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Furniture exporters overcome setbacks
Despite difficulties facing the furniture export industry in recent years, the sector has capitalised on opportunities to develop and is expected to earn US$3 billion in revenue by the end of the year.
Recently, the industry has had to defend itself against its reported use of illegal timber from other countries, answering queries from concerned American and European officials and importers.
Although the industry also faces a growing lack of capital and problems retaining employees, it has still registered an average annual growth of 28-40 per cent over the past six years, and last year ranked second only to Indonesia in regional furniture export revenue.
Revenue export has hit $1.2 billion in the first five months of the year and is expected to more than double to $3 billion by the year-end.
Vietnamese furniture is exported to 120 countries and territories worldwide, primarily to the US, EU and Japan, with a global market share of around 0.8 per cent.
Local furniture exporters have sought to increase shipments to new markets, such as Canada, Eastern Europe, the Far East and Russia.
Tran Quoc Manh, general director of SaiGon-DakLak Co, one of the leading manufacturers of furniture in southern Vietnam, said furniture exporters had now shifted to produce high value products, with sets of tables and chairs priced at US$1,100-1,800 apiece instead of $500-600.
By doing so, Vietnam can avoid anti-dumping lawsuits in some markets as well as ensure that orders have an increased added value, Manh said.
Furniture exporters, however, said despite the shift to high-value products, orders for these products remained low because importers still prefer to buy cheap furniture.
Huynh Van Hanh, deputy chairman of HCM City Handicrafts and Wood Industry Association, said Vietnam could take advantage of several problems facing the Chinese furniture industry.
China has been the export leader in furniture revenue to the US market, but it has also suffered from US anti-dumping tariffs on its furniture.
In addition, China has levied export duties on furniture items to reduce the growth of the industry in favour of the hi-tech sector.
To minimise costs, Chinese businesses have turned to Vietnam to import low-priced furniture for re-export to a third country.
Export revenues of Vietnamese furniture to China were estimated at $168.5 million last year, an increase of 79.2 per cent over 2006.
The furniture sector has been among the top five export revenue earners in Vietnam, following crude oil, textiles and garments, footwear and aquaculture products.
The Viet Nam Timber and Forestry Products Association forecasts that furniture exports will continue to increase in coming years, particularly in major markets.
VNN
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