Source: Kinhtenongthon.vn
Wood exports increased again
According to estimated data from the General Department of Customs in October 2023, export turnover of wood and wood products reached 1.2 billion USD, up 5.7% compared to September 2023, but down 0.9%. compared to October 2022. Of which, wood product export turnover is estimated at 790 million USD, up 4% compared to September 2023 and up 0.3% compared to October 2022.
Overall, for the first 10 months of 2023, the export turnover of wood and wood products is estimated to reach 10.8 billion USD, down 19.9% compared to the same period in 2022. Of which, the export turnover of wood products is estimated to reach 7,000 USD. 3 billion USD, down 22.4% over the same period in 2022.
From the beginning of 2023 until now, the world situation has been evolving rapidly, with more challenges than forecast, such as strategic competition between major countries, conflicts in Russia and Ukraine are still fierce, and recently the conflict in the Strip is still fierce. Gaza; Global economic growth is slow. Import and export activities in many markets have shrunk.
Energy security, food security, and cyber security face many challenges; Natural disasters and climate change cause serious consequences. This directly affects the export activities of many markets including Vietnam.
Faced with difficulties and challenges at home and abroad, Vietnam continues to be a bright spot in the global economy, because many key export industries continue to have positive growth rates.
In the country’s export commodity structure, wood is one of Vietnam’s key export industries. However, due to a decrease in total demand due to the impact of inflation and tightened monetary policy in many large wood consuming markets, the export turnover of this industry has continuously declined since the beginning of 2023. Notably , in recent months the export activities of the wood industry are tending to recover positively.
Currently, many businesses in the wood industry have returned orders, serving the year-end furniture shopping season of the world market. Along with that, many US and European customers encounter difficulties in the Chinese market so they look for other markets and find new suppliers to replace them, mainly Vietnamese businesses.
Accordingly, many exported wood and wood products increased sharply again in September 2023, contributing to narrowing the decrease in the first 9 months of 2023. Specifically, the export turnover of wooden frame chairs in September 2023 reaches 229 million USD, an increase of 19.6% compared to September 2022. Overall, in the first 9 months of 2023, the export turnover of this product reached 2 billion USD, down 12.8% compared to the same period in 2022.
Next is wood chips reaching 206 million USD in September 2023, an increase of 29.1% compared to September 2022; Overall, in the first 9 months of 2023, reaching 1.6 billion USD, down 16.5%. Wood, board and flooring exports reached 148 million USD in September 2023, an increase of 38.2% compared to September 2022; Overall, the first 9 months of 2023 reached 1.3 billion USD, down 15%…
Facing many difficulties
Although there are positive signs of recovery, the wood industry still faces many difficulties and the growth momentum of the wood industry is still hindered by the weak global economy and persistent inflation in the context of risks. serious risk. Global economic growth in 2023 is forecast to reach 2.7%, the lowest rate since the 2008 global financial crisis.
Along with the fact that many countries have raised interest rates and taken measures to restrain inflation, economic recovery and development have slowed down, demand of the world economy will decline, and consumer demand will decline. Non-essential items reduced.
Therefore, the export target of 17 billion USD in 2023 cannot be achieved. It is expected that in the last 3 months of 2023, the export of wood and wood products will reach more than 4 billion USD, bringing export turnover in 2023 to about 13.6 billion USD to 14 billion USD.
Mr. Nguyen Liem – Chairman of Binh Duong Wood Processing Association assessed: “If we take the export sales of the first 6-7 months of the year, the target from now until the end of the year is to grow to an export figure of 16-17 billion USD. difficult. I think the figure of 15 billion USD is more feasible. However, in the context of a difficult market in general, not just for the wood industry, this is still a number that needs to be recorded.”
The potential to expand the export of wood and wood products in the near future is huge, because the size of the world wood and furniture market is up to 200 billion USD. Although Vietnam is in the Top 5 largest wooden furniture exporting countries in the world, it only exports over 16 billion USD/year.
Therefore, currently wood industry enterprises are actively offering many solutions to ensure the sustainable development of the wood industry such as: applying technology, proactively sourcing raw materials to contribute to improving product quality. , sale off; Find ways to reach new markets, boost exports…
Opportunity for businesses to renew themselves
The wood industry in Binh Duong is recovering positively, with many businesses reporting an increase in orders and employment. This is the result of the recovery in the furniture export market and the proactiveness of businesses in technological innovation and marketing strategies.
Some leading businesses such as Duc Thien Co., Ltd. and Hiep Long Co., Ltd. have recorded a strong recovery in orders. Ms. Duong Thi Tu Trinh, Deputy Director of Duc Thien Co., Ltd. shared her joy when the company has resumed production activities and increased labor recruitment in the last months of the year.
“Our orders have increased again by 20 – 25% compared to the previous 3 quarters, and are expected to continue to increase in the fourth quarter of 2023. We have enough orders until the end of the first quarter of 2024 , ensuring jobs for workers and exporting about 100 containers of goods/month,” Ms. Trinh shared.
Mr. Huynh Quang Thanh, Director of Hiep Long Co., Ltd. expected the wood export market to recover quickly in 2024 and emphasized.
“Even though we have not returned like previous years, we are in contact with a number of customers and the order situation in 2024 is quite feasible. This is good news for the wood industry, we hope to export in 2024.” Wood exports will recover,” Mr. Huynh Quang Thanh said.
The recovery of the wood industry not only creates opportunities in terms of orders but also provides employment opportunities for workers. Duc Thien Co., Ltd. has increased the number of workers and operates at a capacity of 50 – 60%. This is a positive signal for the local economy and increases employment opportunities in the industry.
At the same time, wood industry enterprises also focus on investing and innovating production technology. The wood industry machinery fair held in Binh Duong in 2023 is a gathering place for businesses to learn about new technology, thereby improving quality and production efficiency to help businesses compete strongly, contributing to the sustainable development of the industry.
Although there are positive signals, the Binh Duong wood industry still faces challenges such as competing orders and increasingly high design and quality requirements. The wood industry still faces many difficulties and its growth momentum is hindered by many obstacles because the global economy is still weak and inflation persists in the context of serious risks.
However, to face these challenges, wood industry businesses are proactively looking for solutions, converting products to be environmentally friendly and diversify designs to compete in the international market.
According to Binh Duong Province Wood Processing Association (BIFA), experiencing recent difficulties is also an opportunity for businesses to renew themselves. During difficult times, many wood businesses have realized the importance of investing in new technology and updating production processes. This transformation not only helps increase production efficiency but also meets the increasing requirements of the international market for product quality and design.
Representative of the Department of Industry and Trade of Binh Duong province said: The province’s export turnover is the largest in the country but has declined due to market fluctuations. Over the past few months, many businesses have suffered from a lack of orders, reducing exports.
To support businesses and regain the momentum of recovery and growth for export activities, currently the functional branches of Binh Duong province have focused on supporting import and export, supporting associations and businesses to exploit effectively. signed free trade agreements. From there, expand and diversify markets, expand supply chains and export products. Fairs and events on wood machinery, such as exhibitions held in Binh Duong, have become valuable opportunities for businesses to update information and new technologies, as well as a place to meet and exchange information. exchange experience between manufacturers.
Although the export target of 17 billion USD in 2023 is considered difficult to achieve, with a positive recovery and access to new orders, the Binh Duong wood industry hopes to achieve a significant export figure. Businesses are confident that exporting wood and wood products will recover quickly in 2024, marking an important step in the development of the key export wood industry of the “industrial capital” Binh Duong.
Deputy Minister of Agriculture and Rural Development Phung Duc Tien said that the export market in the last months of the year is showing positive signs. Not to mention, the 15,000 billion VND credit package to support businesses in the wood and fisheries sectors has only been disbursed about half. This support package helps businesses quickly restore production when receiving new export orders.
In recent months, the export turnover of wood and wood products has recovered again. It is expected that our country’s export of wood and wood products is estimated at about 13.6-14 billion USD, although this number is down compared to with a record level of nearly 17 billion USD in 2022, however, wood industry businesses are making positive changes. With this recovery momentum, wood exports continue to play an important role for the agricultural sector to complete its export target of 53-55 billion USD this year.
“Since the end of the third quarter until now, Vietnam has exported an average of about 1.1 billion USD in this group of goods. Although it cannot be compared with the same period last year, looking at neighboring countries such as China or Indonesia, Obviously, they are having a lot more difficulty than us. Especially China is having difficulty in the US market, this is also an opportunity for the Vietnamese wood industry.
What businesses need to do immediately is to improve designs, increase product “quality”, and lower prices to keep up with the shift in the traditional market. Besides, actively participate in trade promotion activities to find customers in new markets preparing for 2024,” the Deputy Minister recommended.
