Opportunity for timber in Vietnam
On the face of it, a country with a third of its population below the
poverty line would not be anyone's first choice as an export
destination.
Yet Nicky Thomson, Trade New Zealand's trade commissioner and
consul general to Vietnam, is promoting the country to the timber
industry because it has low barriers to imports of pine wood for
re-export by its furniture industry and because its consumer class
is growing.
Half of the 80 million population are 25 years old or younger.
"It is really dynamic. Vietnam will become important," said Thomson.
The country is reforming its economy and aims to join the World
Trade Organisation by 2005.
"The message I have is that it is not an easy market. It is a market
that takes a lot of time and patience and may not provide real
returns for several years. But it is the time to build the
relationships."
New Zealand has an embassy in Hanoi and a trade office in Ho Chi
Minh City. The country has had some very difficult years "but what
we are seeing now is some very real economic growth from a
small base". New Zealand exports about $232 million of goods to
Vietnam a year.
Thomson said the country was focused on price and it would be a
challenge to get higher grades of timber accepted in the market.
While supplying for the re-export market is the biggest source of
demand, the domestic market is changing fast. Last year one local
manufacturer introduced a line of furniture made from pine aimed at
young married couples. It was successful and a more expensive
range targeted at more affluent customers followed.
Thomson also saw opportunities for advising on reforms,
developing infrastructure, in seafood and food manufacturing and
in tourism.
By Pam Graham - The New Zealand Herald - January 07, 2003.
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