Furniture exports to China rise sharply

HCMC - Vietnam’s high quality furniture shipments to China have increased rapidly since early this year, said a source from the Handicraft and Wood Industry Association of HCMC (HAWA).   “China is exporting mass-produced furniture made of artificial materials but importing quality furniture from Vietnam, especially products made of precious timber such as redwood,” said Dang Quoc Hung, vice chairman of HAWA. According to the  Vietnam Industry and Information Center under the Ministry of Industry and Trade, in the first eight months of this year, Vietnam’s wooden product exports to China grew 130% year-on-year to US$230 million.   Thus China is becoming a big importer of Vietnam’s furniture, after the U.S., the EU and Japan which respectively imported US$889 million, US$387 million and US$271 million in January-August, Hung told reporters at the ongoing International Furniture and Handicraft Fair and Exhibition in HCMC, or Expo 2010. Hung explained that while China is known as the world’s factory, it is also a huge market with increasing demand due to rising incomes and an emerging middle class.   “If China keeps growing well, it will be the potential market for Vietnam’s wooden product makers. Vietnamese businesses should explore the tastes of Chinese consumers,” the vice chairman said, adding the rising yuan is expected to benefit Vietnamese exporters.   According to Hung, the volume of furniture orders this year is increasing a little bit over last year, with the total export value expected to beat US$3 billion. However, the handicrafts industry is facing a gloomy picture due to fierce competition from China’s cheap mass-produced items.   Preliminary statistics from the Vietnam Industry and Information Center shows a 38.4% year-on-year increase in Vietnam’s wooden product exports in January-September to US$2.45 billion. Exports to major markets namely the U.S., the EU and Japan have risen by 34.2%, 13.8% and 20.8% respectively.