Wooden products are made at the Woodsland Tuyen Quang Co. (Photo: VNA) Data from the General Department of Customs showed that the exportturnover of wood and wooden products reached 3.9 billion USD in the first fourmonths, down 30.6% year-on-year. The export of wooden goods saw a yearlydecline of 38% to $2.6 billion.
At thesame time, the import value of wood and wooden products alsodecreased significantly to 634 million USD, down 33.6% over thesame period last year.
Duringthe four months, Vietnamese exports of these goods to major marketsall decreased sharply such as the US (2.02 billion USD, 38%); Japan (556million USD, 1.5%); the Republic of Korea (274 million USD, 22%) and China(481 million USD, 13%).
Analysts and businesses have said that the decrease in wood and wooden goodsexports was foreseeable. They attributable thedecline to inflation surges in some countries, which were also majorimporters of Vietnam’s wood and wooden goods, resulting in sluggish demand forthese products.
For example, the US imported 1.24 billion USD worth of timber andwooden products from Vietnam in the first three months, a year-on-yeardrop of 42%.
In the context of inflation and the banking crisis, US banks havetightened credit, making importers unable to finance import goods in largequantities. The demand for US wooden furniture importshas plummeted, analysts said.
According to wood exporters, their export orders from the US markethave decreased between 50% and 55% depending on the type of woodproducts. Meanwhile, orders from the EU - another key export market, alsodropped 60%.
Chairman of the Binh Duong Woodworking Association Nguyen Liem said amid thecurrent difficult context, the provincial wood enterprises had slashed theirproduction capacities by 60%.
“The current global economic situation is very unpredictable," Liemsaid. "All market signals are not bright, and it is hardfor wood enterprises to draw up their business plans.”
Liem also predicted that when the market situation improved, and theinventory decreased, foreign customers would continue to order but notsooner than early 2024.
Around the beginning of 2024, the market would be less difficult, andbusinesses would have export orders again. Still, only small ones, hesaid, forecasting that the market would likely recover at the end of2024. However, the recovery growth would depend on the world's economicand political situation.
Despite a sharp slump in orders, trade experts said the USremained a key export outlet for Vietnam’s wood industry. Therefore,businesses need to maintain the US market by updating information andconverting production according to the market's consumption trends.
Inaddition, management agencies should support businesses to bring Vietnamesewooden goods into large distribution systems such as Walmart, Costco andAmazon. This was an effective way for the firms to develop their brands,avoiding relying too much on intermediaries, trade experts said.
In thecurrent context, the Ministry of Industry and Trade and the Ministry ofForeign Affairs should continue to help businesses findout information about the market situation of products, consumerdemand and tastes, Liem suggested.
They should also support the enterprises in updating the nationalmechanisms and policies of importing countries on quality, design,legality and sustainability of imported wood products and providing themwith information on requirements as well as changes in the trade policy ofkey markets such as the US, the EU and Northeast Asia, he said.
The chairman added that early warnings from the ministries to help thefirms minimise commercial disputes should also be included.
Chairman of the Vietnam Timber and Forest Products Association Do Xuan Lap proposedto the Ministry of Foreign Affairs and the Vietnamese embassies in foreigncountries to better promote international furniture fairs in Vietnam.
Meanwhile, embassies should also provide information andsupport Vietnamese businesses to participate in international furniturefairs, Lap said.
He also petitioned the embassies to assist wood enterprises in openingcompanies, representative offices and stores in potential exportmarkets./.
VNA
