A solid foundation for regional export centers
Mr. Phung Quoc Man - Chairman of the Ho Chi Minh City Wood Art and Processing Association (HAWA) - said that the Vietnamese wood industry has developed remarkably - from a turnover of less than 200 million USD in 1999, expected to reach 20 billion USD in 2025.
Currently, Vietnam ranks second in the world in exports of furniture and wood (after China), with products available in 166 countries and territories. The industry has formed a relatively complete supply chain.
After the merger, Ho Chi Minh City accounts for nearly 50% of the total export turnover of wood and wood products of the country, in which Binh Duong (before the merger) is considered the "capital" for processing. The city owns a closed supply chain from production, processing to logistics and seaports, this is the foundation for "identifying" the role of regional center.
With that potential, Mr. Phung Quoc Man suggested that Ho Chi Minh City should have a support policy to become the focus of global wood and furniture production and export.
Chairman of the Ho Chi Minh City People's Committee Nguyen Van Duoc agreed that businesses cannot continue processing. He emphasized that businesses must rise up, become a part of the global supply chain and master the game with Made by Vietnam products, not just Made in Vietnam.
According to Mr. Nguyen Van Duoc, Ho Chi Minh City needs to promote a model of linking government, associations and businesses, using HAWA as the core to implement the strategy of turning the city into a global "Hub" of wooden furniture. Each enterprise must form a research and development (R&D) department, incorporating Vietnamese culture into the product to create its own identity.
The key to elevating the Vietnamese wood industry
Mr. Nguyen Quoc Khanh - Chairman of the Board of Directors of AA Corporation - commented that Ho Chi Minh City needs to have its own furniture brand.
Vietnam currently has a certain position in the processing chain, but the brand is still associated with low prices, not competitive enough like China. With nearly 70% of wood export enterprises, Ho Chi Minh City has all the conditions to build a strong brand" - he said.
Mr. Le Duc Nghia - Chairman of the Board of Directors of An Cuong Wood Company - pointed out that the current major barrier is that businesses must promote digital transformation, green transformation and transparency of the supply chain. However, 30-40% of raw wood is still imported from high-risk countries, while small and medium-sized enterprises lack capital to invest in green technology. Therefore, Mr. Nghia proposed that the State build a national wood industry database system.
According to Mr. Nguyen Liem - Vice President in charge of the Vietnam Wood and Forestry Association, for the wood and interior industry of Ho Chi Minh City to develop sustainably, businesses must meet green and responsible criteria.
"Currently, customers are not only asking about prices, but also asking where the raw materials come from, how to produce them, whether they are green - clean - responsible or not. Sustainable development is no longer an option but a condition for survival, he said.
Mr. Liem said that the Vietnamese wood industry in general and Ho Chi Minh City in particular are facing many challenges in green transformation, digital transformation and deep integration into the global supply chain. To support businesses, he proposed three initiatives including: Establishing a Center to support green transformation and digital transformation of the wood industry, where businesses are consulted, connected with experts and access appropriate technology.
Implement the "Low-emission wood factory" program, pilot measurement and reduction of CO2 emissions, aiming for low-carbon factory certification. Building a green wood industry cluster, with shared infrastructure such as dust treatment, wastewater, solar energy, logistics, etc. helps small businesses "green" at reasonable costs.
