Traders upbeat on new deals at Expo 2010

Turkey seeks after Vietnam’s wooden products

Deputy Minister of Industry and Trade Nguyen Thanh Bien (3rd, R) and the city’s officials cut the inauguration ribbon for Expo 2010 on WEdnesday - Photo: Thai Hang

HCMC – Many traders attending the HCMC International Furniture and Handicraft Fair and Exhibition, or Expo 2010, which kicked off here in the city on Wednesday morning, said they were optimistic about the number of contracts they would strike at the five-day event.

Dang Van Long, director of Dang Long Furniture Co. specializing in indoor and outdoor furniture, said he met several guests from the U.S., Canada and Japan on the first day of Expo 2010.

“Especially, there is one American retailer who asked for price quotations for big contracts amounting to hundreds of containers. I have participated in the Expo for years but have never seen such positive results right on the first day,” Long said.

Long and other exporters said they had faced difficulties in business due to weak purchasing power of key markets although signs of recovery had emerged since the first months of the year. The situation has forced them to delay plans to expand factories or develop new products.

Traders hence expect the fair will help them bolster business.

On day one Expo 2010 attracted not only international buyers but also local traders who came to get updated on the latest trends in the woodworking and handicraft sectors.

Tran Viet Tien, director of Gia Long Fine Art Co., specializing in home décor from poly resin, composite and foam, said he had many local visitors to his booth on Wednesday. They included contractors for restaurants and resorts.

In opening remarks Deputy Minister of Industry and Trade Nguyen Thanh Bien praised efforts by wood and handicraft enterprises to ride out tough times, saying this had helped push up the country’s overall export.

According to Vietnam’s customs, in the January-September period, wood exports increased by up to 37% from last year’s same period to around US$2.2 billion.

After the opening ceremony, which was also attended by diplomatic offices of France, Korea, Cuba, and the Netherlands, Deputy Minister Bien and representatives of the HCMC government awarded certificates of merit to the city’s 20 leading wood and handicraft exporters.

Expo 2010 will wrap up on October 10. On Thursday and Friday, there will be seminars on new challenges and solutions for the furniture and handicraft sectors, and introduction of a credit program by Viet A Bank to support enterprises.

Ten Turkish businesses are in talks with Vietnamese partners over the supply of wooden products to the country - Photo: Thu Nguyet

* Turkey was among several countries sending trade missions to the HCMC International Furniture and Handicraft Fair and Exhibition 2010 on Wednesday, and had business meetings with local furniture and handicraft makers at the event.

Selman Aycan, a representative of the Turkish Confederation of Businessmen and Industrialists (TUSKON) in Vietnam, said Turkey had a big demand for furniture, thus promising a new market for Vietnamese businesses.

He added that TUSKON is due to organize a trade mission for Vietnamese enterprises to Turkey next June. The market imports furniture, farm products, rubber, construction materials and garments from Vietnam while exporting steel.

However, furniture exports to Turkey are still modest. Statistics of the Ministry of Industry and Trade show Vietnam shipped a mere US$4.97 million worth of furniture to Turkey in the first eight months of this year, up 20% year-on-year.

Vietnamese furniture and wooden products imported by Japan and Turkey gained more than US$271 million and US$4.97 million, up 20.8% and 20% respectively.

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Traders upbeat on new deals at Expo 2010

Turkey seeks after Vietnam’s wooden products

Deputy Minister of Industry and Trade Nguyen Thanh Bien (3rd, R) and the city’s officials cut the inauguration ribbon for Expo 2010 on WEdnesday - Photo: Thai Hang

HCMC – Many traders attending the HCMC International Furniture and Handicraft Fair and Exhibition, or Expo 2010, which kicked off here in the city on Wednesday morning, said they were optimistic about the number of contracts they would strike at the five-day event.

Dang Van Long, director of Dang Long Furniture Co. specializing in indoor and outdoor furniture, said he met several guests from the U.S., Canada and Japan on the first day of Expo 2010.

“Especially, there is one American retailer who asked for price quotations for big contracts amounting to hundreds of containers. I have participated in the Expo for years but have never seen such positive results right on the first day,” Long said.

Long and other exporters said they had faced difficulties in business due to weak purchasing power of key markets although signs of recovery had emerged since the first months of the year. The situation has forced them to delay plans to expand factories or develop new products.

Traders hence expect the fair will help them bolster business.

On day one Expo 2010 attracted not only international buyers but also local traders who came to get updated on the latest trends in the woodworking and handicraft sectors.

Tran Viet Tien, director of Gia Long Fine Art Co., specializing in home décor from poly resin, composite and foam, said he had many local visitors to his booth on Wednesday. They included contractors for restaurants and resorts.

In opening remarks Deputy Minister of Industry and Trade Nguyen Thanh Bien praised efforts by wood and handicraft enterprises to ride out tough times, saying this had helped push up the country’s overall export.

According to Vietnam’s customs, in the January-September period, wood exports increased by up to 37% from last year’s same period to around US$2.2 billion.

After the opening ceremony, which was also attended by diplomatic offices of France, Korea, Cuba, and the Netherlands, Deputy Minister Bien and representatives of the HCMC government awarded certificates of merit to the city’s 20 leading wood and handicraft exporters.

Expo 2010 will wrap up on October 10. On Thursday and Friday, there will be seminars on new challenges and solutions for the furniture and handicraft sectors, and introduction of a credit program by Viet A Bank to support enterprises.

Ten Turkish businesses are in talks with Vietnamese partners over the supply of wooden products to the country - Photo: Thu Nguyet

* Turkey was among several countries sending trade missions to the HCMC International Furniture and Handicraft Fair and Exhibition 2010 on Wednesday, and had business meetings with local furniture and handicraft makers at the event.

Selman Aycan, a representative of the Turkish Confederation of Businessmen and Industrialists (TUSKON) in Vietnam, said Turkey had a big demand for furniture, thus promising a new market for Vietnamese businesses.

He added that TUSKON is due to organize a trade mission for Vietnamese enterprises to Turkey next June. The market imports furniture, farm products, rubber, construction materials and garments from Vietnam while exporting steel.

However, furniture exports to Turkey are still modest. Statistics of the Ministry of Industry and Trade show Vietnam shipped a mere US$4.97 million worth of furniture to Turkey in the first eight months of this year, up 20% year-on-year.

Vietnamese furniture and wooden products imported by Japan and Turkey gained more than US$271 million and US$4.97 million, up 20.8% and 20% respectively.

Related Articles

• Traders upbeat on new deals at Expo 2010
• Timber-product exporters sign $3b deals
• High rice price cuts exports
• Supporting industry and Metalex expos open in HCMC
• Vietnam probably won’t devalue again in 2010, ANZ says

Furniture makers ‘neglecting' local market

Vietnamese wood furniture firms are focused mostly on export markets, leaving the local market to imports, especially from China.

Huynh Van Hanh, deputy chairman of the Handicraft and Wood Industry Association of HCM City (HAWA), said with its population of 86 million and increasing incomes, Vietnam is a promising market for furniture and other wooden products.

Demand for wooden indoor furniture has grown at an annual rate of 15-20 per cent in recent years, he said.

But Vietnamese firms, among the world's largest exporters of wood products, continue to ignore the local market, which, at 3 billion USD, is equal to the export market, Hanh said.

They accound for just 20 percent of the Vietnamese market, with imports from mainland China, Malaysia, Taiwan, Hong Kong and Thailand accounting for the rest.

Dien Quang Hiep, director of Binh Duong-based Minh Phat Furniture Company, said companies prefer exports to domestic sales because orders are usually big. The domestic market not only places small orders but also requires various designs.

And then there is the cost of setting up distribution systems, he pointed out.

Furniture shops on Ngo Gia Tu and To Hien Thanh streets in District 10, Nguyen Thi Minh Khai in district 3, and other places in HCM City, display a lot of imported furniture products.

Tran Hoang Trung, owner of a shop on Ngo Gia Tu street, said most of his products are from China and they come in a range of designs and materials.

As for local products, he sold the odd table made of natural wood, he said.

Many foreign companies, mostly Chinese, import large quantities of timber from Vietnam at cheap prices and export finished products at high prices to Vietnam.

Many distributors import 30-40 containers of furniture every month from China, according to insiders.

Nguyen Ton Quyen, general secretary of the Vietnam Timber and Forest Product Association, said the low import tariffs on wooden products, of 0-3 percent, encourage furniture distributors to import them, creating pressure on domestic producers.

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Furniture makers ‘neglecting' local market

Vietnamese wood furniture firms are focused mostly on export markets, leaving the local market to imports, especially from China.

Huynh Van Hanh, deputy chairman of the Handicraft and Wood Industry Association of HCM City (HAWA), said with its population of 86 million and increasing incomes, Vietnam is a promising market for furniture and other wooden products.

Demand for wooden indoor furniture has grown at an annual rate of 15-20 per cent in recent years, he said.

But Vietnamese firms, among the world's largest exporters of wood products, continue to ignore the local market, which, at 3 billion USD, is equal to the export market, Hanh said.

They accound for just 20 percent of the Vietnamese market, with imports from mainland China, Malaysia, Taiwan, Hong Kong and Thailand accounting for the rest.

Dien Quang Hiep, director of Binh Duong-based Minh Phat Furniture Company, said companies prefer exports to domestic sales because orders are usually big. The domestic market not only places small orders but also requires various designs.

And then there is the cost of setting up distribution systems, he pointed out.

Furniture shops on Ngo Gia Tu and To Hien Thanh streets in District 10, Nguyen Thi Minh Khai in district 3, and other places in HCM City, display a lot of imported furniture products.

Tran Hoang Trung, owner of a shop on Ngo Gia Tu street, said most of his products are from China and they come in a range of designs and materials.

As for local products, he sold the odd table made of natural wood, he said.

Many foreign companies, mostly Chinese, import large quantities of timber from Vietnam at cheap prices and export finished products at high prices to Vietnam.

Many distributors import 30-40 containers of furniture every month from China, according to insiders.

Nguyen Ton Quyen, general secretary of the Vietnam Timber and Forest Product Association, said the low import tariffs on wooden products, of 0-3 percent, encourage furniture distributors to import them, creating pressure on domestic producers.

Related Articles

• Foreign sea leases deprive locals of living
• Vietnam’s seafood sector eyes UAE market
• Political bureau works with local committees
• State President visits Laos localities
• Market moves up sharply

Furniture makers ‘neglecting' local market

Vietnamese wood furniture firms are focused mostly on export markets,
leaving the local market to imports, especially from China.

Huynh Van Hanh, deputy chairman of the Handicraft and Wood Industry
Association of HCM City (HAWA), said with its population of 86 million
and increasing incomes, Vietnam is a promising market for furniture and
other wooden products.

Demand for wooden indoor furniture has grown at an annual rate of 15-20 per cent in recent years, he said.

But Vietnamese firms, among the world's largest exporters of wood
products, continue to ignore the local market, which, at 3 billion USD,
is equal to the export market, Hanh said.

They
accound for just 20 percent of the Vietnamese market, with imports from
mainland China, Malaysia, Taiwan, Hong Kong and Thailand accounting for
the rest.

Dien Quang Hiep, director of Binh
Duong-based Minh Phat Furniture Company, said companies prefer exports
to domestic sales because orders are usually big. The domestic market
not only places small orders but also requires various designs.

And then there is the cost of setting up distribution systems, he pointed out.

Furniture shops on Ngo Gia Tu and To Hien Thanh streets in District
10, Nguyen Thi Minh Khai in district 3, and other places in HCM City,
display a lot of imported furniture products.

Tran
Hoang Trung, owner of a shop on Ngo Gia Tu street, said most of his
products are from China and they come in a range of designs and
materials.

As for local products, he sold the odd table made of natural wood, he said.

Many foreign companies, mostly Chinese, import large quantities of
timber from Vietnam at cheap prices and export finished products at high
prices to Vietnam.

Many distributors import 30-40 containers of furniture every month from China, according to insiders.

Nguyen Ton Quyen, general secretary of the Vietnam Timber and Forest
Product Association, said the low import tariffs on wooden products, of
0-3 percent, encourage furniture distributors to import them, creating
pressure on domestic producers./.

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