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| Viet Nam currently ranks fourth in the world, second in Asia and first in Southeast Asia in the export of wood furniture and furnishings. — Photo VEF |
HA NOI (Biz Hub) — A number of foreign furniture firms have shifted their businesses from Indonesia to Viet Nam since early this year.
General Secretary of the Association of Indonesian Furniture and Crafts (AMKRI) Abdul Sobur told Republika Online of Indonesia that six foreign furniture companies had moved their factories from Indonesia to Viet Nam since the beginning of 2015.
One of the largest furniture companies of Taiwan, which invested in East Java Province in Indonesia, has also decided to shift its factory to Viet Nam in early 2016, he said.
Sobur said some Taiwanese furniture companies, which have been operating in Indonesia for three years, wanted to shift their production to Viet Nam because of labour costs and minimum wage issues.
He said the minimum wage in Indonesia had risen 150 per cent over the past three years and that these firms have decided to shift their business to Viet Nam to operate more effectively.
Abdul was quoted by Metrotvnews.com of Indonesia as saying that the Vietnamese furniture industry has earned more than the Indonesian industry in terms of export value.
"The Indonesian furniture industry earned US$2.8 billion, while Viet Nam's export value income last year was US$5.6 billion. It has reached US$7.6 billion, while our target this year has fallen to just US$2 billion," he said.
Viet Nam was being favored in the global market, he said, due to its competitiveness.
"Viet Nam has 30 per cent more efficient competitiveness, compared to us," he said.
Viet Nam currently ranks fourth in the world, second in Asia and first in Southeast Asia in the export of wood furniture and furnishings.
The Vietnam Wood and Wood Product Association said it was aware of no less than 26 countries that were planning, or have made moves, to expand to Viet Nam's furniture industry, such as China, Thailand, Japan and the Republic of Korea, besides the United Kingdom. — VNS