A worker checks wooden product before packaging for export in a wood processing company in Binh Duong province (Photo: VNA) Despite experiencing a difficult year last year after being heavily affected bythe pandemic, the country’s exports of timber and non-timber forest products in2021 was predicted to reach 15.6 billion USD, up by 18 percent compared to2020. In which, the exports of wood and products reached 14.5 billion USD, upby 17.2 percent compared to 2020.
Vietnam’s timber and forest products are exported to over 140 countries andterritories, of which the main markets are the US, Japan, China, EU and SouthKorea with a total export value estimated at 13.98 billion USD, accounting for89.5 percent of the country's export value of forest products.
The move will provide great momentum for the Vietnamese wood processing andexport industry to develop with an export turnover value of 20 percenthigher than that of 2021.
The gains are attributed to the effects of FTAs such as the EU-Vietnam FreeTrade Agreement, the UK-Việt Nam Free Trade Agreement (UKVFTA), the Comprehensiveand Progressive Agreement for Trans-Pacific Partnership.
They have created favourable conditions for the development of Vietnam’sagriculture industry bringing advantages in accessing difficult marketsand enhancing competition with similar farm products of other countries.
According to the Vietnam Timber and Forest ProductsAssociation, last year the export of wooden furniture to the UK sharplyincreased with products for living rooms and dining rooms. They are followed bywooden furniture for the bedroom and wooden frame chairs.
As the UK-Vietnam free trade agreement (UKVFTA) took effect in May2021, the wood processing and exporting industry has seen high importvolume in the market, reaching an export turnover of 5.24 billion USD,an increase of more than 15 percent on 2020.
The UKVFTA agreement is the driving force for Vietnamese wood processing andexporting businesses to expand the market and diversify products to offer morechoices for consumers.
Ta Hoang Linh, director of the Europe-America Market Department, saidthat the UK was the most important partner and thesixth-largest export market for Vietnam.
However, Vietnamese products imported into this market remain modestaccounting for only 1 percent of the total volume of goods imported intothe UK. The UK still has a lot of room for Vietnamese farm produce, includingwooden products.
Over the year, Vietnamese wood processing and exporting businesseshave been quick and flexible in response to the COVID-19 pandemic toensure signed contracts with international customers.
According to the General Department of Vietnam Customs, the export value ofVietnamese timber and wood products in 2021 to the Americas reached 9.3 billionUSD, up 22 percent compared to 2020, and the US market alone accounted for 8.7billion USD, an increase of more than 22 percent compared to 2021.
Local economists forecast that the global economy will gradually recover andgrow again this year. Global consumption and foreign directinvestment into Vietnam will also increase. The initiatives in technologyand available raw materials of local wooden products makers will becomethe driving force for the country’s wood sector.
Le Minh Thien, Chairman of the Binh Dinh Timber and Forest ProductsAssociation, said that during an economic recovery, the economy willundergo a process of adaptions to new conditions affecting the industry.
In response to the COVID-19 pandemic, Binh Dinh province’s wood processing andexporting businesses have received many orders but also face challenges,including shortage of raw materials and accessories, while the price ofwood chips and pellets dropped sharply.
There are still many difficulties and challenges such as shortage of rawmaterials, increase in raw material prices, labour shortages, and factorycapacity. Logistics is also a big challenge when businesses have demand toexport goods but cannot find empty containers causing supply chain disruption.
The Vietnam Timber and Forest Products Association and wood processing andexport businesses have worked with authorised agencies to minimise risks in thesupply of imported wood materials to avoid trade fraud.
It has suggested authorised agencies carefully review FDI investment posing ahigh risk for the Vietnamese wood industry.
Do Xuan Lap, the association's chairman, said that despite difficulties,opportunities for Vietnam’s furniture industry were wide open.
Enterprises themselves are aware of the great opportunity, so they have beenconstantly looking for ways to adapt to new conditions, from retaining workersand, finding a stable source of raw materials to applying machinery and modernequipment to reduce dependence on human resources, improving productquality and packaging and delivery services./.
VNA
