Illustrative image (Source: VNA)Hanoi (VNA) – The fallout of the coronavirus outbreak has been felt in manysectors, but not the timber industry as its export revenue in the first twomonths of 2020 reached 1.5 billion USD, up 10.1 percent year-on-year.
Virusfears have forced many national and international exhibitions relating to theindustry to be postponed, including the Vietnam International Furniture andHome Accessories Fair (VIFA Expo 2020), initially scheduled to open on March11.
Onthe other side, the US’s imposition of anti-dumping duties on China’s woodenfurniture has prompted many companies to move away.
Inaddition, major firms in the US, Australia, Japan and Europe have begun to turnto Southeast Asia since COVID-19 has disrupted wood production in China, causinga crisis in global supply.
Giventhis, with its available production resources, Vietnam, which ranks second inAsia and fifth globally in wood exports, has become the most promisingalternative in this regard.
Accordingto Dien Quang Hiep, Chairman of the Binh Duong Furniture Association,new-generation free trade agreements (FTAs) to which Vietnam is a signatorylike the Comprehensive and Progressive Agreement for Trans-Pacific Partnership(CPTPP) and the EU-Vietnam Free Trade Agreement (EVFTA) are expected to give aboost to the industry thanks to tax incentives.
“Thedomestic industry needs to optimise these opportunities,” he suggested.
Awareof benefits brought about by digital transformation, the Handicraft and WoodIndustry Association of Ho Chi Minh City (HAWA) will join hands with Ecomstone– a partner of the world’s leading e-commerce player Amazon in Vietnam, tobuild a shared store on the platform in order to build a brand name forVietnam’s wooden furniture.
NguyenChanh Phuong, HAWA Vice Chairman, said to reach the target of 20 billion USD inexport revenue in 2025, it is necessary for the industry to diversify saleschannels and raise product value.
TruongGia Binh, FPT Chairman, suggested domestic firms apply digital technology inproduction and business so they are not left behind by their foreign rivals./.
VNA
