Hope from positive signs at the beginning of the year

By the end of January 2024, the country's wood exports reached 1.5 billion USD - according to statistics from the Ministry of Industry and Trade, an increase of 72.5% over the same period last year. For wood export businesses, this is a positive signal - showing that the market is recovering.

Sharing with Industry and Trade Newspaper, Mr. Tran Quoc Manh, Vice Chairman of the Handicrafts Association, Chairman of the Board of Directors of Saigon Production and Trade Development Joint Stock Company (SADACO) - commented: This is a positive result. In extremely difficult conditions caused by war and Red Sea tensions, the supply chain of goods was disrupted. " In difficult conditions, the turnover of wooden products still increases is very encouraging and we hope that this year the export of wood will be better " - Mr. Manh said.

Wood businesses are finding ways to adapt to market difficulties

Pointing out the reason, Mr. Manh said that recently signs of inflation in the US - the largest import market for Vietnamese wood - have become less severe. In addition, the inventory in this country that was accumulated before the epidemic has now been almost sold out and they will turn around to order again in 2024, especially in the third quarter of this year. These signals create hope and strengthen confidence for businesses that orders will return.

Sharing the same opinion, Mr. Dien Quang Hiep, General Director of Minh Phat 2 Co., Ltd. also said that compared to last year, the company's orders for the first quarter of 2024 are "temporarily stable". According to Mr. Hiep, although the general market is difficult, Vietnam has very good foreign relations advantages so partners still choose us to buy goods.

As for Duc Thien Co., Ltd., Mr. Le Ha Trong Chau, in charge of Sales of this enterprise, informed that the enterprise currently has orders until June 2024. With current developments, the company expects that in 2024 it will achieve export growth of about 20%.

The more difficult it is, the more you have to find ways to adapt

Besides the positive signs, according to Mr. Dien Quang Hiep, this year wood exports still have to face the continuing problems of 2023 such as political conflicts, war, Red Sea tensions... More worrying. , the disruption of transport related to the Red Sea area is increasing the cost of transporting goods to Europe. "Output of wooden products is already difficult, but now it is even more difficult and it is important for businesses at this time to be cautious and calm to come up with effective business strategies" - Mr. Hiep said.

In fact, Mr. Hiep's concern is also an issue that wood businesses are concerned about today. Specifically, according to Mr. Tran Quoc Manh, not only has shipping rates to Europe increased, but even the US market has increased by over 200% compared to before (increasing from 1,000 USD/cont to 4,000 USD/40ft container). - Meanwhile, both of these markets are the main markets of Vietnam's wood industry. Another challenge is that delivery times are longer than before and the number of returning containers is also scarce. All are putting great pressure on businesses.

However, for wood businesses, 2024 is the third year of a difficult period. At this time, businesses cannot say "facing difficulties" but must "adapt" to difficulties. Therefore, according to wood export businesses, their current problem is how the factory can continue to exist and develop.

Mr. Dien Quang Hiep said that this enterprise has been consolidating its machinery and finding ways to reduce production costs. Accordingly, even though it is difficult, we still have to set aside a certain budget to invest in machinery to reduce labor costs, and at the same time, carry out communication with employees to create consensus and determination to work together with businesses to reduce costs. manufacture.

Meanwhile, with SADACO Company, Mr. Tran Quoc Manh said that this business does not place a strong emphasis on long-term orders like before, but instead makes short-term orders and samples according to customer requests. row. "Orders are now very different from before, no longer mass exporting dozens or hundreds of containers, but instead businesses focus on sample products to suit market needs" - Mr. Manh shared.

Focus on opening new markets and increasing trade promotion

In the plan set for 2024, the wood industry targets export turnover to reach 17.5 billion USD, this is a quite high target, especially in the context of escalating and unpredictable political conflicts, both Output and input factors of export are both difficult. In that context, businesses all share the same opinion that one of the urgent things to focus on is expanding new markets and increasing the diversification of sales channels from traditional and non-traditional. . Therefore, trade promotion for the wood industry through participation in domestic and international fairs and exhibitions is very necessary. "Participating in fairs is a niche to find customers, so even though costs may increase, businesses still participate" - Mr. Hiep affirmed.

Like Minh Phat 2, Mr. Tran Quoc Manh warned that the wood export market trend has changed a lot. Therefore, participating in trade promotion will help businesses update new trends and grasp customer tastes to have appropriate business strategies. “Participating in fairs is the best way to promote the brand for businesses, especially in today's market. Through the fairs, we found customers and signed contracts afterward" - Mr. Manh added.