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Take advantage of China wood industry declining
(
Update:
10/12/2013
)
Although China is the largest furniture exporting countries but also the world 's largest market for the sale of furniture . While the demand for wood in China is rising , the country's timber industry has signs of decline . This is a good opportunity for Vietnam's wood industry .
Wood demand in China is increasing , we can see clearly through the International Furniture Fair was held recently in Vietnam or in other countries . In early October last , at Furniture Fair and Crafts HCMC in 2013 , many Chinese customers to visit and wanted to buy wood products from Vietnam.
In many international furniture fair , if earlier , the business is usually coming from China who brought furniture they produce to sell , then a few years ago , many companies have emerged more now come from China but also to buy furniture produced by other countries for distribution in the local market .
General Administration of Customs said that although the total export turnover of Vietnam's wood was pretty much lost China , but the country's furniture exports to this market we are growing quite well . 10 months of this year , the value of furniture exports from Vietnam to China has reached 797 million, an increase of nearly $ 200 million over the same period in 2012.
Thus, considering separately the single market , China is now the second largest market after the U.S. market Vietnam . In addition to wood chips , wood materials , recently , Vietnam enterprises received orders high quality furniture with great value from Chinese customers .
For example , according to the company 's disclosure Nguyen Thanh Furniture Fair and Crafts HCMC in 2013 , this company is producing wooden furniture by a company other orders for export to China . In the original order , the amount of up to 100 containers / month . In the following order , the number may increase .
Mr. Dang Quoc Hung , vice chairman and Wood Processing Association of Crafts HCMC ( HAWA ), said most of the furniture Vietnam 's exports to China luxury goods , made from hard wood , high-value timber and combined with exquisite carvings , to cater for customers who have high incomes .
According to experts the timber industry , the potential for increasing exports of timber and timber products to China is very large . Because in a country with 1.3 billion people , the standard of living of the general population is growing , the middle class in China is increasingly crowded , leading to demand increasingly high furniture .
Meanwhile , though still holding positions producer and the largest exporter of furniture , Chinese furniture sector is facing many difficulties . First of all , rising labor costs have made water timber industry profits were reduced quite a lot compared to the past .
Many Chinese businesses must take into account timber to plant something in the water up , go open factories overseas to produce furniture for export back into the country . One of the sites that timber companies are looking to China , Vietnam , due to cheaper labor costs .
On the other hand , there is a very important factor that businesses timber Vietnam should pay attention to , such as the decline of the timber industry in China. Mr. Dang Quoc Hung said , a few years ago , the Chinese government spent more attention to the industries such as electronics , machinery assembly ... , is the industry have high levels of intelligence , make much surplus .
Therefore, decreased attention to the branches gray matter volume and lower surplus value as wood , textiles ... Therefore, this is a good opportunity for Vietnam's wood industry continues to boost exports China , especially for luxury goods .
In addition to input costs cheaper than China's timber industry , the Vietnam furniture exports to this country also has other advantages such as lower transit costs by only 1/6 of the road than being consigned to U.S. . The geographical proximity also makes the wood business in our country more favorable inspection and repair customers .
As recommended by the Division of Research and Market Development ( Department of Trade Promotion , Ministry of Industry and Trade ) , while export-oriented furniture to China , businesses need to avoid these items is still a major advantage of the wood industry water this .
Specifically , the current manufacturing industry , China's wood processing was highly automated . Therefore, in order to compete with China's wood products on the local market , Vietnam's wood should now focus on product use manual labor ( furniture , products not set middle of the wooden boards ) , not to use more machinery .
However, there is a concern that the current ratio of crude to China also occupies too large . Mr. Nguyen Ton Quyen , general secretary of the Association of Vietnam Timber and Forest , said the 3 wood products are being exported to China by quota and non-quota sugar is crushed pieces , stripped wood and wood pallets Packaging packaging . These are low-value raw products . But thanks to great production , several million tons per year , so a high proportion of the value of timber exports to China .
This is causing headaches for businesses in the country by timber is difficult to compete with Chinese enterprises in the procurement of wood raw material for export processing .
