Vietnam’s wood, forestry product exports top 60% of full-year target by July
Vietnam’s wood, forestry product exports top 60% of full-year target by July
Vietnam exported nearly US$9.4 billion worth of wood and forestry products from January to July, achieving 61.5 percent of the full-year target and marking a 20.5 percent year-on-year increase, according to the Ministry of Agriculture and Rural Development.
Employees are at work at a wood processing firm in Binh Duong Province, southern Vietnam. Photo: Nguyen Tri / Tuoi Tre |
The U.S. led the demand, importing over $5 billion worth of Vietnamese wood and woodwork, up 24 percent year on year.
China also increased its imports by 37.9 percent to $1.22 billion, while Europe purchased $555 million worth of Vietnamese wood products, a 22.4 percent rise.
On the import side, Vietnam spent an estimated $1.5 billion on timber and woodwork during this period, reflecting a 22.3 percent year-on-year spike, which led to a trade surplus of $7.9 billion in the industry.
Experts predict that Vietnam’s wood and forestry exports will continue to grow for the remainder of the year, with a climb in woodwork export orders anticipated ahead of the New Year holiday.
Many Vietnamese firms become victims of deadbeats
Despite the surge in wood and woodwork exports in January-July, many local forestry firms and woodwork producers are facing significant challenges.
At a recent conference on shipments to the U.S., a representative from the Binh Duong Furniture Association reported that some foreign buyers had welshed on debts to Vietnamese firms after experiencing losses and filing for bankruptcy.
This situation has cost the Vietnamese wood industry hundreds of millions of dollars in recent years.
“We need government support to help local firms access export cargo insurance and to alert them to the financial instability of international wood importers,” the representative stated.
The U.S., Vietnam’s largest woodwork buyer, has imposed high taxes on woodwork imported from China.
As a result, Chinese producers have sought ways to circumvent these duties by increasing production in other countries, including Vietnam.
This influx of Chinese woodwork producers has added pressure on local firms and raised concerns about Chinese products being disguised as Vietnamese to benefit from lower import duties into the U.S..
Le Thi Xuyen, general director of Thuan An Wood Processing JSC, told Tuoi Tre (Youth) newspaper that while export orders for woodwork are rising, exporters still face challenges, particularly regarding market sustainability.
“Prolonged high ocean shipping fees have driven up the prices of imported wood materials, resulting in more expensive woodwork,” Xuyen explained.
“Many partners have found it difficult to cooperate with shipping lines that offer competitive rates.”
Experts noted that although Vietnam’s main wood and woodwork buyers -- Europe, the U.S., China, and Japan -- have elevated their imports of Vietnamese products, they are also grappling with economic challenges that raise concerns about market stability.
Furthermore, ongoing global uncertainties are likely to affect export activities and consumption.
