With greater opportunities, the future of Vietnam’s wood industry looks bright. Image credit: VietNamNet
With robust growth in the wood processing industry in 2017, Vietnam is looking forward to getting a turnover of US$8 billion from exports of wooden furniture in 2018.
With China looking to concentrate on its domestic market over the next few years, Vietnam, as the second largest exporter of wooden furniture in Southeast Asia (SEA), would have the opportunity to receive orders from importers in China’s place.
In the first nine months of 2017, Vietnam exported an estimated US$5.5 billion worth of wooden furniture, according to Vifores, a 10.6 per cent increase as compared to the same period in 2016.
According to Nguyen Chanh Phuong, director of Danh Moc (Carpenter), orders began to transfer to Vietnam in 2016, with even Chinese manufacturers relocating to the country in anticipation of the upcoming EU-Vietnam free trade agreement (EVFTA).
“This is a great opportunity for Vietnam for at least the next five years,” Phuong said to VietNamNet, also noting that the future for the wood industry in Vietnam is bright, with the country exporting US$7 billion out of the US$150 billion that makes up the total export turnover in the world.
Along with the orders from major markets in the United States (U.S.) and Europe, Vietnamese enterprises are also receiving orders from Australia and the Middle East.
Phuong has noted that the future for the wood industry in Vietnam is bright, exporting US$7 billion out of the US$150 billion that makes up the total export turnover in the world.
In addition, enterprises from Denmark, South Korea, and Sweden have chosen to set up their factories in Vietnam, and leaving a positive impact on the country.
Sources: Vifores, VietNamNet