On March 6, 2024, the Ho Chi Minh City Furniture and Interior Export Fair (Hawa Expo 2024) officially opened at SECC (District 7, Ho Chi Minh City). The event is expected to attract over 30,000 buyers and visitors from more than 100 countries and territories to connect for trade.
BRINGING TOGETHER OVER 500 DOMESTIC AND INTERNATIONAL ENTERPRISES
Speaking at the opening ceremony, Deputy Minister of Agriculture and Rural Development Nguyen Quoc Tri stated that in 2023, Vietnam’s wood and forestry exports reached about 14.5 billion USD, a decrease of 15.4% compared to 2022. This is the highest decline in 20 years in the wood processing and export industry.
“The decrease is due to various reasons, both subjective and objective. This decline not only affects the processing and export enterprises but also affects the raw material supply chain for forest growers in the past year,” Deputy Minister Nguyen Quoc Tri analyzed.
“Entering 2024, despite many difficulties and challenges, the prospects of the wood processing and export industry have shown positive signs. In the first two months of the year, wood and forestry exports reached nearly 2.4 billion USD, an increase of 59% compared to the same period last year.”
Mr. Nguyen Quoc Tri, Deputy Minister of Agriculture and Rural Development.
In 2024, the Ministry of Agriculture and Rural Development expects the value of wood and forestry exports to reach over 15 billion USD. To achieve this goal, according to Deputy Minister Nguyen Quoc Tri, there is still a lot of work to be done and solutions must be found through technological innovation, raw material supply, and especially market issues.
Appreciating the efforts of the associations and wood and forestry enterprises in organizing Hawa Expo 2024, Deputy Minister Nguyen Quoc Tri believes that this is evidence of the proactivity, creativity, and adaptability of the associations and wood processing and export enterprises. This event will be an effective trade promotion channel, create many connections, exchanges, and collaborations, help bring the image of Vietnamese wood and wood products to customers worldwide, and contribute to the restoration and growth of the wood processing and wood product industry in 2024 and the following years.
Mr. Nguyen Chanh Phuong, Vice Chairman of Ho Chi Minh City Furniture Processing Association (Hawa), said that wood product exports have shown many positive signs since the beginning of the year, especially in maintaining the US market. In addition to the US and Europe, new markets such as India, Canada, and the Gulf region are also growing well and very promising.
Notably, wood exports to India in 2023 increased by 250%. To fully seize this opportunity, companies need to diversify their models and be highly competitive in terms of price. To meet the increasing demand for orders, Vietnamese wood enterprises need to overcome cost challenges.
This year’s Expo 2024 has attracted more than 2,500 booths from over 500 participating units, of which over 80% are Vietnamese wood processing and handicraft export enterprises, and the remaining 20% are from countries such as China, Malaysia, Taiwan, France, and Spain.
Alongside traditional markets such as the US and Europe, there is considerable interest from customers in the Middle East, Australia, Canada, and India. Especially, the exhibition will include a group of interior design businesses, construction contractors, companies specializing in supplying interior furniture for the commercial service sector, and companies developing technology solutions to enhance living experiences.
ENHANCING COMPETITIVE CAPACITY FOR THE WOOD INDUSTRY
According to Deputy Minister of Industry and Trade Phan Thi Thang, the wood industry is always considered one of the important sectors that plays a leading role in production, business, and export trade promotion. Enterprises in the industry have promoted export trade in major markets such as China, the EU, and Japan, bringing their product presence to 160 countries and territories worldwide.
In 2024, the prospects of global trade are not yet bright. However, the positive recovery signals from major markets such as the US and the EU bring optimism to Vietnamese wood exports from the beginning of this year. Specifically, in January 2024, wood and wood product exports have seen a strong breakthrough, reaching nearly 1.5 billion USD, a growth of over 70% compared to the same period in 2023.
Deputy Minister Phan Thi Thang stated that in the context of difficult and challenging markets, where opportunities are intertwined, besides market-related factors, green growth and sustainable development are major trends worldwide, as well as mandatory requirements for the development of the wood industry in the new period.
In that context, the Ministry of Industry and Trade has actively coordinated closely with the Ministry of Agriculture and Rural Development, as well as localities nationwide, to implement many trade promotion activities to support the wood and forestry industry, promoting market development, building and promoting the brand of Vietnamese wood products through supporting enterprises to participate in large-scale exhibitions and trade fairs both domestically and internationally. Hawa Expo 2024 is a prime example.
“In recent years, central and local wood associations have played a bridging role and actively implemented many trade promotion activities such as fairs, exhibitions, and trade exchanges in foreign markets, which have been relatively effective in meeting the connectivity needs of the business community,” Deputy Minister Phan Thi Thang commented.
