In recent years, despite facing fierce market competition, VRG Quang Tri MDF Joint Stock Company has focused on diversifying its MDF product lines to improve production and business performance. The company shared its experiences at the 5th VRG Patriotic Emulation Congress.
Understanding Market Dynamics
The year 2019 and the first half of 2020 were particularly challenging for the MDF wood industry. Selling prices declined, and production of certain high-quality products such as MDF HMR (moisture-resistant) dropped due to competition from imports from Thailand and Malaysia. MDF manufacturers were forced to adjust prices to maintain operations and reduce inventory levels.
Thanks to the support from the Vietnam Rubber Group (VRG) and the efforts of all employees, the company still achieved notable business results in 2019:
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Production volume: 203,405 m³
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Sales volume: 189,654 m³
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Revenue: VND 1,000.8 billion
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Profit: VND 30.5 billion
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Average income: over VND 9 million/person/month
With the relocation of furniture and interior decoration factories from China and Malaysia to Vietnam, along with a rise in export orders to the U.S. and European markets, new opportunities have emerged for MDF producers. Many investors and corporations have expanded production lines and invested in modern equipment to meet growing market demand.
Recognizing both the potential and challenges of the MDF market, the company has concentrated on product diversification to enhance business efficiency. By identifying the growing demand for HDF (High-Density Fiberboard)used in industrial flooring, the company successfully developed this product line, which has been well received by customers for its quality. In 2019, VRG Quang Tri produced 48,651 m³ of HDF wood.
Focus on Quality and Value Addition
The company realized that diversification must go beyond developing superior product lines — it should also involve value-added surface decoration. One of the most promising products in this regard is Melamine-faced MDF, which enjoys strong demand in both domestic and export markets.
Looking ahead, VRG Quang Tri MDF JSC identifies decorative surface products derived from MDF as a key strategic direction. This approach not only helps reduce competition from standard MDF products but also provides significant added value.
In addition to Melamine-faced MDF, the company has also expanded into Veneer-faced MDF, a surface decoration material highly favored by furniture manufacturers. Produced from natural wood veneers, this line is primarily exported to the Middle Eastern market, with an annual export volume of around 10,000 m³.