With an optimistic export growth, the target of generating 10 billionUSD from exports of wood and wooden products by 2020 is on the reach,Nguyen Ton Quyen reported.
The goal was set in an action plan ondeveloping the wood market from now to 2020, approved by the Ministry ofAgriculture and Rural Development last month.
Quyen, generalsecretary of the Vietnam Timber and Forest Products Association(Vietfores), said that his assessment was based on the fact that exportsto major markets such as the US, Japan and EU will continue to increasein the future. In 2014 alone, exports to the three markets will witnessgrowth rates of 10 percent, 15 percent and 18 percent, respectively.
Currently,wood and timber product exports ranked fifth among Vietnam 's top 10export industries. With effective solutions and support policies, thesector will potentially earn 15 – 20 billion USD in the next 10 years,Quyen said.
Bilateral and multilateral agreements, including FreeTrade Agreement with the EU and the Trans-Pacific Partnership (TPP)Agreement, are expected to be signed this year and will create a goodopportunity for Vietnam, Quyen pointed out.
Vietnam currentlyonly had access to markets in Germany , France , Britain and Spain. If Vietnam could export to the 27 EU countries, market potentialwill grow, he added.
However, he noted that if Vietnam couldbecome a TPP-member country this year, domestic enterprises should beprepared to adapt to large markets such as the US, Japan, Australia andNew Zealand, as well as Canada.
In order to reap the fullbenefits of these agreements, Quyen petitioned the State to revisepolicies and mechanisms that will better facilitate domestic businesses.
Localenterprises should be aware of the trends in global market whileimproving their management capabilities and should foster technologicalinnovation to enhance their competition.
Closer cooperation between the wood producers and exporters is also required, he added.
Currently,wood and timber product exports ranked fifth among Vietnam 's top 10export industries. With effective solutions and support policies, thesector will potentially earn 15 – 20 billion USD in the next 10 years,Quyen said.
The latest statistics of The Ministry of Industry andTrade revealed that export of wood and wood products have experienced ayear-on-year rise of 17.5 percent to 2.42 billion USD over the lastfive months.
Vietnam aimed to export a total of 6.3 billionUSD worth of wood and timber products this year, up 10 percent comparedto 2013.
Exporters have signed a significant number of exportcontracts in many markets, especially in the US and Japan , theHandicraft and Wood Industry Association of HCM City (HAWA) deputychairman Huynh Van Hanh said.
A representative of a furnitureexport company said many US and EU customers wanted to place big orderswith her company, but her company, which is small in scale, had to turnthem down.
Nguyen Quoc Khanh, Hawa's chairman, said that manyimporters had shifted orders from China to Vietnam because ofrising Chinese labour costs and a desire by buyers to diversifysuppliers.
However, the majority of Vietnamese furniture productsare produced and exported following foreign buyers' designs which donot have high added value, Khanh said.
Only three to five percent of Vietnamese furniture enterprises produce products under the ODMbusiness model (Original Design Manufacturer), in which the companydesigns and manufactures products that are eventually branded by anotherfirm, he said.
Khanh said the association had mapped out plans,including establishing a design centre, to help the local woodenfurniture and handicraft design industry raise the ODM rate to 10percent in the next five years.
At the seminar, Khanh, who isalso chairman of AA Corporation, and Nguyen Chien Thang, former chairmanof Hawa and managing director of Scansia Pacific, spoke about theirexperiences with local wood and wood-product exporters.
AACorporation focuses on providing interior decor products and servicesfor some of the most acclaimed properties in more than 35 countries.
Scansia Pacific provides many kinds of products for the Swedish company IKEA, the world's top furniture retailer.
Amongthe factors that can help businesses succeed, Khanh said, areconfidence, patience, ability to adapt to change, market research,qualified marketing teams with good English speaking skills, and abilityto identify appropriate products.
In addition, Vietnamese companies should participate in trade fairs to seek new customers, he said.
To meet customer demands, Thang said that firms must cut inessential costs and improve productivity.
Chad Ovel, director of Mekong Capital, urged local firms to focus on improving workforce skills and productivity.
Theopportunity for Vietnam to develop the wood and handicraft industryis enormous, said Dominic Price, a financial consultant and founder ofthe Dominique Saint Paul brand.
Khanh said that HAWA had set a target to earn 10 billion USD from wood and handicraft exports by 2019.
TheGovernment on June 12 awarded Hawa the Labour Order Third Class for itscontribution to economic development in the last 24 years.-VNA
The goal was set in an action plan ondeveloping the wood market from now to 2020, approved by the Ministry ofAgriculture and Rural Development last month.
Quyen, generalsecretary of the Vietnam Timber and Forest Products Association(Vietfores), said that his assessment was based on the fact that exportsto major markets such as the US, Japan and EU will continue to increasein the future. In 2014 alone, exports to the three markets will witnessgrowth rates of 10 percent, 15 percent and 18 percent, respectively.
Currently,wood and timber product exports ranked fifth among Vietnam 's top 10export industries. With effective solutions and support policies, thesector will potentially earn 15 – 20 billion USD in the next 10 years,Quyen said.
Bilateral and multilateral agreements, including FreeTrade Agreement with the EU and the Trans-Pacific Partnership (TPP)Agreement, are expected to be signed this year and will create a goodopportunity for Vietnam, Quyen pointed out.
Vietnam currentlyonly had access to markets in Germany , France , Britain and Spain. If Vietnam could export to the 27 EU countries, market potentialwill grow, he added.
However, he noted that if Vietnam couldbecome a TPP-member country this year, domestic enterprises should beprepared to adapt to large markets such as the US, Japan, Australia andNew Zealand, as well as Canada.
In order to reap the fullbenefits of these agreements, Quyen petitioned the State to revisepolicies and mechanisms that will better facilitate domestic businesses.
Localenterprises should be aware of the trends in global market whileimproving their management capabilities and should foster technologicalinnovation to enhance their competition.
Closer cooperation between the wood producers and exporters is also required, he added.
Currently,wood and timber product exports ranked fifth among Vietnam 's top 10export industries. With effective solutions and support policies, thesector will potentially earn 15 – 20 billion USD in the next 10 years,Quyen said.
The latest statistics of The Ministry of Industry andTrade revealed that export of wood and wood products have experienced ayear-on-year rise of 17.5 percent to 2.42 billion USD over the lastfive months.
Vietnam aimed to export a total of 6.3 billionUSD worth of wood and timber products this year, up 10 percent comparedto 2013.
Exporters have signed a significant number of exportcontracts in many markets, especially in the US and Japan , theHandicraft and Wood Industry Association of HCM City (HAWA) deputychairman Huynh Van Hanh said.
A representative of a furnitureexport company said many US and EU customers wanted to place big orderswith her company, but her company, which is small in scale, had to turnthem down.
Nguyen Quoc Khanh, Hawa's chairman, said that manyimporters had shifted orders from China to Vietnam because ofrising Chinese labour costs and a desire by buyers to diversifysuppliers.
However, the majority of Vietnamese furniture productsare produced and exported following foreign buyers' designs which donot have high added value, Khanh said.
Only three to five percent of Vietnamese furniture enterprises produce products under the ODMbusiness model (Original Design Manufacturer), in which the companydesigns and manufactures products that are eventually branded by anotherfirm, he said.
Khanh said the association had mapped out plans,including establishing a design centre, to help the local woodenfurniture and handicraft design industry raise the ODM rate to 10percent in the next five years.
At the seminar, Khanh, who isalso chairman of AA Corporation, and Nguyen Chien Thang, former chairmanof Hawa and managing director of Scansia Pacific, spoke about theirexperiences with local wood and wood-product exporters.
AACorporation focuses on providing interior decor products and servicesfor some of the most acclaimed properties in more than 35 countries.
Scansia Pacific provides many kinds of products for the Swedish company IKEA, the world's top furniture retailer.
Amongthe factors that can help businesses succeed, Khanh said, areconfidence, patience, ability to adapt to change, market research,qualified marketing teams with good English speaking skills, and abilityto identify appropriate products.
In addition, Vietnamese companies should participate in trade fairs to seek new customers, he said.
To meet customer demands, Thang said that firms must cut inessential costs and improve productivity.
Chad Ovel, director of Mekong Capital, urged local firms to focus on improving workforce skills and productivity.
Theopportunity for Vietnam to develop the wood and handicraft industryis enormous, said Dominic Price, a financial consultant and founder ofthe Dominique Saint Paul brand.
Khanh said that HAWA had set a target to earn 10 billion USD from wood and handicraft exports by 2019.
TheGovernment on June 12 awarded Hawa the Labour Order Third Class for itscontribution to economic development in the last 24 years.-VNA
