On the sidelines of a seminar on promotion of trade and investment cooperation between Vietnam and China’s Beijing, Tianjin and Hebei held in HCMC on December 7, Gao Xi Zhi told the Daily that Chinese furniture firms in general and Tianjin firms in particular are keen on the Vietnamese market due to lower labor costs.

Investing in Vietnam, Chinese furniture producers can enjoy tariff incentives when exporting their products to the countries which have signed free trade agreements with Vietnam.

Tianjin has over 7,000 enterprises trading in the interior furnishing sector including 3,000 furniture producers. Most of Tianjin Furniture Association members that want to sound out investment opportunities in Vietnam are large and present in many foreign markets, said Gao Xiu Zhi.

They want to boost exports to the U.S. via Vietnam to avert high anti-dumping duty the U.S. imposes on Chinese furniture, according to Vietnamese firms.

The U.S. annually spends US$30 billion importing wooden products, including US$10 billion from China and US$2 billion from Vietnam.

Huynh Van Hanh, vice chairman of the HCMC Handicraft and Wood Industry Association (HAWA), told the Daily that Chinese wood processing firms are stepping up investment in Vietnam although the U.S. withdrew from the Trans-Pacific Partnership trade deal.

The U.S. may increase imports of wooden products from ASEAN countries including Vietnam.

Chinese companies also import Vietnamese wooden products for re-export to other countries including the U.S.

The seminar, held at the Saigon Exhibition and Convention Center in HCMC’s District 7 as part of the Vietnam International Trade Fair 2017 (Vietnam Expo 2017), attracted more than 100 Chinese enterprises.

Chinese businesses specializing in the textile, bicycle production and food processing sectors expressed interest in the Vietnamese market as well.