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Vietnam Furniture Market Under China-US Trade War WRITTEN BY POYANG LIAO PHOTOGRAPHY BY INTERWOOD
Mr. Calon K. L. Hsu President of Fancywood
Under these conditions, it is difficult for them to take the orders from China if the profit is not good. On the other side, for furniture manufacturers in China, they don’t have enough space to increase the price, since the low price from original orders. 2. Even the profit is good. Vietnam furniture manufacturers have to get rid of orders from original customers if they accepted new orders. The risk is too high.
D
ecember 6, 2018. coach Justin Lin and Interwood Magazine had an
media interview with Calon K.L. Hsu, pre-
sident of Fancywood and the chairman of Taiwan Timber Industries Association (TTIA) for the topics of US-China trade war, Vietnam furniture manufacturers, and the concept of intelligent manufacturing.
US-China Trade War Vietnam Market
First, Calon K.L. Hsu talked about the impact of US-China trade war. He took two large furniture manufacturers in China for instance. People can notice the trade war starting impact these two manufacturers since 2017. Because of their large-scale businesses and the lack of investment in Vietnam, they can only subcontract orders to other Vietnam Furniture Manufacturers. However, it is difficult to produce products in Vietnam based on the price in China. The reasons are: 1. Furniture manufacturers in Vietnam, they have fixed area, equipment, manpower, factory scale, and also their own customer base.
3. Besides large manufacturers, others might try to buy land to build factory. However, since January to November in 2018, the land price had been more than doubled, especially industrial land in agricultural area. The same thing also happened on rental price. Thus, started from December 2018, the high cost shrank back manufacturers from China. 4. Many people believe that transfer orders to Vietnam is a good thing, but it is not entirely true. Excessive factories will cause the lack of manpower, leading to rising wages, hurting existing Vietnamese furniture manufacturers.