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Furniture sector needs more flare
Viet Nam's impressive strides in furniture exports can be maintained in the long term only if it develops its domestic designing capacity, says John Chan Jick Chun, Regional Director of the American Hardwood Export Council (AHEC) for Southeast Asia and Greater China.
Where, according to you, does Viet Nam's furniture industry stand today?
Viet Nam's total wooden furniture exports in 2010 reached US$3.44 billion, an increase of 32 per cent over the previous year, making the country one of the world's top 10 furniture exporters. This is a very high position compared to five years ago.
Viet Nam has a good base for the furniture industry. Many countries see the advantages of producing furniture here, and many of them have moved their factories and production to Viet Nam. They are not just from Taiwan, but from Singapore, Hong Kong and mainland China as well.
But to develop Viet Nam's furniture industry further, you need to improve the design standards here. When you have a production base, you have to train your own young designers to meet demand and support long-term development of the industry. At this stage, at most of the export companies, overseas designers design the furniture produced. The next step should be, I design and I offer you, do you want this product? Not just you tell me I design you produce this.
What is that status of American hardwood exports to Viet Nam? What is your forecast for this year?
Our exports to Viet Nam reached an all time high last year of US$150 million, compared to less than half a million just 10 years ago.
Viet Nam is now the biggest market for American hardwood in ASEAN and the second biggest in the world after China. Of course, Viet Nam, China and Europe have different market segments. Europe, for example, wants very high-end products while China and Viet Nam mostly need low-and medium-end products. There is some demand for high-end products in Viet Nam.
We have more than 20 species of hardwood in the US, offering a wide range for designers. Viet Nam likes the white oak and yellow poplar, China prefers red oak and walnut, while Europe goes for white oak, white ash and walnut. Last year, our exports to Viet Nam increased by over 65 per cent. This year, it will be lower because the benchmark in 2009 was quite low, but we still expect a substantial increase this year.
Many experts have said the heavy reliance on imported wood has made the local furniture industry less competitive. What is your opinion?
No, that's not true. In China, for example, they have limited cutting trees and rely on imports for over 80 per cent, but its furniture industry is still growing very well. Or in Italy, they still import a lot of wood because their own species are not good enough. The US also imports a lot of other things. I think we have to share information, share raw material, share many other things. That's what the free market economy is all about.
What is AHEC's development strategy for Viet Nam?
Our next strategy is to promote American hardwood in the local market for hotel, home and office decoration so as to increase domestic consumption. We will go to other cities like Da Nang and Ha Noi to meet local associations and designers there.
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