Vietnam expects to achieve growth rate of 10 percent in export value from timber, wooden products and furniture this year. (Photo vietnambiz.vn) Hanoi (VNS/VNA) -Vietnam expects to gain a total export value of 12.5 billion USD from timber,wooden products and forest products this year, up 10 percent year on year,according to the Vietnam Timber and Forest Product Association (VIFORES).
Of which, 8.68 billion USD would come from timber exports and 2.99 billion USDfrom wooden product exports, while other forest products would gain an exportvalue of 830 million USD.
In terms of market, the US this year is forecasted to be the largest exportmarket for local timber, wooden and forest products with an expected exportvalue of 6.1 billion USD, up 15 percent year on year.
Following is Japan with an export value of 1.52 billion USD, up 10 percent; theEU with 1.13 billion USD, up 10 percent; and China with 1.21 billion USD, up 5percent.
The US housing market is expected to be brighter this year, leading to anincrease in the demand for furniture. That will be an opportunity forVietnamese wood enterprises to increase their market share in this market,according to VIFORES.
Meanwhile, local experts saidthe US imposing higher import tariffs on Chinese products has caused higherprices for those products in the US market, including furniture, so UScompanies will increase imports of furniture from other markets, includingVietnam.
However, local enterprises would face risks relating to origin fraud becausemade-in-China products could be shipped to Vietnam and then exported to the USwith made-in-Vietnam labels. That would avoid the high tariffs on Chineseproducts exported to the US.
To avoid this, experts said State agencies should coordinate with localities toreview production and business activities of foreign invested enterprises andproducts exported from Vietnam to the US, as well as imported from China toVietnam.
In addition, the process of issuing origin certificates should be checkedcarefully to ensure those certificates are granted to qualified products.
Meanwhile, local businesses need to strengthen cooperation and establishproduction chains from raw material production to export. Those will reducetransaction and production costs and improve efficiency in production andbusiness.
VIFORES Chairman Do Xuan Lap said Vietnamese businesses have exported timberand wood products to the US market for many years, so they have implemented therequirements of this market. Vietnam has exported artificial wood and softwoodsuch as rubber and acacia wood to the US and imported oak and walnut wood fromthis market.
Transparency in origin is an important factor, because that helps the localbusinesses exporting products to the US market avoid anti-dumping tariffs andincrease market shares.
Deputy Minister of Agriculture and Rural Development Ha Cong Tuan said theforest industry should focus on developing markets and also production chainsto improve quality of wooden products for domestic consumption and export.
Tuan said the State should pay attention to policies on developing other forestproducts to create a favourable business environment for individuals andbusinesses producing those products.
In the medium term, according to the association, the forestry sector shouldpromote investment to complete the value chain from production, design tobrand.
At present, the value of Vietnam’s wooden products is mainly in the productionstage. Meanwhile, on the world market, 70 percent of the value of one woodenproduct comes from design and 30 percent is from production. Moreover, theglobal market has competitiveness in quality and design but not in price.
Therefore, design and branding are important factors to improve thecompetitiveness of Vietnam’s wooden and furniture products in the future.
According to the GeneralDepartment of Customs, Vietnam’s export value of timber and wood products in2019 reached 10.65 billion USD, up 19.5 percent year on year. Of which, theexport value to the US rose by almost 40 percent to 5.33 billion USD.
Wooden and furniture products are mainly produced in central and southernprovinces, including Binh Duong, Dong Nai, Long An, Tay Ninh and Binh Dinh./.
VNA
