Wood furnitures target 5 billion USD export value

Viet Nam earned nearly 1.4 billion USD from the export of furnitures over the past six months of this year, a year-on-year increase of 20.4%, according to the General Statistic Office.

The figure brought the industry to the 6 th place among the country’s key exporters, behind crude oil, garment and textiles, footwear, seafood and rice.

Vietnamese wood-based products have earned a firm foothold in 120 countries and territories, accounting for 0.8% of market share with the US , the European Union, and Japan being the three key markets.

Made-in-Viet Nam furniture has also been exported to new markets such as Canada and a number of East European countries.

The Viet Nam Woodwork and Forestry Products Association forecasted that woodwork export will continue increasing rapidly by between 10-40% by 2010, particularly in major markets.

However, it is necessary to solve problems facing the sector, including the lack of materials and skilled workers, in order to fulfill the target of exporting 5 billion USD worth of wood-based products by the decade-end.

Vietnamese wood producers and processors are focusing on developing high-valued products in a bid to increase added value for each product and prevent anti-dumping lawsuits.

The move is demonstrated by a prestigious woodwork exporter - the Saigon Daklak Joint Venture Company (Sadaco) – which has shipped abroad furnitures each worth between 1,100 – 1,800 USD, more than doubling its previous price, according to its General Director Tran Quoc Manh.

Manh stressed that this is a new trend adopted by local businesses as Viet Nam still receives a few orders for high-valued products.

However, in the context when exporters tend to look for low-cost products, the woodwork export sector of Viet Nam still has many opportunities to turn out products of high competitiveness and to invest in long-term plan for high-valued commodities.

The sector is drawing 17,000 labourers who are working in 1,600 wood processing businesses nationwide, including 250 foreign-invested ones. (VNA)