Wood industry striving to regain growth momentum
Wood industry striving to regain growth momentum
Having undergone numerous hardships, businesses in the wood industry are showing great resilience with a high level of adaption and flexibility to regain their growth momentum.
The latest figures from the Vietnam General Department of Customs show that the total export value of wood and wood products in February was estimated at $800 million, down 0.7 per cent compared to January and sliding 10.9 per cent on-year.
In the first two months of this year, the figure approximated $1.6 billion, down 34.8 per cent on-year.
Although the sector's export performance is diminishing due to a lack of orders since late last year, many businesses are still optimistic and are sparing no efforts in finding new customers to bolster production and reduce redundancies.
Le Minh Nghi, deputy general director of the Hanoi-based AA Architecture Construction Corporation, noted that the doldrums of the real estate sector have had a negative impact on businesses in the timber industry.
However, with good preparation that began late last year, many firms in the wood sector have quickly engaged in market surveys in a bid to boost export orders.
“We have constantly been taking part in trade promotions and exhibitions to meet foreign partners, particularly designers in the US, Canada, Thailand, and Singapore. Based on frequent information sharing, our company has garnered their trust and made new contacts,” said Nghi.
With good preparation that began late last year, many firms have quickly engaged in market surveys in a bid to boost export orders.
According to Truong Nhat Linh, Tekcom Corporation’s managing director, the company is taking steps to increase sales in traditional markets by launching several new products and offering discounts and deferred payments.
“In the Turkish market, our company is offering a 15 per cent discount, and this policy will be soon applied in Japan as well,” said Linh.
Vu Tien Thap, CEO of D’Furni JSC in Hanoi, is confident that the demand for wooden furniture is still great, so firms need to have a long-term vision to efficiently grasp the opportunities.
“In the next three years, the World Cup will be co-organised in the US, Canada, and Mexico. The preparations in terms of infrastructure could result in significant opportunities for Vietnamese furniture manufacturers,” said Thap.
“By providing total solutions for bulk orders, our company supplies the extensive Holiday Inn hotel chain across the US and Canada. The customer wants to continuously innovate themselves.”
In addition, D’Furni has worked on plans to approach a contractor in Europe that has stringent quality requirements.
AA Corporation has swiftly revised its production and business strategy for both the domestic and export market. In the past, the domestic market accounted for about 80 per cent of sales, but as of now, local sales make up 60 per cent and exports fill the remainder.
Similarly, director Truong Nhat Linh at Tekcom has unveiled that the company aims for a comeback in the Middle East as the implementation of megaprojects in this region could lift demand.
“We will make the most of this time to bolster sales in the domestic market before other firms regain stability in their operations,” said Linh.
