Exports of furniture: "Waves underground" in the EU

Exportsof furniture: "Waves underground" in the EU

Update at 22:30, Wednesday, 08.03.2016 (GMT + 7)

The UK leaving the European Union (EU) (Proposed referendum on United Kingdom membership of the European Union) have made many enterprises operating in the export sectors of Vietnam with large export turnover to this market are concerned, especially industry enterprises process the wood.

Between last July, Wood and Forest Products Association of Vietnam has organized the seminar with the theme "Proposed referendum on United Kingdom membership of the European Union and the impact on Vietnam's wood industry", experts and manufacturers agreed that wood industry may experience "groundswell" in this market in the near future.

* Impact rate

According to Wood and Forest Products Association of Vietnam, in 2015 exports of wood products from Vietnam to the UK reached nearly 270 million, accounting for about 36% of total exports to the EU, this market continued to increase in many years. However, world events Proposed referendum on United Kingdom membership of the European Union are doing export of forest products processing concerns.

Woodworking in Nhat Nam Joint Stock Company.

Secretary General of Wood and Forest Products Association of Vietnam Nguyen Ton Quyen said that the Proposed referendum on United Kingdom membership of the European Union in the long run will reduce about 50% of furniture exports to the UK market, the equivalent of about 50 million / year. According to economic experts, the cause of the state of exports to the UK fell by furniture its currency devalued and older make expensive goods consumption leads to decrease.

Some furniture manufacturers now export in Dong Nai said, so far in this new market of exterior wood products started to impact prices, furniture items have yet to be affected . Mr Phan Van Binh, Chairman of JSC Nhat Nam, president of the Association of Timber and crafts Dong Nai (DOWOOHA), worry that the wood processing industry in the future will be affected. "The event did not cause shock right Proposed referendum on United Kingdom membership of the European Union market for the wood industry Woodworking but dull its impact. In my opinion, to the end of this year or early in 2017 the timber industry will have trouble enough permeability influence Proposed referendum on United Kingdom membership of the European Union "- Mr. Binh share.

Nguyen Van Tho, Director of Minh Thanh Company Limited (Eternal district), said timber exports affected not only individual in the UK market, but also the EU market was also impacted by the euro also failed to hold prices should have negative impact on the situation in export markets.

 * Find new markets

Tran Van Thanh, director of Kien Phuc Private Enterprise (Trang Bom district), said many wood processing enterprises exported to EU and UK markets were hunting for new markets for annual season from 2016 to 2017 to prevent the 2 bad scenarios in this market.

This was Tran Le Huy, Secretary General of Association of Wood Binh Dinh, shared at the seminar, many businesses large export timber cargo of Binh Dinh is considering reducing orders in the UK market to avoid risks muzzle. Also warns Wood Association and crafts Dong Nai, the EU market in the near future not only on price but also difficulties with technical barriers will be erected.

One of the other concerns of the wood processing enterprises export, it is in this traditional market has to compete not only with China but also goods of other countries 2 are Indonesia and Malaysia is also promoting export furniture in the EU, especially Britain. According to experts, the big advantage of 2 countries to have cheaper sources of wood materials in Vietnam and the better labor productivity. This is detrimental to the wood processing enterprises in the country of export. EU as the 3rd largest export market of Vietnam furniture, as this market disadvantage will affect the overall exports.