Co., Ltd, which exports sofas to theUS, said his company has participated in the VIFA EXPO for four years andregularly met new customers.

It has orders for until the end of June and hopes to achieve 20-30%growth this year, he said.

Manh, who is also Chairman of the Saigon Trade and ProductionDevelopment Corporation, said: "Through fairs like VIFA EXPO, we havefound customers and signed sales contracts."/.


VNA

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