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| The furniture industry is
one of the major beneficiaries of the Bilateral
Trade Agreement. |
| Courtesy ARTEX |
The furniture industry, often placed in the category
of handicraft, is one of the big winners of the
Bilateral Trade Agreement (BTA). Vietnam’s
exports to the United States have been doing well
since the accord, but the industry is an example
of a sector that will take a long time before it
can gather the clout it needs to benefit fully from
the opportunities of free trade. Until then, the
industry has to hope that the United States does
not try to erect trade barriers, as it has no lobbying
power at all – it doesn’t even have an
association.
Most companies in the handicraft and furniture industry
do not sell under their own trademark, but act as
suppliers to large international corporations. But
even getting to them can have its problems, as ARTEX
near Hanoi found out.
Typical for Vietnam’s entrepreneurial spirit,
the company was started in 1995 by seven individuals.
They made rattan and bamboo products, for which the
region has ample natural resources, as well as plastic
and rubber shoes for the Eastern European and Russian
market, and even has an office in Moscow.
With the signing of the BTA, the company jumped at
the opportunity to enter the U.S. market. But restrictive
policies in the United States make the most basic
business activities a chore. “Our biggest problem
is the marketing,” says Tran Dang Cong, deputy
general director. “As a small private company,
it’s very difficult to get a visa to the United
States to go to trade shows to meet business partners.”
The Embassy wants to see an invitation from a business
partner, but that is exactly what the little firm
cannot find without going to the United States. A
classic non-tariff trade barrier.
ARTEX has been lucky, though. The company was discovered
by Swedish giant IKEA and is building a new factory
just for this contract.
ARTEX is still looking for an American partner, and
thanks to IKEA, the company may soon at least be able
to travel to the land of the free. |
