Although facing large inventories and a sharp drop in orders, processing enterprises, wood export still expect to have bright signs soon to have a growth rate of 7-9% in 2023 and reach over 18 billion USD.
No longer maintaining the double-digit growth rate as many years ago, 2022 is considered the most difficult year ever for the export wood processing industry. Inflation, recession… have caused the industry’s export growth rate in the fourth quarter of 2022 to drop quite sharply. That leads to the industry growth rate for the whole year 2022 reaching only 7%.
The growth is mainly driven by markets such as Northeast Asia, Oceania, Korea, Japan… the rest markets such as North America and EU are almost “standstill.”
According to the General Department of Forestry, export value of forest products in 2022 is estimated at regarding $16.928 billion, up 6.1% over the previous year. Among them, wood and wood products was estimated at 15.85 billion USD, up 7%; Non-timber forest products were estimated at 1.1 billion USD, down 1.3%.
The difficulties of the wood industry are expected to continue into the first months of 2022. Mr. Do Xuan Lap, Chairman of the Vietnam Timber and Forest Products Association, said that it will take the second quarter of 2023 to recover regarding 85% of production. . The recovery in the second half of the year is expected to reach a growth rate of 7-9%, equivalent to USD 18 billion or more.
[Ngành gỗ tận dụng từng lợi thế để đạt mục tiêu năm 2022]
Responding to the situation as well as actively taking opportunities, Mr. Do Xuan Lap said that the wood industry will continue to focus on improving the competitiveness of businesses by applying the same solutions: promoting the use of forest wood. grow domestically, reduce the use of imported wood; apply scientific and technological advances to improve labor productivity; promote digital transformation to reduce production costs; promote low emission production.
The industry cooperates with localities to build concentrated processing industrial parks; promote trade promotion activities, organize major international fairs, strive from 2024, will regularly organize 4 large fairs/year…
Besides, the Vietnam Timber and Forest Products Association will actively coordinate with the Ministry of Agriculture and Rural Development to organize a balanced forestry sector development; afforestation development associated with processing. At the same time, in collaboration with Ministry of Industry and Trade promote trade promotion. Because, only understanding the market can actively produce and perform well in resolving commercial disputes.
Facing market trends, many businesses in the Vietnam Timber and Forest Products Association have also actively hired foreign consultants to produce high efficiency and reduce carbon emissions.
The Chairman of the Vietnam Timber and Forest Products Association proposed the Ministry of Agriculture and Rural Development to consider the equitization of forestry companies; increase calls for investment from foreign enterprises afforestationbecause they have technology and favorable potential to form production linkages.
Domesticly planted forest wood has now become the most important source of raw materials for Vietnam’s export wood processing industry. This supply is the foundation for the development and growth of the wood processing and exporting industry. Revenue from plantation timber is also an important source of income for more than 1 million households, contributing to poverty reduction for many ethnic minority households living in difficult areas, Mr. Do Xuan Lap assessed.
Producing curved plywood for export in Binh Duong province. (Photo: Vu Sinh/VNA)When inventories are high, businesses want to maintain production to create jobs for employees, and at the same time be ready to supply when the market recovers, the issue of capital for businesses becomes even more important. . Mr. Do Xuan Lap proposed the Government create favorable conditions for disbursing loans for businesses.
In the context that the export market for woodchips has dropped sharply since the fourth quarter of 2022, related to the issue of capital for production, Mr. Thang Van Thong, Deputy General Director of Hao Hung Group, wants businesses to export wood chips such as: his business was soon refunded value added tax (VAT). Because, the capital of the business is too large in the non-refundable VAT.
“Businesses still have to buy input materials for people. Maintain production partly to create jobs for workers. Therefore, if there is a lack of capital, it will lead to stagnation at all stages of the production chain,” said Mr.
Looking at market signals, businesses are expecting the growth of the Chinese market when the country reopens. In particular, the enterprise also believes that wood chips and pellets will continue to be the driving force for the development of export products of the wood industry in 2023.
According to Mr. Thang Van Thong, China’s reopening is one of the levers to support the export of wood and wood products in 2023 and China continues to be a very potential market for wood chips and pellets. compression this year as well as next year.
Currently, Vietnam has become the second largest exporter of tablets in the world. Export prices of tablets continue to be high. Japan and Korea are still the two main markets for importing Vietnamese tablets and have had a relatively high growth rate recently.
It is forecasted that tablets have great potential to be included in the group of agricultural, forestry and fishery products with export turnover of over 1 billion USD.
Bich Hong (VNA/Vietnam+)
