#Vietnam Logistics Market

[kenresearch1]

Vietnam Logistics Market Flourishes: CEP and Warehousing Sector Generate over USD 5 Bn in 2022, Fueled by Joint Ventures and Modern Warehousing Systems. What Awaits the Future? :Ken Research

Buy Now

1.Emerging Trends and Developments in Vietnam's Warehousing Market: Joint Ventures, Automation, GSP Warehouse Preference, and Recent Funding Surge.

Interested to Know More about this Report, Request for a sample report

Logos Property and Manulife Investment Management joined forces in 2022 to construct an advanced logistics factory, covering an area of over 116,000 sqm and valued over $80 Mn. Moreover, GLP entered the Vietnamese market through a $1.5 Bn joint venture with SLP.

E-commerce companies are utilizing AI-powered warehouses and sorting centers spanning 0.3 Mn sqm to decrease delivery time during peak periods. Tiki NOW Smart Logistics has integrated robots for task execution, enhancing warehouse efficiency and enabling sellers to save 30% - 40% in costs.

Investment in pharmaceutical storage systems or GSP warehouses is increasing in Vietnam, with foreign firms such as DKSH, Zuellig, and Mega making substantial investments to improve cost-efficiency and optimize manpower in warehouses.

Vietnamese on-demand warehousing platform, Wareflex, secured $785,000 in pre-seed funding from Genesia Ventures and Antler. Additionally, Mirae Asset Daewoo Co. and Naver Corporation, prominent South Korean companies, invested $37 Mn in a warehouse located in Bac Ninh, Vietnam.

2.Automation Surge: Vietnam's Growing Demand for Modern Warehouses Driven by Increased Investment in New Technologies.

Visit this Link :- Request for custom report

Next generation supply chains in Vietnam are utilizing robotics and automation to perform task such as picking, sorting, inspecting, handling to improve overall efficiency and speed to market. Some warehouses are turning to autonomous vehicles to bring merchandise to sortation while Drones & RFID will be used for Inventory Management. The opportunities seem endless which will result in greater efficiency and productivity.

3.Tech Trends Unleashed: Big Data and Augmented Reality Empower Vietnam's CEP Market in Response to Consumer Demand.

Market Maxomony

Vietnam Logistics Market Segmentation

By Service Mix

Freight Forwarding

Warehousing

CEP

Value Added Services

Vietnam Freight Forwarding Market Segmentation

By Mode of Freight

Road Freight

Sea Freight

Air Freight

By Type of Freight

International Freight

Domestic Freight

By Types of Operators

Small Fleet Operator (SFO)

Medium Fleet Operator (MFO)

Large Fleet Operator (LFO)

By End-User

Retail

Oil and Gas

Textiles

Pharma

Others

Vietnam Warehousing Market Segmentation

By Warehousing Types

General/Industrial/Retail

CFS/ICD

Cold Storage

Agriculture and Others

By Warehouse Locations

Northern

Central

Southern

By End-User

Retail

Oil and Gas

Textiles

Pharma

Others

Request a Call with Expert to know more about Latest Trends

Major Players Mentioned in the Report:

Yusen Logistics

Transimex

Gemadept Corporation

Maersk

Kuehne+Nagel

MP Logistics

ITL

Vietnam Post

Viettel Post

Vietnam Maritime Corporation

Expeditors

Bee Logistics

DB Schenker

Vinafrieght Joint Stock Company

CJ Gemadept

Ceva Logistics

GHN Express

DHL VNPL Express

EMS

Key Target Audience

E-Commerce Companies

Third-Party Logistic Providers

Potential Market Entrants

Freight Forwarding Companies

Warehousing Companies

Cold Storage Companies

Industry Associations

Consulting Agencies

Government Bodies & Regulating Authorities

Time Period Captured in the Report:

Historical Period: 2017-2022

Base Year: 2022

Forecast Period: 2022-2027

For More Insights On Market Intelligence, Refer to the Link Below: –

Vietnam Logistics Market Outlook to 2027

Related Reports by Ken Research: –

Indonesia Logistics Market Outlook to 2027

[kenresearch2023]

Lotte Group Pivots: Vietnam Beckons as China Exit Nears: Ken Research

Buy Now

Lotte Group embraces Vietnam's potential while withdrawing from China, capitalizing on the country's promising market opportunities.

Storyline

Lotte Group shifts focus: Vietnam's retail and F&B industries.

Expansion plans: Lotteria restaurants, Lotte Mart hypermarkets, and more.

Vietnam's growth potential: Favorable market conditions and rising consumer income.

As per Ken Research, the company’s retaliation aftermath will lead to strategic realignment.

South Korea based Lotte Group, the country's fifth-largest conglomerate, is accelerating its expansion in Vietnam's retail and F&B sectors as it finalizes its recent withdrawal from the Chinese market. Following his recent release from jail and receiving a presidential pardon, Chairman Shin Dong-bin is poised to visit Vietnam, signaling the group's determination to pursue business in its "third-most important market" after South Korea and Japan. Lotte's focus on Vietnam comes as the company's top executives have been closely monitoring their opportunities in the country, recognizing the growth potential and favorable business environment.

1. Growing Presence in Vietnam

To learn more about this report Download a Free Sample Report

Lotte boasts an expansive presence in Vietnam, with 270 Lotteria fast-food restaurants and 15 Lotte Mart hypermarkets. Additionally, Lotte's subsidiaries are actively involved in the development of shopping complexes and residential apartments in major cities like Hanoi and Ho Chi Minh City. The establishment of Lotte Ventures Vietnam last year further solidifies the group's commitment, making it the very first foreign venture capital firm approved in the country.

2. Vietnam's Favorable Market Conditions

Visit this Link: – Request for custom report

The decision to focus on Vietnam is driven mainly by the country's strong retail sector, experiencing significant growth, and a rising disposable income level. Lotte recognizes Vietnam's potential as a strategic market, benefitting from Korea's positive reputation and strong consumer demand. The group views Vietnam as a key growth driver in the region, offering ample opportunities for expansion and development.

3. Exit from China

Lotte's exit from the Chinese market comes after 14 years of operation, as it faced challenges due to alleged retaliation from China following the deployment of the THAAD missile defense system in 2017. The decision to fully divest from China reflects the company's strategic realignment and its focus on emerging markets with more favorable growth prospects.

Conclusion

Lotte Group's intensified focus on Vietnam's retail and F&B industries signifies its commitment to leveraging the country's growing market potential. As per Ken Research, as the conglomerate completes its withdrawal from China, it aims to capitalize on Vietnam's favorable business environment and consumer-driven growth. Lotte's expansion efforts in Vietnam highlight its strategic vision and determination to establish a strong presence in one of Southeast Asia's most promising markets.

[beststretchfilm]

How High-Performance Stretch Film Transforms Shipping in Vietnam

Efficient shipping is becoming increasingly vital in Vietnam's booming economy. From bustling markets to high-tech industrial zones, the need for effective transportation and secure packaging has never been greater. Enter high-performance stretch film—a game-changer that's transforming the way Vietnamese businesses handle shipping. This guide will show you how high-performance stretch film can enhance your shipping processes, reduce costs, and improve overall efficiency.

The Basics of Stretch Film

What is Stretch Film?

Stretch film is a highly stretchable plastic film used to wrap products on pallets, ensuring they remain secure during transit. Its primary purpose is to hold loads tightly together, preventing them from shifting, tipping, or getting damaged. This makes it an essential tool in the shipping and logistics industry.

Types of Stretch Film

There are two main types of stretch film—cast and blown. Cast stretch film is produced using a continuous process called casting, which results in a clear, glossy film. It offers excellent clarity, making it easier to identify wrapped products. On the other hand, blown stretch film is manufactured using a blown extrusion process, resulting in a more robust and tear-resistant film with a matte finish. Each type has its own strengths and is suitable for different applications.

Key Attributes of High-Performance Stretch Film

High-performance stretch film boasts several key attributes that set it apart from standard films. These include superior stretchability, puncture resistance, and load retention capabilities. These features ensure that high-performance stretch film provides better protection and stability for your shipments, making it an invaluable asset in the shipping process.

Selecting the Right Stretch Film for Your Needs

Factors to Consider

Choosing the right stretch film involves considering several factors, including the size and weight of your load, as well as the shipping conditions. Heavier loads may require a thicker, more robust film, while lighter loads can be secured with a thinner film. Additionally, consider the shipping environment—will your products be exposed to extreme temperatures or rough handling? These factors will help determine the most suitable stretch film for your needs.

Environmental Considerations

In today's environmentally conscious world, opting for sustainable and eco-friendly stretch films can make a significant difference. Look for films made from recyclable materials or those that use less plastic without compromising on strength and durability. This not only helps reduce your carbon footprint but also aligns your business with global sustainability initiatives.

Cost-Effectiveness

Balancing quality with budget constraints is crucial when selecting stretch film. While high-performance stretch film may come at a higher initial cost, its enhanced durability and efficiency can lead to long-term savings. Invest in quality stretch film to minimize material usage and reduce the risk of product damage during transit, ultimately lowering your overall shipping costs.

Benefits of Using High-Performance Stretch Film

Enhanced Load Stability and Protection

One of the primary benefits of high-performance stretch film is its ability to provide enhanced load stability and protection. The superior stretchability and load retention capabilities ensure that your products remain securely wrapped throughout the shipping process, reducing the risk of damage or loss.

Reduction in Material Usage and Cost Savings

High-performance stretch film is designed to maximize efficiency, requiring less material to achieve the same level of protection as standard films. This reduction in material usage translates to cost savings, making it a cost-effective solution for businesses of all sizes.

Increased Efficiency in Packing and Handling

Using high-performance stretch film can significantly improve the efficiency of your packing and handling processes. Its superior stretchability and puncture resistance mean fewer breaks and interruptions, allowing for smoother and faster wrapping. This increased efficiency can lead to faster turnaround times and improved overall productivity.

Compliance with Vietnamese Regulatory Standards

Adhering to regulatory standards is essential for businesses operating in Vietnam. High-performance stretch film complies with Vietnamese regulatory standards and best practices, ensuring that your shipments meet all necessary requirements. This compliance helps build trust with customers and partners, reinforcing your commitment to quality and reliability.

[loneberry]

The new route Russia is using to export its oil to China. Unfortunately global warming and the melting of the icecaps only benefits Russia geopolitically. What’s the big deal? you might wonder. A 10-day reduction in transport time is huge when it comes to the velocity of capital. Power accrues to the nations that control key maritime trade routes.

*

Between climate change and the new Cold War, the future doesn’t look pretty. China’s economy is imploding thanks to their reliance on a debt-fueled real estate bonanza, their misguided zero COVID policy, and Xi Jinping’s head-scratchingly bad policies (and of course, his consolidation of power). Siding with Russia was a huge mistake… Now China’s biggest export markets are trying to decouple or at least diversify away from them. Youth unemployment is so bad in China (21%, but possibly significantly higher) that the government has decided to stop publishing such data. The Philippines and Vietnam are pivoting toward the US. South Korea and Japan are putting their long, historical feud aside to join forces against China. Japanese military neutrality is over. Meanwhile a tiny island called Taiwan makes over 92% of the world’s advanced semiconductors and will likely be invaded in our lifetime. Will an (economically) weakened China make it more or less likely that Xi will invade Taiwan? (Strongmen facing a domestic crisis and loss of popular support do often start wars as a kind of “gamble for resurrection,” but Xi might have become more risk adverse as he observes Russia’s debacle in Ukraine. Plus, an amphibious invasion is logistically extremely difficult to pull off.)

Defense spending worldwide is skyrocketing, climbing back toward Cold War levels. The lines on the map are hardening, particularly in the Asian/Pacific theater and the European theater. A nuclear trifecta of Russia-China-North Korea is emerging. Yes, it is a marriage of convenience, but quite a dangerous one given that Russia will likely transfer technology (specifically, platforms to deliver nuclear warheads) to North Korea in exchange for Soviet-compatible ammunition/arms to use in Ukraine. I hate feeling like the world is a frog getting boiled but as I finish this 26-part BBC documentary on World War I, I can’t help but feel that the geopolitical situation is very unstable.

Oh, the madness of nation states! Wake me up when it’s over.

[roadtophantom]

Do you know how a show can get performed in a new country? Is it just a matter of a local company obtaining the rights/license or is there some global head honcho team that decides which countries they want to perform in? And do you think POTO will ever come to Vietnam?

In very oversimplified terms, it's a collaboration between the local producer (who see an interest in the market and have the big bucks to mount a such a grand-scale production) and RUG (who will then decide if it's feasible to embark on such venture and will be responsible for organizing a tour along with casting and all the logistics behind). If it's going to be a translated production (like in China and Korea), I imagine it's much more complicated.

For the local producer they have to make sure there's an audience that could fill their seats enough to make a profit and a theatre that can meet the demands of the production and the approval of the head office. The planning takes years with theatres sometimes having to be built from scratch (with Phantom in mind). Often these producers are seasoned companies who have a track record of producing shows in the past but there had been newcomers to the field as well (who happen to be very rich). Phantom is a very expensive production.

I'm not familiar at all with the Vietnamese theatre scene but musical exposure and readiness is another factor to consider. People must be familiar with this performing arts genre and are known to willingly shell out money for it (proven if a similar show had successfully been staged in the past).

I'm sure I'm missing something but that's the gist of it based on my limited knowledge. Hope that helps!

[katelyn-scstudyabroad]

The “study” part of study abroad

I was flung hard back into student life this past week when classes resumed with my first class being at 6:45am on Monday. I quite literally had to wake up with the roosters (Vietnam definitely has different standards for where animals can be kept. During my travels around I literally saw cows grazing in urban residential areas).

Classes at FTU meet twice a week for periods of two hours and fifteen minutes. So far my classes have usually began late and/or ended early, but they still end up being longer than what I am used to. One nice thing is that all of my classes are conveniently located in one building. The downside to many classes being in one building, however, is that the elevators get very hectic during class change times. There ends up being a mass of students in line to get on them and then the max amount of people possible squeeze into each elevator. I personally opt to take the stairs over dealing with this. My lowest class is on the sixth floor so I should have killer legs by the time the semester finishes.

Class grades are mostly dependent on a group midterm project and a final exam. There’s not really smaller assessments or assignments. I also have not had to purchase any textbooks or access codes, a typical semester expense that I am glad to not have. All of my classes have Facebook groups where lecture notes and important announcements are posted, and every class has a student monitor who keeps attendance and is available for questions. Although all of my classes are in English, sometimes things are in Vietnamese, but fortunately my peers have been helpful in translating and explaining things.

After all this discussion about my classes I realized I neglected to put which courses I am actually taking, so here they are: International Trade Policy, Basic Marketing, Logistics and International Freight Forwarding, and Supply Chain Management. I am aware that none of these are particularly unique, but one interesting thing I have found about them is they cover content in the context of Vietnam. I just had a meeting for a group project that analyzes the supply chain models of global brands and comparable Vietnamese brands. As a supply chain major I look forward to learning about Vietnam in this context and seeing how this project progresses.

Outside of class I had a fairly relaxed week where the focus was just trying to settle into regular life in Hanoi after traveling around. I tried out a recommended laundry shop. I have found that in Vietnamese cities there’s not usually self-service laundromats, you have to use laundry services where they wash and dry everything for you. They generally charge around $1USD/kg and so far all of the services I have used have done a good job, so I can’t complain.

I also tried more food options within walking distance of where I live. The people who run this one restaurant always try to persuade me to come in whenever I walk past so I finally gave them a chance and realized that I have been sleeping on them. They served very delicious bún chả, a Hanoi specialty consisting of pork served with vermicelli noodles and vegetables. It is also custom to eat seafood spring rolls as a side pairing. It makes for a very filling meal on a rainy Hanoi evening. This may sound silly, but I also found that the Circle K is a great spot. There are Circle K’s everywhere and they usually have seating areas. Their banh mi and coffee combo for 21k dong (roughly $0.89) makes a great afternoon pick-me-up between classes. I also like to stop by for late night snacks.

I have also been spending more time with the other exchange students. Sometimes we’ll have meals together and the other night a group of us went to a jazz club just to try something new. I also hope to do more with local students as well, but it has so far been easier to socialize with the exchange students.

I did not think to take many photos this week since I was no longer in tourist mode, but here’s a few, featuring bún chả and jazz as mentioned.

[seoplassy]

India's Non-Basmati Rice Supply Chain: Key Trends and Market Insights - Eurosun Global

India plays a critical role in the global rice market, not only as a significant producer but also as the largest exporter of non-Basmati rice. While Basmati rice has its own unique demand, non-Basmati rice supply from India serves the bulk of global rice needs, catering to diverse markets across Asia, Africa, and the Middle East. In this blog, we will explore the key trends and market insights shaping India's non-Basmati rice supply chain.

Overview of Non-Basmati Rice Varieties in India

Non-Basmati rice includes a wide range of varieties, each suited to different climates and consumer preferences. Popular varieties such as Sona Masoori, IR-64, Ponni, and Matta rice are widely cultivated across regions like Andhra Pradesh, Tamil Nadu, and West Bengal. These varieties are known for their affordability, nutritional value, and versatility in dishes, making them an essential food staple in several countries.

The Non-Basmati Rice Supply Chain

The non-Basmati rice supply from India relies on a complex, multi-layered supply chain. It begins with farmers who cultivate the rice, followed by millers and processors who refine it for consumption. After processing, rice is transported to both domestic and international markets. The supply chain is supported by local traders, millers, logistics companies, and exporters who ensure the rice reaches global destinations efficiently. Key ports like Kakinada and Visakhapatnam facilitate rice exports to several countries.

Major Trends in Non-Basmati Rice Exports

In recent years, non-Basmati rice exporters from India have experienced significant growth, driven by increased global demand for affordable food products. Export destinations like Bangladesh, Nepal, and African countries account for a large share of the market. Additionally, emerging markets in the Middle East and Southeast Asia have also contributed to this expansion.

The competitive pricing of Indian non-Basmati rice, combined with its reliable quality, has allowed India to strengthen its position against other major rice-exporting countries like Thailand and Vietnam. Leading exporters, such as Eurosun Global, play a key role in meeting global demand by ensuring timely delivery and high product standards.

Government Policies Impacting the Supply Chain

The Indian government plays a crucial role in regulating the non-Basmati rice supply chain through policies on minimum support prices (MSP), export tariffs, and subsidies. These policies have both positive and negative impacts on exporters. For instance, during times of domestic price inflation or shortages, the government may impose export restrictions to stabilize the local market. However, in favorable market conditions, government incentives help boost rice exports by subsidizing shipping costs or easing export regulations.

Challenges and Opportunities in the Supply Chain

Despite its global success, the non-Basmati rice supply from India faces several challenges. Weather conditions, particularly monsoons, can disrupt production and affect crop quality. Additionally, logistical issues such as transportation delays and inadequate storage facilities pose challenges for the timely delivery of rice to international markets.

However, advancements in technology, like automated milling processes and improved logistics management, are helping to streamline the supply chain. The growing adoption of sustainable farming practices and the introduction of organic non-Basmati rice also offer significant growth opportunities for exporters.

Conclusion

India's non-Basmati rice supply chain is a vital part of global food security, driven by increasing demand and evolving market dynamics. Non-Basmati rice exporters from India continue to find growth opportunities, especially as new markets emerge and the supply chain becomes more efficient. With the right combination of policy support, technological innovation, and sustainability, India’s position in the global non-Basmati rice market is set to grow even further in the coming years.

[viexports]

How Do Basmati and Non-Basmati Rice Manufacturers Adapt to Global Demand?

Rice remains one of the most widely consumed staple foods across the globe, with demand steadily increasing year after year. As populations grow consumer preferences shift toward specific rice varieties, such as Basmati and Non-Basmati. In 2023, global rice consumption reached over 500 million metric tons, with countries like India, Thailand, and Vietnam leading the charge in exports to meet international needs. So how are rice manufacturers adapting to this growing demand?

Manufacturers are consistently diversifying their product lines to cater to the nuanced tastes of global consumers. Basmati rice, known for its long grains and fragrant aroma, is highly sought after in the Middle East, Europe, and the U.S. Non-Basmati varieties, such as short-grain and parboiled rice, dominate markets in Asia and Africa. To stay competitive, manufacturers balance their production between these varieties, optimizing output based on consumer demand.

Some producers are even developing hybrid rice varieties to appeal to local preferences while maintaining export quality. For instance, rice grown in Punjab, India, is now tailored for both domestic and international consumers by adjusting moisture levels and grain length during processing.

Innovative Farming and Processing Techniques

To meet the growing demand, rice producers are investing heavily in innovative farming methods. Sustainable farming practices such as precision irrigation and reduced chemical use not only improve yields but also ensure environmental protection. These methods allow farmers to produce high-quality rice while reducing costs.

On the processing front, advanced milling techniques have revolutionized the way rice is processed for export. Automated systems ensure minimal grain breakage and a uniform polish, which is key to the appeal of basmati rice. Additionally, boiling and steaming methods for non-basmati rice varieties help retain nutrients and improve the shelf life of rice, enabling producers to meet both quality and quantity requirements.

Adapting to International Trade and Regulations

One of the biggest challenges for rice manufacturers is understanding the complex regulations associated with global trade. Different countries have different requirements for food safety, pesticide residue levels, and quality standards. Manufacturers must adhere to stringent regulations to ensure that their rice can be exported without any problems.

To meet these regulations, producers invest in high-level quality control systems and frequent inspections. Traceability systems are also becoming a key factor in maintaining export compliance, ensuring that every step from farming to packaging is documented. Manufacturers who prioritize food safety certifications, such as HACCP (hazard analysis and critical control points) and ISO standards, are better positioned to maintain smooth export operations.

Meeting Consumer Preferences: Packaging and Distribution

Consumer preferences are not limited to the type of rice, they also extend to the way rice is packaged. In markets such as Europe and North America, consumers prefer environmentally friendly packaging options. Manufacturers are moving from traditional plastic bags to biodegradable and recyclable materials, adding value to their products.

In addition, manufacturers are enhancing their distribution strategies. Global demand requires manufacturers to adopt a streamlined, efficient supply chain. Many companies now use predictive logistics tools to ensure timely delivery even during market fluctuations. This adaptability in packaging and logistics is key to meeting the expectations of modern consumers.

The global rice industry is evolving rapidly as demand grows and consumers seek high-quality, responsibly sourced products. Producers who embrace innovation – whether through sustainable farming, advanced processing or compliance with international standards – are better equipped to succeed in this dynamic market. By staying abreast of both production needs and consumer preferences, rice producers continue to meet the world's demand for this essential staple food.

[mkpoddar]

The Shift to Overseas Clothing Manufacturing: A Comprehensive Overview

The trend of American clothing companies manufacturing their apparel overseas has become increasingly prevalent in recent decades. This shift is driven by a complex interplay of economic, logistical, and strategic factors that make overseas production more appealing than domestic manufacturing. Below, we delve into the key reasons behind this trend and explore the implications for various segments of the clothing industry, including custom clothing manufacturers, women’s clothing manufacturers, and kids’ clothing manufacturers.

1. Cost Efficiency and Economies of Scale

a. Lower Production Costs

One of the primary reasons American clothing companies opt to work with overseas clothing manufacturers is cost efficiency. Countries such as China, Bangladesh, Vietnam, and India offer significantly lower labor costs compared to the United States. This wage disparity allows manufacturers to produce apparel at a fraction of the cost, which is crucial for companies aiming to keep prices competitive.

Labor Costs: Lower wages in overseas factories reduce overall production expenses.

Material Costs: Bulk purchasing of raw materials in manufacturing hubs can also lead to reduced material costs.

b. Economies of Scale

Overseas clothing manufacturers often benefit from large-scale operations that enable them to achieve economies of scale. High-volume production not only reduces per-unit costs but also provides the ability to reinvest savings into further cost reductions.

Mass Production: Large production runs can lead to lower costs per unit.

Operational Efficiency: Streamlined production processes improve cost-efficiency.

2. Access to Advanced Manufacturing Technologies

a. Technological Expertise

Many overseas manufacturers are equipped with state-of-the-art technology and advanced manufacturing processes. Countries like China and South Korea are known for their investment in high-tech machinery and automation, which enhances production capabilities.

High-Tech Machinery: Automated machines and advanced textile technologies improve production efficiency.

Innovation: Continuous upgrades in technology help in producing high-quality garments.

b. Specialized Facilities

Some overseas manufacturers have specialized facilities that cater to specific types of apparel, such as sportswear, high-fashion, or technical textiles. This specialization allows for more precise and efficient production processes.

Custom Clothing Manufacturer: Advanced facilities can handle complex custom designs and high-quality prints.

Women's Clothing Manufacturer: Specialized production lines focus on current fashion trends and high-quality standards.

3. Supply Chain and Logistics Advantages

a. Integrated Supply Chains

Overseas manufacturers often operate within well-established supply chains that include fabric suppliers, accessory manufacturers, and logistics providers. This integration simplifies the production process and reduces lead times.

Vertical Integration: Many overseas factories handle everything from fabric sourcing to final garment production.

Streamlined Logistics: Efficient supply chain management minimizes delays and lowers costs.

b. Flexibility in Production

Overseas clothing manufacturers are often more flexible in terms of production schedules and order sizes. This flexibility allows for quicker adaptation to market demands and changing trends.

Responsive Production: Ability to quickly adjust production volumes in response to market fluctuations.

Reduced Lead Times: Faster turnaround times for new collections and trends.

4. Market Demand and Globalization

a. Global Market Reach

As American clothing companies increasingly target international markets, manufacturing overseas allows them to be closer to these global consumers. This geographic proximity helps in catering to regional preferences and reducing shipping costs for international orders.

International Demand: Manufacturing in or near target markets can reduce shipping times and costs.

Cultural Adaptation: Local production can be tailored to meet regional fashion preferences.

b. Competitive Pricing

To remain competitive in a global market, American companies need to offer affordable pricing. Overseas manufacturing provides a way to achieve lower production costs, which can be passed on to consumers in the form of lower prices.

Price Competitiveness: Reduced production costs help maintain lower retail prices.

Market Positioning: Competitive pricing can attract price-sensitive customers.

5. Labor and Working Conditions

a. Labor Costs vs. Standards

In the quest for lower costs, some American companies may prioritize labor cost savings over working conditions. This has led to criticism and the need for ethical sourcing practices.

Labor Standards: There are concerns about working conditions and fair wages in some overseas manufacturing locations.

Ethical Sourcing: Many companies are working to ensure that their overseas suppliers adhere to ethical labor practices.

b. Domestic Labor Costs

Domestic manufacturing in the U.S. often involves higher labor costs due to stricter labor laws, higher wages, and benefits. This makes it challenging for companies to compete with lower-priced imports.

Higher Wages: Domestic manufacturing is constrained by higher labor costs.

Regulatory Compliance: U.S. labor laws enforce higher standards for worker rights and benefits.

6. Customization and Specialized Manufacturing

a. Custom Clothing Manufacturers

For businesses focusing on custom clothing, overseas manufacturers often offer a wider range of customization options at lower costs. This includes everything from custom prints and embroidery to unique garment designs.

Custom Printing: Advanced techniques and equipment enable a variety of custom printing options.

Design Flexibility: Ability to accommodate complex and diverse design requests.

b. Women’s and Kids’ Clothing Manufacturers

Manufacturers specializing in women’s and kids’ clothing overseas often have extensive experience and facilities dedicated to these specific markets. This specialization ensures that products meet the quality and design standards expected by consumers.

Women’s Clothing Manufacturer: Focus on the latest trends and high-quality materials for women’s fashion.

Kids’ Clothing Manufacturer: Emphasis on safety, comfort, and durability for children’s apparel.

7. Challenges and Considerations

a. Quality Control and Communication

While overseas manufacturing offers many benefits, it also presents challenges, such as maintaining consistent quality and managing communication across different time zones and languages.

Quality Assurance: Ensuring that overseas manufacturers meet quality standards requires rigorous oversight and inspections.

Communication Barriers: Time zone differences and language barriers can complicate coordination.

b. Ethical and Environmental Concerns

There is growing scrutiny over the environmental impact and ethical practices of overseas manufacturing. Companies must address concerns related to sustainability and labor practices to maintain consumer trust.

Sustainability: Many companies are investing in sustainable practices and materials.

Ethical Manufacturing: Ensuring that suppliers adhere to fair labor practices and environmental regulations.

Conclusion

The decision to manufacture clothing overseas is influenced by a variety of factors including cost efficiency, technological advancements, and supply chain benefits. American clothing companies leverage overseas manufacturing to achieve lower production costs, access advanced technologies, and respond to global market demands. However, this shift also presents challenges related to quality control, ethical practices, and environmental impact. As the industry continues to evolve, balancing cost benefits with ethical considerations and sustainability will be crucial for maintaining a competitive edge in the global market.

Whether you are a custom clothing manufacturer, a women’s clothing manufacturer, or a kids’ clothing manufacturer, understanding these dynamics is essential for navigating the complexities of international apparel production and ensuring success in the global marketplace.

[entailglobal]

The Top 10 Furniture Exporters in 2024 – Who is Leading the Global Market

The global furniture market is experiencing significant growth, driven by factors such as increased disposable income, urbanization, and a rising demand for aesthetically appealing and functional furniture.  As the demand for high-quality furniture rises worldwide, several key players are leading the charge in furniture exports, setting benchmarks for design, quality, and sustainability.  In this blog, we will look at the Top 10 exporters of furniture in 2024, exploring who dominates the market and why.

Additionally, if you are searching for the Top 10 Furniture exporters in Gujarat, this article will highlight some key players who are making waves, particularly in the Indian market.

1.         China:  A Global Giant in Furniture Exports

China continues to dominate the global furniture export market in 2024, maintaining its position as the world’s largest furniture manufacturer and exporter.  China’s competitive edge lies in its vast production capacity, low labor costs, and efficient supply chain logistics.  Chinese companies produce a wide variety of furniture, ranging from affordable to luxury segments, catering to global markets with high demand.

Key Strengths:  Cost-effective production, diverse product range, and strong supply chain.

Major Export Destinations:  United States, Europe, Southeast Asia.

2.         Vietnam: Emerging Powerhouse in Furniture Exports

Vietnam has rapidly climbed the ranks to become the second-largest furniture exporter globally.  The country's growth is driven by its favorable business environment, access to high-quality raw materials, and skilled labor.  Vietnamese furniture, particularly wooden furniture, is gaining popularity due to its craftsmanship, competitive pricing, and eco-friendly practices.  Vietnam’s strong focus on sustainability and responsible sourcing has enhanced its reputation as a trusted exporter.

Key Strengths:  Skilled craftsmanship, eco-friendly furniture, and competitive pricing.

Major Export Destinations:  United States, Japan, Europe.

3.         Italy: A Legacy of Design Excellence

Italy has long been recognized as a leader in high-end, luxury furniture design.  Italian furniture is synonymous with elegance, quality, and innovation.  The country’s furniture industry boasts a rich tradition of artisanal craftsmanship, combined with cutting-edge technology.  Italian furniture exports primarily target the luxury market, making Italy one of the most sought-after destinations for premium furniture buyers.

Key Strengths:  High-end luxury designs, artisanal craftsmanship, and innovation.

Major Export Destinations:  United States, Middle East, Europe.

4.         Poland: Rising Star in European Furniture Exports

Poland has steadily established itself as one of the Top 10 furniture exporters in the world, thanks to its highly efficient production processes, access to European markets, and emphasis on quality.  The Polish furniture industry is known for producing modern, functional designs at competitive prices, making it a go-to supplier for furniture retailers across Europe and beyond.

Key Strengths:  Competitive pricing, modern designs, and proximity to European markets.

Major Export Destinations:  Germany, France, United Kingdom.

5.         Germany: Engineering Precision Meets Furniture Design

Germany’s furniture industry is known for its emphasis on engineering precision, quality materials, and sustainable production.  As one of the largest furniture exporters in Europe, Germany’s furniture sector caters to both residential and commercial markets.  German furniture manufacturers are renowned for their focus on sustainability, with eco-friendly materials and energy-efficient production methods.

Key Strengths:  High-quality engineering, sustainable production, and innovative designs.

Major Export Destinations:  United States, European Union, Asia.

6.         United States: Strong Domestic Production and Export Growth

While the United States is primarily a furniture importer, it also plays a significant role as a furniture exporter, particularly in high-end segments.  U.S. furniture manufacturers are known for their innovation, customization, and premium materials.  American furniture companies focus on producing contemporary designs, often tailored to meet specific customer needs.  This has helped U.S.  companies carve a niche in international markets.

Key Strengths:  Customization, premium materials, and contemporary designs.

Major Export Destinations:  Canada, Mexico, European Union.

7.         Malaysia: A Key Player in Southeast Asia’s Furniture Market

Malaysia is another rising star in the global furniture export market, particularly known for its wooden furniture.  With a strong focus on sustainable forestry practices and high-quality craftsmanship, Malaysia’s furniture industry continues to expand its global footprint.  The country’s strategic location and access to abundant raw materials have made it a key exporter to markets in Europe, the United States, and the Middle East.

Key Strengths:  Sustainable sourcing, quality craftsmanship, and competitive pricing.

Major Export Destinations:  United States, Europe, Middle East.

8.         India: A Growing Force in Global Furniture Exports

India has been steadily growing its presence in the global furniture market, particularly as one of the Top 10 Furniture exporters in Gujarat.  Indian furniture manufacturers offer a blend of traditional craftsmanship with modern designs, making their products appealing to both domestic and international markets.  Gujarat, in particular, has become a hub for furniture production, with companies focusing on high-quality, sustainable, and handcrafted furniture.

India’s growing furniture industry benefits from its vast pool of skilled artisans, access to raw materials, and an expanding global customer base.  Indian exporters are increasingly recognized for offering customized, handmade furniture, which is in high demand in markets such as the U.S.  and Europe.

Key Strengths:  Handcrafted designs, sustainable materials, and customization.

Major Export Destinations:  United States, Europe, Middle East.

9.         Turkey: Blending Tradition with Modern Innovation

Turkey’s furniture industry is characterized by its blend of traditional craftsmanship with contemporary designs.  The country’s strategic location, connecting Europe and Asia, gives it a unique advantage in global trade.  Turkish furniture manufacturers are known for their innovative designs, attention to detail, and competitive pricing, making them one of the Top 10 furniture exporters globally.

Key Strengths:  Strategic location, blend of tradition and modernity, and competitive pricing.

Major Export Destinations:  Europe, Middle East, Africa.

10.       Indonesia: Traditional Craftsmanship Meets Global Demand

Indonesia’s furniture industry is deeply rooted in its rich heritage of craftsmanship, particularly in wooden furniture.  The country is a significant exporter of teak and other hardwood furniture, valued for its durability and aesthetic appeal.  Indonesian furniture is known for its intricate designs and use of natural materials, which resonate well with eco-conscious consumers.  With a growing focus on sustainability and responsible sourcing, Indonesia is cementing its position as a leading furniture exporter.

Key Strengths:  Sustainable hardwood furniture, traditional craftsmanship, and eco-friendly designs.

Major Export Destinations:  United States, Europe, Asia.

Best Exporter of Furniture – Who Tops the List?

When it comes to identifying the Best exporter of Furniture globally, it is essential to consider factors such as product quality, innovation, sustainability practices, and market reach.  While China continues to lead in terms of volume, countries like Italy, Vietnam, and Poland are gaining ground due to their focus on design, craftsmanship, and eco-friendly practices.

For those looking for the Top 10 Furniture exporter in Gujarat, India is making significant strides in the furniture industry.  Gujarat has emerged as a key player in furniture exports, with companies that focus on high-quality, handcrafted furniture.  The state’s strong manufacturing capabilities, coupled with skilled artisans and sustainable production practices, have positioned it as a rising force in global furniture exports.

Conclusion

As the global furniture market continues to evolve, several countries have distinguished themselves as the Top 10 exporters of furniture in 2024.  From China’s dominance in mass production to Italy’s luxury craftsmanship and Vietnam’s focus on eco-friendly practices, these exporters are shaping the future of the global furniture industry.

For businesses and consumers alike, understanding the strengths of each exporting country can help in making informed purchasing decisions.  Whether you are in the market for high-end luxury furniture or cost-effective, sustainable options, the global furniture export market offers a diverse range of choices to meet every need.

[seairexim]

Everything You Need to Know About Furniture Import in India

Importing furniture into India involves navigating a complex system of regulations, processes, and logistics. With a rising demand for high-quality, stylish, and durable furniture driven by the country's expanding middle class and rapid urbanization, understanding the intricacies of the furniture import market has become increasingly important. This article explores furniture import in India, including market trends, key players, import statistics, challenges, and opportunities, providing valuable insights for businesses and individuals looking to enter this growing market.

Key Players: Leading Furniture Importers in India

The Indian furniture market is home to several leading importers who play a crucial role in bringing high-quality and stylish furniture to Indian consumers. These key players have established strong relationships with international suppliers and have a deep understanding of the Indian market.

Some of the leading furniture importers in India include

Urban Ladder

Pepperfry

IKEA

Godrej Interio

Urban Ladder and Pepperfry are two of the most prominent online furniture retailers in India. They offer a wide range of imported furniture, catering to various tastes and preferences. These companies have invested heavily in building robust supply chains and logistics networks to ensure timely delivery and excellent customer service. IKEA, the global furniture giant, entered the Indian market with a promise of providing affordable and stylish furniture. With its vast product range and innovative designs, IKEA has quickly become a popular choice among Indian consumers.

Godrej Interio, a well-established Indian furniture brand, has also ventured into the import market to offer premium furniture to its customers. By collaborating with international suppliers, Godrej Interio has expanded its product portfolio to include high-quality imported furniture. These leading importers have set a benchmark in the Indian furniture market, driving growth and setting trends for others to follow.

A Deep Dive into India’s Furniture Import Statistics

India furniture imports statistics provide valuable insights into the trends and patterns shaping the market. Over the past decade, there has been a steady increase in the value and volume of furniture imports into India. According to industry reports, the total value of furniture imports in India was estimated to be around USD 2.5 billion in 2020, with a significant portion coming from countries like China, Malaysia, and Vietnam.

China is the largest exporter of furniture to India, accounting for nearly 60% of the total imports. The popularity of Chinese furniture can be attributed to its affordability, diverse designs, and good quality. Malaysia and Vietnam are also major exporters of furniture to India, known for their high-quality wooden furniture and craftsmanship. The import of furniture from these countries has been growing steadily, driven by the increasing demand for premium and stylish furniture among Indian consumers.

The import statistics also reveal interesting trends in consumer preferences. There is a growing demand for modular and multifunctional furniture, driven by the need for space-saving solutions in urban homes. Additionally, eco-friendly and sustainable furniture is gaining popularity, as consumers become more conscious of their environmental impact. These trends are shaping the future of furniture imports in India, with importers and suppliers adapting to meet the evolving preferences of Indian consumers.

The Role of Chinese Furniture Importers in India’s Market

Chinese furniture importers play a significant role in the Indian market, contributing to the availability of a wide range of affordable and stylish furniture. China's dominance in the global furniture industry is well-known, and its influence extends to the Indian market as well. Chinese furniture importers have established strong supply chains and distribution networks, ensuring a steady flow of furniture into India.

One of the key reasons for the popularity of Chinese furniture in India is its cost-effectiveness. Chinese manufacturers are known for their ability to produce high-quality furniture at competitive prices, making it an attractive option for Indian consumers. Additionally, Chinese furniture comes in a variety of designs and styles, catering to different tastes and preferences. From contemporary and modern designs to traditional and classic styles, Chinese furniture importers offer a diverse range of options for Indian consumers.

The role of Chinese furniture importers in India goes beyond just supplying furniture. They also contribute to the growth of the Indian furniture market by introducing new trends and innovations. Chinese manufacturers are known for their focus on research and development, constantly bringing new and innovative products to the market. This has a positive impact on the Indian furniture industry, encouraging local manufacturers to adopt new technologies and design trends.

Decoding the Furniture HS Code for Seamless Import

The Harmonized System (HS) code is an essential aspect of the furniture import process, as it helps in the classification and identification of goods. The HS code is a standardized numerical method of classifying traded products, used by customs authorities around the world to identify products for the application of duties and taxes. Decoding the furniture HS code is crucial for importers to ensure compliance with customs regulations and to avoid any delays or penalties.

Furniture falls under Chapter 94 of the HS code, which covers "Furniture; bedding, mattresses, mattress supports, cushions, and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates, and the like; prefabricated buildings." Within this chapter, there are specific subheadings for different types of furniture, such as wooden furniture, metal furniture, and plastic furniture.

Importers need to accurately classify their products under the correct HS code to ensure that the appropriate duties and taxes are applied. Misclassification can lead to delays in customs clearance, fines, and other penalties. It is advisable for importers to consult with customs brokers or experts to ensure accurate classification and compliance with regulations. Additionally, staying updated with any changes or amendments to the HS code is essential for a seamless import experience.

Benefits of Importing Furniture into India

Importing furniture into India offers several benefits for businesses and consumers alike. One of the primary advantages is the access to a wide range of high-quality and stylish furniture that may not be available domestically. Imported furniture often comes with unique designs, superior craftsmanship, and innovative features that cater to the evolving preferences of Indian consumers.

For businesses, importing furniture provides an opportunity to diversify their product offerings and cater to a broader customer base. By offering imported furniture, businesses can attract customers looking for premium and exclusive products. Additionally, importing furniture can be cost-effective, as it allows businesses to source products at competitive prices from international suppliers.

Another significant benefit of importing furniture is the potential for higher profit margins. Imported furniture often commands higher prices due to its perceived value and quality. This allows businesses to achieve better profit margins compared to selling domestically produced furniture. Moreover, importing furniture can also help businesses stay ahead of market trends and introduce new and innovative products to their customers.

Steps to Import Furniture into India

Importing furniture into India involves a series of steps that need to be meticulously followed to ensure a smooth and hassle-free process. The first step is to identify the right products and suppliers. Conducting thorough research and due diligence is essential to ensure that the furniture being imported meets Indian standards and consumer preferences.

Once the products and suppliers are identified, the next step is to obtain the necessary licenses and permits. Importers need to register with the Directorate General of Foreign Trade (DGFT) and obtain an Importer Exporter Code (IEC). Additionally, importers may need to obtain specific licenses or permits depending on the type of furniture being imported.

After obtaining the necessary licenses and permits, importers need to understand and comply with customs regulations. This includes accurately classifying the furniture under the correct HS code, calculating import duties and taxes, and preparing the required documentation. It is advisable to work with customs brokers or experts to ensure compliance and avoid any delays or penalties.

Logistics and supply chain management is another critical aspect of the import process. Importers need to arrange for transportation, warehousing, and distribution to ensure that the furniture reaches its destination in good condition and on time. Efficient handling of logistics is vital to minimize the risk of damage during transit and to meet customer expectations.

Finally, importers need to stay updated with any changes or amendments to import regulations and policies. This includes keeping track of changes in import duties, taxes, and HS codes. Staying informed and proactive can help importers navigate the complexities of the import process and ensure a successful import experience.

Challenges and Risks in Furniture Import

Importing furniture into India comes with its own set of challenges and risks that need to be carefully managed. One of the primary challenges is navigating the complex regulatory landscape. Importers need to comply with various regulations, obtain necessary licenses and permits, and accurately classify their products under the correct HS code. Failure to comply with regulations can result in delays, fines, and other penalties.

Another significant challenge is managing logistics and supply chain. Ensuring timely delivery and maintaining the quality of furniture during transit can be challenging, especially when dealing with international shipments. Importers need to work with reliable logistics partners and invest in efficient supply chain management to minimize the risk of damage and delays.

Fluctuations in currency exchange rates can also pose a risk for importers. Changes in exchange rates can impact the cost of imported furniture, affecting profit margins. Importers need to have strategies in place to mitigate the impact of currency fluctuations, such as hedging or entering into forward contracts.

Additionally, importers may face challenges related to consumer preferences and market trends. The furniture market is highly dynamic, with changing trends and evolving consumer preferences. Importers need to stay updated with market trends and adapt their product offerings accordingly to meet customer expectations.

Despite these challenges and risks, importing furniture into India can be a lucrative business opportunity. By carefully managing the challenges and mitigating the risks, importers can tap into the growing demand for high-quality and stylish furniture in the Indian market.

Conclusion

In conclusion, the furniture import sector in India offers significant opportunities driven by rising consumer demand and market growth. However, successful navigation requires a deep understanding of regulations, logistics, and market trends. By addressing challenges like customs compliance and supply chain management, businesses can capitalize on this evolving market and meet the growing need for premium and diverse furniture options in India. However, if you need furniture HS code, furniture import data, or global trade data you can take advantage of import and export data provider platforms like Seair Exim Solutions.

Frequently Asked Questions (FAQs)

Q1. What is the process of importing furniture into India?

Importing furniture into India involves several steps, including identifying suitable products and suppliers, obtaining the necessary licenses and permits, complying with customs regulations, classifying products under the correct HS code, and managing logistics like transportation and warehousing.

Q2. What are the primary regulations for importing furniture into India?

Importers need to register with the Directorate General of Foreign Trade (DGFT) and obtain an Importer Exporter Code (IEC). Compliance with customs regulations, proper product classification under the HS code, and paying applicable import duties and taxes are also crucial.

Q3. Which countries are the main exporters of furniture to India?

The leading exporters of furniture to India are China, Malaysia, and Vietnam. China accounts for about 60% of furniture imports, while Malaysia and Vietnam are known for their high-quality wooden furniture.

Q4. What are the logistics challenges involved in furniture importation?

Key logistics challenges include ensuring timely delivery, preventing damage during transit, managing warehousing and distribution, and dealing with customs clearance delays. Efficient supply chain management is essential to overcome these hurdles.

Q5. What is the role of the HS code in furniture import?

The HS (Harmonized System) code helps classify imported goods and is essential for determining the applicable import duties and taxes. Furniture generally falls under Chapter 94, covering various types of furniture and related products.

Q6. What are the potential risks when importing furniture into India?

Risks include regulatory non-compliance, customs delays, damage during transit, currency fluctuations affecting costs, and the need to stay updated on changing market trends and consumer preferences.

Post By: Seair Exim Solutions Phone No.: 099900 20716 Address: B1/E3 Mohan Cooperative Industrial Estate Near Mohan Estate Metro Station Opposite Metro Pillar No:-336, NH-19, New Delhi, Delhi 110044

Also Read: Insights into Iron Ore Exports from India: Key Data

[b2bbusiness]

The Booming Thailand Construction Market: Trends, Opportunities, and Challenges

The Thailand construction market is experiencing significant growth, driven by a combination of government initiatives, private sector investment, and a burgeoning real estate market. With its strategic location in Southeast Asia and an ambitious infrastructure development plan, Thailand is positioning itself as a regional hub for commerce, industry, and tourism. This article explores the key trends, opportunities, and challenges in the Thailand construction market.

Market Overview

Thailand's construction industry has been on a steady upward trajectory, with the market size expected to grow at a CAGR of 5-6% over the next few years. The industry encompasses various sectors, including residential, commercial, industrial, and infrastructure construction. Government-led projects, such as the Eastern Economic Corridor (EEC) and Thailand 4.0, are pivotal in driving this growth, focusing on improving transportation networks, industrial zones, and smart cities.

Key Trends in Thailand's Construction Market

1. Infrastructure Development

Infrastructure development is at the forefront of Thailand's construction market. The government is investing heavily in transportation projects, including the expansion of airports, highways, railways, and ports. The development of high-speed rail networks connecting major cities and neighboring countries is a game-changer, expected to enhance trade and tourism.

2. Urbanization and Smart Cities

Thailand is witnessing rapid urbanization, with a growing population in urban centers like Bangkok, Chiang Mai, and Pattaya. This urban shift is driving demand for residential and commercial spaces. Additionally, the government's smart city initiative aims to integrate technology into urban planning, improving the quality of life and sustainability. This includes the development of energy-efficient buildings, advanced public transport systems, and digital infrastructure.

3. Green and Sustainable Construction

Sustainability is becoming a crucial consideration in Thailand's construction sector. There is an increasing demand for green buildings that reduce energy consumption and minimize environmental impact. The adoption of international green building standards, such as LEED and EDGE, is gaining traction, particularly in the commercial and hospitality sectors.

4. Foreign Investment and Joint Ventures

Thailand's construction market is attracting significant foreign investment, particularly from China, Japan, and South Korea. These investments often come in the form of joint ventures with local companies, bringing in advanced construction technologies and expertise. The EEC, in particular, has become a magnet for foreign investors, with numerous industrial and infrastructure projects underway.

Opportunities in the Thailand Construction Market

1. Expansion of the Real Estate Market

The real estate market in Thailand is thriving, with increasing demand for residential properties, particularly in urban areas. The rise of middle-class consumers and the influx of expatriates and retirees are driving demand for housing, condominiums, and luxury apartments. Additionally, the growth of the tourism industry is fueling the need for hotels, resorts, and commercial spaces.

2. Industrial and Logistics Parks

The development of industrial and logistics parks, particularly in the EEC, presents significant opportunities for construction companies. These projects are designed to support Thailand's manufacturing and export sectors, providing modern facilities for factories, warehouses, and distribution centers.

3. Infrastructure Projects in Neighboring Countries

Thailand's strategic location makes it a gateway to Southeast Asia. Construction companies in Thailand have opportunities to participate in infrastructure projects in neighboring countries, particularly in the CLMV (Cambodia, Laos, Myanmar, and Vietnam) region. These projects include road networks, bridges, and industrial parks.

Challenges Facing the Thailand Construction Market

1. Regulatory and Bureaucratic Hurdles

Despite the positive growth outlook, the Thailand construction market faces challenges related to regulatory and bureaucratic processes. Obtaining permits and approvals can be time-consuming, leading to project delays. Additionally, navigating complex land ownership laws can be a hurdle for both local and foreign investors.

2. Labor Shortages

The construction industry in Thailand is experiencing a shortage of skilled labor, which can impact project timelines and quality. The reliance on foreign labor, particularly from neighboring countries, also poses challenges, including labor regulations and potential supply disruptions.

3. Environmental Concerns

As the construction industry expands, environmental concerns are becoming more prominent. The impact of large-scale infrastructure projects on natural habitats, water resources, and air quality is a growing issue. Construction companies are increasingly expected to adopt environmentally friendly practices and mitigate the impact of their projects.

Buy the Full Report to Know More about the Thailand Construction Market Forecast

Download a Free Report Sample

[novumtimes]

Alibabas Lazada makes first EBITDA profit in July commits more investment TechNode

Alibaba’s Southeast Asia-focused retailing unit Lazada made its first monthly profit in July, CEO James Dong announced at a Tuesday internal meeting, saying the positive status of the firm’s earnings before interest, taxes, depreciation, and amortization (EBITDA) “proves the effectiveness of Lazada’s business strategy,” an attendee told TechNode. Why it matters: The achievement could be a precursor to Lazada achieving sustainable profitability as parent company Alibaba’s domestic performance stalls. Alibaba is set to post its second-quarter earnings on Thursday. Details: “Lazada will continue to increase investment in the Southeast Asian market under a sustainable operating model,” Dong said on the meeting, according to the attendee. Lazada operates in Thailand, Singapore, Vietnam, Malaysia, Indonesia, and the Philippines, with its Thai business the first to achieve profitability in 2022. Parent company Alibaba does not disclose separate financial records for businesses under its international digital commerce group, where revenue comes mainly from AliExpress, Trendyol, and Lazada, consisting of customer management services, merchandising, and logistics services, according to Alibaba’s annual report.  Alibaba mentioned in its March quarter earnings report that Lazada’s loss per order narrowed significantly year-on-year during that period. Context: E-commerce giant Alibaba has made at least ten investments in Lazada totalling nearly $8 billion since 2016. The retailer’s mature rivals like Shopee and TikTok Shop are also eyeing expansion in the Southeast Asia region, Lazada’s operating base. Temu, the budget-oriented retailing platform owned by PDD, entered the Thai market in August, one year after its expansion to Malaysia and the Philippines. Earlier this year, hundreds of Lazada workers were laid off amid overall workforce adjustments, with employees from all levels impacted, according to a CNBC report. Related Cheyenne Dong is a tech reporter now based in Shanghai. She covers e-commerce and retail, AI, and blockchain. Connect with her via e-mail: cheyenne.dong[a]technode.com. More by Cheyenne Dong Source link via The Novum Times

[beststretchfilm]

Why Flexible Laminates Are the Best Choice for Food Packaging in Vietnam

In the fast-evolving world of food packaging, flexible laminates have emerged as a game-changer. But what exactly makes them the best choice for food packaging in Vietnam? We'll explore the multiple advantages of flexible laminates, focusing on their role in preserving food quality, reducing environmental impact, and cutting costs for businesses. Let's dive in to discover why these modern packaging solutions are capturing the attention of manufacturers, logistics companies, retailers, and more.

The Rise of Flexible Laminates in Vietnam

Flexible laminates are gaining popularity in Vietnam's food packaging industry. With their versatility and efficiency, they offer a fresh approach to traditional packaging methods. Vietnamese manufacturers and logistics companies are quickly adopting this innovation to stay competitive.

Flexible laminates are composite materials made by bonding different layers of flexible materials like plastic films, aluminum foils, and paper. This unique combination offers an optimal balance of durability, lightweight properties, and excellent barrier protection.

The popularity of flexible laminates is not just a trend. It reflects a significant shift towards innovation and sustainability in food packaging. From small businesses to large corporations, everyone is recognizing the immense potential that flexible laminates bring to the table.

Enhanced Food Preservation

Flexible laminates excel in preserving food quality. Their multi-layered structure provides robust protection against moisture, oxygen, and light, which are the main culprits behind food spoilage. This ensures that food products remain fresh for longer periods.

Food preservation is critical in a country like Vietnam, where hot and humid weather can accelerate spoilage. By extending shelf life, flexible laminates help reduce food waste, which is a significant concern for manufacturers and retailers alike.

Additionally, flexible laminates can be tailored to meet specific packaging needs. Whether it's dry food, frozen goods, or liquids, these laminates provide the necessary barrier properties to keep food safe and nutritious.

Environmentally Friendly Packaging

One of the standout features of flexible laminates is their potential for sustainability. Traditional packaging materials like glass and rigid plastics contribute to environmental pollution. In contrast, flexible laminates can be recycled and have a smaller carbon footprint.

Vietnam, like many other countries, is facing increasing pressure to adopt eco-friendly practices. Flexible laminates offer a viable solution by reducing the volume and weight of packaging materials, thereby lowering transportation emissions.

Furthermore, innovations in biodegradable and compostable laminates are paving the way for even greener packaging options. Businesses that prioritize sustainability can significantly benefit from adopting flexible laminates for their food products.

Cost-Effective and Efficient

Cost efficiency is a major consideration for businesses when choosing packaging materials. Flexible laminates are lightweight, which reduces shipping costs and storage space requirements. This translates into significant savings for manufacturers and logistics companies.

The production process of flexible laminates is also comparatively less resource-intensive. Advanced manufacturing techniques allow for high-speed production, minimizing labor costs and energy consumption. These savings can be passed on to consumers, making products more affordable.

Another advantage is the flexibility in design and printing. Flexible laminates can be customized with vibrant graphics and branding, enhancing product appeal. This is especially important in Vietnam's competitive market, where eye-catching packaging can influence consumer choices.

Versatility in Application

Flexible laminates are incredibly versatile, catering to a wide range of food products. From snacks and beverages to dairy and confectionery, these laminates can be adapted to various packaging needs.

This versatility extends to the forms and formats of packaging. Flexible laminates can be used for pouches, sachets, wraps, and more. They can also accommodate different sealing methods, ensuring the integrity of the packaging.

Vietnamese businesses, particularly those involved in export and import, benefit from this adaptability. Flexible laminates ensure that food products remain intact during long transit times, reducing the risk of damage and spoilage.

Improved Consumer Experience

Consumer expectations are evolving, with a growing demand for convenient and user-friendly packaging. Flexible laminates meet these demands by offering easy-to-open features, resealable options, and portion control mechanisms.

In Vietnam, where convenience is highly valued, these features enhance the overall consumer experience. Easy-to-use packaging is particularly appealing to busy urban households and on-the-go consumers.

Additionally, the transparency of certain flexible laminates allows consumers to see the product inside, building trust and confidence in the purchase. This visual appeal can drive sales and customer loyalty.

Barrier Properties that Stand Out

One of the key technical advantages of flexible laminates is their exceptional barrier properties. These laminates provide a strong shield against external factors that can degrade food quality, such as oxygen, moisture, and light.

For example, the incorporation of aluminum foil in flexible laminates enhances its ability to block out oxygen completely. This is crucial for products like coffee and snacks that require an oxygen-free environment to maintain their flavor and crunchiness.

In Vietnam's diverse climate, these barrier properties are invaluable. They ensure that food products remain fresh and safe from the moment they are packaged until they reach the consumer's table.

Simplified Supply Chain Management

Flexible laminates streamline supply chain management by offering efficient and reliable packaging solutions. Their lightweight nature reduces the burden on transportation and warehousing, allowing for better logistics planning.

For logistics and supply chain companies in Vietnam, this means fewer complications and lower costs. The reduced weight and volume of flexible laminates enable more efficient use of storage space and transportation resources.

Additionally, the durability of flexible laminates minimizes the risk of damage during handling and transit. This reliability is crucial for maintaining the quality of food products throughout the supply chain.

Supporting Export and Import Activities

Vietnam is a significant player in the global food export market. Flexible laminates support export activities by providing robust and reliable packaging that meets international standards.

Exporters benefit from the extended shelf life and enhanced protection offered by flexible laminates. These attributes ensure that food products reach international markets in optimal condition, enhancing the reputation of Vietnamese goods.

Importers also appreciate the versatility and efficiency of flexible laminates. They provide a practical solution for repackaging and distributing imported food products, ensuring consistency and quality for consumers.

Customized Solutions for E-commerce

The rise of e-commerce has transformed the way consumers shop for food. Flexible laminates cater to the unique demands of online retail by offering packaging that is both attractive and functional.

E-commerce businesses in Vietnam can leverage flexible laminates to create engaging unboxing experiences. With customizable designs and printing options, brands can make a lasting impression on consumers.

Furthermore, the durability and barrier properties of flexible laminates ensure that food products arrive in perfect condition, even after long transit times. This reliability builds trust and encourages repeat purchases.

Contributing to Industrial Growth

The adoption of flexible laminates extends beyond food packaging. Industrial sectors in Vietnam are also recognizing the benefits of these versatile materials for packaging non-food products.

Industries such as pharmaceuticals, cosmetics, and electronics are leveraging flexible laminates for their protective and barrier properties. This cross-industry adoption drives innovation and growth in the packaging sector.

By investing in flexible laminates, businesses can tap into new markets and opportunities, contributing to the overall industrial growth of Vietnam.

[trendingreportz]

South East Asia Testing, Inspection & Certification Market - Forecast (2024-2030)

South East Asia Testing, Inspection & Certification (TIC) Market Overview

The South East Asia TIC Market size is estimated to reach US$4.7 billion by 2030, growing at CAGR 4.82% during the forecast period 2024-2030. The growth of South East Asia TIC Market is majorly driven by increasing need for food testing and rising safety regulations and standards for the enhancement of medical device safety measure. Moreover, the rapid growth of consumer electronics industry coupled with the increasing demand for electronics will also trigger the growth of the testing, inspection & certification market in South East Asia. The manufacturer of electronic products needs to comply with various governmental standards to ensure quality testing and certification through RoHS testing, Electromagnetic compatibility (EMC) testing, GS mark certification, CPSR and so on, which in turn drives the market growth of TIC (Testing, Inspection & Certification) services. Furthermore, the demand for TIC services which includes failure & damage analysis, various component testing, e-mobility & battery testing and others in automotive industry is also a major factor that can transform the South East Asia TIC industry outlook in the long run. 

The South East Asia Testing, Inspection, and Certification (TIC) market is undergoing significant transformation driven by multiple converging trends. The region's rapid industrialization and economic growth are increasing the demand for robust TIC services to ensure compliance with international standards and regulations. Advancements in digital technologies, such as blockchain, IoT, and AI, are revolutionizing TIC processes, enhancing the accuracy and efficiency of inspections and certifications. The growing emphasis on quality and safety in sectors like food and beverages, pharmaceuticals, and consumer goods is fueling the need for stringent testing and certification protocols. Additionally, the expansion of the manufacturing sector, particularly in automotive and electronics, is driving the demand for specialized TIC services to maintain quality control and meet export requirements. The rise of e-commerce is also contributing to the market growth, as online retailers seek to ensure product safety and authenticity. Environmental sustainability and regulatory compliance are becoming increasingly important, prompting companies to adopt comprehensive TIC services to meet green standards and reduce environmental impact. These trends collectively are enhancing the significance of TIC services in ensuring product quality, safety, and compliance across various industries in South East Asia.

South East Asia TIC Report Coverage

The “South East Asia TIC Market Report – Forecast (2024-2030)” by IndustryARC, covers an in-depth analysis of the following segments in the South East Asia TIC Market.

By Type: Outsourcing, In-house

By Types of Services: Testing Services, Inspection Services, Certification Services

By End Users: Agriculture, Automotive, Food, Consumers (textile, cosmetic, toys, apparel, furniture, stationary, hand tools), Medical & Life Science, Marine, Manufacturing, Building & Infrastructure, Industrial Equipment, Retail, Rail, E-Commerce, Meteorology, Others. 

By Geography: Indonesia, Malaysia, Sinagpore, Philliphines, Thailand, Vietnam, Others (Myanmar, Laos, Cambodia, Brunei, Timor-Leste)

Request Sample

Key Takeaways

Testing Services held the major market share in 2023 owing to rising implementations of integrated testing solutions for wide range of end users including automation and control systems, battery storage, F&B processing, communication protocol and so on. 

E-Commerce segment is analysed to grow at the fastest rate during the forecast period 2024-2030 owing to increasing internet and mobile phone usage, high penetration of IoT as well as improved e-payment methods& logistics. 

Indonesia held the highest market share in 2023 Vietnam is analysed to grow at the fastest rate during the forecast period 2024-2030 owing to rapid growth of manufacturing sector and rising investments on railway infrastructure.

The increasing demand towards food testing and rising safety regulations and standards imposed by global as well as regional government bodies for the enhancement of medical device safety measure are analysed to significantly drive the market growth of South East Asia TIC market during the forecast period 2023-2030.

South East Asia TIC Market Segment Analysis- by Type of Services

Testing Services held the major market share in 2023 with a market size of $1.7 Billion and is estimated to reach $2.3 Billion by 2030 with a CAGR of around 4.51% during the forecast period 2024-2030. The growth is mainly attributed to rising implementations of integrated testing solutions for wide range of end users including automation and control systems, battery storage, F&B processing, communication protocol, maritime equipment material, oil & gas structure and components and others to increase productivity and customer satisfaction. In September 2022, Intertek announced the launch of their new Vegan Foods Certification. The Intertek Vegan Certification is designed to determine the suitability of food products for vegan and plant-based consumers. These factors are set to influence the growth of global South East Asia industry in the long run.

Inquiry Before Buying

South East Asia TIC Market Segment Analysis- by End User

E-Commerce segment is analysed to grow at the fastest rate of 9.84% during the forecast period 2024-2030. The growth of the E-Commerce in South East Asia is mainly driven by increasing internet and mobile phone usage, high penetration of IoT as well as improved e-payment methods& logistics. According to an article by Inside Monkey, E-commerce growth in Southeast Asia stands out at an 20.6% expansion in 2022, with sales reaching $89.67 billion from $74.36 billion in 2021 and is expected to pass $100 billion by 2023. Ecommerce sites or mobile applications need to undergo different tests including functionality, usability, security, performance, database and mobile application. TIC services judge the authenticity of the websites by testing the design, specifications, functionalities and various features to check their sanity and to ensure the protection level of the sites against any potential threats. Such benefits of these services drive the growth of TIC services market in this region. Moreover, the E-commerce sector in this region witnessing increasing cases of fraud and cyber-attacks which enhances the demand for testing, inspection and certification services in this industry. In Southeast Asia, digital payment methods are becoming increasingly accepted by most businesses and services today. According to a recent Kaspersky research titled “Mapping a secure path for the future of digital payments in APAC” published in April 2022, e-payment are the top encountered threat for most Southeast Asia countries including Indonesia (40%), Malaysia (45%), The Philippines (42%), Singapore (32%), and Vietnam (38%). Thus, significant rise in number of e-payment frauds can cater to the demand for testing, inspection & certification services within the industry.

South East Asia TIC Market Segment Analysis- by Geography

Indonesia held the highest market share of 20.9% in 2023. The economy of Indonesia is majorly driven by exporting of crude oil and natural gas and holds well established manufacturing industry, agriculture, mining and others. According to U.S Energy Information Administration, the production of petroleum and other liquids totalled 887,000 barrels per day in Indonesia in 2022, making it the seventh-largest exporter of liquefied natural gas, thus creating significant opportunities for the growth of the TIC Market. The rising number of railway infrastructure projects can be considered vital in fueling the market demand for quality testing, electromagnetic testing, and related inspection services for rail components used in the construction process within the country. In January 2022, the Indonesian Government announced the construction of the multibillion-dollar railway project with an estimated cost of $7.9 billion. It will involve the deployment of signaling systems, rolling stocks, and many related components. Such projects are bound to drive the need for railway operators or authorities to meet up with the required regulatory compliance, which in turn, can be considered vital in transforming the South East Asia TIC industry outlook in the long run.

Schedule a Call

South East Asia TIC Market Drivers

Rising Demand Towards Food Testing or Inspection due to Increasing Import/Export activities, Agricultural or Food Contamination, Food Safety Violation and Others is Surging the Demand for Testing, Inspection & Certification Services:

The increasing demand towards food testing owing to rising import/export activities, agricultural or food contamination, food safety violation and others is one of the major growth drivers boosting the adoption rate of testing, inspection & certification services in South East Asia. Food industry is considered as a highly regulated industry due to stringent regulatory compliance ensuring food quality assurance and safety for the consumers. The levels of product recalls owing to the presence of harmful ingredients or contamination or the undeclared presence of an allergen or not an approved additives are rising within the Southeast Asian nations. Moreover, the levels of agricultural trade (both export and import) are successively increasing owing to the population boost in various countries under scope, which will support the growth of the TIC market. As per World Bank 2021, the population of Philippines grew by 1.3% in the period of 2019-20. According to International Trade Administration July 2022 update, agricultural imports in Indonesia reached over $24 billion in 2021, owing to high demand for rice, wheat, soybeans, fresh fruits, dairy beef and various feed ingredients. The following marks an increase by $5 billion or 26% from 2020 import values. Furthermore, nearly 57.8% of the total import value regarding the agricultural products in the Indonesia market was dominated by five suppliers including China, Australia, U.S, Brazil as well as India. Such increase in imports can boost the adoption of food testing services which in turn can influence the market growth.

The Safety Regulations and Standards imposed by Global as well as regional government bodies for the enhancement of medical device safety measure is accelerating the growth of South East Asia TIC Market:

A major driver in the South East Asia TIC market is the implementation of stringent regulatory requirements across various industries. Governments in the region are increasingly adopting and enforcing rigorous standards to protect consumer safety, ensure product quality, and safeguard the environment. This regulatory landscape compels companies to adhere to strict testing, inspection, and certification protocols to gain market access and maintain competitiveness. The pharmaceutical and food industries, in particular, face heightened scrutiny, necessitating comprehensive TIC services to comply with health and safety standards. The automotive and electronics sectors also require extensive TIC processes to meet international export standards. The continuous update and tightening of regulations drive the demand for specialized and advanced TIC services, fostering market growth as companies strive to align with evolving compliance requirements.

The rising safety regulations and standards imposed by global as well as regional government bodies for the enhancement of medical device safety measure is creating demand for the TIC services which in turn triggers the growth of this market. The demand for Class III medical devices such as High-frequency ventilators, blood sampling monitors, oxygen supply units and so on have been growing overtime majorly amidst the pandemic as these devices are used to maintain or protect human life. Since these devices require licensed FDA approvals before distribution across countries, the market growth of TIC services is impacted significantly. Medical device testing is critical to the entire medical device development lifecycle to ensure the safety of patients and device users. In January 2021 the Philippines Food and Drug Administration (FDA) issued circular n° 2021-001 on the product standards to which Medical Devices must comply for notification or registration. The circular was issued so that local Manufacturers, Importers and/or Distributors must comply to obtain a certificate of Medical Device notification (CMDN) or a certificate of Medical Device registration (CMDR). In August 2021, FDA had released a list of Class-A 1242 product categories in its circular 2021-017, in order to support and clarify regulatory requirements for medical manufacturers looking for market access within Philippines. Under this, medical device manufacturers of Class A products specified under the ASEAN MDD, need to mandatorily obtain a Certificate of Medical Device Notification, (CMDN), before manufacturing, distribution, importing, selling, or advertising the medical devices within the country. Thus, rise in regulations and standards can boost the demand of testing, inspection & certification services among the medical device manufacturers.

South East Asia TIC Market Challenges 

Lower Level of Digital Adoption by the Key Players coupled with the Continued Impact of Bottlenecks in Trade Flows across South East Asia region owing to Shortage of Cargo Container are Limiting the Market Growth:

Low level of digital adoption coupled with continued impact of bottlenecks in trade flows acts as a major challenge restraining the market growth of TIC market in South East Asia. According to Rothchild & Co report published in May 2021, the testing-inspection-certification digital maturity substantially lags behind the other various end-user industries which shall pose problems in the long-run. Some of the common industries against which the TIC lacked under digital technology is energy, financial institutions, industrial goods, insurance, and telecommunications. Additionally, Shortage of shipping cargos, shipment cancellations, growing freight rates along with many others have emerged as some of the prime factors adversely impacting domestic manufacturing operations across various Southeast Asian countries owing to dependency on raw material imports within the country. According to Westports Holdings Berhad report, Malaysia faces a container throughput slipping 1% year on year to 10.4 million TEUs (20ft equivalent units) in 2021. Container throughput at Westports was down 10% y-o-y in 1Q2022, reaching 2.39 million TEUs versus 2.66 million TEUs handled in 1Q2021 which leads to supply chain disruption. These factors are limiting the demand for South East Asia TIC which in turn hampers the market growth.

Buy Now

South East Asia TIC Industry Outlook

Product launches, acquisitions and R&D activities are key strategies adopted by players in the South East Asia TIC Market. The top 10 companies in the South East Asia TIC market are:

SGS SA

Bureau Veritas

Intertek

DNV GL

TUV SUD AG

ALS GLOBAL

DEKRA SE

Eurofins

Cast Laboratories PTE LTD

Singapore Laboratory Services PTE LTD

Recent Developments

In December 2022- Intertek, a leading Total Quality Assurance provider to industries, announced the launch of Intertek Green R&D, an innovative integrated solution that ensures the sustainability, quality and safety attributes of a product are maintained.

In June 2022- DNV launched the MyISRS digital self-assessment tool. The service is estimated to aid organizations to run an online independent high-level survey for quality assessing applications. Some of the key industries in South East Asia that can benefit from the service include oil and gas, chemicals, utilities, power generation, telecommunication, pharmaceutics, transport, food, and beverage, and maritime.