16th Oct 2021 Vietnam Market

Vietnam furniture actively recover the supply chain

On October 8, 2021, the webinar: “Vietnam Furniture Supply Chain Recovery Plan” via Zoom was successfully organized by Handicraft and Wood Industry Association of HCMC (HAWA) and Association of Vietnam Timber and Forest Products (VIFOREST), collaborating with Ministry of Agriculture and Rural Development, Ministry of Industry and Trade, Vietnam Trade Promotion Agency (VIETRADE), Vietnam Administration of Forestry (VNFOREST) and HCMC Department of Industry and Trade, and gathered the interest of nearly 300 participants who are Vietnam Commerce Counsellors across the globe, international buyers, media agencies and domestic enterprises.

In the context of increasing demands from buyers to serve the year-end shopping markets in different countries, it is critical that they are updated with the current situation, recovery plans, and supply capacity of Vietnamese enterprises to international markets.

According to the Minister of Agriculture and Rural Development, Mr. Le Minh Hoan, the achievements and efforts of Vietnam’s wood manufacturing industry are remarkable enough amidst the pandemic aftermaths. This can be attributed to thorough preparation, initiative and determination of wood businesses to navigate through obstacles.

With 3 stages of response strategies and supply chain recovery for the furniture industry, presented by Mr. Bui Chinh Nghia, Deputy Director of the Vietnam Administration of Forestry (VNFOREST), factories are reopening and will restore 70% capacity by the last month of the year, targeting to restore 90% of factory operations within 6 months, and aiming to reach the growth of 15% after 6 months.

Supports from the central and local governments for the recovery of the furniture industry are diversified. Inter-provincial transportation and commute in the four furniture manufacturing hubs: Ho Chi Minh City, Binh Duong, Dong Nai, Long An are now allowed. Local government and businesses jointly develop safe operating framework. Vaccination coverage for the workforce is a priority, and basically fulfill in the next few months.

“Within the furniture industry, major consumer markets such as the U.S., UK, France, and the Netherlands all increased their demands by about 50% year over year, that is, there is substantial room for growth for suppliers of furniture like Vietnam.” - Ms. Bui Thanh An, Deputy Director of Vietnam Trade Promotion Agency under the Ministry of Industry and Trade commended in the panel discussion session of the webinar.

Vietnam’s resilience amidst the pandemic is also highly appreciated by the buyers and international community. Mr. Benjamin Petlock, Senior Attaché for Agriculture, U.S. Embassy said that the U.S. market is highly receptive of furniture made in Vietnam. In her sharing, Ms. Mary Tarnowka, Executive Director, Amcham Vietnam cited that 60% of the US furniture vendors has opened, and many Amcham members expect Vietnam factories will be backed up to 100% capacity after 6 months. And Mr. Alain Cany, Chairman, Eurocham is confident with the gradual opening of Vietnam and said that furniture export from Vietnam is forecasted to increase 50% in the upcoming years.

Sharing the same view, representatives of major international enterprises in Vietnam such as H. Nicolas & Co, KODA, among others, also affirmed their belief in the recovery of the supply chain in general and Vietnamese enterprises in particular in the coming time. “Despite difficulties, opportunities for Vietnam's furniture industry are massive. Enterprises themselves are also aware of this great opportunity and have been constantly looking for ways to adapt to the new context. I believe Vietnam’s wood manufacturing industry will quickly recover, regain momentum, and continue to serve as a key economic driver of the country” said Mr. Do Xuan Lap - Chairman of Viforest.