Vietnam's furniture exports this year are expected to increase as the industry has been showing signs of recovery, according to the Ministry of Industry and Trade.

Statistics from the ministry showed that in the last two months, wooden exports rose strongly, fetching 617 million USD, which was up 60 percent against the same period last year.

Chairman of the HCM City 's Handicraft and Wood Industry Association (HAWA) Nguyen Chien Thang said most local producers received furniture orders.

However, the businesses have faced difficulties with input costs, while export prices have stayed the same.
According to HAWA's deputy chairman Huynh Van Hanh, the firms are bearing an increasing cost as the price of materials has increased due to higher oil prices.

Packaging costs also rose by 20 to 30 percent. Producers are also paying 15 to 20 percent more for transport costs.

The recent adjustment of electrical and oil prices has also affected the industry.

Hanh claimed that there is a labour shortage and said that after Tet (Lunar New Year holiday), the situation is more serious in the south and the central region of the country.

He also said the wood processing and export companies would probably not increase their prices, unless it was for new products.

In an attempt to enhance furniture exports, the industry will have promotional activities at the Vietnam International Furniture & Home Accessories Fair 2010 (VIFA 2010), which will take place from March 11 through the weekend.

The fair will showcase wooden items, handicrafts and assorted materials and services that are related to the furniture export sector.

Experts claim that Vietnam 's wooden export industry has been recovering faster than that in other countries including Thailand , Malaysia and Indonesia because the country has a variety of wooden products that can meet several different types of consumer demand./.