Export turnover of wood and wooden products in Vietnam is expected to reach $8 billion this year.
Mr. Huynh Van Hanh, Vice President of the Handicraft and Wood Industry Association (HAWA), believes export turnover will increase given the development of wood processing enterprises in recent times.
Proof of potential is the example of the Thinh Viet Manufacturing Co., which saw no growth in 2016 but has taken significant orders in the first two months of the new year.
“The decline in demand in Europe following Brexit saw Vietnam’s wooden exports grow poorly in 2016,” said Mr. Le Xuan Bac, Chairman of Thinh Viet Manufacturing.
“Without trying to find new markets, Thinh Viet could not avoid seeing a downturn last year.”
The Scansia Pacific Co., which is headquartered at the Tan Tao Industrial Park in Binh Tan district, Ho Chi Minh City, is also running at full capacity this year.
General Director Nguyen Chien Thang believes that “new orders should come soon, especially after the upcoming Vifa Expo 2017.”
Mr. Hanh added that most wood manufacture enterprises headquartered in Binh Duong and Dong Nai provinces have exhibited positive signs this year.
“Vietnamese enterprises are expected to increase productivity by 20 to 25 per cent this year, but in my opinion that is still a modest figure,” he said.
Scansia Pacific and Thinh Viet have invested in improving their equipment to handle more orders.
Manufacturing lines costing from $200,000 to $500,000 are still being sought by some businesses to improve production capacity.
Mr. Hanh also said that potential comes from stable growth in the sector and added value of 40 per cent.
Vietnam has a range of opportunities to boost its manufacturing after signing a host of free trade agreements (FTAs).
Global demand for wooden furniture is increasing and international customers are paying greater attention to Vietnam’s furniture rather than products from Singapore and the Philippines, boosting revenue for wooden manufacturing enterprises in the country.
“The possibility of a breakthrough for wooden exports in Vietnam in 2017 is high,” he said.
VN Economic Times