Vietnam's furniture exports recover, orders up 25 per cent!
Vietnam's furniture industry has seen a positive recovery, with many firms reporting an increase in orders and employment due to a revival in furniture exports, positive technological innovations and marketing and sales strategies, according to Vietnamese media reports.
Duong Thi Tu Trinh, deputy general director of Duc Thien Co. Ltd, said orders have rebounded and are 20-25 per cent higher than in the previous three quarters and the company expects further growth in the fourth quarter.
She revealed that the company has already received orders for the end of the first quarter of 2024, securing employment for workers and exporting about 100 containers of products per month, while it has increased its workforce and is currently operating at 50-60 per cent capacity.
Currently, relevant Vietnamese government agencies are assisting enterprises and associations to effectively utilise signed free trade agreements to achieve market diversification, supply chain diversity and export growth.
Despite this year's export target of US$17 billion, the local industry is still counting on a considerable export performance.
The country's timber and wood furniture exports brought in $1.2 billion in October, up 5.7 per cent year-on-year but down 0.9 per cent from October 2022, according to a report by the General Department of Vietnam Customs (GDC).
The cumulative value of timber and wood furniture exports reached $10.8 billion by the end of October. The figure was down 19.9 per cent compared to the same period last year, but was still considered an "encouraging result".
The US and Asia are the main markets for Vietnam's furniture exports, accounting for 56.4 per cent and 37.2 per cent of the value respectively.
Phung Duc Tien, Deputy Minister of Agriculture and Rural Development, expects Vietnam's wood and wooden furniture exports to reach US$13.6-14 billion this year. Currently, many of the country's wooden furniture manufacturers have increased work shifts and recruited more workers, and material imports have increased by 5-10 per cent, indicating that firms are stepping up implementation of orders for year-end delivery.
The head of a wood products export company in Binh Duong said he had to fire many workers in the first few months of the year when the company received few orders. However, the situation improved at the beginning of the third quarter, with an increase in the number of new orders. Currently, the number of orders is much lower than during the export** period, but is equivalent to 70-80 per cent of the same period last year.
Nguyen Chanh Phuong, vice chairman of the Ho Chi Minh City Handicrafts and Wood Processing Association, said some firms had recalled workers who had stopped work or were recruiting more. Citing a report, he said the amount of wood imported by businesses has increased by 5-10 per cent in recent months, suggesting that firms have taken orders to prepare for the year-end production season.
