Export growth of timber industry likely to plummet to 0%
| |
At the online seminar |
Indeed, the timber industry has set a primary target of reaching US$12 billion in export turnover this year. The General Statistics Office (GSO) reported that the first quarter of the year saw the country gain a total export value of US$2.58 billion, an annual increase of 13.9% and fulfilling 21.5% of the yearly plan.
With the COVID-19 pandemic causing an adverse effect on several markets in April, approximately 80% of orders have been suspended while major export markets have been almost frozen. Therefore, it is anticipated that the industry’s export growth will be negative over the course of the year.
According to a survey conducted among 124 enterprises operating in the industry at the end of March, 100% of firms have been affected by the COVID-19 epidemic while 75% of businesses said that the initial damage stands at an estimated VND3,066 billion (US$130 million).
Over half of the companies questioned said that they have been forced to scale down production, while 35% of the respondents will have to suspend production ahead in the near future. In addition, 7% of the respondents have ceased operation, although only 7% are still able to operate normally.
Experts believe that in order to remove barriers faced by local enterprises, the government should introduce new mechanisms and policies aimed at supporting enterprises, noting that businesses must be quick to adapt to the new situation.
Overall, the national timber industry must change its way of thinking such as strengthening connectivity among enterprises in the industry, establishing domestic supply chains, and developing supporting industries.
The impact of the COVID-19 shows that the country’s wood export supply chains are partly dependent on raw materials imported from China.
Experts said there are opportunities to reduce this dependence through a number of different trade agreements Vietnam has signed with its partners over the years, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the EU-Vietnam Free Trade Agreement (EVFTA), and the Vietnam-Korea Free Trade Agreement (VKFTA). Thanks to these agreements, the timber industry can enjoy a transformation in terms of production, orders, and investments from European nations, the United States, and Japan.
Related News
Regulating goods across Huu Nghi International Border Gate during peak times
19:37 | 02/11/2024 Customs
Khanh Hoa Customs reaches revenue target 1 quarter early
09:29 | 31/10/2024 Customs
3 items have a big impact on the budget revenue of Ho Chi Minh City Customs
19:38 | 02/11/2024 Customs
Import and export are expected to reach 800 billion USD
13:32 | 04/11/2024 Import-Export
Latest News
Fresh coconuts quenching new overseas markets
13:29 | 04/11/2024 Import-Export
Rice exports likely to set new record in 2024
13:25 | 04/11/2024 Import-Export
Vietnamese goods conquer halal market through trust and quality
09:57 | 04/11/2024 Import-Export
Exporters urged to have strategies to take advantage of UKVFTA for expansion
17:33 | 03/11/2024 Import-Export
More News
Fresh coconuts quenching new overseas markets
17:29 | 03/11/2024 Import-Export
Vietnam and UAE trade sees billion-dollar growth
07:15 | 03/11/2024 Import-Export
Sharing responsibility for ensuring security and safety of the supply chain
07:13 | 03/11/2024 Import-Export
Many factors affecting tuna exports in the last months of the year
19:38 | 02/11/2024 Import-Export
Vietnam still dominates Philippine rice import
19:36 | 02/11/2024 Import-Export
Vietnam cements ties with partners to engage in global semiconductor, AI industries
19:35 | 02/11/2024 Import-Export
Aquatic exports expected to rise in year-end despite challenges
19:33 | 02/11/2024 Import-Export
Trade Defense: The Key to Success for Vietnamese Businesses
10:39 | 02/11/2024 Import-Export
Lao Cai Customs sees a triple-digit surge in export-import turnover
10:37 | 02/11/2024 Import-Export
Your care
Import and export are expected to reach 800 billion USD
13:32 | 04/11/2024 Import-Export
Fresh coconuts quenching new overseas markets
13:29 | 04/11/2024 Import-Export
Rice exports likely to set new record in 2024
13:25 | 04/11/2024 Import-Export
Vietnamese goods conquer halal market through trust and quality
09:57 | 04/11/2024 Import-Export
Exporters urged to have strategies to take advantage of UKVFTA for expansion
17:33 | 03/11/2024 Import-Export