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| US furniture industry sees Vietnam as alternative to China |
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2005/8/3
Vietnam has become a popular destination for US wooden furniture importers, as the US furniture industry modifies its import patterns in response to the dumping blockade on Chinese wood furniture.
This is due to the fact that furniture imports continue to rise in the US while at the same time tariffs on the Chinese furniture have increased as well.
This shift from China is having a massive effect on the wood furniture export industry in Vietnam.
Big numbers
According to Vietnam¡¯s Ministry of Agriculture and Rural Development, last year Vietnam exported around US$1.2 billion in wood products, most of which was furniture, but that is expected to rise to between US$1.4-1.6 billion in 2005.
The Vietnam Economic Times has also reported that Vietnam¡¯s industry now boasts over 1200 furniture factories with some very serious growth.
The export value of the wooden furniture market for the first six months of 2005 is up 86% from the previous year, and most of this is outsourced product, the newspaper stated.
¡°Right now Vietnam is exporting furniture to over 120 countries worldwide,¡± says J.D. McClellan, managing director of Diamond Keystone Associates, a Vietnam based furniture export sourcing company.
But, ¡°No market is having more of an effect on Vietnam than the United States right now, and I don¡¯t see that changing for some time to come¡± he added.
Quality control critical
But J.D. McClellan contends that if importers aren¡¯t careful this trend can bring pitfalls as well as opportunities.
¡°American importers should realize the vast opportunities for their businesses here, but at the same time it is extremely important to have a professional representative on the ground in Vietnam,¡± says McClellan.
The representative would help guarantee the production processes which include choosing the right factory for manufacture, design, manufacture, and packaging to adhere to export commitments, he said.
More and more though, Vietnam is proving to be worth the effort. Just ask J.D. ¡°At some of the factories we deal with a learning curve everyday, but at the end of the day we are making sure the client gets better value out of Vietnam.¡±
¡°I see a bright future with the growth of Vietnamese exports and US wooden furniture imports linked together,¡± he stressed.
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| Source:www.wood365.com |
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