Vietnam is rising in the wood processing industry and furniture production
Vietnam is rising in the wood processing industry and furniture production
As the second largest wood and wood product exporter in Asia and the largest in Southeast Asia, Vietnam is a rising star in the wood processing and furniture production industry.
On October 18th, at the 14th International Exhibition on Machinery, Equipment, Materials and Products for the Woodworking and Furniture Manufacturing Industries (VietnamWood 2022), Vietnamese wood companies had access to advanced and modern wood production machinery and equipment for manufacturing and exporting.
According to Mr. Nguyen Chanh Phuong, Vice Chairman of the Ho Chi Minh City Handicraft and Wood Industry Association, Vietnam is the world's sixth largest exporter of processed wood and furniture, accounting for over 4% of the global market, the second largest in Asia, and the largest in Southeast Asia.
In just the first 8 months of 2022, wood and wood product exports reached over 11 billion USD. Vietnam is definitely a rising star in the wood processing and furniture production industry.
However, industry experts also acknowledge that this promising wood production and export market still faces challenges such as a lack of raw materials and modern machinery. Specifically, domestic wood supply only meets about 75% of processing demand, and the equipment being used is on average produced since the 2010s.
VietnamWood 2022 attracted many international companies, especially from Europe, where the wood processing industry has been developed for a long time.
This year's exhibition will be more impressive with international booths such as Canada, France, Germany, Russia, and the US, focusing on introducing the global value chain in the wood processing industry, creating a strong connection between the wood processing industry and furniture in Vietnam.
According to Mr. Le Duc Hieu, Project Director of Vetta Company, with the rise of the trend of automation in manufacturing to reduce the number of direct labor, replaced by machinery technology, Vietnamese enterprises are increasingly oriented towards specialized product production.
The brands participating in VietnamWood 2022 have introduced solutions to control products from raw materials to completion and delivery to consumers. From there, ensuring consistent quality among products, reducing production costs, innovating product designs, and increasing profits. This is also the strategy of the Vietnamese wood processing industry at present.
According to Mr. Nguyen Chanh Phuong, in the context of the 4.0 industrial revolution, investing in technology and software solutions plays an important role in the wood industry moving towards smart manufacturing plants. Smart production is no longer new in Vietnam, however, the percentage of wood processing enterprises investing in this model is currently very low (5-10%). Vietnamese wood enterprises have enough financial capacity to invest, but lack personnel with sufficient skills to operate technologies and software solutions.
