Hawa to Add Wings to Wood Enterprises

For the past time, HAWA has play a strong role in representing and protecting the rights of members, supporting enterprises in all aspects, as well as gathering members to overcome challenges. Especially in 2011, HAWA successfully held and contributed to 15 seminars with subjects of regulations for wooden products, introduction of design trends, new technologies, solutions for exports, and market information; drawing the participation of 60-80 businesses per programme on average.

 

Trade promotion activities of HAWA also made a great contribution to wood export turnover in 2011. Particularly, HAWA coordinated to successfully hold the Wooden Products Exposition (under National Trade Promotion Programme), which has become one of the most important promotional channels for wooden products in Vietnam and the region. Especially, VIFA 2011 (national trade promotion for wood and handicraft) was appreciated by enterprises, thanks to the many orders it brought about. We also coordinated with Vietnam Trade Promotion Agency to organize a business mission to attend the International Furniture Fair in Las Vegas, the US. Markets for wood export have been expanded, including many high potential ones such as Italy, China and India. We have been involved in trade promotion and exchange activities with other foreign missions, and market surveys, creating conditions for businesses to foster exports to key markets and seek potential destinations; benefiting members in particular and enterprises in the industry in general.

 

HAWA also held an Admission Ceremony for 26 new enterprises, raising the total number of members to 333; in which wood processing businesses account for 51.3 percent, handicraft businesses account for 26.1 percent, commercial and supporting ones account for 22.6 percent. Association, supporting and high value order sharing activities among members also have increased. In addition, the Association also actively participated in consulting on policies and building legal procedures for the industry, which draws much attention from wood enterprises.

 

2011 was considered a hard year for wood enterprises. Economic fluctuation and escalating inflation caused most businesses to lose profit from the beginning of the year and to decrease production.

 

At the same time, since the beginning of the year, the Government has released the policy regulating prices under the market mechanism; in particular, adjusted exchange rates increased input material prices, along with raised prices of electricity, petroleum, oil and coal. Meanwhile output prices remained the same, causing difficulty for enterprises, especially exporters, cutting trading motivation and resulting in decreased profit. It can be seen that Government’s policy regulating prices under the marker mechanism is absolutely right, however, implementation should be considered in specific and reasonable time to avoid shock among businesses.

 

In my opinion, first, the Government should have plans to support enterprises but in a controlled manner and give priority to exporters, thereby reducing the trade gap and pulling in a large amount of foreign currency, helping to restructure and promote the national economy and stabilize social security. Especially, conditions should be created for enterprises to access capital at reasonable interest rates so they can maintain and develop their production and business.

 

However, in addition to the governmental assistance, it is also very important for businesses to be sharp and active to overcome difficulties. Apart from the traditional capital channel from banks, they should seek other sources such as shares, holdings, bonds, purchasing on credit, financial lease or business associations. Especially, to promote internal strength, enterprises should use capital in an effective manner, in which special attention is paid to cost reduction, technology innovation to increase productivity and working efficiency, decrease payment duration to speed up capital turnover, minimize dependence on banks; ensure payment for export goods, make a backup plan against exchange rate fluctuation; and avoid consumption by trading off loss for keeping clients.

 

As for HAWA, to support businesses, we are actively seeking new markets. At present, HAWA is finding consumer channels in China, Italy and India since they are large consumption markets.

 

Inheriting the reputation and success from Fairs in previous years, so far VIFA has attracted registration for over 550 kiosks in the indoor area of 6,000 square meters and additional outdoor area of 2,500 square meters. Especially, VIFA 2012 will have visit tours to showrooms, wood manufacturing and handicraft factories in places near Ho Chi Minh City such as Dong Nai and Binh Duong. In particular, after visiting the Fair, visitors can go directly to factories by our buses, a new service to match our expanded scale.

 

Joining VIFA 2012, enterprises will have their communication and promotional activities implemented in the most effective manner thanks to the professionalism and experience of the Organizational Board. They will have chances to meet directly customers without intermediate stage, thereby give visual offers; as well as establish trade relations and cooperation with target customers. Besides, coming to the fair, businesses will be given opportunities to communicate their brands effectively; find new potential partners and access new markets. Among new activities aiming to benefit the Vietnamese wood processing and handicraft sector, VIFA 2012 is a profoundly helpful trade promotion channel giving wings to enterprises to access and expand market, and affirm the reputation of Vietnamese wooden furniture in international markets.