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Vietnam’s wood producers urged to develop domestic market PDF Print
Monday, 11 April 2016 14:51

VIETRADEDomestic wood producers needed to focus on developing their business in the domestic market in a move to effectively compete with foreign rivals, the Vietnam Wood and Forest Product Association (Vifores) suggested.


More and more foreign producers would enter the local market as Vietnam would integrate deeply into the global market in the future, the association explained.


The domestic wood market offer great potential to develop. However, Vietnamese enterprises have not been adequately aware of these opportunities, Vifores Deputy Chairman Nguyen Ton Quyen said.


Many of them had set up independent business to exploit local market but they lacked co-operation in developing that business, Quyen said, adding that insufficient market research on domestic market were also problematic for these firms.


When free trade agreements that Vietnam engaged take effect in the near future, foreign producers would enjoy more business opportunities in the Vietnamese wood market, he warned.


Accordingly, he petitioned the State to draw up policies on encouraging local wood producers to put more investment in the domestic market.


Meanwhile, the Handicraft and Wood Industry Association of HCM City (HAWA) called on wood producers to enhance co-operation to find new business directions in the context of the country’s global integration.


In order to affirm their position in local market, the firms needed not only closely co-ordinate but also exchange the industry’s information, the association noted.


Ta Tran Quang - Deputy Director of Tan Thanh Furniture Group in the southern Binh Duong Province said, domestic wood markers were facing the two largest competitors - themselves and foreign enterprises.


Quang emphasized the importance of updating latest technology, making sufficient investment in products’ design and improving quality of personnel resources. That would help local firms improve their competition in not only domestic but also foreign markets.


Nguyen Van Quy, General Director of Ho Nai Company, said there was high demand for furniture, home decoration and wooden household appliances.


According to HAWA, domestic sales of furniture and home decoration topped about US$2 billion last year.


In order to tap into these potentials, Vietnamese firms should create designs that match local customers' tastes rather than only copying designs of products from Malaysia, Indonesia and other countries.


"If we do not abreast of new designs, we will find it hard to compete with imports," he told Viet Nam News Newspaper.


Vu Tien Thap, CEO of D'Furni, a furniture distributor, said the recovery in the housing market in big cities had boosted sales of furniture.


With the country's deeper integration, more international distributors would enter the domestic market, and the small distribution systems and local traditional furniture producers and distributors would lose market share to them, he warned.


Trade experts advised enterprises in the sector to develop closer links and create professional distribution systems for Vietnamese furniture.


Setting up schools for design and management training to help the industry should be also included, they said./.

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