Vietnam's wood industry actively promoting domestic market exploration

In response to substantial export difficulties, Vietnam's wood industry is proactively engaging with the domestic market. This market is witnessing a growing demand for wooden products featuring novel and contemporary designs.

The Exported Wood Furniture Fair Serving the Domestic Market - TavicoHome Viefurn 365, was recently held in late September and early October in Bien Hoa city, Dong Nai province. The fair featured nearly 1,000 booths from various wood-related businesses, from Dong Nai and Binh Duong provinces as wel as the central and northern regions of Vietnam.

As the name "Exported Wood Furniture Fair Serving the Domestic Market" suggests, this event provided Vietnamese consumers with the opportunity to admire and select wooden products that meet export standards at reasonable prices.

According to Mr. Vo Quang Ha, the General Director of Tan Vinh Cuu Joint Stock Company (TAVICO) and organizer of TavicoHome Viefurn 365, the fair featured the participation of not only local craft villages and domestic furniture stores but also numerous businesses specialized in producing wood furniture for export. As a result, wood products at the fair included both traditional Vietnamese-style wooden items as seen in previous domestic-focused wood furniture exhibitions, and modern and innovative designs typically reserved for export markets.

Mr. Vo Quang Ha further noted that TavicoHome Viefurn 365 aspired to transcend the customary pattern of short-term wooden product exhibitions that often span a few days or a week, which are prevalent in other wood industry fairs. Accordingly, its overarching ambition is to establish a year-round venue showcasing "Western wood at eastern prices." This venue will primarily cater to young customers with a preference for modern, environmentally friendly wooden products at prices well-suited to the financial means of Vietnamese consumers.

TavicoHome Viefurn 365 stands as a significant milestone indicative of the proactive endeavors undertaken by Vietnamese wood-related businesses in their exploration of the domestic market. The domestic market, characterized by a growing population of 100 million, rapid urbanization trends, and an annual construction of approximately 70 to 80 million square meters of residential space, has witnessed an escalating demand for wooden commodities, encompassing both interior and exterior furnishings. The inherent potential within Vietnam's domestic wood market is substantial; however, this market traditionally relied solely on products from conventional craft villages, small-scale workshops, and imported items. Although wood processing and export businesses have initiated their foray into the domestic market, their presence remains circumscribed, lacking comprehensive strategies for extensve market access.

Moreover, the concerted emphasis on the domestic market serves as a risk mitigation mechanism for the wood industry amidst growing export challenges. Mr. Do Xuan Lap, Chairman of the Vietnam Timber and Forest Product Association, contends that reasserting the domestic market represents a viable approach when confronted with an array of challenges in wood exports. This strategic shift not only diversifies the industry's distribution channels but also fosters new avenues for business expansion, augments revenue streams, secures employment opportunities, and reduces the industry's reliance on export activities.

The reengagement with the domestic market enables wood businesses to harness the underutilized potentials of domestic consumption, and affords Vietnamese consumers the opportunity to possess high-quality furniture products that bear the hallmark of Vietnamese craftsmanship. This adjustment towards the domestic market, in essence, allows stakeholders in Vietnam's wood industry to harness the collective potential of an expanding domestic market, in addition to simultaneously sustaining growth from export-oriented efforts.

The Vietnam’s wood industry, comprising over 5,400 businesses and more than 500,000 laborers, has established a significant presence in the international market.

Notably, products from the Vietnam’s wood industry has reached 140 countries around the world, including 40 key markets. In terms of wood exports, Vietnam ranks among the top 5 largest exporting countries globally, the second-largest in Asia, and is the leading exporter in ASEAN.