VCN – Covering the domestic market, Vietnamese wood and furniture brands are still almost “unknown” in the international market since they are exported through the brands of foreign enterprises. Changing this will bring higher value to wood and furniture products and contribute to the positioning of Vietnamese wood and furniture brands on the global map.
|Most Vietnamese wood processing enterprises have to export wood and wood products through the brands of foreign enterprises. Photo: N.H|
Unknown to world consumers
According to the General Department of Forestry, more than 2,600 enterprises are exporting wood and wood products in the country. Of these, there are 750 FDI units and 1,850 domestic units. As a result, the Vietnamese wood and wood product brand has affirmed its absolute position in the domestic market, building the image of Vietnam as a leading producer of wood and wood products in the international market. Accordingly, the number of enterprises in the industry has increased from 3,120 units in 2008 to 4,580 units in 2021.
The domestic market has recorded many strong wooden furniture brands such as Dong Ky Wood Village – Bac Ninh; Ho Nai – Bien Hoa furniture craft village, and the brands owned by enterprises such as Hoang Anh Gia Lai Wood JSC (Gia Lai); An Cuong Wood JSC (Binh Duong); Hoa Phat Furniture JSC (Hung Yen); and Thuan An Wood JSC (Binh Duong).
In addition to meeting the average domestic consumption demand of about US$3-4 billion/year, Vietnam’s wood industry exports an average of more than US$10 billion per year, making Vietnam the 5th country in the world, 2nd in Asia, 1st in Southeast Asia in exporting wood and wood products. The export market of Vietnamese furniture has expanded from 60 countries and territories in 2008 to more than 120 countries and territories by 2022, from exporting raw products to products with beautiful designs and categories.
However, in export markets, Vietnamese wood and wood products exporters have only won the trust of customers who are wholesalers and foreign agents and have not yet made an impression and attracted individual consumers. Therefore, Vietnamese wood processing enterprises must export wood and wood products through the brands of foreign enterprises.
According to the General Department of Forestry, the reason for this situation is that the branding policy of the wood processing industry has not been implemented. Meanwhile, Vietnamese wood and wood product enterprises do not have experience and lack resources in terms of capital, human, and management qualifications to develop overseas sales systems, which is a foundation for building a trademark. In addition, developing overseas markets requires large-scale production capacity, but few Vietnamese enterprises can meet this requirement.
Branding to add value
According to Nguyen Quoc Khanh, Chairman of the Handicraft and Wood Industry Association of HCM City (HAWA) and AA Company, Vietnamese enterprises need to change their mindset of making money by being diligent in production but need to build their brand. Building a brand helps businesses develop their vision and orientation, increase the source of customers, easily access international markets, and optimize profits. The brand will increase its commercial value, contributing to the increase of export turnover and domestic wholesale value and positioning the furniture industry of Vietnam on the global map. Building a brand business will contribute to creating a brand for Vietnam’s wood industry.
Nguyen Van Dien, Director of the Forestry Production Development Department – Ministry of Agriculture and Rural Development, said that the brand is the soul of an enterprise, showing customers’ trust in products in quality and after-sales policy. National brands help businesses expand their market in the most basic way. To build a national brand, each enterprise must build a good foundation. The Ministry of Agriculture and Rural Development is assigning the Department of Agricultural Product Processing and Market Development to develop a decree on the branding of essential agricultural products. “When this decree is issued, the enterprises’ branding process will be better because it will be done methodically and scientifically, thereby certainly achieving better results,” said Dien.
Additionally, to support businesses in developing their brands, the General Department of Forestry proposed the Ministry of Foreign Affairs direct overseas trade counsellors to support wood processing enterprises in building and developing Vietnamese wood brands abroad. For enterprises, it is necessary to carry out production responsibly with society and the environment, without using illegal wood, to improve the image and reputation of Vietnamese wood products in the international market.
By Nguyen Hien/ Ha Thanh