Implementation of the Free Trade Agreements is opening up a lot of export opportunities for rattan, bamboo, sedge, and carpet products. It is forecasted that Vietnam’s export of this group of products in 2022 will increase by about 20-30% compared to 2021, exceeding the turnover of 1 billion USD.
According to the General Department of Customs, continuing the growth momentum in 2021, in the first month of 2022, the export of rattan, bamboo, sedge and carpet products has grown strongly and reached the highest level ever, reaching 107, 65 million USD, up 9.4% compared to December 2021; increased by 57.7% compared to January 2021.
Vietnam’s exports of rattan, bamboo, sedge and carpet products to the EU market in January 2022 reached 27.13 million USD, up 3.8% compared to December 2021; increased 59.2% compared to January 2021. For the US market, this figure reached 46.59 million USD, up 13.1% compared to December 2021; increased by 67.4% compared to January 2021.
Exports hit record highs:
It is estimated that in February 2022, the export turnover of rattan, bamboo, sedge and carpet products reached US$70 million, down 35% compared to January 2022, but up 37.8% compared to February 2021. In general, in the first 2 months of 2022, the export turnover of rattan, bamboo, sedge and carpet products is estimated at 178 million USD, up 49.2% over the same period in 2021.
Vietnam is currently ranked 2nd (after China) among the countries and territories exporting bamboo and rattan with the largest amount in the world, with the average growth in the period 2016-2020 increasing by 9.1%/year. turnover in 2020 will reach 311 million USD; and increasingly occupy a larger proportion in the structure of the world’s commodity export market (in 2016 accounting for 8.7%, by 2020 accounting for 10.9%).
Vietnam currently ranks 10th in the world in terms of carpet exports, with an average growth rate of 29.5%/year in the period 2010-2020, the strongest growth among markets with a turnover of over 100 million USD. . Vietnam’s carpet export turnover in 2020 has increased 13.2 times compared to 2010, reaching 284.06 million USD. Vietnam’s carpet export turnover only accounts for a small proportion, but continuously grows in the period 2010-2020, from 0.2% in 2010 to 1.9% in 2020.
In 2021, despite a strong outbreak of the Covid-19 epidemic, many provinces and cities have to maintain social distancing, but Vietnam’s exports of rattan, bamboo, sedge and carpet products still grow strongly.
The implementation of free trade agreements (FTAs) such as: EVFTA, CPTPP, RCEP … are opening up a lot of export opportunities for rattan, bamboo, sedge, carpet products, especially in the market with high consumption. major consumers in the world such as Europe, America, Japan…
Vietnam’s rattan, bamboo, sedge and carpet products are capable of capturing 10-15% of the world market share. It is forecasted that Vietnam’s exports of rattan, bamboo, sedge and carpet in 2022 will increase by about 20-30% compared to 2021, exceeding the turnover of 1 billion USD.
Need support from support mechanism:
With the export market of bamboo and rattan products of enterprises mainly EU and US, Mr. Doan Van Lan – Director of Doi Moi Co., Ltd (Ninh Binh) – said that the consumer culture of European people , the Americas prefer to use environmentally friendly natural materials, reduce the use of plastic and toxic materials that are difficult to decompose. Meanwhile, the basic craft of rattan and bamboo weaving has almost been wiped out in developed countries such as Germany, Italy, France… due to the inability to apply industrial chains for mechanization. This is a golden opportunity for businesses and traditional craft villages in Vietnam.
Although the market demand for knitting, plaiting and braiding products is great, it is difficult for businesses to raise the selling price of products. Because China has a subsidy policy for export rattan and bamboo products to dominate the international market, and at the same time ensure social security, especially the people of traditional craft villages.
Meanwhile, because the profit on revenue of rattan and bamboo weaving and braiding is very low, it cannot be compared with industrial production lines like other industries. Therefore, Mr. Doan Van Lan proposed, it is very necessary for the State to support enterprises to rent production and business premises; income tax cuts to stimulate more investors.
On the other hand, many argue that there are still shortcomings when the trade promotion activities for the handicraft industry in general and the rattan, bamboo, sedge, and carpet industries in particular are still very few. the government’s companionship, but mainly due to the efforts of enterprises.
Export of Vietnamese handicrafts (Vietcraft):
According to the Vietnam Handicraft Exporters Association (Vietcraft), businesses and craft villages in the rattan, bamboo, sedge, and carpet industries need to be supported to improve production conditions to meet the standard demands. of the world, it is worth noting to build a retrieval system for bamboo and rattan enterprises applying blockchain technology (blockchain).
In order to promote trade promotion activities effectively, the state also needs to allocate a trade promotion budget for enterprises in this industry. In addition to upgrading and supporting local export-oriented or export-oriented handicraft fairs, it is necessary to develop professional communication and promotion programs.
On the side of businesses, in the marketing strategy, it is necessary to focus on promoting the design and development of new products as a decisive factor to create added value and increase the export turnover of the industry. At the same time, it is necessary to closely link with cooperatives to build stable input material areas for production.