Vietnam - the "New Star" of Asia's Furniture Industry
Vietnam is now becoming one of the “brightest star” in the wood-based furniture production and exports for the world, with furniture exports accounting for about 6% of the global market share, with large markets as: USA, Japan, China, EU, Korea and some new potential markets such as Canada, Russia, India …
In the first 9 months of 2019, Vietnam’s export value of timber, wood products and non-timber forest products was estimated at US $7.93 billion, increased by 18% over the same period in 2018 and is striving for 2019 to reach US $11 billion, 2020 reaches US $13 billion, and 2025 reaches US $20 billion.
By September 2019, Vietnam has over 5,500 enterprises, 340 villages producing and trading wood and forest products. Among those, 2,372 enterprises export timber, wooden products & non-timber forest products.
The key to Vietnam’s success lies with flexibility by manufacturers; access to sustainable legal imported and local plantation materials. Vietnam’s wood processing industry, after a development and improvement stage, has built a strong foundation of production capacity, innovation in technology and machines, gradually improving business administration, learning about product standards, improving design, and flexibly producing according to customer requirements. With strong government support and progress in environmental legislation, the industry is ready to go further.
With the signing of Voluntary Partnership Agreement (VPA) / Forest Law Enforcement, Governance and Trade Agreements (FLEGT) with the EU (European Union) on the implementation of the Law on forestry, Forest governance and Trade in forest products, effective from 1st June, 2019, and the FTA Agreements such as: Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and The European Union Vietnam Free Trade Agreement (EVFTA), Vietnam’s furniture products for export are getting more and more dominance in the World market.
These are the key factors that help Vietnam’s wood processing industry continuously growing to become a “new star” of the Asian furniture industry, confirming its position and prestige in the International market.