As the year progresses, the wood industry is experiencing a notable increase in export orders, driven by seasonal consumer renovations and redecorations. Trieu Van Luc, Deputy Director of the Forestry Department under the Ministry of Agriculture and Rural Development, reported that the ministry aims to achieve $14.2 billion in wood and wood product exports this year, marking a 6% increase from the previous year. So far, 67% of this target has been met.
Industry experts observe that major export markets have demonstrated positive growth compared to the same period last year. In the first eight months, exports to the US, Vietnam’s largest market for wood and wooden products, grew by 25.9%, reaching over $5.5 billion. China and Japan followed with $1.2 billion and $961 million in exports, representing year-on-year increases of 39% and 1.4%, respectively.
The wood sector benefits from a skilled workforce, ample wood material supplies, and the capability to produce traceable and legally sourced products, contributing to these positive export trends.
Despite these gains, challenges remain. Do Xuan Lap, Chairman of the Vietnam Timber and Forest Products Association (VIFORES), pointed out ongoing economic difficulties and protectionist measures in key markets, including Europe, the US, Japan, and South Korea. Rising sea freight costs have increased the price of raw wood materials by up to 40% compared to last year.
Furthermore, the US has not yet recognized Vietnam as a market economy, leading to discriminatory practices in anti-dumping and countervailing duty investigations. Vietnamese exporters face challenges as their production costs are not accepted, with “surrogate values” from third countries being used to determine dumping margins.
To leverage market opportunities in the remaining months of the year, Lap suggests that the wood industry should focus on enhancing competitiveness through technical solutions, production technology improvements, emission reduction, digital transformation, market development, and the implementation of internal monitoring standards.
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