Restoring the growth momentum of Vietnam's wood industry

A wood industry fair with unprecedented scale

The 2024 International Outdoor Style Fair (Q-FAIR) was officially opened on the morning of March 9 at Nguyen Tat Thanh Square, Quy Nhon city, Binh Dinh province. Notably, the opening ceremony was attended by Deputy Minister of Agriculture and Rural Development Nguyen Quoc Tri.

According to Mr. Le Minh Thien, Chairman of the Forest Products Association of Binh Dinh province and Head of the Q-FAIR 2024 Organizing Committee, wood and wood products are making significant contributions to Vietnam's export turnover. With its position as the world's leading wooden furniture supplier, Vietnam's wood industry has reached over 140 countries and territories around the world. Moreover, the industry is gradually establishing a presence in key markets such as the United States, the European Union, South Korea, Japan, and China.

However, Vietnam's wood industry and the global market as a whole faced considerable challenges in 2023 due to high inflation, high interest rates, economic slowdown, with the majority of obstacles presenting in key consumer markets such as the United States, the European Union, and the United Kingdom. Additionally, competition from regional and international markets, in addition to global market instability, significantly impacted the domestic business environment. This necessitated rapid innovation, optimization of production processes, and enhancement of product quality and uniqueness within the Vietnam's wood industry. Namely, flexibility and creativity from the wood industry business community, especially in outdoor furniture, were required to attract customers and strengthen Vietnam's wood industry position in the international market.

Q-FAIR 2024 was organized with the aim of providing a space for businesses within the wood industry to seek cooperation opportunities and foster breakthroughs. The event saw the participation of over 1,000 exhibition booths from more than 100 businesses, showcasing outdoor furniture and products with an emphasis on modern lifestyles. Q-FAIR 2024 serves not only as an exhibition of products and technologies but also as a platform for wood businesses to collaborate, thereby establishing crucial connections between businesses, manufacturers, and international buyers.

"The 2024 International Outdoor Style Fair not only aims to promote products and brands but also opens up opportunities for cooperation, discovering solutions, sharing experiences, and building strategic partnerships to overcome challenges, not only in the international market but also in the domestic business environment. Consequently, we can foster strategic and sustainable connections," shared Mr. Le Minh Thien.

Mr. Pham Anh Tuan, Chairman of Binh Dinh Provincial People's Committee, believes that the 2024 International Outdoor Style Fair is the first wood industry event to be held in Binh Dinh province. The fair serves as a platform for product promotion, exchange of experiences, and seizing investment opportunities to expand the market for both domestic and international businesses in the wood industry. Furthermore, it aims to develop a sustainable and efficient wood processing industry by 2030.

"The fair acts as a hub for producers of indoor and outdoor furniture, auxiliary accessories, machinery, and equipment for outdoor wood processing; it also provides an opportunity for businesses to gain a deeper understanding of the potential, opportunities, and solutions for the Vietnam's wood industry. This edition of the fair is comprehensively-invested, professional, and unique with its unprecedented scale. Notably, the fair features numerous wooden house showcases, creating an innovative and creative space for promoting trade and exports in Binh Dinh province," noted Mr. Pham Anh Tuan.

Opportunity to regain growth momentum

According to Mr. Do Xuan Lap, Chairman of VIFOREST, the Vietnam's wood industry has made an impressive development journey from traditional manufacturing facilities to modern and innovative businesses. Moreover, businesses within the industry have continuously innovated with relentless efforts from the community of manufacturers and export businesses.

The Vietnam's wood industry offers high-quality products which represent both creativity and the determination to attain sustainable development and prosperity for the entire business community.

"Binh Dinh province possesses numerous advantages in terms of geographical location, abundant natural resources, favorable infrastructure, and an open-minded local government that accompanies the business community. Binh Dinh's wood industry accounts for nearly 60% of the province's export turnover, ranking fourth in the country in terms of wood and wood product exports. In terms of Vietnamese businesses, Binh Dinh province ranks second only to Binh Duong province," emphasized Mr. Do Xuan Lap.

According to Mr. Lap, Q-FAIR 2024 features 1,000 exhibition booths with the participation of over 100 businesses from various countries and territories such as China, France, Spain, Taiwan, Malaysia, and Vietnam, along with visitors from both domestic and international markets.

"The scale of Q-FAIR is projected to expand to 1,500 booths by 2025, with further growth expected in the future. At Q-FAIR 2024, Vietnamese wood processing companies as well as Binh Dinh's local businesses have the opportunity to establish comprehensive and long-term partnerships for their production and trading activities. Additionally, they can find modern, advanced, and automated machineries and equipment to adapt to the Fourth industrial revolution, with a focus on the goal of reaching 20 billion USD in wood export turnover by 2025, as set by the Prime Minister for the Vietnam's wood industry," shared Mr. Do Xuan Lap.

Deputy Minister Nguyen Quoc Tri acknowledged the efforts of stakeholders in organizing the event. In addition to organizing Q-FAIR 2024, the Vietnam's wood industry recently successfully organized the HawaExpo 2024 in Ho Chi Minh city.

According to Deputy Minister Nguyen Quoc Tri, the successful organization of HawaExpo 2024 and Q-Fair 2024 at the two largest wood furniture production centers in Vietnam, with a considerable number of exhibition booths and visitors, will be an effective channel for trade promotion. Furthermore, these events facilitate various connections, exchanges, and collaborations, thereby promoting the image of Vietnamese wood and wood products to the global market.

"These are essential activities to regain the growth momentum in 2024 and the following years. We must strive towards achieving the target of 20 billion USD in wood export turnover by 2025, as outlined in the Sustainable and Efficient Wood Processing Industry Development Project from 2021 to 2030, which has been approved by the Prime Minister. Consequently, the Ministry of Agriculture and Rural Development, as the central management agency for forestry, is committed to accompanying businesses and associations," emphasized Deputy Minister Nguyen Quoc Tri.

"We welcome and appreciate our partners who provide machinery, equipment, raw materials, and supplies for the wood processing industry in Vietnam; customers who have placed their trust in Vietnamese wood products. You are not only customers or suppliers to the Vietnam's wood processing industry; you have created employment opportunities for nearly 500,000 workers, improved the livelihoods of numerous rural households in mountainous regions, contributed to the protection and sustainable development of forests, environmental protection, and greenhouse gas emissions reduction," shared Deputy Minister Nguyen Quoc Tri.