BM Windows comes in Australian glass and aluminum market

Vietnam’s exports to Australia brought in nearly US$4 billion last year, up 20% from 2017, with machinery, equipment, other tools and spare parts, and crude oil as the main contributors, according to statistics of the General Department of Vietnam Customs.

Particularly, aluminum products shipped to this market were worth just US$3.8 million, or less than 2% of the volume of Australia’s aluminum imports last year. The industry players ascribe this modest market share to the technical barriers in the foreign country.

Demanding market

To reach the Australian shores, building materials must  meeta range of standards and certifications. For example, glass and aluminum products used in commercial real estate projects must pass a series of tough tests given by the National Measurement Association of Australia to meet AS-2047 standards. This set of standards includes rigorous indicators of deflection, operation, airtightness, waterproofing, force resistance and product aesthetics.

Australian consumers also have very strict requirements for product quality. In the guide to export to the Australian market, Luong Thanh Nghi, Ambassador Extraordinary and Plenipotentiary of Vietnam to Australia, says: “Australian consumers lay down very high quality standards, which are supported by a series of consumer protection regulations available in all states. Importers and retailers must comply with such regulations, and those products failing to meet quality inspection standards are not accepted.”

Another challenge for businesses that want to sell construction materials to Australia is weather. This is one of the nations with the harshest climatic conditions in the world, with freezing snow during the cold season, and gale-force winds with speeds of up to 120km per hour accompanied by hail and lightning, etc. That requires glass and aluminum products, as well as accessories, to be made of good materials and processed by modern technology systems.

Great potentials

With the aforesaid challenges set aside, Australia is still a potential market, which imported more than US$227 billion worth of goods in 2018.

In recent years, a number of glass and aluminum shipments from Vietnam have successfully entered Australia. Lately, BM Windows has exported its first batch of finished products to Australia, including all glass and aluminum items plus accessories specifically designed for the 999 White Horse project in Victoria. To penetrate this market, it took this company a great deal of time to fulfill the strict quality and technical criteria of AS-2047, said a BM Windows representative.

The real estate and construction industry in this Oceania country is growing strongly thanks to the wave of immigration. This opens up great opportunities for businesses making and trading building materials in Vietnam, said Tran Van Tien, general director of BM Windows.

“Moreover, the successful export to a choosy market like Australia will be a good leverage, creating a brand for Vietnamese enterprises and making it easier for them to penetrate other markets, from the neighboring countries in Asia to more difficult ones like the U.S. and Canada,” he said.

The biggest concern of Australian importers is the price, Ambassador Nghi says. To effectively approach them, Vietnamese businesses should offer their products at a tax-included price lower than similar products made domestically. In addition, suppliers must be capable of making products of stable quality and timely delivering them, and willing to accept orders of  moderate value.