Wood and timber sector anticipating strong finish to year
Wood and timber sector anticipating strong finish to year
Wood and timber firms have reported an uptake in orders and are taking measures to increase exports in the build up to vibrant year-end shopping season.
The latest figures from the Ministry of Industry and Trade’s Agency of Foreign Trade show that the value of Vietnam’s wood and timber exports hit around $1.2 billion in September, down 7 per cent compared to the previous month, but up 6.7 per cent on-year.
The agency believes that the prospects for wood exports will improve amid burgeoning demand for new furniture to welcome the new year. Businesses in the sector have also received more positive feedback from their export partners and several firms in Ho Chi Minh City have acquired new orders, increased shifts, and recruited more labour.
Nguyen Chanh Phuong, deputy chairman of the Handicraft and Wood Industry Association of Ho Chi Minh City, said, "Vietnamese firms have increased their imports of wood materials, with the volume increasing between 5-10 per cent each month since May. This strongly suggests that firms are actively preparing for an upswing of orders for the end of the year.”
Le Manh, chairman of Leglor Services Trading Production Co., Ltd. revealed that his business partners from the US have increased orders with the company recently. “Although the order size is modest and our turnover is about 20-30 per cent lower compared to last year, these are still encouraging signs for the sector,” said Manh.
D’Furni JSC has secured enough orders to be all full capacity for the final quarter of 2023 and first quarter of 2024, thanks to the company's supply of a wide range of wooden furniture for homes, offices, restaurants, schools, and hospitals, “We are taking advantage as global players move their supply chains from China to other countries. Vietnamese firms are being proactive with this change,” said Vu Tien Thap, D’Furni's director.
Tran Hoai Huu, director of Gia Nhien Co., revealed that the company has been attending trade exhibitions since August, resulting in new potential partners. “To entice and retain customers, our company is diversifying its product designs and offering more competitive pricing, such as offering 5-7 per cent price discount until the end of the year,” said Huu.
The total value of wood exports for the year is expected to be approximately $14 billion, a bit below the target of $17 billion set at the start of 2023.
