Rattan, bamboo, sedge, and carpet set '2-year record', aiming for 'billion dollar' items

The above data is provided by the General Department of Customs. Overall, in the first 3 months of 2024, exports of rattan, bamboo, sedge, and carpet products reached USD 212.07 million, an increase of 28.3% over the same period in 2023.

This is a positive sign because this product group decreased sharply in February due to the extended Lunar New Year holiday, reaching only USD 47.26 million, down 40.7% compared to January 2024; down 16.7% over the same period in 2023.

According to the Import-Export Department, except for the period of February, rattan, bamboo, sedge and carpet products grew steadily in early 2024. Most recently, from March 5 to March 19, this product reached a turnover of USD 37.83 million, an increase of 14.5% compared to the previous period (from February 20 to March 5).

Previously, for the whole year 2023, this group of products earned more than USD 733 million for Vietnam, down 10.4% compared to the same period in 2022. The decrease compared to 2022 gradually narrowed through the last months of the year. saw an improvement in exports.

In terms of structure, carpet export turnover reached USD 22.89 million, an increase of 20.7% compared to the previous period; woven water hyacinth reached USD 5.45 million, an increase of 26.8%; woven bamboo reached USD 2.77 million, up 4.4%; woven sedge reached USD 2.12 million, up 2.7%; Rattan reached USD 1.53 million, an increase of 28.6%.

In the past period, rattan, bamboo, sedge and carpet products were exported to 59 markets; Of which mainly exports to the United States reached USD 14.48 million, an increase of 8.4%; to the UK reached USD 2.75 million, up 30.4%; to Japan reached USD 2.26 million, up 3.1%; to Spain reached USD 2.19 million, up 9.1%...

Some export shipments achieving high prices include: Rectangular sedge mats measuring 300x1,080cm, exported to the US market at a price of USD 238.1 per piece; Rattan chair, size 85x85x74cm, exported to Puerto Rico market priced at USD 200.0 per piece; Bamboo core table, mother-of-pearl inlay, size 91xH44.5cm, exported to the US market priced at USD 127.3 per piece; bamboo lacquer table (set of 3), size 109x40xH76cm x 1; 50x40xH50cm x 2, exported to the UK market priced at USD 124.0 per set.

Vietnam is one of the large exporters of rattan, bamboo, sedge and carpet products. Experts say capturing 10-15% of the world market share is completely feasible. When the global bamboo market size is expected to reach USD 82.9 billion by 2028, rattan and bamboo can bring billions of USD to Vietnam.

There are many opportunities for Vietnam to dominate the rattan and bamboo market because the bamboo area in the country is up to 1.5 million hectares, distributed in most provinces across the country, of which 37/63 provinces have an area of over 10,000 hectares. Vietnam's bamboo resources are rich and diverse, with hundreds of species, including some highly economic species such as Dendrocalamus barbatus, Bambusa bambos...

In particular, the whole country has over 1,000 bamboo and rattan craft villages, accounting for 24% of the total number of handicraft villages. In particular, the Northern and Central regions focus more on rattan, bamboo and sedge products, while the Southwest focuses on water hyacinth and loose-leaf products.

Acknowledging the opportunity for Vietnamese rattan and bamboo, Mr. Le Ba Ngoc, Vice President and General Secretary of the Vietnam Handicraft Exporter Association (Vietcraft), said that the trend of consuming and using handicraft products technology has changed, requiring the production process to be transparent and clear, from the raw material area to the entire product making process.

At the same time, craft villages need to have more beautiful designs, apply information technology to help products meet market requirements, as well as have more messages about humanistic and cultural values.

Mr. Ngoc also said Vietnamese handicraft products face fierce competition from markets such as India, Mexico, Thailand... Therefore, he recommends that businesses, cooperatives, and producers explore additional markets, such as India, Korea, China, Mexico, Chile...besides traditional markets.

"If we invest in developing a systematic design system for the industry, export turnover will not stop like it is now and will soon reach the billion USD group," Mr. Ngoc commented.

Currently, the Federal Reserve System (FED) has issued messages to stop raising interest rates and consider reducing interest rates in 2024. Inflation is cooling down. Employment is increasing, and construction and home sales are increasing. Earth has a positive signal. Meanwhile, the inventory problem is gradually being overcome, opening up many opportunities in the number one export market for rattan, bamboo, sedge and carpet.

On the contrary, in the Canadian market, the low exchange rate compared to the USD makes it difficult for Vietnamese goods to compete. The CPTPP Agreement's tariff advantage to Vietnamese exports will gradually disappear. In the EU, the EU Deforestation Regulation (EUDR) will take effect from December 2024 but are waiting to propose specific content for Vietnam.

"Make the most of the US market right now" is the message that Mrs. Duong Minh Tue, Vice President of Handicraft and Wood Industry Association of HCMC (HAWA), gives in the current context. Ms. Tue said that the traditional export market segment has been facing many challenges due to weak global consumer demand, and increased protection barriers, and many countries continuing to maintain tight monetary policies.

On that basis, businesses should research, develop, and find partners through e-commerce. Sales of furniture and handicrafts are still growing rapidly in this space. Therefore, this can be considered a new direction for businesses.

Thanks to the contribution of rattan, bamboo, rush and carpet products, the export of wood and wooden products in the first quarter of 2024 reached USD 3.4 billion, an increase of 18.9% over the same period in 2023. Currently, orders at many businesses have recovered up to 80 - 90%. Some businesses have orders until mid-2024.

In 2024, the global trade outlook is not forecast to be very good. However, positive signs of recovery from some key markets such as the United States, and the EU... have brought optimism to Vietnam's wooden furniture and handicraft export industry.