Vietnam should enter high-end market, as we have many advantages of a world-leading wood exporter. Before long, we will be able to consolidate our position if participating in the supply chain of global high-end furniture sector.
* The major economies and importers of Vietnamese products like the U.S., EU cutting down on expenditure results in pressures against Vietnam’s wood processing industry in the year 2023. In the new year, according to you, what are the recovery prospects?
– The hardships post-COVID 19 pandemic followed by a political crisis have together dealt a heavy blow to the world economy in general and the major economies such as the U.S’ or European in particular. This reality had fundamentally affected Vietnam’s exports, especially of wood products. I suppose that the situation is not going away any time soon, as the war and political crises are escalating and expanding.
In turn, we are obliged to look for solutions to adapt, survive and grow. For now, the local businesses need to scan through their entire systems, procedures, as well as their business philosophy, in anticipation of market adaptation and expansion.Longer strategy could possibly be re-distributing resources, forming new alliances, establishing stronger and more sustainable supply chains. The competitive edges such as favourable policies, cheap labour costs will sooner or later disappear, with quality, defined by the level of creativity or sophistication, and high skills becoming the new edge for Vietnam and its labourers.
* PT&T Wood is a leading table & chair manufacturer for high class projects. How would you talk about this sector? Does it contain a lot of hope for local businesses?
– We have been making high-end furniture for more than 10 years. Currently, the market is growing to be more favourable, as customers are placing greater concern over quality and aesthetics. Therefore, the sector is promising for the local businesses. Like I said, the low labour cost will soon wane away as average income increases, together with the rise of automation in production processes effectively replacing the simple, manual work. Vietnam should and will enter this global high-end sector because we possess a lot of advantages in terms of platforms, being a major worldwide exporter. Before long, we will be able to consolidate our position if participating in the supply chain of global high-end furniture sector.
* What are some experiences of PT&T in penetrating global markets?
– To be recognised as an exporter of high-end products, PT&T has, via R&D, demonstrated our competency with a range of fine quality products even before the actual orders. The international buyers are very discerning with regards to a business’ competency as well as the quality of their products.
Besides, the communication from the business has to be properly conducted, in order to be discovered and easily reached out by potential partners any time the needs and opportunities for collaboration occur. Another opportunity being, Vietnamese businesses can now participate in exporting the interior space, therefore able to generate a full-on project for international customers to experience.
* What are the conditions to be met in exporting interior space?
– Project export is widely understood as exporting interior spaces, wherein included design and complete furnishings. This requires a large amount of brainpower in both managing, operating and products themselves, requiring the businesses to be able to maintain high-level administration, deep insight into labourship, and understanding of international standards. Quite a challenge, but i believe that Vietnamese businesses are capable, as long as they are adequately equipped. The crucial condition is a relatively stable production capacity, good R&D and alliances formed amongst the businesses in and outside the sector, such as communication, suppliers of equipments and labours of international standards.
* Meaning to put together respective strengths of each business to create a comprehensive space wholly catered to international customers?
– it is wonderful if the businesses are able to form alliances based upon their own strengths for full-package orders, especially international grand-scale projects. There is a huge diversity within furniture products in terms of wood types and grades, beddings, metals. It is next to impossible for a single business to be able to do well, let alone outstandingly in all of their participated fields. Moreover, for their unique strength, each brand is a compelling story to tell, a lively identity while being a part of the greater picture, of quality and class.
* Besides export, is there any opportunity in the local market of Vietnam?
– The local market has been a target for many furniture and manufacturing businesses since the time when exports were hampered or declined. With the rising income and awareness, the products of high quality and aesthetic values are making themselves a realistic need amongst the customers who were previously not exposed to them.
* Thank you.
By Huy Khang
