Wooden product and wood exports in Vietnam expected to hit US$8 billion in 2017

Vice President of the Handicraft and Wood Industry Association (HAWA), Mr. Huynh Van Hanh, is of the mindset that the wood export turnover in Vietnam will grow thanks to the recent development of wood processing companies.

Evidence of this possibility can be seen in Thinh Viet Manufacturing Co., which witnessed no growth in 2016, but took in a number of notable orders within the first two months of 2017.

“The decline in demand in Europe following Brexit saw Vietnam’s wooden exports grow poorly in 2016,” Mr. Le Xuan Bac, Chairman of Thinh Viet Manufacturing, said. “Without trying new markets, Think Viet could not avoid seeing a downturn last year.”

In Ho Chi Minh City, the Scansia Pacific Co., with its headquarters in the Tan Tao Industrial Park located in the Binh Tan district, is operating at full capacity this year as well. Nguyem Chien Thang, the General Director is confident that “new orders should come soon, especially after the upcoming Vifa Expo 2017.”

Mr. Hahn continued on, saying that majority of the wood manufacture companies based in the Dong Nai and Binh Duong provinces displayed positive indications 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.

Both Thinh Viet and Scansia Pacific have invested in upgrading their equipment in order to take on more orders. Production lines ranging from US$200,000 to US$500,000 are favoured by some enterprises in a bid to boost production capability.

Mr Hanh also stated that the possibility also relies on the stable growth and additional 40 per cent of value the sector has enjoyed. After signing an array of free trade agreements (FTAs), Vietnam now has access to a scope of opportunities that can advance its manufacturing industry.

Demand for wooden furniture is rising worldwide, and rather than furniture hailing from the Philippines and Singapore, international consumers are turning more and more to Vietnam’s products, bumping up revenue for wooden manufacturers and producers throughout the nation.

“The possibility of a breakthrough for wooden exports in Vietnam in 2017 is high,” Mr. Hanh concluded during an interview with the Vietnam Economic Times.

Source: Vietnam Economic Times