Vietnam Expects Wood Product Exports To Exceed US$16.5 Billion This Year
Oct 24, 2022
According to the latest data from the Ministry of Agriculture and Rural Development of Vietnam, in the first nine months of 2022, the export value of wood and wooden products (including furniture) was US$12.4 billion (about 88.37 billion yuan), an increase of 11.4% year-on-year.
Vietnam's wood products exports are expected to exceed US$16.5 billion this year, up from US$14.12 billion in 2021, the Ho Chi Minh City Handicraft and Wood Industry Association (HAWA) said.
"Despite the drop in orders in the fourth quarter, the export target of US$16.5 billion is achievable," said Nguyen Chanh Phuong, vice president and secretary-general of the association.
In recent months, Vietnamese wood products companies have seen fewer orders than usual as U.S. and European consumers cut back on inflation fears, coupled with a slowdown in China's economy, especially in the real estate sector.
According to statistics, Vietnam exports wood products to nearly 160 countries and regions. Last year, nearly 90% of wood products were mainly exported to the United States, China, Japan, South Korea and Europe.
On the premise of ensuring that the export target can be achieved, and considering the decline in orders, the domestic timber industry has relatively complete production facilities. Therefore, the association suggests that the Vietnamese timber industry can turn to the internal circulation model to develop the domestic market, especially in Covid-19 After -19, the construction industry has recovered, noting that about 30% of companies serve the local market.
In March, the Vietnamese government approved a plan to increase the timber and wood products industry's revenue in the domestic market to US$6 billion and export revenue to US$25 billion by 2030.
To achieve these goals, furniture manufacturers should replace outdated equipment and technology and improve management, Vietnamese experts said.
