Export orders for wooden furniture from Vietnam’s furniture factories are starting to rebound as of the end of Q2 2023, although the recovery is not yet robust. The US, as Vietnam’s primary market, has initiated the import of various wood products. Additionally, other markets, including Australia, South Korea, and India, are displaying stable growth and an increased demand for importing additional furniture products.
According to the Forestry Department (Ministry of Agriculture and Rural Development), the value of forest product exports in the first six months of 2023 is estimated to reach 6.42 billion USD, marking a nearly 29% decrease compared to the same period in 2022. Nevertheless, the wood industry remains optimistic about achieving an export target of 14 billion USD by year-end, as businesses begin to receive new orders.
To reach the targeted export goal, numerous promotional initiatives are required to showcase Vietnam’s wood industry on the global stage. Events like furniture exhibitions play a crucial role, and HawaExpo 2024 stands as a significant example of such efforts.
Fiscal Space Development in the Next Five Years
The wood processing and furniture industry experienced negative figures in the early months of 2023, in line with forecasts made since the end of 2022.
The dearth of orders led to capacity reduction, labor cuts, and, in some instances, the relinquishment of premises and factories. According to a preliminary survey conducted by the Ho Chi Minh City Handicraft and Wood Industry Association (HAWA), orders in the industry saw an average decrease of 30% in the first six months of 2023.
However, as of July 2023, businesses in the industry have started to receive new orders, catering to the world market’s end-of-year furniture shopping season. This positive development for the Vietnamese wood industry was announced by Mr. Nguyen Quoc Khanh, Chairman of HAWA, during the “Vietnam Wood and Furniture Industry Forum” on the afternoon of July 28, 2023.
Believing that the current challenges faced by the wood industry, particularly the decrease in orders, are only temporary, economic expert Pham Phu Ngoc Trai asserts that the Vietnamese furniture industry has ample fiscal space for development in the next 5 to 10 years.
Meeting New Standards
The markets of Japan, South Korea, India, Canada, and many other countries are recovering, as consumers start to return to shopping stores after a long period affected by the pandemic. However, it’s noteworthy that these markets also have high demands for Netzero carbon reduction commitments. This requires the Vietnamese wood industry to focus on using sustainable raw materials and production processes, helping to reduce carbon emissions into the environment.
In the European market, the consumption trend of the furniture wood industry is also being shaped, accounting for up to 2/3 of the market share of high-end goods imported from Vietnam. This poses many requirements for sustainable consumption, requiring the Vietnamese wood industry to innovate and adapt to international standards on environment, society, and corporate responsibility.
To conquer sustainable goals and meet increasingly stringent requirements from the market, the Vietnamese wood industry needs to define a new strategy.
Firstly, it is necessary to improve the quality and added value of the products to enhance competitiveness and attract the attention of demanding markets.
Secondly, investment in research and development is needed to introduce products with creative and unique designs, adapting to the diverse aesthetic tastes of consumers.
According to Mr. Nguyen Chanh Phuong, Secretary General of HAWA, sustainable development is a challenge but also a new opportunity for businesses. By 2028, the wood industry may have to confront the issue of emission reduction.
Boosting the export of wood furniture also requires close collaboration between businesses and relevant authorities to ensure compliance with the export regulations and standards of each market. Enhancing quality management and operational capacity is crucial to maintaining credibility and meeting the high-quality requirements of demanding markets.
Promoting and marketing the brand of Vietnamese furniture globally is essential. Utilizing modern media channels and digital technology will help reach a wide range of potential customers and establish a reliable, high-quality image for the Vietnamese wood industry.
Additionally, establishing trustworthy partnerships with international companies, distributors, and agents will help expand the market and access more orders.
Importantly, strengthening exchanges and cooperation with wood businesses in countries with large wood production and consumption traditions is necessary to learn and share experiences, facilitate market expansion, and enhance global competitiveness.
Ho Chi Minh Export Furniture Fair – HawaExpo 2024 is scheduled to take place from March 6 to March 9, 2024, promising to boost the furniture and interior manufacturing activities in Vietnam.
Under the patronage of the Ministry of Agriculture and Rural Development, the Ministry of Industry and Trade, and the professional guidance and coordination of the Ho Chi Minh City Department of Industry and Trade, HawaExpo is organized by VIFOREST FAIR company, consisting of five associations: Viforest, HAWA, BIFA, DOWA, and FPA Binh Dinh. Bringing together 700 businesses in the field of production and export of furniture, interior, and handicrafts of Vietnam,HawaExpo 2024 is expected to welcome 30,000 buyers and visitors from 200 countries. This is also the highest number in history.
- A Sneak Peek into HawaExpo 2024: Vietnam’s Premier Furniture & Handicraft Fair
- Immerse in Vietnam’s Furniture Online with HawaExpo at Hopefair.com
HawaExpo 2024 goes beyond being a mere furniture exhibition; we continually strive to support Vietnam furniture factories and manufacturers in their development and international customer outreach. This is achieved through the organization of workshops and seminars aimed at enhancing the knowledge and experience of exhibitors.
[WORKSHOP] Understanding and Attracting buyer at a Trade Show
Coming up on December 5th, 2023, The Organizer Support Exhibitor (OSE) program 02 by the HawaExpo Trade Fair Organizing Committee aims to support businesses with skills to approach and take care of customers before, during, and after the trade show, as well as ways to attract buyers through product images and branding.
- Mr. Guillaume Rondan – Founder & CEO Move to Asia
- Mr. Giuseppe De Francesco – Photographer and Video Editor
- Understanding the psychology and desires of wood industry buyers.
- Effective ways to present and introduce your business to buyers.
- How to present your brand professionally and confidently to customers.
- How to create brand highlights through creative images?
- Trends and typical booth designs at Milan Design Week 2023, Italy.
- Time: 9:00 AM, December 20, 2023 (Wednesday)
- Venue: Baam Room – 2nd Floor, White Palace, 588 Pham Van Dong, Hiep Binh Chanh, Thu Duc, Ho Chi Minh City
- Participants: HawaExpo exhibitors and 5 Association members’ enterprises, with priority given to the first 50 registered businesses.
- Register here: LINK
Promotional events like HawaExpo 2024 will play a crucial role in showcasing Vietnam’s furniture factories to the world. With continuous efforts, Vietnam’s furniture industry promises to thrive in the future.
HAWAEXPO 2024 – THE LARGEST NATIONALLY ENDORSED EXPORT FURNITURE FAIR IN VIETNAM
- March 6 – 9, 2024; SECC – Saigon Exhibition and Convention Center, 799 Nguyen Van Linh, Tan Phu, District 7, Ho Chi Minh City, Vietnam
- March 7 – 9, 2024; White Palace – Pham Van Dong, 588 Pham Van Dong, Hiep Binh Chanh, Thu Duc District, Ho Chi Minh City, Vietnam