The nation is on track to post earnings of U.S. $ 500mil from wooden furniture exports in the first four months of this year, a year-on-year increase of 7%, reported Department of Agriculture and Rural Development.Industry image analysts say could exceed $ 2bil at the end of the year it.
The EU market is expected to become increasingly important to the industry. With the increasing demand for furniture imports in the second and third quarter of 2005, the block imports $ 150mil from Vietnamese furniture, according to statistics revealed by the Ministry of Trade.
Analysts said the domestic furniture industry manufacturers must improve trade promotion to boost sales, particularly in other EU markets such as Latvia, Malta and Estonia, which remain untapped by Vietnamese exporters. Ministry of Trade said the French, British, German, Dutch and Spanish are the main importers of Vietnamese trade union-made wood furniture.
State of the wood processing industry is still dependent on wood imports. Manufacturers import almost 2.5mil cu.m of wood each year to meet the needs of the domestic production, the ministry said. However, the industry faces widespread shortages due to ban on timber exports from Indonesia and Malaysia, the main supplier of wood.
According to the Ministry of Industry, Vietnam spends U.S. $ 127mil on timber imports in the first quarter of 2006, down by 17% from the same period last year.
To overcome the shortcomings, the processor wood suppliers look to Africa, but the added shipping costs mean wood will be 30% more expensive, he said.
Representatives from leading companies in the wood processing industry has asked the Government to improve forest cultivation and sign bilateral trade agreements with African countries.
They suggested that because many African countries is a significant volume of Vietnamese rice imports, the country must carry out rice-for-timber trade program.
(Source: Viet Nam News)
The EU market is expected to become increasingly important to the industry. With the increasing demand for furniture imports in the second and third quarter of 2005, the block imports $ 150mil from Vietnamese furniture, according to statistics revealed by the Ministry of Trade.
Analysts said the domestic furniture industry manufacturers must improve trade promotion to boost sales, particularly in other EU markets such as Latvia, Malta and Estonia, which remain untapped by Vietnamese exporters. Ministry of Trade said the French, British, German, Dutch and Spanish are the main importers of Vietnamese trade union-made wood furniture.
State of the wood processing industry is still dependent on wood imports. Manufacturers import almost 2.5mil cu.m of wood each year to meet the needs of the domestic production, the ministry said. However, the industry faces widespread shortages due to ban on timber exports from Indonesia and Malaysia, the main supplier of wood.
According to the Ministry of Industry, Vietnam spends U.S. $ 127mil on timber imports in the first quarter of 2006, down by 17% from the same period last year.
To overcome the shortcomings, the processor wood suppliers look to Africa, but the added shipping costs mean wood will be 30% more expensive, he said.
Representatives from leading companies in the wood processing industry has asked the Government to improve forest cultivation and sign bilateral trade agreements with African countries.
They suggested that because many African countries is a significant volume of Vietnamese rice imports, the country must carry out rice-for-timber trade program.
(Source: Viet Nam News)
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