The five largest wood industry associations in the country jointly organized the Wood and Furniture Export Fair (HawaExpo 2025) in Ho Chi Minh City from March 5-7, which is an opportunity for businesses to effectively connect supply and demand.
The export prospects for the wood industry in 2025 are very positive, but fluctuations in trade policies in important markets such as the US and EU also create many challenges for the growth targets of businesses and the industry.
Therefore, from the beginning of the year, many wood and furniture enterprises have proactively innovated production and actively sought opportunities to approach markets and potential customers.
Thanh Tam Furniture Processing Joint Stock Company (Binh Dinh) is a business that has been exporting interior and exterior furniture for more than 20 years, with an annual export turnover of 14-15 million USD.
Mr. Nguyen Van Thu, General Director of Thanh Tam Furniture Processing Joint Stock Company, said the company focuses on key markets such as North America, Japan, EU and Australia.
Although it has long-term partners and a fairly stable number of orders, the business still clearly feels the challenges.
Specifically, since the COVID-19 pandemic, traditional business models have faced many difficulties, especially in the EU. In recent years, businesses have actively shifted their approach to markets with much room, especially North America, to expand their output.
However, in 2025, the market is forecast to continue to fluctuate and be unpredictable. Many of the company's major customers in Europe and North America responded that they still face difficulties in business due to reduced purchasing power and high inflation.
The company also noticed a change in consumer tastes, especially among young people, for interior and exterior products, such as a preference for a combination of wood, metal and UV-resistant upholstery, ensuring aesthetics and high durability.
In that context, the company proactively researches the style, lifestyle, and housing architecture of each target market. Not only innovating designs, the company also invests in specialized factories to develop products in line with international trends.
Meeting increasingly high green standards is also a challenge that requires the wood industry to invest in sustainable supply chains and clear traceability.
According to Mr. Nguyen Van Thu, businesses need to sell what customers need, not what they have.
Building a Vietnamese furniture brand must be associated with quality and uniqueness; the product must both meet the functions that customers need and bear the mark of traditional national quintessence.
In terms of commerce, businesses proactively maintain connections with old customers, while actively promoting to reach new potential customers and markets.
“If businesses neglect to interact, they will not only miss the opportunity to reach new markets, but also potentially lose old customers because they do not know if we still exist. Therefore, businesses must regularly promote their products at prestigious events and trade promotion programs. This March, Thanh Tam will introduce a new collection at the HawaExpo 2025 Fair, then continue to display products at fairs and exhibitions abroad. The business does not expect immediate order growth, but will focus on establishing relationships with potential customers, in order to create breakthrough opportunities in the future,” Mr. Nguyen Van Thu shared.
In 2024, the wood and furniture industry won big, but not all businesses were favorable. The export revenue of Forexco Company (Quang Nam) decreased by nearly 1/3 compared to the previous year.
Mr. Dang Cong Quang, Deputy General Director of Forexco, said that the company's main customers are concentrated in the EU and the US. Last year, economic growth in these regions slowed down, high inflation caused people to tighten their spending, and purchasing power was low. In addition, sellers had to pay too high interest rates, and did not have enough capital to buy goods for long-term storage.
Nowadays, they buy more cautiously, watching the market for signs. The distribution system only plans sales seasonally, leading to small and short-term orders of 3-4 months.
When businesses expand into the Japanese market, outdoor furniture does not have many advantages. Because most Japanese customers live in small apartments, different from the large garden houses commonly seen in the West.
In big cities in Japan, people still buy outdoor furniture, but mainly small-sized ones for balconies. Therefore, sales in this market are not high.
To adapt to new purchasing trends, Forexco still maintains the quality of products and services but seeks to cut other costs to increase the competitiveness of the products. The company accepts low profits to close orders, operate the factory stably and retain employees.
“The key point that businesses have learned is to be more proactive in finding customers and diversifying distribution channels. Previously, businesses participated in Spoga-Germany International Fairs, Singapore Expo... but in the past 15 years, we have mainly worked with traditional customers. However, in the current competitive and volatile context, if businesses remain passive, it will be very difficult to survive. Therefore, this year, businesses have determined to "go shopping" more diligently. First, Forexco will participate in HawaExpo in Vietnam to update consumer needs and tastes; then continue to register to participate in specialized exhibitions in the US and Germany to connect and expand the potential customer base. At the same time, the company is also aiming for e-commerce channels, meeting the shopping needs of more customers to effectively increase revenue," Mr. Dang Cong Quang informed about the plan.
To provide maximum support to domestic enterprises that are qualified to export right at home, the five largest wood industry associations in the country, including Viforest, HAWA, BIFA, DOWA, and FPA Binh Dinh, will coordinate to organize the Wood and Furniture Export Fair (HawaExpo 2025) in Ho Chi Minh City from March 5-7.
The representative of the Organizing Committee informed that HawaExpo is an exhibition platform designed to affirm the competitiveness of the Vietnamese wood and furniture industry with international buyers.
Therefore, more than 80% of the exhibitors are selected enterprises that meet the criteria of having factories in Vietnam, having export production capacity, meeting diverse needs and scales; and having a long-term sustainable and green strategy.
In addition, businesses possess impressive design-creativity capabilities, leaving a specific mark in the development process and market approach.
HawaExpo 2025 not only provides an overview of the export production capacity of Vietnam's wood and furniture industry, but also promises to effectively connect supply and demand for businesses, contributing to realizing the export target of 18 billion USD./.
Source
Comment (0)