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Furniture Export : FDI is crowding out

According to the General Administration of Customs , exports of furniture in September the country was over 305 million U.S. dollars, exports of private enterprises FDI accounted for almost two thirds of the total , or 200 million U.S. dollars . For the year to date export processing wood grossed over U.S. $ 2.6 billion , private FDI enterprises earned 1.67 billion U.S. dollars , which accounts for over 64 % of the total.

Mr. Huynh Quang Thanh , Chairman of Association of Woodworking Binh Duong , said this year the export processing industry and furniture quite well developed compared with the previous year . After years of being affected by the world economic downturn , the demand for wood from key markets such as the U.S. , Japan , EU is rising .

Processing and Vietnam furniture exports , are ranked No. 1 and No. 2 Southeast Asia Asia , after China , is welcome these changes . Another advantage of the wood processing industry is the customer EU , U.S. and Japan are moving from production orders in China to Vietnam .

However, businesses should not always take advantage of this opportunity . Mr Thanh said there is strong differentiation among firms in the industry , if businesses have enough processing capacity , most FDI from Taiwan , USA, UK … ” do all day and night ” was not timely delivery partner then the unit ” sitting idle ” because the partners choose not to order this unit . Most of these are now Vietnam .

According to him , not only have the management capacity , high finance than domestic enterprises , these enterprises also available partner network is the distribution system , hypermarkets in major import markets as the U.S. , Japan , EU , they do not take the time to learn as the business partner in the country.

According to the American Association of Woodworking Technology and HCMC ( Hawa ) , a recent phenomenon alien to lease the factory and warehouses of the processing companies are struggling to export production , the destination is the U.S. market , China


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