Wood and wood products market bulletin October 2020

Source: Ministry of Agriculture and Rural Development

Export turnover of wood and wood products (Wood & Wood products) of Vietnam in October 2020 is estimated at 1.15 billion USD, bringing the export value of this item in the first 10 months of 2020 to 9.64 billion USD. up 12.4% over the same period in 2019. The United States, China and Japan continue to be the 03 largest wood & wood products import markets of Vietnam in the first 9 months of 2020 – accounting for 77.7% of the total. export value Wood & SP timber. In the first 9 months of 2020, the export value of wood and wood products increased sharply in markets: the United States (an increase of nearly 1.1 billion USD, equivalent to an increase of 29.8% over the same period last year), China ( an increase of 73.2 million USD, equivalent to an increase of 8.7% over the same period last year), Canada (an increase of 18.2 million USD, equivalent to an increase of 14.1% over the same period last year), and new markets for Wood & Wood products Vietnam is Thailand (up 6.7 million USD equivalent to 23.8% increase over the same period last year). In contrast, markets with a sharp decrease in timber and timber export value include: UK market (down nearly 75 million USD, equivalent to 31.7% decrease compared to the same period last year), Japan market (down 21 , 3 million USD, equivalent to 2.3% decrease over the same period last year), French market (down 13.1 million USD, equivalent to a decrease of 14.5% over the same period last year).

Wood & Wood exports in October 2020 maintained an impressive export turnover (increasing trend over the months and export value always reached over 1 billion USD / month for 4 consecutive months). Contribution to this growth was largely from export value to the US market. This is explained by an increase in the domestic market for US wood products (in the context of the COVID epidemic, an increase in the proportion of people working from home has led to an increase in demand for office furniture and equipment, In addition, the US housing and construction market also develops despite the epidemic.) Besides, due to the US-China trade war, some Chinese wooden products are exported to the United States. High tax rates (228 Chinese wood & wood products are subject to a 28% tax rate, and some items are subject to anti-dumping and anti-subsidy duties.[1]) leading to a decrease in imports from China, to meet domestic consumption US wood importers have increased imports from Vietnam to compensate.

Meanwhile, the estimated import value in October 2020 is 249 million USD, bringing the total value of imported wood and wood products in the first 10 months of 2020 to 2.01 billion USD, down 3.4% over the same period. period of 2019. In the first 9 months of 2020, 31.5% of the total import value of wood and wood products of Vietnam is from the Chinese market, 13.1% from the US market and 4.7% from the US market. from the Thai market.

Thus, despite impressive growth in the first 10 months of 2020, Vietnam’s Wood & Wood Industry is facing huge risks, in which on October 2, 2020, Trade Representative The United States of America (USTR) has made a statement of investigation into actions, policies, and practices related to the import and use of illegal timber for Vietnam’s processing or trade under Section 301 of the Dao. Commercial Law 1974[2]. Thus, in addition to competing with major competitors from China, Malaysia, Thailand, Indonesia, Vietnam’s wood & wood products manufacturing, processing and import-export enterprises need to prove their origin. of wood materials, ensuring the legality of raw materials and export products.

In addition to the risks faced, in the last months of 2020, Vietnam’s wood & wood products exported to the US market also have opportunities to continue to maintain the growth momentum: Housing and apartment market remains continue to grow[3]; Consumer sentiment index reached the highest level since March 2020[4] ; Demand for imported furniture, furniture, kitchen cabinets continues to increase in the last months of the year[5]. In addition, the EU market for Wood & Wood products tending to recover from August 2020 also brought positive signals for Vietnam’s Wood & Wood products in the last months of the year.

In order to achieve the export target of over 12 billion USD by 2020 and towards the sustainable development of the Wood & Wood product industry, industry actors need to be proactive and actively prevent and control risks of origin. wood materials according to the provisions of Decree No. 102/2020 / ND-CP stipulating the legal timber system in Vietnam, in addition to developing domestic material areas, should make good use of opportunities due to Trade agreements such as EVFTA bring (tax reduction, open import and export procedures …) to increase access and use of raw wood sources from Europe, countries with good wood quality, clear origin . In addition, Vietnam also needs to continue implementing policies and measures to avoid evasion of trade remedies and origin fraud.