Furniture exporters eye 5% growth despite forex volatility
DESPITE concerns over exchange-rate volatility, Thai furniture exports are expected to grow by 5 per cent this year, as makers shift their focus to the production of 'future solution' furniture, which emphasises design, innovation and eco-friendliness and
Exporters, meanwhile, are diversifying the currencies they use for trading, in order to minimise the exchange-rate risk.
Chaiyong Pongsuthmanus, chairman of the Furniture Industry Club of the Federation of Thai Industries, yesterday said exports should increase by 5 per cent this year as economic growth recovers in the key markets of Japan and the United States, and there is higher demand in Asean and newly emerging markets.
“With good design, innovation and high concern over eco-friendliness to serve the particular demand in each market – such as environmental concerns among consumers, the needs of senior people, and babies and young children – Thai furniture shipments could grow by 5 per cent, after suffering a slight drop last year,” said Chaiyong.
Although some companies are losing out due to currency volatility, most Thai furniture exporters have tried to offset the risk by trading in a range of currencies, such as in US dollars and euros, as well as the baht, he added. A 5-per-cent expansion would push the export value of the industry to more than US$1.26 billion (Bt41 billion) this year. The Kingdom’s furniture and parts exports fell by 3.1 per cent last year.
Jirawat Tangkijngamwong, vice president of the Thai Furniture Industries Association, said furniture-makers could no longer rely solely on producing made-to-order items, due to tough competitiveness in the world market for cheap goods.
Focusing on ‘future solution’ furniture products would, therefore, be crucial to ensuring that Thai exporters survive, he said.
Jirawat added that Thai enterprises should also be aware of the trend towards rising non-tariff barriers, and strict rules and regulations against the use of illegal wood in furniture, in order to ensure continued penetration of the European Union and US markets.
Meanwhile, as a showcase for Thai furniture to the world market, the International Trade Promotion Department has joined forces with the Thai Furniture Industries Association and the Furniture Industry Club to organise the “Thailand International Furniture Fair 2015 (TIFF)”, which takes place from March 11-15 at Impact Muang Thong Thani.
Nuntawan Sakuntanaga, director-general of the department, said this year’s event would have “Asean Smart Living” as its theme, aiming to underpin Thailand’s readiness to become the trade and production hub for furniture products in Asean.
TIFF will impress customers from around the world through a range of high-quality furniture products that respond to virtually all demands of consumers through design quality, material selection, and lifestyle, she said.
