Great expectations for Vietnam International Sourcing 2023 and EVFTA

Sir, as the world’s largest private furniture retailer, how has IKEA used raw materials from Vietnam in recent years? What do you think about furniture products originating from Vietnam?

Mr. Giafar Safaverdi - Director of Southeast Asia Supply Region - IKEA Group

We have been present in Vietnam through sourcing and supply activities since 1993 and have continuously expanded our cooperation with various local suppliers over the years. Globally, we are constantly striving to work with our suppliers to create the highest quality and safest products for consumers, regardless of where they are produced. Therefore, IKEA suppliers in Vietnam share the same vision, culture and values ​​in creating home furniture products that are well-designed, convenient, affordable and highly sustainable.

Vietnam possesses an ever-growing manufacturing capacity, policies that create many favorable conditions for import and export activities. Together with many advantages in the field of logistics, Vietnam has become an important link in our global supply chain.

What are IKEA’s criteria for selecting suppliers, sir? To become a partner of IKEA in particular and furniture retailers in Sweden in general, what criteria must Vietnamese enterprises meet?

For IKEA, our supplier and service provider partners play a key role in creating a better everyday life for many people. Together, we explore new ways to operate and develop our business in a socially and environmentally responsible manner, working together to tackle challenges and collaborating to create positive change. We select suppliers who share our values ​​and ambitions to make a positive impact on people and the planet.

IKEA is one of the largest privately held furniture retailers in the world.

That is why we have developed the IWAY standard – IKEA’s Code for Responsible Purchasing and Sourcing – as a core business premise for IKEA suppliers. IWAY is how IKEA and its suppliers ensure responsible sourcing of products, services, materials and components, by defining clear expectations and ways of working for suppliers, ensuring business operations are always environmentally, socially, workers’ working conditions and animal welfare. Implementing the IWAY standards is also a prerequisite and mandatory for all supply partners and service providers when working with IKEA. The IWAY Code seeks to provide meaningful work for all workers and contribute to positive change in local communities throughout IKEA’s global value chain.

Currently, Vietnam is emerging as one of the largest wood furniture export markets in the world. What are your expectations regarding sourcing and importing goods from Vietnam when participating in Viet Nam International Sourcing 2023?

Vietnam is an important wood supply market for IKEA suppliers, supplying large quantities of Acacia wood, a dark, FSC-certified wood suitable for our outdoor furniture.

In the coming period, we will be studying the procurement of rubber wood with many applications in furniture production. For decades, we have been working with various partners in Vietnam to improve sustainable forest management. Regardless of where our suppliers source their wood, to minimize the risk of the wood not meeting supply chain requirements, including legal requirements, we require our partners to source and use only FSC certified wood.

We hope that through this series of events, we can focus on building and sharing knowledge to improve timber sourcing activities in parallel with sustainable forest management, thereby improving livelihoods and enhancing climate resilience, in order to be ready to welcome any changes in supply conditions from different markets around the world.

By participating in Viet Nam International Sourcing 2023, IKEA also wishes to share our progress in building a sustainable supply chain according to the sustainable development strategy “Positive benefits for people and the planet” (People & Planet Positive Strategy), which covers all activities in IKEA’s value chain globally. Furthermore, we wish to update information and experiences from participating businesses and contribute to promoting the role of Vietnam - a sourcing location with highly competitive production potential.

EVFTA has been bringing great opportunities for Vietnamese goods in Sweden in general and Europe in particular. What advice do you have for Vietnamese businesses to effectively take advantage of this agreement and bring their goods deeper into the Swedish and European markets?

The EVFTA is an important tool in boosting Vietnam’s production and export capabilities. Manufacturers should focus on maintaining high standards and product quality and studying consumer trends and preferences of global customers to take advantage of existing advantages. In addition, businesses should build strong distribution networks and focus on developing sustainable business activities to make the most of the opportunities brought by the Agreement.

Thank you!

Starting from a souvenir wooden furniture store founded in 1943, IKEA has now become the world's leading furniture brand with a revenue of over 40 billion USD since 2019, welcoming 1 billion visitors to the store each year and present in more than 50 markets. In addition to Sweden and the Nordic region - where IKEA originated, the group's wooden furniture market focuses primarily on the US, UK, Germany, Netherlands...

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