AsemconnectVietnam - Wood and fine arts enterprises hope to seek potential customers at the Vietnam ASEAN International Furniture & Home Accessories Fair (VIFA ASEAN 2023), scheduled to take place in HCM City from August 29 - September 1, in the context of a sharp decrease in the export of wood and wooden products in the last four months.

Addressing a May 23 conference to announce the organsation of the fair, Tran Ngoc Liem, Director of the Vietnam Chamber of Commerce and Industry, Ho Chi Minh City Branch (VCCI-HCM), said facing the global economic downturn, an average of about 19,000 businesses withdraw from the market every month.
Over 80% of the enterprises operating in the wood industry have been affected, with decreasing revenue, he added.
Statistics of the General Statistics Office show that the export turnover of wood and wood products totaled an estimated 1.2 billion USD in April, and 4 billion USD in the first four months of 2023, down 24% and 28% year-on-year.
The high prices of global fuel and energy affect production costs of wood enterprises, Liem said, adding that the inflation rate still remains high and monetary policy has not been loosened.
The slow recovery of the global economy and the collapse of some banks in the world have led to the trend of tightening spending on non-essential products such as wood and wood products in big markets, including the US and the European Union (EU), causing sharp drops in import demand, he noted.
China’s reopening also creates competition pressure on wood and wood products, especially Vietnam's wooden furniture, he noted.
Wood enterprises also meet difficulties related to interest rates, and in accessing capital.
Many businesses, which are facing a sharp decline in orders, still have to maintain production and wait for improvement, Liem went on.
The country’s export turnover of wood and wood products in the first half of 2023 is forecast to drop by between 28%-32% compared to the same period last year.
According to Cao Ba Dang Khoa, acting general secretary of the Vietnam Coconut Association (VCA), the hosting of VIFA ASEAN 2023 will help turn Ho Chi Minh City into a regional and international furniture centre.
It will offer a venue for exhibitors to access potential customers, thus expanding export markets, he noted.
VIFA ASEAN 2023, which will be jointly hosted by Lien Minh Wood Handicraft JSC, VCCI-HCM and VCA, iexpects to attract 1,400 booths from 350 domestic and international export furniture & handicraft producers and processors.
Source: Vietnamplus.vn