Hanoi – Wood and fine arts enterprises
hope to seek potential customers at the Vietnam ASEAN International Furniture
& Home Accessories Fair (VIFA ASEAN 2023), scheduled to take place in HCM
City from August 29 – September 1, in the context of a sharp decrease in the export of wood and wooden products in the last four months.
Addressing a May 23 conference to announce the organsation of the fair, Tran Ngoc Liem, Director of the Vietnam Chamber of
Commerce and Industry, Ho Chi Minh City Branch (VCCI-HCM), said facing the
global economic downturn, an average of about 19,000 businesses withdraw from the
market every month.
Over 80% of the enterprises operating in the wood industry
have been affected, with decreasing revenue, he added.
Statistics of the General Statistics Office show that the
export turnover of wood and wood products totaled an estimated 1.2 billion USD
in April, and 4 billion USD in the first four months of 2023, down 24% and 28% year-on-year.
costs of wood enterprises, Liem said, adding that the inflation rate still remains
high and monetary policy has not been loosened.
The slow recovery of the global economy and the
collapse of some banks in the world have led to the trend of tightening spending on
non-essential products such as wood and wood products in big markets, including the US and the European Union (EU), causing sharp drops in import demand, he
China’s reopening also creates competition pressure on
wood and wood products, especially Vietnam’s wooden furniture, he noted.
Wood enterprises also meet difficulties related to interest
rates, and in accessing capital.
Many businesses, which are facing a sharp decline in orders, still have to maintain
production and wait for improvement, Liem went on.
The country’s export turnover of wood and wood
products in the first half of 2023 is forecast to drop by between 28%-32% compared
to the same period last year.
According to Cao Ba Dang Khoa, acting general
secretary of the Vietnam Coconut
Association (VCA), the hosting of VIFA ASEAN 2023 will help
turn Ho Chi Minh City into a regional and international furniture centre.
potential customers, thus expanding export markets, he noted.
VIFA ASEAN 2023, which will be jointly hosted by Lien Minh
Wood Handicraft JSC, VCCI-HCM and VCA, iexpects to
attract 1,400 booths from 350 domestic and international export furniture &
handicraft producers and processors./.