Analysis of export market structure for Acacia wooden furniture in Vietnam

Abstract

The paper aims to identify the structure of export market for Acacia wooden furniture products, simultaneously determine the fundamentals forming the market structure and propose marketing solutions for market development. The inequality index (GINI) and concentration ratio (CR) were used to analyze market structure. GINI coefficients calculated over transaction value of sellers and buyers were 0.63 and 0.60 while the concentration ratios (CR5) were respectively 33.18% and 39.24%. The results reflected the market's situation as monopolistic competition with high concentration level from both sellers and buyers. Large population of sellers and buyers filled the market. However, economic efficiency in terms of scale was a primary barrier creating restriction when entering the market. Market development solutions include: improve capacity on design; develop standards and brands for wood materials and products; certification of goods according to international standards and regulations; restriction towards export of low-pricing products; sustain existing markets and exploit new markets; support enterprises to implement the B2C trading model by Vietnamese Furniture associations; establish a specialized center of information and exhibitions for Vietnam's wooden furniture.