Vietnam’s timber, wood product exports post positive growth in the first five months

The export value of timber and wood products in Vietnam is estimated to reach over 6 billion USD in the first five months of this year, an increase of 18% over the same period last year, according to General Department of Vietnam Customs.

Illustrative image (Source: VNA)

Illustrative image (Source: VNA)

The export value of timber and wood products in Vietnam is estimated to reach over 6 billion USD in the first five months of this year, an increase of 18% over the same period last year, according to General Department of Vietnam Customs.

Notably, the exports of wooden products is expected to bring home over 4 billion USD, up 7.5% compared to the same period last year.

To Xuan Phuc, Managing Director of Forest Trends' Forest Policy, Trade, and Finance Initiative, said that Vietnam’s timber industry will gradually recover in 2024 as demand for the products is increasing.

According to Do Xuan Lap, Chairman of the Vietnam Timber and Forest Products Association, said that Vietnam is among the top timber exporters in the world. Vietnamese timber reaches 170 countries and territories worldwide, making deeper inroads in key markets like the US, Europe, the Republic of Korea and Japan, and marking greater presence in emerging markets like Middle-East and India.

Lap said that Vietnam has affirmed its position in the global timber market thanks to its advantages in forestry development, support policies, and accession to free trade agreements.

Moreover, Vietnamese companies are investing in new technology and digital transformation to develop new products and services and increase competitiveness, efficiency and productivity.

However, Vietnam’s timber industry is also facing many difficulties , especially when major importers have been imposing stricter requirements on origin, green production, reduction of greenhouse gas emissions, and the Carbon Border Adjustment Mechanism (CBAM) - a carbon tariff on carbon-intensive products imported to the European Union (EU).

Last year, the EU adopted a regulation to curb the market's impact on global deforestation and forest degradation around the world, as well as protecting the rights of indigenous people. The EU Deforestation Regulation ("EUDR") mandates extensive due diligence on the value chain for all operators and traders dealing with certain products derived from cattle, cocoa, coffee, oil palm, rubber, soya and wood.

According to this regulation, businesses exporting rubber wood furniture to Europe have 18 months for large companies or 24 months for small and medium companies to prepare to meet the requirements of the EUDR.

Lap added that the internal capacity of Vietnamese businesses is also a limitation as most of them mainly produce following orders and designs of foreign distributors.

Production and export have grown continuously for years but still rely on cheap labour and raw materials, and the added value of products is not high.
He noted that most businesses are small in scale and do not have enough capacity to build brands. Small businesses can be weak in responding to sudden and continuous fluctuations in the market. Vietnamese products are rarely distributed directly to customers but via foreign distribution channels and foreign businesses, Lap added.

Nguyen Liem, Chairman of the Binh Duong Furniture Association, said that exports of Vietnamese timber and wooden products to the US increased in the first months of this year, pushing the industry’s growth.

US importers highly value and consider Vietnam an important timber and wood product supplier in the world, Liem said, adding that if businesses can make use of this advantage, they can create breakthroughs.

However, focusing too much on a key market is also a weakness, Lien said, emphasising that Vietnamese timber producers need to persify markets and increase exports to other potential markets./.

Source: VNA
en.vietnamplus.vn

Related News

Latest News

Businesses focus on building brands in addition to increasing profit

Businesses focus on building brands in addition to increasing profit

VCN - Besides profit, brand building is always a major concern to any business especially the branding strategy in the context of e-commerce is dominant.
The international buyers promote to purchase Vietnamese goods

The international buyers promote to purchase Vietnamese goods

VCN - Purchasing and cooperation activities with Vietnamese suppliers over the past many years have brought impressive results to international brands, purchasing and distribution units.
Enterprises advised to focus on deep processing to enter Asian, African markets

Enterprises advised to focus on deep processing to enter Asian, African markets

Vietnamese businesses should continue to invest in deep processing to effectively penetrate Asian and African markets amid the rising trend to use deeply processed products in these outlets, the Asia-Africa Market Department under the Ministry of Industry and Trade (MoIT) has said.
Vietnamese dragon fruit makes a splash at Spinneys debut in Saudi Arabia

Vietnamese dragon fruit makes a splash at Spinneys debut in Saudi Arabia

Vietnamese exports received a sweet boost on June 24 with the presence of its red and yellow-fleshed dragon fruits at the grand opening of Spinneys, a high-end supermarket chain from the United Arab Emirates.

More News

Interest rate fluctuations in the world will affect Vietnam

Interest rate fluctuations in the world will affect Vietnam's exports

VCN - According to experts, the recent interest rate cuts by the European Central Bank (ECB) and the Bank of Canada (BoC) are important moves that signal a broader trend of monetary easing among major central banks. This is likely to affect Vietnam's exports.
The whole country spends over US$147 billion to import goods

The whole country spends over US$147 billion to import goods

VCN - In the second half of May, the import turnover of goods witnesses a downward but it still achieve high growth in the first five months.
Vietnam, Cambodia look forward to 20 billion USD trade

Vietnam, Cambodia look forward to 20 billion USD trade

Trade has been a bright spot in the Vietnam-Cambodia relationship, experiencing impressive growth over the past more than a decade and expected to reach 20 billion USD.
Enterprises proactively raw material source, tuna exports will reach US$1 billion

Enterprises proactively raw material source, tuna exports will reach US$1 billion

VCN - Vietnam has become the 5th largest tuna exporter on the world tuna export ranking, businesses expect that tuna exports will recover and hit the US$1 billion in 2024.
Build product value chain to dominate the Halal market

Build product value chain to dominate the Halal market

VCN - Compared to other countries in the region, Vietnam has many favorable conditions to develop the Halal industry (standard products and services for Muslims); especially the Vietnamese Government is also very interested in opening up and support Vietnamese businesses to effectively participate in the global Halal market.
Vietnamese lychee promoted in Bangkok

Vietnamese lychee promoted in Bangkok

The event runs from mid-June to early July at 32 Tops Food Hall and Tops Market stores across Thailand.
Coffee exports exceed 3 billion USD

Coffee exports exceed 3 billion USD

Vietnam's coffee exports has topped 3 billion USD so far this year.
Hai Phong, Bac Giang record exports of tens of billions of dollars

Hai Phong, Bac Giang record exports of tens of billions of dollars

VCN - By the end of May, the country had six provinces and cities with export turnover of tens of billions of dollars or more, including two new names: Hai Phong and Bac Giang.
Increasing orders, exports continue to thrive in the first five months of the year

Increasing orders, exports continue to thrive in the first five months of the year

VCN - Export turnover to most major markets and trade partners has seen a strong recovery and high growth rates in the past five months, reaching double digits.
Read More

Your care

Latest Most read
Businesses focus on building brands in addition to increasing profit

Businesses focus on building brands in addition to increasing profit

Besides profit, brand building is always a major concern to any businesses especially the branding strategy in the context of e-commerce is dominant.
The international buyers promote to purchase Vietnamese goods

The international buyers promote to purchase Vietnamese goods

Purchasing and cooperation activities with Vietnamese suppliers over the past many years have brought impressive results to international brands, purchasing and distribution units.
Enterprises advised to focus on deep processing to enter Asian, African markets

Enterprises advised to focus on deep processing to enter Asian, African markets

Vietnamese businesses should continue to invest in deep processing to effectively penetrate Asian and African markets amid the rising trend to use deeply processed products in these outlets, the Asia-Africa Market Department under the Ministry of Industry and Trade (MoIT) has said.
Vietnamese dragon fruit makes a splash at Spinneys debut in Saudi Arabia

Vietnamese dragon fruit makes a splash at Spinneys debut in Saudi Arabia

Vietnamese exports received a sweet boost on June 24 with the presence of its red and yellow-fleshed dragon fruits at the grand opening of Spinneys, a high-end supermarket chain from the United Arab Emirates.
Interest rate fluctuations in the world will affect Vietnam

Interest rate fluctuations in the world will affect Vietnam's exports

VCN - According to experts, the recent interest rate cuts by the European Central Bank (ECB) and the Bank of Canada (BoC) are important moves that signal a broader trend of monetary easing among major central banks. This is likely to affect Vietnam's expo
Mobile Version