Exports of Vietnamese wood products to the US in the first quarter
of this year have surged 8.4 percent compared to the same period in
2012, with figures hitting 394 million USD.

The
amount accounts for one third of the country’s total furniture exports
all over the world, according to the General Administration of Customs.

Vietnam ‘s total furniture exports have also
increased significantly in 2012, reaching 1.78 billion USD, up 24
percent year-on-year.

In 2011 the sector experienced only a modest growth of 3 percent.

The vice chairman of Ho Chi Minh City ‘s Handicraft and Wood
Industry Association, Dang Quoc Hung, attributed the good results to the
fact that US consumers are now replacing furniture after two years of
curbing their spending.

In addition, he said US
companies had sold out their inventories and so needed to import more to
meet consumers’ demand for this year.

American
businesses used to mainly import wood products from China . However,
now they have started to receive resources from a range of countries in
Southeast Asia, including Vietnam , a representative from the
US-based TigerTrade, which specialises in export promotion, told Saigon
Times Online. Far-sighted Vietnamese enterprises have spotted the trend
and taken advantage.

The deputy general director of
Truong Thanh Wood Processing Company, Ngo Thi Hong Thu, said that some
businesses are struggling to fulfil all of their orders due to their
restricted financial capacity.

Despite the
introduction of lower interest rates, these firms have still encountered
difficulties in accessing bank loans, he added.

Nguyen Thanh Binh, Director of Nguyen Thanh Furniture Company agreed. He
said many wood processing companies, especially domestic ones, were now
facing capital shortages meaning that they were unable to utilise the
huge opportunities presented by the US market.-VNA