DOMESTIC WOOD MARKET: 90% OF THE MARKET IS LITTING
With a value of up to 4 billion USD / year, the domestic furniture market is creating great opportunities for business enterprises in this field.
The domestic market has a lot of potential for wood products
The domestic market has a lot of potential for wood products
According to Vietnam Timber Association, in 2017, the average consumption of domestic wood products is about 31 USD / person, equivalent to nearly 2.8 billion USD in revenue. If including the increase of housing projects, the demand for furniture in the domestic market in the coming time is not small, up to 4 billion USD.
The real estate industry (accounting for 40% of the consumption of wood products) is recovering, leading to an increase in the demand for furniture and wooden furniture for buildings, showing the growth of wood industry Inland is great.
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However, the domestic furniture market only has a few big names and has a market share and revenue is only about VND 2,000 billion. About 90% of the remaining market share is still open. This is a great opportunity for domestic enterprises because Vietnamese wood processing enterprises are capable of making quality products, meeting the demands of fastidious markets like Europe and the US ... There is no reason not to serve the domestic market.
Mr. Nguyen Ton Quyen - Vice Chairman and General Secretary of Vietnam Timber and Forest Products Association said that the Government facilitates export wood enterprises to benefit from policies such as: 0% import tax on wood , wood products made are not taxable, customs and preferential tax ... Therefore, many businesses have signed processing contracts with large foreign companies, products are covered. Meanwhile, in order to develop the domestic market, businesses have to bring their products to introduce themselves, sell goods and face many difficulties. This is the reason why many wood enterprises are not interested in the domestic market.
However, opportunities for timber enterprises are huge when in general, Vietnamese consumers have seen furniture like consumer goods and fashion, so they began to choose to buy and change furniture regularly. Notably, domestic users are increasingly demanding more living space, ordering back to the interior design team of products that are suitable for personal preferences. This is a very good condition for the domestic market to develop. Enterprises need to catch up with the demand of the near future of domestic users to dominate the market.
Mr. Nguyen Quoc Khanh - Chairman of Ho Chi Minh City Fine Arts and Wood Processing Association. Ho Chi Minh (HAWA) emphasized that the problem of the domestic market is to have big distributors. At present, we are lacking in house delivery services but in the future, the market will surely have big distributors in Vietnam.
Thu Hoai - Source: enternews.vn
