Theodore Alexander Hcm Ltd (Vietnam)

The subject is wholly – owned subsidiary of THEODORE ALEXANDER INC. Its core business is manufacturing wooden furniture. Finished products are mainly exported to China, USA, EU countries like Belgium... for consumption.We made an interview with a staff of the subject. According to her, currently, the subject does not have sales office in Vietnam because the company does not accept orders in Vietnam. All orders are recorded at the sales office in the USA. If sold in Vietnam, it is only sold in export processing zones. The subject is now one of the largest furniture manufacturers of Theodore Alexander Group in South East Asia. In 2023, the decrease in total demand due to the impact of inflation and tightened monetary policy in many large wood and wood product consuming markets such as the EU, USA... made the company's business activities also affected. In 2023, orders decreased compared to the same period in 2022. However, currently, with the company's board of directors' efforts to find new customers and maintain old customers, the subject has enough orders until May-June 2024. The company tries to maintain the number of employees above 3,000 people as at the beginning of 2023.The export situation of wood and wooden products has shown brighter signs in the last months of 2023 after the export turnover of this industry has continuously declined since the beginning of this year. Currently, many businesses in the wood industry have returned orders, serving the year-end furniture shopping season of the world market. Along with that, many US and European customers encounter difficulties in the Chinese market, so they seek other markets and find new suppliers to replace them, mainly Vietnamese businesses. According to estimated data from the General Department of Customs in October 2023, export turnover of wood and wooden products reached USD 1.2 billion, up by 5.7% compared to September 2023, but down by 0.9% compared to October 2022. Of which, wooden product export turnover was estimated at USD 790 million, an increase of 4% compared to September 2023 and up by 0.3% compared to October 2022.However, for the first 10 months of 2023, the export turnover of wood and wooden products was estimated to reach USD10.8 billion, down by 19.9% compared to the same period in 2022. Of which, the export turnover of wooden products was estimated to reach USD 7.3 billion, decreasing by 22.4% over the same period in 2022.With the current difficult situation of the world economy, the export target of USD 17 billion in 2023 cannot be achieved. It is expected that in the last 3 months of 2023, the export of wood and wooden products will reach more than USD 4 billion, bringing export turnover in 2023 to about USD 13.6 billion to USD 14 billion.With the unfavorable actual data of the whole industry, the business situation of the subject is also forecasted to be difficult to be as positive as in the past.