Are you an entrepreneur? If yes, what location do you have in mind to establish or even expand your business branch?
There are certainly a lot of options to choose from. However, that takes way too much time to research the proper location. To decide where you could apply your business plan to reality, you will have to go through hundreds of factors that affect the decision.
Therefore, let me give you a name: Vietnam. As you may have heard from multiple sources, Vietnam is a great and potential country. It’s one of the fastest-growing countries in Southeast Asia and has received attention from many foreign investors. One of the main factors that make Vietnam a focus point is its strength of exporting a great variety of in-house/outdoor/edible products. Among many industries, Cashew nut, furniture, and rattan/wicker/bamboo-made products are the key players that represent the position of Vietnam around the globe.
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I had a tour of Binh Duong to visit a few factories. I got to see how they are doing before and after the big lockdown in Vietnam, and I was able to collect a little information related to the performance of those industries in 2021 – 2022.
Cashew nut
The Cashew nut industry in Vietnam is one of the biggest importers in Europe. It stands 2nd among the countries that export to the European continent.
The cashew nut industry showed positive results in 2021. An 816 million USD profit was made, up 16,5% compared to 2020. Vietnam remains world’s largest cashew kernel exporter. Following the Vietnam Cashew Association (Vinacas) holding its 10th Congress for the global 2021-2026 scope in Ho Chi Minh City on February 26, it shows the dynamism and opportunities for this product from Vietnam. But the year 2021 was crazy. It was challenging to get out of such a dark time in the economy. However, the export volume showed positive signs, which was a core component that slowly recovered the economy of Vietnam.
Moreover, Vietnam is also a key exporter to China. I was surprised to hear that China is interested in consuming nuts daily. This country even released a “Dietary Guidelines For The Chinese People” that emphasizes nut consumption in China. Such a guideline is known as part of the national health policy in China.
Wooden furniture
Wooden products in Vietnam are very well-known by importers all over the world. The country has a long history of crafting and collecting high-quality wood, manufacturing thousands of wooden products in the whole country.
Wooden furniture is the most profitable industry of all. According to many renowned wooden furniture exports in Vietnam, they are already full of orders until the 3rd quarter of 2022. The demands for these wooden movables continue to grow significantly despite the impact of the biggest lockdown in Vietnam.
According to Tuoitre, the wooden furniture industry reached almost 4 million USD in profit within the first three months of 2022.
However, the country is now facing a few other challenges: Overpriced containers and the crisis between Ukraine and Russia. Hopefully, there will be a solution to these issues.
Wicker/rattan/bamboo-made products
If you ever come to Vietnam, you will notice that knitted products are popular. And I am not talking about making a sweater for Christmas. In Vietnam, baskets made in rattan, flower pots made in rattan, and chairs made in wicker in many tourist locations. This has created a special appearance for Vietnam, which has drawn the attention of hundreds of businesses that want to import these unique units.
The impressive achievement that Vietnam has had in this industry is that Vietnam is ranked 2nd (After China) among the countries that export rattan and bamboo. This is also one of the few sectors that continue to grow despite the heavy impact of Covid-19.
Experts also believe that the growth will increase even more in the upcoming years, as Vietnam is fully open for global trade. At least, that is what I have collected so far.
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If you are interested in learning more about these three industries and especially how you can set up a company in trading, import or exports, check this guide about the top products to export from Vietnam so you can have the overall picture of setting up such a business in Vietnam