The wood industry finds its way back to the world market

Producing new wood materials, promoting export to high growth markets... is a way for wood businesses to have more orders in the context of the global economic downturn.

Newly updated data from the Handicraft and Woodworking Association of Ho Chi Minh City (HAWA), in the first 6 months of this year, export turnover of wood and products is 6 billion USD, down 28.8% over the same period last year. This is the industry with the strongest decline in the top 10 export industries of Vietnam in the first half of the year.

Sharing at the forum "Vietnamese wood and furniture technology" - Mr. Nguyen Quoc Khanh - Chairman of HAWA said that the wood industry is experiencing great difficulties when factories have to reduce capacity and labor. Even many businesses go bankrupt and have to pay ground. However, the industry still has a way to recapture the world market if it knows how to look for opportunities in new, high-growth markets.

Information from the Vietnam deal in the UAE shows that the demand for furniture in the countries of the Gulf Cooperation Council (GCC) is high, they are paying attention to Vietnamese wood and furniture products. In the first 4 months of the year, wood and furniture exports to the UAE reached more than 11 million USD, up 38% over the same period in 2022. Main products exported to this market include furniture used in construction, chairs and furniture. some other furniture.

Currently, this area has a furniture import growth rate of more than 45% a year. Furniture sales in this market will reach 4 billion USD by 2023. In which, the largest segment of this market is living room furniture, worth up to 1.08 billion USD by 2023.

Vietnam ranks 15th in the list of furniture exports here, according to HAWA, if Vietnamese businesses properly analyze consumer tastes, this market will be a "salvage" to help Vietnam's wood and furniture exports. line people.

Speakers shared information at the forum "Vietnamese wood and furniture technology" on the afternoon of July 28. Photo: Thi Ha

In addition to the UAE, the European market is also an opportunity for Vietnam. In which, the US is still the leading important market of the wood industry. To grow in this market, businesses must constantly capture consumer buying trends.

Speaking to VnExpress, the CEO of a wood business in Binh Duong said that during the recent two-month survey of the business, Americans are shifting to choose to buy wood products for processing plantations. They prioritize buying products with cheap prices instead of buying deep promotions.

For example, in the past, to buy a piece of furniture, they often chose items that cost $1,000 to tens of thousands of dollars. However, at this time, these high-value items are down to 70% and still have no customers. However, products priced at 100-700 USD are popular with consumers even though they are not discounted or have very little discount.

In addition, Europeans are increasingly paying more attention to the origin of their purchases. In particular, the "made in China" items they just pick up and put down. Meanwhile, goods from Vietnam or other countries they are willing to pay. "We are preparing resources and researching products suitable for the difficult economic context," the CEO said.

According to HAWA, this is the time when the wood industry needs to transform and expand its business margin. Vietnamese wood enterprises need to re-evaluate strategic products and potential products in which they have a competitive advantage.

Data from the Swiss Import Promotion Program (SIPPO) shows that the market's demand is towards products using new wood materials, engineered wood (3D printed wood and fully traceable.

According to Ms. Tran Nhu Trang, representative of SIPPO, businesses should also find more market opportunities with stable purchasing power, such as Australia, Canada, Japan, Korea, India, especially the Middle East. In the immediate future, businesses need to carefully study and follow the growth dynamics of each market. At the same time, the wood industry needs to restructure the product segment to match market demand.

Assessing the wood market in the second half of the year, Mr. Khanh said that the market began to show signs of light up when many businesses had orders again. Consumers in the UAE and Europe have returned to stores since July. Inflation in the US has shown signs of cooling down, consumer confidence index increased again. The interior and exterior goods industry showed signs of inching up when the volume of buying new, renovating and repairing houses increased. At his business, revenue has shown signs of increasing. In the first 6 months of the year, revenue was no less compared to the same period last year.

Sharing the same opinion, Mr. Tran Lam Son - Vice Chairman of Thien Minh Import-Export Co., Ltd. said that from July onwards, the company's export sales have slowed down. The company has orders from the German and Dutch markets. In the US market, their partners have sold out of their inventory and people tend to buy back.

THI HA