Handicraft and Wood Industry Association of Ho Chi Minh City

51.6%24.7%

18.8%5.1%

Woodworking Handicraft Trading Service

2

• HCMC Handicraft and wood Industry Association (HAWA) has been set up for 22 years: - 1990 Sub-Handicraft

Association- 1997 till now: Handicraft and

Wood Industry Association.• Voluntary organization for

enterprises. • Currently there are 320 company

members. In which:

1. INTRODUCTION

Geographically distribution

• HCM City 52.2%

• Other provinces 47.8%

HAWA Organised The 20th year Anniversary Ceremony

HAWA was honored to receive Vietnam President‘s the 3rd Labor Order

Provinces with HAWA Members

Provincial Associations

+ HAWA Members

Main tasks• Representing and defending legitimate interests of the

members

• Organizing trade fairs, training courses, competitions, conferences, and workshops

• Promoting Vietnamese furniture & handicraft products in trade fairs worldwide

• Providing members with up-dated and useful information on timber sources, markets, technology and business opportunities

• Establishment of contacts with international & national business associations

• Maintaining and developing regular contacts with representatives of the Government

• Participating in social activities.

Member’s Products

Handicraft

• Furniture

• Trade and services

Technical Cooperation

WoodworkingAssociations

InternationalCooperationHAWA

Government

Strategic Partnership

Cooperation with the Government

MoIT (Ministry of Industry and Trade)

VIETRADE (Vietnam Trade Promotion Agency)

MARD (Ministry of Agriculture & Rural Development)

DoIT (Department of Industry and Trade HCMC)

ITPC (Investment & Trade Promotion Center)

International Cooperation

TFT (Tropical Forest Trust )

Forest Trends

American Hardwood Export Council (AHEC)

Malaysian Timber Council (MTC)

Global Sources (Leading business-to-business media company)

Moebelmarkt (Leading specialist publishing company)

Technical Cooperation (1)

GIZ (German International Technical Cooperation)

SME (Cluster Development Project UNIDO, ital. Cooperation)

SPIN (Sustainable Product Innovation UNEP, TU Delft)

MUTRAP (Mutual Trade Assistance Project EU)

WWF / GFTN (Global Forest Trade Network)

Technical Cooperation (2)

VDMA (German Engineering Federation)

TÜV (Testing • Inspection • Certification Company)

BV (Testing • Inspection • Certification Company )

SGS (Testing • Inspection • Certification Company )

Intertek (Testing • Inspection • Certification Company)

Cooperation with Woodworking Industry Associations

AFIC (ASEAN Furniture Industries Council)

VIFORES (Vietnam Timber and Forest Products Association)

FPA (Forest Products Association of Binh Dinh)

Binh Duong (Binh Duong Furniture Association)

Organizing VIFA-EXPO International Furniture Fair

Main activites

ASEAN

Trade fair

Circuit

2015

VIFA Fair 2014

142 exhibitors with 635 booths

7,901 visitors

2,448 foreign visitors from 88 countries

and regions

Total contract value: US$ 4.575 Million

Facts of VIFA 2014:

Organising VIFA HOME for Domestic Market

Facts of VIFA HOME 2013: 98 exhibitors with 436 booths 12,194 visitors Total contract value: VND 521

million

21

• Organizing training courses, competitions, conferences, and workshops

Overview

Vietnamese Wood Processing Industry

1. Vietnam Economic outlook Indicators of Economic development 2011 2012 2013

Increased rate of GDP 5.89 5.03 5.42

Increased rate of agricultural, forestry and fishery production value 4.0 2.7 2.67

Increased rate of industrial production value 21.5 4.8 5.43

Total increased retail sales of goods and services 24.11 16 12.6

Increased rate of total export turnover 33.3 18.3 15.4

Increased rate of total import turnover 20.4 7.1 15.4

Increased rate of foreign visitors 22.0 9.5 10.6

Increased rate of CPI 14.15 9.21 6.6

Source: Gov. Web portal + Press

2. Furniture industry overview

• Despite the effects of recession of the world economy; the Vietnamese furniture market still shows its potential for growth.

• For the last two years, we did try our best to keep the production stable and adapt to market demands. We understand of this tough time as our opportunity to improve and restructure our businesses. It may have some change but we aim for a stable growth rate.

• For this convention we would like to update you some of the latest data of the furniture industry in Vietnam.

WOODWORKING INDUSTRYSIZE: Based on own capital

Total companies Private State-owned

3,000 95% 5%

Based on invest capital (Decree 56/2009/ND-CP)

Super small & small (<20 bil.VND)

Medium(20 – 100 bil.VND)

Large (>100 bil.VND)

93% 5.5% 1.2%

Based on workforceSuper small

(<10 staffs)Small

(10 – 200 staffs)Medium

(200 – 300 staffs)Large

(>300 staffs)

46% 49% 1.7% 2.5%

Source: MARD

12%

26%

1%

21%

14%

22%

3%

2%

Distribution Distribution of companies

Eastern, West Northern, North of Centre, West Highland: 20% of

forestry and furniture companies.East South:60% large companies

Sea-coast of Centre: 20%

FDI 16%From 26 countries and territories: Taiwan 43.5%, the rest: Korea, UK,

Japan, China

Export turnover 50%

FDI & production

Product value (million US$)

2010 2011 2012 2013*

Production 5584 5863 6156 7260

Exports 3400 3910 4670 5560

Imports 198 208 214 100

Consumption 2381 2160 1700 1800

Source: Csil – MoIT – Analyzed by Hawa (* estimate)

Markets

• Production increased up average 11.3% in last 5 years (2007 – 2011)• Consumption also increased up average 7.1% in the same period of time

Exported Furniture & Imported materials

-

1,000

2,000

3,000

4,000

5,000

6,000

2008 2009 2010 2011 2012 2013

2,800 2,592

3,400 3,910

4,670

5,560

1,010 854 1,080 1,317 1,400 1,560

Exported furniture Imported materials

Mil. USD

Source: Ministry of Industry & Trade (MoIT)

Vietnam furniture market with the population of 90 million people is of great potential due to the increase of living standard.

The local consuming index in furniture is drastically rising up with an annual average of 15%, double the global size.

There is a great demand in high-class furniture and home decorative utensils to supply for hotels, restaurants, café, resorts, villas, high- class apartment buildings.

Domestic market

30

Timber sourcing

Market Sales &

Marketing Primary

processing Secondary processing

Sawmill FurnitureTrade Trade Trade

Value Chain of the woodworking industry

What is a value chain?

The value chain describes the full range of activities that enterprises and workers do to bring a product from its conception to its end use and beyond.

Definition Value Chain Timber

sourcing Market

Sales & Marketing

Primary processing

Secondary processing

Market Sales &

Marketing Secondary processing

Timber sourcing

Primary processing

Activities must support the “value adding” process at all elements of the value chain

Technique Information

Activities

Trade promotion

Design

Timber sourcing

Market Sales &

Marketing Primary

processing Secondary processing

Sawmill Furniture

Proposed Cooperation

Design

Raw materialprocurement

Timber procurement

Study TourItaly

Marketing Workshops

Productiontechnology

I n t r a n e t - W e b s i t e ( I n f o r m a ti o n M a n a g e m e n t )

MarketingWood products

BusinessMatching

Trade Fair

Thank you for your attention!

For further information, please contact us:

179 Nguyen Cu Trinh Street, District 1, Ho Chi Minh City / Vietnam Tel: +84 (0) 8 3836 4766 - Fax: +84 (0) 8 3836 4722Email : info@hawa.com.vn - hawavn@gmail.com - Website: www.hawa.com.vn