Exports
of furniture: "Waves underground" in the EU
The
UK leaving the European Union (EU) (Proposed referendum on United Kingdom
membership of the European Union) have made many enterprises operating in the
export sectors of Vietnam with large export turnover to this market are
concerned, especially industry enterprises process the wood.
Between
last July, Wood and Forest Products Association of Vietnam has organized the
seminar with the theme "Proposed referendum on United Kingdom membership
of the European Union and the impact on Vietnam's wood industry", experts
and manufacturers agreed that wood industry may experience
"groundswell" in this market in the near future.
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Impact rate
According
to Wood and Forest Products Association of Vietnam, in 2015 exports of wood
products from Vietnam to the UK reached nearly 270 million, accounting for
about 36% of total exports to the EU, this market continued to increase in many
years. However, world events Proposed referendum on United Kingdom membership
of the European Union are doing export of forest products processing concerns.
Woodworking
in Nhat Nam Joint Stock Company.
Secretary
General of Wood and Forest Products Association of Vietnam Nguyen Ton Quyen
said that the Proposed referendum on United Kingdom membership of the European
Union in the long run will reduce about 50% of furniture exports to the UK
market, the equivalent of about 50 million / year. According to economic
experts, the cause of the state of exports to the UK fell by furniture its
currency devalued and older make expensive goods consumption leads to decrease.
Some
furniture manufacturers now export in Dong Nai said, so far in this new market
of exterior wood products started to impact prices, furniture items have yet to
be affected . Mr Phan Van Binh, Chairman of JSC Nhat Nam, president of the
Association of Timber and crafts Dong Nai (DOWOOHA), worry that the wood
processing industry in the future will be affected. "The event did not
cause shock right Proposed referendum on United Kingdom membership of the
European Union market for the wood industry Woodworking but dull its impact. In
my opinion, to the end of this year or early in 2017 the timber industry will
have trouble enough permeability influence Proposed referendum on United
Kingdom membership of the European Union "- Mr. Binh share.
Nguyen
Van Tho, Director of Minh Thanh Company Limited (Eternal district), said timber
exports affected not only individual in the UK market, but also the EU market
was also impacted by the euro also failed to hold prices should have negative
impact on the situation in export markets.
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Find new markets
Tran
Van Thanh, director of Kien Phuc Private Enterprise (Trang Bom district), said
many wood processing enterprises exported to EU and UK markets were hunting for
new markets for annual season from 2016 to 2017 to prevent the 2 bad scenarios
in this market.
This
was Tran Le Huy, Secretary General of Association of Wood Binh Dinh, shared at
the seminar, many businesses large export timber cargo of Binh Dinh is
considering reducing orders in the UK market to avoid risks muzzle. Also warns
Wood Association and crafts Dong Nai, the EU market in the near future not only
on price but also difficulties with technical barriers will be erected.
One
of the other concerns of the wood processing enterprises export, it is in this
traditional market has to compete not only with China but also goods of other
countries 2 are Indonesia and Malaysia is also promoting export furniture in
the EU, especially Britain. According to experts, the big advantage of 2
countries to have cheaper sources of wood materials in Vietnam and the better
labor productivity. This is detrimental to the wood processing enterprises in
the country of export. EU as the 3rd largest export market of Vietnam
furniture, as this market disadvantage will affect the overall exports.
