2023-06-17 02:40:00
>> Export of pellets up, wooden furniture down
>> The timber industry is targeting 25 billion USD in exports by 2030
>> The timber sector is targeting more than 18 billion USD in exports this year
According to statistics from the General Department of Customs, Vietnam’s exports of wood and wood products brought in 1.2 billion USD last April, up 5.5 percent month-on-month and down 24 percent. .5% over one year. Concretely, the value of wood products exports amounted to 820 million USD, an increase of 6% compared to last March. However, in the first four months of 2023, the total export value of wood and wood products reached USD 4 billion, registering a decrease of 28.5% compared to the same period the previous year. This decrease is attributed to several factors, such as the increase in the prices of raw materials, fuel and global inflation, as well as the reduction in imports from the United States and the European Union, which are the two main markets for the Vietnam.
| In the first four months of 2023, the export value of wood and wood products amounted to USD 4 billion. |
| Photo : VNA/CVN |
Companies in the timber sector are focusing on expanding their export markets by actively seeking orders from India, Europe, China, the Middle East and other regions. In the longer term, Vietnam faces challenges from new policies and regulations, especially from large markets such as the European Union (EU) and the United States. The EU has introduced the Zero Deforestation Products Regulation, the Carbon Border Adjustment Mechanism, as well as new supply chain and labor rules.
According to Dô Xuân Lâp, president of the Vietnamese Association of Wood and Forest Products, the country currently has 5,580 companies producing, marketing and processing wood and forest products. Among them, 4,813 are national companies and 767 are foreign direct investment (FDI) companies. Around 2,600 companies directly export wooden objects to international markets.
Vietnamese wood products are present in 120 countries and territories around the world, with five main markets: the United States, Japan, China, the European Union and the Republic of Korea. In 2021, these five markets accounted for an export value of USD 14.27 billion, or 90.4% of the total.
Over the past three years, the US market has consistently accounted for more than 60% of Vietnam’s wooden ware exports. Wooden cabinets and sofas are the main items exported to the United States. In 2022, orders from U.S. customers accounted for 68 percent of total overseas order volume, Lap said. ”However, to maintain the stability of the US market, Vietnam must sustainably develop the legal timber trade. In particular, it is essential to address concerns regarding the origin of products and to avoid promoting products that are subject to taxes in other countries. The US market is carefully considering these issues of Vietnamese wood products”, he underlined.
Trade promotion goes through fairs
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| The United States and the European Union are the two most important outlets for Vietnam’s wood products. |
| Photo : VNA/CVN |
In previous years, commercial promotion of Vietnam’s timber industry was less developed compared to other countries in the region. Customers used to learn regarding products at fairs held in China, Malaysia, Indonesia and Singapore before visiting Vietnam, Lap said. Consequently, large orders were concentrated in the said countries, leaving Vietnamese companies with low-value orders. Thus, the Vietnamese timber industry is seeking to remedy this weakness by organizing a series of fairs and exhibitions this year.
The Vifa ASEAN 2023 International Wood and Handicrafts Expo, themed “The Convergence Place of the Quintessence of Southeast Asian Interior Designs”, will be held from August 29 to September 1 at the Fair Center and Saigon International Exhibitions (SECC) in the southern megalopolis.
Dang Quoc Hung, general manager of Liên Minh Timber Joint Stock Company, which is organizing the event, said Vifa ASEAN 2023 will host regarding 350 domestic and international producers and manufacturers of wood and handicrafts. Some 1,400 exhibitor booths will present a variety of high-end wood products and handicrafts, such as interior and exterior decor, furniture, bedding, lacquerware, porcelain, bamboo, papyrus, tapestries and wood raw materials, as well as machinery and auxiliary products for the processing and export of wood and handicrafts.
The said fair, organized jointly with the Vietnam Chamber of Commerce and Industry (VCCI), aims to promote trade in wood and handicrafts, especially in the Southeast Asian region, while strengthening exports. of this sector. This will allow companies to expand their market and access new customers in the region.
Another international fair, specializing in woodworking machinery and raw materials, BifaWood Vietnam 2023, will be held from August 9 to 12 at the WTC EXPO International Exhibition Center in Binh Duong (South). It will be the ideal destination for all machine manufacturers around the world, from multinationals to small and medium-sized companies, especially for those interested in the latest generations of CNC machines and for furniture exporters who wish to discover and acquire the technologies the most advanced. BifaWood Vietnam 2023 will bring innovations in the organization of the exhibition, with many solutions aimed at reducing costs, while guaranteeing a modern, spacious and luxurious exhibition space. More than 1,200 stands will display machinery and other related products from leading domestic and foreign companies.
Strong demand for machinery
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| The wood industry expects a furniture export turnover of 18 billion USD in 2023. |
| Photo : VNA/CVN |
The value of the country’s wood exports exceeded USD 16.5 billion in 2022. And the furniture export turnover is expected to reach USD 18 billion in 2023, with an expected increase of more 3% for furniture, more than 5% for MDF (medium density fibreboard or medium density fibreboard) and plywood, and a dramatic increase of 40% to 60% for wood chips and wooden pallets . The demand for machinery for the export of wooden furniture is high, especially for items such as kitchen cabinets and dressing tables.
Machines for dining tables and beds are also in high demand, including high-tech CNC machines and automated finishing lines. Exported panels will certainly be one of the areas that will attract the most investment. It is estimated that there will be more panel manufacturing plants to meet the demand for this intermediate material in the coming years.
Woodchips will also experience increased development as the acacia forests have been extensively developed by the government and the production of this species is increasing every year. Along with the development of wood chips, wooden pallets have also contributed significantly to exports. The estimated revenue is expected to exceed USD 2 billion in 2023, which will lead to an increase in demand for machinery and accessories accordingly.
The Linh/CVN
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