Export Proportion by Market of Vietnamese Wooden Furniture and Some Southeast Asian Countries.

According to the data of the Vietnam Industrial Research Center, Vietnam is the 6th largest exporter of wooden furniture in the world, with exports accounting for over 80% of the total value of products produced by the Vietnamese wood processing industry. Data from the International Trade Center (ITC) (trademap) in 2013 even showed that Vietnam is the 4th largest exporter of wooden furniture in the world, with a market share of about 4.7%, after China (34.6%), Italy (9.3%) and Germany (9%).

Chart 1.1 Vietnam's wooden furniture export market.

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Vietnam's main exported wooden products include the following groups: Fine art wooden products; Interior; Outdoor; Wood combined with other materials; Artificial boards and wood products from artificial boards; Products from non-timber forest products; wood chips.

According to the Ministry of Industry and Trade, Vietnamese wooden products have been exported to over 100 countries and territories, with stable export growth (except for 2009, when world demand decreased due to the crisis). In the period 2001 - 2010, the average growth rate of wooden furniture export turnover reached 27.15%, much higher than the overall growth rate of turnover nationwide.

The United States is Vietnam's largest wooden furniture export market, accounting for about 40-50% of the total export turnover of the wooden furniture industry, followed by Western European countries.

(EU: 10-20%), Asia Pacific (Japan: 12-15%) and other regions. The unbalanced export proportion, especially dependent on a number of markets of the Vietnamese wooden furniture industry, although not too unusual compared to the general situation of other countries in the region, also shows quite a large risk. The two largest export markets of Vietnamese wooden furniture, the United States and Europe, are the two most demanding markets in the world, with strict conditions on the legal origin of wood and a very high risk of abusing trade defense measures (anti-dumping, anti-subsidy, self-defense).

Source: “The furniture industry in South East Asia”, CSIL September 2014.

Chart 1.2 Export proportion by market of wooden furniture from Vietnam and some Southeast Asian countries.

1.6.2 Issues facing Vietnam's wood export industry

Besides the growth of the wood processing and export industry, there are still some existing problems that need to be overcome:

Production and business efficiency is still low and competitiveness is still weak.

There is no close connection between forest planting units and wood processing and manufacturing enterprises.

Low commercial professionalism such as compliance with delivery times as well as the ability to meet large contracts with consistent quality.

Quality control is not guaranteed: Most businesses implement this control based on subjective supervision of leaders, based on self-awareness. This is a traditional supervision method that is only suitable for small businesses with small contracts and cannot be effectively applied to large contracts and products with a high level of standardized detail.

CHAPTER 1 SUMMARY

The content of this chapter helps us understand more about exporting goods from the concept to the role of exporting plays an important part in promoting economic development. At the same time, analyzing the process helps us visualize the basic steps in the process of exporting goods, creating a foundation for analyzing the reality at the company in the next chapter.

In addition, the chapter content also helps us better understand the current situation of Vietnam's wooden furniture exports, thereby helping wooden furniture export enterprises have a more general view and have new directions in the export wooden furniture business.

CHAPTER 2: CURRENT STATUS OF WOODEN FURNITURE EXPORT PROCESS AT DANG LONG COMPANY LIMITED

2.1 General introduction of Dang Long Company Limited

2.1.1 History of formation and development of Dang Long Company Limited

Dang Long Company Limited was established on November 19, 2003 with Mr. Dang Van Long as director.

Company address: Lot F6, Tan Hoa Wood Processing Industrial Park, Tan Hoa Ward, Bien Hoa City, Dong Nai Province, Vietnam.

Phone number: (061)3985518 – 3987402

Fax: (061)3995518 – 3987419

Email: danglongco@hcmfpt.com

Website: danglongplanter.com

The company currently has a showroom displaying products at Do Xuan Hop Street, Phuoc Long A, District 9, Ho Chi Minh City, Vietnam.

Business lines: manufacturing wooden products for domestic and foreign consumption.

Figure 2.1 Some products of Dang Long Company Limited.

2.1.2 Operating structure of Dang Long Company Limited

2.1.2.1 Functions and tasks

Function

The company's main activity is to produce all kinds of wooden furniture for export and domestic consumption.

Import machinery and raw materials for production.

Mission

Bring consumers and customers the best quality wooden products and professional services.

Create jobs for workers, contributing to the growth of the national economy.

Continuously improve machinery technology to enhance productivity and product quality to suit customer tastes.

Set up more product showrooms to attract more potential customers.

Organize additional training courses for workers to improve their skills and management level.

BP. PRODUCTION

2.2.1.2 Departmental organizational structure

MANAGER

Production sub-groups

Warehouse

Production Management

Maintenance

Miscellaneous

P. Business

P. Accounting

P.KH

Synthetic

P. Human Resources

BP. OFFICE

Diagram 2.1 Departmental structure of Dang Long Company Limited.

Manager

The director is the head of the company, responsible for managing the company's operational strategy and costs during business operations. In addition, the director is also the company's legal representative for its business operations.

Build competitive and development strategies, make development plans for each stage and each market. Implement investment projects, innovate and improve machinery, equipment and production technology.

Sales Department

The sales department is responsible for communicating directly with customers, collecting and processing customer information via email, receiving orders, setting up product prices, then sending quotes to customers upon request, drafting contracts for customers to sign, etc.

Accounting Department

Manage the company's finances, track export revenue, expenses, tax payments, track imported, exported and stocked fuel, machinery and fixed assets. Pay salaries to employees and settle taxes with tax authorities.

General planning department

Plan and monitor production according to work progress and ensure quality and requirements according to customer orders sent down by the sales department.

Control the implementation of procedures and regulations on instructions for using technological machinery in production.

Arrange labor to suit the production of each stage.

Human Resources Department

Recruit human resources for the company, at the same time monitor and manage the working regime of employees, propose appropriate treatment policies and strategies for each job and department.

Production sub-units

Sample department: produces sample products for customers and is where the technical department carries out initial product designs.

Preliminary processing team: conducts preliminary processing of raw materials to create blanks.

Shaping team: conducts shaping activities for details such as drilling holes, chamfering edges, etc.

Processing team: sanding and surface treatment for details and products.

Assembly team: assembles parts together.

Finishing assembly: complete assembly before moving the product to the painting area.

Painting team: carry out painting of semi-finished products.

Finishing team: proceed to pack the product.

Warehouse department

There are activities to control activities related to import and export of goods.

Monitor and report on raw materials - supplies - spare parts in stock and make regular purchasing plans to avoid product shortages or unused defective products.

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