Enough ways to rotate orders

Mr. Do Xuan Lap - Chairman of the Vietnam Wood and Forest Products Association (Vifores) said that the export activities of the wood industry are facing many difficulties, especially in big markets due to the decline in orders. Preliminary statistics show that, in February, the export of wood and wood products reached 1.61 billion USD, down 34.8% over the same period last year.

In the context of a shrinking market and a decline in orders, businesses said they had managed to maintain production and limit the workforce to lose their jobs. Ms. Do Thi Kim Loan - General Director of Sao Nam Trading and Production Company Limited, said that the US is the main export market, accounting for about 90% of the company's exports , but the demand from this country continues to decrease. strong in the first months of 2023, making orders only about 60-65% of the same period last year.

As soon as the US market slowed down, Sao Nam's leaders moved to other markets such as Australia, Canada, etc. to partially offset the decline in the main market.

“When the market is difficult, we look for the Canadian market and accept outsourcing for customers in Australia. Currently, Australian wood board importers transfer materials to the company in the form of temporary import for re-export, we will perform the processing stages to finish products, pack and export them back to them. The proportion of participation in these products is only about 40-50%, but this is an adaptation to the difficult time when the US market is too difficult , "said Ms. Loan.

Wood industry enterprises find many solutions to maintain operations

Mr. Le Minh Nghi - Deputy General Director of AA Architecture and Construction Joint Stock Company said that in the context of a decline in orders in the US market, the business has turned to other markets such as Mexico, Chile or selling. islands in the Caribbean… these are markets that will open up many good export prospects for businesses.

Also according to Mr. Nghi, in order to get this change, right from 2022 when the US market situation shows signs of slowing down, enterprises have planned a new export strategy. Accordingly, the enterprise has continuously built relationships and closely followed large customers, regularly kept in contact to share market information. Thereby keeping orders, both in domestic stability and export development.

Towards high quality products

According to wood processing and exporting enterprises , although there are still many difficulties but not without opportunities for development. It is important for businesses to make efforts to turn the situation around, instead of making traditional, low-value products, they need to consider higher-end segment products. Although sales orders may not be the same as before, the value brought will be higher.

Mr. Huynh Thanh Van, Chairman of the Board of Directors of S furniture Joint Stock Company (Binh Duong) shared, since the outbreak of the Covid-19 epidemic, the global wood market has plummeted, greatly affecting wood businesses. In order to sustain, the company has shifted its focus to the high-end segment to sell through the US and Canadian markets. Although the number of products decreased, the revenue still increased. Producing high-quality products, enterprises sign long-term contracts, contributing to brand building.

Investing in technology, aiming at the high-quality segment is also a solution that many businesses are implementing. Ms. Do Thi Kim Loan - General Director of Sao Nam Trading and Production Company Limited shared that the company is currently investing 30-35% more capital to equip more modern machines and equipment. “ To keep up with the market, we must continuously invest and improve. If they don't improve, the business will be eliminated from the game ," Loan said.

In addition to investing in products, Mr. Le Minh Nghi - Deputy General Director of AA Company said that businesses need to regularly attend domestic and foreign trade promotion programs, which have opened up many opportunities for businesses. Karma. Through fairs, businesses have connected many orders. Typically, in the Cambodian market, the company's customers are very stable.

According to the Dong Nai Wood and Handicraft Association, besides improving the quality, the business also restructured its operating model. Accordingly, the export of wood products requires very high requirements, for raw materials to have origin, especially for large customers in developed countries. The direct import of wood materials to supply manufacturers is a direction and also an opportunity for restructuring in a difficult situation.