Halting the downward trend of wood export

VCN - During the first half of 2023, wood furniture exports experienced a significant decline of 33.1%. In particular, the major market for Vietnam's wood industry, the United States, saw a sharp reduction of 32.8%.
Difficulties begin to affect the profits of wood businesses Difficulties begin to affect the profits of wood businesses
Wood exports to hit record of 18 billion USD this year Wood exports to hit record of 18 billion USD this year
Firms call for support as wood exports slump Firms call for support as wood exports slump
Halting the downward trend of wood export
In the first half of the year, wood and wood product exports experienced a steep decline. Photo: Internet.

Sharp decline after years of double-digit growth

Discussing the wood export situation, Mr. Ngo Sy Hoai, Deputy Chairman and General Secretary of the Vietnam Timber and Forest Product Association (VIFOREST), stated that the export value of the wood industry has experienced a significant decline after years of double-digit growth. The reasons for this decline, in addition to general factors such as geopolitical conflicts, inflation, and reduced consumer demand, include the initiation of investigations by the United States market into certain wood and wood products from Vietnam, regulations related to the environment and forests by the EU...

Analyzing the significant market of the wood industry, Mr. Ngo Sy Hoai noted that the United States is a major market for Vietnam's wood industry, accounting for 50-55% of the total export value. In 2022, despite the ongoing Covid-19 pandemic, Vietnam managed to export 8.3 billion USD worth of wood and wood products to the United States. Particularly, even during the previous year of the pandemic, the export value was nearly 9 billion USD.

"Vietnam's wood products typically account for 35-40% of the total wood product imports in the United States. However, this year, the export of wood and wood products to the United States has decreased significantly, even more than the average decrease. Specifically, wood and wood product exports to the United States in the first 6 months decreased by 32.8%. Compared to the overall Vietnam-US export value decrease of over 21%, the wood industry has experienced a more severe decline," noted the VIFOREST representative.

According to Mr. Ngo Sy Hoai, aside from the general economic situation with tightened consumer spending, the wood industry is affected by the real estate sector's downturn. "Wood products are often linked to the real estate industry. In the United States, the real estate market was slow during the early months of the year. As a result, the total import value of wood products from all sources to the United States has decreased, not just from Vietnam," explained Mr. Ngo Sy Hoai.

Although the results for the initial months of the year are not promising, Mr. Ngo Sy Hoai still sees optimistic signals. For instance, concerning the US market, exports in June to this market amounted to 638 million USD, only down by 18.4% compared to the same period. Therefore, the VIFOREST representative believes that in the upcoming months, as the market situation gradually improves, the decline might be less severe than now. Vietnamese enterprises have established their position in the market, showcasing true competitive strength.

Regarding wood industry businesses, Ms. Le Hai Lieu, representative of Duc Thanh Wood Company, also expressed some signs of optimism. Some units have continued to place orders, inquire about products, and even announced the quantities they plan to order in the future. However, the overall situation has not fully returned to normal. The representative from Duc Thanh Wood Company believes that the decline in sales is due to the general economic downturn and consumer tightening of expenditures due to difficult living conditions. If the economic situation stabilizes, the demand will be substantial once again.

Capturing Optimistic Signals

Mr. Ngo Sy Hoai believes that despite facing significant challenges, there's no need to be overly pessimistic, as this is only a temporary situation. To regain export growth for the industry, including wood products, he emphasized the need for support from the Ministry of Industry and Trade, marketing efforts to seek markets for Vietnam's wood products, conveying the message of strong commitment to providing legal wood products, and preparing to strictly implement EU regulations.

According to the representative of the Vietnam Trade Office in Canada, there is still great potential for exporting wood products to the Canadian market. For example, wood products and wood charcoal are items with promising potential for rapid growth in the territory. Each year, Canada imports about 4 billion USD worth of these products. Although there was a significant decrease in demand from Canada for these products in the first months of 2023 compared to the same period in 2022 (down by 17.2%), along with Germany, Mexico, Vietnam is a market with high export growth to Canada.

Currently, Canada is reducing imports from China, which presents Vietnam with many opportunities to increase export volume for this product group. If the growth rate remains as in the initial months of the year, it is projected that in 2023, Vietnam could export about 45 million USD worth of wood products to Canada. This is a high-growth item for Vietnam after the CPTPP, increasing from 11 million USD to 32 million USD, a 233% increase.

Mr. Tran Ngoc Quan, Commercial Counselor at the Vietnam Trade Office in Belgium and the EU, stated that the EVFTA agreement has helped Vietnam's textile, footwear, and wood industries increase exports to the EU. To fully benefit from these advantages, adhering to rules of origin is crucial. Furthermore, as the EU transitions to a circular economy, domestic businesses need to adapt, as the implementation of regulations will strongly impact on their exports. The Vietnam Trade Office is ready to support domestic enterprises in participating in trade fairs, seeking business connection opportunities, and expanding export possibilities in the EU.

In the United States, a potential export market for many industries, including wood products, Mr. Do Manh Quyen, Head of the Trade Office Branch at the Vietnam Trade Office in Houston, believes it's important to identify reasons and solutions to overcome the growth slowdown. Businesses need to redefine their domestic production and business strategies, clearly define markets and products, understand regulations and barriers to export to major markets like the United States, and improve product quality and production technology.

To develop the market, businesses should look beyond major distribution channels and explore niche markets. Large distributors can pose a challenge because they may cut ties when demand decreases, disrupting the export activities of businesses. Especially when promoting trade, it's important to engage with local businesses and individuals, sign advisory contracts to identify niche markets, and address inventory and miscellaneous issues.

By Ngoc Linh/ Phuong Thao

Related News

Complying with regulations of each market for smooth fruit and vegetable exports

Complying with regulations of each market for smooth fruit and vegetable exports

VCN - According to Mr. Dang Phuc Nguyen (photo), General Secretary of the Vietnam Fruit and Vegetable Association (Vinafruit), with the development momentum and increasing consumption demand from the Chinese market, the Vietnamese fruit and vegetable industry is setting new records and is expected to reach an export turnover of US $10 billion by 2030. With great potential and advantages in developing agricultural products, Vietnam has been affirming its position as one of the world's leading agricultural exporters.
Coconut export enter acceleration cycle

Coconut export enter acceleration cycle

VCN - The opening of large markets and the proactiveness of enterprises in investing in deep processing and green transformation will create momentum for the Vietnamese coconut industry to enter a stronger growth cycle in the coming time.
Increasing consumption demand, steel enterprises have many opportunities

Increasing consumption demand, steel enterprises have many opportunities

VCN - Vietnam’s steel industry is benefiting from growing domestic and export demand for steel. However, moving into 2025, the industry still faces many challenges.
The Middle East: a promising seafood export market for Vietnam

The Middle East: a promising seafood export market for Vietnam

VCN - Seafood exports to the Middle East experienced double-digit growth in 2024, placing the region among the top two fastest-growing seafood import markets, second only to China.

Latest News

Việt Nam tightens fruit inspections after warning from China

Việt Nam tightens fruit inspections after warning from China

The Plant Protection Department has urged local authorities and relevant agencies to strengthen the inspection and monitoring of durian cultivation areas and export packing facilities following a warning from China.
Brand building key to elevate Vietnamese fruit and vegetable sector: experts

Brand building key to elevate Vietnamese fruit and vegetable sector: experts

Trade promotion, product introduction and brand promotion also need to be innovated to attract customers effectively.
Freight transport via China-Việt Nam cross-border trains posts rapid growth

Freight transport via China-Việt Nam cross-border trains posts rapid growth

The Nanning branch of China Railway Group Limited reported a sharp increase in freight transport on the China-Việt Nam cross-border railway last year, with trains departing from Guangxi carrying a total of 19,670 containers, marking a staggering annual increase of 1,153 per cent.
Vietnamese retail industry expects bright future ahead

Vietnamese retail industry expects bright future ahead

With a young and dynamic population, rising incomes and increasing urbanisation, the sector is emerging as one of the most promising engines for economic expansion in the coming years.

More News

Fruit and vegetable industry aims for $10 billion in exports by 2030

Fruit and vegetable industry aims for $10 billion in exports by 2030

Based on impressive export results in recent years, Việt Nam’s fruit and vegetable industry has set a target of achieving US$10 billion in export value by 2030, according to the Việt Nam Fruit and Vegetables Association.
GDP grows by over 7 per cent, exceeds target for 2024

GDP grows by over 7 per cent, exceeds target for 2024

The growth rate is relatively impressive for the 2011-24 period, only lower than the rates of 2018, 2019 and 2022.
Vietnamese pepper: decline in volume, surge in value

Vietnamese pepper: decline in volume, surge in value

In December 2024, Việt Nam exported 15,265 tonnes of pepper of all types, including 12,771 tonnes of black pepper and 2,494 tonnes of white pepper, generating a total turnover of $100.6 million.
Việt Nam maintains position as RoK’s third largest trading partner

Việt Nam maintains position as RoK’s third largest trading partner

Việt Nam continued solidifying its position as the Republic of Korea (RoK)’s third-largest trading partner in 2024, trailing only China and the US, marking the third consecutive year of the significant trade relationship.
Greater efforts to be made for stronger cooperation with European-American market

Greater efforts to be made for stronger cooperation with European-American market

The European-American Market Department (MoIT) will monitor regional developments and explore opportunities to strengthen Việt Nam’s economic and trade ties.
Leather, footwear industry aims to gain export growth of 10% in 2025

Leather, footwear industry aims to gain export growth of 10% in 2025

The footwear sector will still focus on exporting to available and easy-access markets such as Africa and Asia to increase revenue.
Grasping the green transformation trend - A survival opportunity for Vietnamese Enterprises

Grasping the green transformation trend - A survival opportunity for Vietnamese Enterprises

VCN - Green transformation not only helps enterprises minimize the risk of being eliminated from important export markets, but also creates opportunities to build sustainable brands, enhance product value and reach high-end customer segments globally.
Việt Nam to complete database of five domestic manufacturing industries in 2026

Việt Nam to complete database of five domestic manufacturing industries in 2026

The project to build a comprehensive database of domestic industries aims to enhance the capacity and efficiency of trade remedy investigations. It also serves as a strategic tool to protect domestic production.
Logistics firms optimistic about growth prospects in 2025: Survey

Logistics firms optimistic about growth prospects in 2025: Survey

The logistics industry’s business community has expressed optimism about growth prospects in 2025, with nearly 42 per cent of companies surveyed by Vietnam Report JSC affirming that their business outlook will be more positive.
Read More

Your care

Latest Most read
Việt Nam tightens fruit inspections after warning from China

Việt Nam tightens fruit inspections after warning from China

The Plant Protection Department has urged local authorities and relevant agencies to strengthen the inspection and monitoring of durian cultivation areas and export packing facilities following a warning from China.
Brand building key to elevate Vietnamese fruit and vegetable sector: experts

Brand building key to elevate Vietnamese fruit and vegetable sector: experts

Trade promotion, product introduction and brand promotion also need to be innovated to attract customers effectively.
Freight transport via China-Việt Nam cross-border trains posts rapid growth

Freight transport via China-Việt Nam cross-border trains posts rapid growth

The Nanning branch of China Railway Group Limited reported a sharp increase in freight transport on the China-Việt Nam cross-border railway last year, with trains departing from Guangxi carrying a total of 19,670 containers, marking a staggering annual increase of 1,153 per cent.
Vietnamese retail industry expects bright future ahead

Vietnamese retail industry expects bright future ahead

With a young and dynamic population, rising incomes and increasing urbanisation, the sector is emerging as one of the most promising engines for economic expansion in the coming years.
Complying with regulations of each market for smooth fruit and vegetable exports

Complying with regulations of each market for smooth fruit and vegetable exports

VCN - According to Mr. Dang Phuc Nguyen (photo), General Secretary of the Vietnam Fruit and Vegetable Association (Vinafruit), with the development momentum and increasing consumption demand from the Chinese market, the Vietnamese fruit and vegetable indu
Mobile Version