The United States, Japan, China, South Korea and the EU continue to be the top 5 most important export markets of Vietnam with a total export value of more than 9.3 billion USD, accounting for 90% of the total export value. branch. In particular, the US is the largest export market of Vietnam's timber industry. Industry insiders argue that wood products are one of the few products to record export growth in both volume and value as COVID-19 threatens economic growth around the world. . However, in the long term, the impact of this pandemic is inevitable, so the wood industry must find a new direction.
According to the Ho Chi Minh City Wood and Fine Arts Association (HAWA), a changing milestone often arises when a crisis takes place, in which adaptive businesses will seize opportunities for development. market development. The rapid spread of COVID-19 has changed consumer behavior, created pressures and challenges, forcing businesses to innovate and improve all stages, from design to production to trade. in which digital transformation will be the key. Traditional business model of the store chain is currently facing many difficulties due to high operating costs, lack of flexibility, so it can be said that COVID-19 is a great driving force for the digital transformation process taking place. faster.
Tran Hien, co-founder of Ecomstone Company, an Amazon partner in Vietnam, said that the epidemic was curbing production activities but opening up opportunities to switch to online business. He cited, for example, a Thai company that decided to build an online store on Amazon. After more than 1 year, revenue growth reaches more than 30%. “HAWA can collaborate with Ecomstone to analyze capabilities, identify competitors as well as customers to assess the market, gradually build a general store on Amazon, thereby building a separate brand for internal. Vietnamese wooden furniture, instead of processing, has low value while consumers do not know the manufacturers ”, Mr. Hien pointed out.
Tran Viet Tien, a member of the HAWA Steering Committee, said that HAWA has long cooperated with FPT companies and related organizations such as OnBrand, Ecomstone or the Vietnam IT community. digitize the furniture industry and improve competitiveness. “But it can be said that the COVID-19 outbreak came at a time when the business community must be more attentive and act faster. We are determined that e-commerce is a short-term solution and digital transformation is a long-term solution, ”Mr. Tien said.
The furniture industry has four value systems, including manufacturing, design, trade and branding, with an estimated value of US $ 450 billion annually. However, in the past 20 years, the Vietnamese furniture business community has focused on the value of production, having annual transactions of about 140 billion USD with low profits, Tien said. “Meanwhile, the remaining 3 value systems including design, trade and brand will create new and higher added value, with a transaction value of up to US $ 310 billion,” he added.
HAWA recently introduced O2O, an online sales model that combines a traditional online business model with an online business model, as part of a comprehensive digital transformation strategy for the wood industry to increase consumer accessibility, market expansion and optimization of business opportunities.
Mr. Tien said that big enterprises like FPT, Silversea Media Group (Singapore), Vietnam E-Commerce Association (VECOM) support finding the starting point in the digital transformation journey as well as updating the development trends of e-commerce, deploying a model that combines online and offline transactions, creating a new development motivation for businesses. “When e-commerce is effectively exploited, it will help to exploit commercial value as well as design and brand. In this direction, we can promote the value of wood products manufactured by Vietnamese enterprises. ”
The current starting point of digitalization technology between Vietnamese wood processing enterprises and developed countries is not too different, but if businesses are slow in this process, they will be lagged behind competitors. compete. In order to reach export value of US $ 20 billion by 2025, it is necessary to approach new directions, multiple sales channels and add value to the product. ”
According to VNS