Orders for furniture wood industry increase again

Furniture Industry Orders on the Rise: A New Strategy Required for Sustainable Growth

Keywords: Furniture industry, Vietnam, export markets, sustainable consumption, market development, woodworking, carbon emissions, growth opportunities, trade promotion, High Point Market, credit package, sustainable growth.

In the realm of the furniture industry, orders are making a comeback. On the afternoon of July 28th, at the ‘Vietnam Wood and Furniture Industry Forum,’ Mr. Nguyen Quoc Khanh, Chairman of the Ho Chi Minh City Woodworking and Processing Association, revealed that orders in the woodworking sector have started to rebound since late Q2 2023, though the increase is still modest.

Nevertheless, the Vietnamese furniture industry needs a new strategy to meet its export targets and achieve long-term sustainability. Sharing specific signs of recovery from the top five export markets for Vietnamese wooden products such as the United States, Europe, and Japan, Ms. Tran Nhu Trang, representing the SIPPO Vietnam program, noted that these markets are not only experiencing a slight resurgence but also introducing new trends and requirements.

For instance, the European market, which leads in sustainable consumer trends for this product category by accounting for two-thirds of premium imports from Vietnam, places numerous demands on sustainable consumption. Products are now required to have a “digital passport,” providing comprehensive information on environmentally friendly materials and production processes.

Other potential markets like Japan, South Korea, India, Canada, have also seen consumers returning to shops with high expectations for reduced carbon emissions.

Vietnamese wood industry businesses face the challenge of closely following the growth dynamics of each market and identifying segments that align with their capabilities, such as furniture for restaurants, hotels, and educational institutions. Moreover, the tightening requirements for sustainable production, new wood materials, and digital production processes are critical. Ms. Trang emphasized that businesses that keep pace with these changes will have even greater growth opportunities.

According to Mr. Le Hoang Tai, Deputy Director of the Trade Promotion Department (Ministry of Industry and Trade), to assist businesses in overcoming market challenges, woodworking associations actively collaborate with the ministry to build, organize, and select product categories with strengths and export potential. Furthermore, they encourage businesses to participate in promotion activities both domestically and internationally.

The Ministry of Industry and Trade is expected to hold a trade promotion conference in July 2023, focusing on information exchange and market development solutions for the wood industry. Another significant activity involves the Ministry acting as a liaison with the Vietnam Timber and Forest Product Association, along with local timber associations, to organize a promotional exhibition of Vietnamese wood products at the High Point Market in the United States in October 2023. This initiative aims to help businesses stay updated on market trends, potential customers, and enhance the reputation of the Vietnamese wood industry.