Chinese market not fully tapped by wood processors

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SaigonTimes English - 27 month(s) ago 4 readings

Chinese market not fully tapped by wood processors

HCMC – The value of Vietnam’s 2011 wood and woodwork exports to China surged 62% year-on-year but for the most part the industry shipped low-valued items, said the Handicraft and Wood Industry Association of HCMC (HAWA).

Chinese market not fully tapped by wood processors

By Thai Hang - The Saigon Times Daily

Workers of a local factory process wood in a file photo. The value of Vietnam’s 2011 wood and woodwork exports to China surged 62% year-on-year but for the most part the industry shipped low-valued items - Photo: TL
HCMC – The value of Vietnam’s 2011 wood and woodwork exports to China surged 62% year-on-year but for the most part the industry shipped low-valued items, said the Handicraft and Wood Industry Association of HCMC (HAWA).

The upsurge in wood and woodwork exports to China resulted mainly from raw materials and semi-finished products, said HAWA vice chairman Huynh Van Hanh.

Ministry of Industry and Trade statistics show the local wood industry last year fetched US$657 million from exports to China.

Last month saw the industry’s export turnover tumbling by 7.1% from the same period last year to nearly US$30 million, with raw materials accounting for up to 95%. The decline was ascribed to the long Lunar New Year holiday in the two neighboring nations.

The value of Vietnam’s wooden goods exports to China is way below expectations. Hanh said the taste of Chinese consumers was different from that of Americans, Britons and Europeans.

“Chinese consumers prefer products made from expensive natural wood,” Hanh noted.

Large industrial parks that are primarily home to wood processors in Binh Duong and Dong Nai provinces seldom receive export orders from China as Chinese importers are inclined to buy products from craft villages in the country’s north.

Most Vietnamese wooden products are shipped to Taiwan and some others to southern China, said Vu Van Quy, director of furniture and handicraft maker Hung Long Co. in the northern province of Bac Ninh.

In 2011, HAWA members planned to establish a Vietnamese woodwork center in China’s Guangzhou to further tap the Chinese market but financial constraints killed the plan.

“China is still a highly potential market for Vietnam and local woodwork makers need an appropriate strategy to exploit this market more effectively,” Hanh noted.

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