Vietnamese timber exporters have plenty of opportunities to increase their shipments to Australia thanks to a trade agreement, a strong demand and a favourable geographical location.
According to the General Department of Customs, Australia is currently one of Viet Nam’s ten largest importers of wood and timber products, with the figure estimated at US$66.7 million in the first five months of 2018, up 11.3% from a year earlier.
Data from the International Trade Centre shows that Australia’s wooden furniture imports were worth US$362.8 in the first three months of the year, mainly from China, Viet Nam and Australia.
Research conducted by IBISWorld suggests that Australian consumers are open to imported wooden furniture and are mostly concerned about its quality, appearance and price without a strong emphasis on the country of origin.
According to the Ministry of Industry and Trade’s Department of Export-Import, Australia’s growing demand for wooden furniture, Viet Nam’s favourable location and tax preferences provided by the ASEAN-Australia-New Zealand Free Trade Agreement offer ample opportunities for Viet Nam to boost its exports to Australia in the future.
However, Vietnamese enterprises should renovate the designs of their wooden furniture to suit Australia consumers’ taste, improve their product quality and lower their prices in order to convert these opportunities into profits.