VN encouraged to tap Australian wooden furniture market
VN encouraged to tap Australian wooden furniture market
Vietnamese wood enterprises have plenty of opportunities to export to Australia thanks to a number of factors that play into their favour, trade experts said.
Viet Nam’s favourable geographical location as well as Australian strong import demand and preferences brought by free trade agreements (FTAs) such as the ASEAN-Australia-New Zealand FTA make exporting wood products to Australia a viable prospect, they said.
According to the Vietnamese Trade Office in Australia, domestic consumers tend to favour low-cost furniture. However, local producers fail to compete with foreign exporters in terms of prices due to high labour and input costs.
Australian customers, on the other hand, are open to the prospect of buying imported wooden furniture, as they pay attention to the quality, design, and price of the furniture rather than their origin, the office said.
The office added while there are plenty of untapped opportunities waiting for Vietnamese exporters, they should improve their designs to suit Australian consumers’ taste, and improve their product quality and lower their prices to take full advantage of these opportunities.
Australia was one of the top ten importers of Vietnamese wood and timber products in the first five months of this year, according to the General Department of Viet Nam Customs.
Australia imported over US$66.7 million worth of wood and wood products from Viet Nam during the period, up 11.3 per cent year on year, the department’s statistics revealed.
The Ministry of Agriculture and Rural Development (MARD) forecast that Viet Nam can reach its export value target of $9 billion for forestry products this year by exporting wood products.
Viet Nam’s exports account for just 6 per cent of the global timber and wooden furniture market, which is estimated at $120 billion, MARD said, adding that the country holds huge potential for wood processing and production.
The nation has nearly 4,000 timber processing firms, including 1,500 companies specialising in producing wood products for export. Factors that can boost the sector’s growth include abundant materials, sound mechanisms, and robust market signs.
