VIFA 2012: Opportunity for Woodwork Businesses to Assert Calibre

The VIFA 2012 takes place when international markets remain uncertain, the domestic economy is still in a difficult and challenging situation, and woodwork - handicraft export revenues fail to meet expectations. However, despite challenges, there are still advantages. Especially, the Vietnamese wood industry was quite successful in 2011, with export turnover amounting US$3.9 billion, up 14.4 percent from 2010. In 2012, the sector targets US$4 billion of export earnings. Export revenues to China, Japan, the Middle East and South America have grown stably in the past years and are expected to keep momentum in 2012. The VAFI 2012 has drawn 125 exhibitors registering to showcase on more than 600 booths. Notable exporting exhibitors at the VIFA 2012 include AA, Casarredo, Farm House, Global Home, Hiep Long, Ho Nai, IFC, Interwood, Koda, Lam Viet, Latitude Tree, Lyprodan, My Tai, Nghia Phat, Ngoc Dong Ha Nam, Rossano, Saigon Furniture, Scansia Pacific, Thinh Viet, Tien Trien, Tropidane, Woodnet and WoodTrade. Regarding exhibition structure, woodworks account for 63 percent of booths; woodworking materials and machinery take up 26 percent; and handicraft and interior decoration register 11 percent. Companies from China, Australia, Singapore and other nations have register 13 percent of booths, mainly exhibiting wood products, accessories and processing machines.

 

Domestic exhibitors come from major woodworking centres like Ho Chi Minh City, Binh Duong, Dong Nai, Binh Dinh, Long An, Binh Phuoc, Gia Lai, Hanoi, Vinh Phuc and Hai Duong. This somewhat tells the expansive scope of the VIFA on the national scale. This year’s four-day event features an outdoor exhibition covering 1,200 square metres with nine wooden houses in resort-style designs with lawns and trees. During the fair, organisers organise two daily tours for foreign importers to visit wood processing enterprises in Binh Duong, Dong Nai and Long An provinces. Especially, the VIFA 2012 also organises Factory Visit Tour (9am to 2pm) for foreign importers and customers to tour showrooms and factories of 9 exhibitors. This makes businesses and customers rest assured in their choices. The fair also incorporates business exchanges and conferences like "Opportunity to boost furniture and handicraft exports to the US market" and "Solutions to maintain and develop export markets for Vietnamese wooden furniture and handicraft industry.” The organisers reportedly have used over 20 percent of their budget for advertising campaigns on domestic and international media, particularly in potential markets like Singapore, the US and the EU.

 

After four successful versions, the VIFA continues to acquire the trust and companion of more domestic and international businesses and visitors. Not only an effective trade promotion channel, the event is also a good opportunity for exhibitors to improve competitiveness and confirm brand value, thus enhancing the position of Vietnamese woodwork and handicrafts on global markets. The VIFA 2012 will gather manufacturers, distributors and traders displaying and introducing a wide range of nice-looking woodwork and handicraft products made by skilled and experienced workers and specialists. Apart from exploring unique products, visitors will also have the chance to meet, exchange and establish business partnerships with leading Vietnamese export manufacturers. Besides, they will get to know the new product collections of domestic producers.

 

At the VIFA 2012 introductory press conference, Mr Nguyen Chien Thang, Chairman of the Handicraft and Wood Industry Association of Ho Chi Minh City (HAWA), said: “In the context of growing demand for woodworks and handicrafts in Vietnam and the world, the VIFA 2012 becomes a dynamic transaction point and an opportunity for Vietnamese woodwork and handicraft businesses to show their scope, capacity and calibre to international markets.”

 

It is quite clear that the appearance and position of the Vietnamese wood processing industry have changed significantly in the past years. Foreign investors and buyers tend to shift their interest from regional countries to Vietnam. As a result, woodwork and handicraft export turnover of Vietnam are rising.

 

However, Vietnamese companies have experienced a very tough time in 2011 and early 2012. Huynh Van Hanh, Vice Chairman of HAWA, said “HAWA conducted a business survey in January. It showed that besides challenges of rising inflation and volatile economy, soaring input costs are also major problems for timber businesses in 2012. Currently, production costs have risen 24 percent and financing costs like lending interests climbed 2 percent while selling prices increased just 5-7 percent. This reality has forced a majority of woodwork companies, particularly small and medium ones, to downscale production. But, there is a good sign that most major manufacturers have enough orders for operations through the second quarter of 2012.

 

Firms will have to cut production costs, create added value for products through designing, changing product models and marketing strategies to keep their major markets and expand to potential ones, he said. In addition, they have to step up trade promotion and advertisement activities to introduce unique Vietnamese wood products and handicrafts to the world. Mr Hanh said: “Businesses need to be aware that good marketing pushes back any obstacles. In a tough time, they must promote trade activities, maintain existing customers and seek new ones to boost production and business activities. While most companies are small and have difficulty joining international exhibitions in other nations to increase exports, the VIFA 2012 will be a favourable opportunity for them to contact and meet foreign buyers and promote trade and export in Vietnam.”

 

HAWA Vice Chairman Tran Quoc Manh said Vietnamese companies must directly explore and expand into new markets like the Middle East, Russia and Eastern Europe in addition to traditional ones. This year, HAWA plans to strengthen trade promotion activities in support of domestic businesses. It will attend the Las Vegas Furniture Fair in the United States to advertise and seek partners for VIFA Home Fair 2012 Home.