Source: vtv.vn
This year, the wood industry sets an export target of 16.5 billion USD. As a rule, in the last months of the year, exports of wood and wood products are usually higher than at the beginning of the year due to the high demand for interior finishing, repair and redecoration at the end of the year in many markets. However, the situation this year does not seem to be very positive.
According to statistics of the General Department of Customs, Vietnam’s export turnover of wood and wood products as of October 15 has reached $12.8 billion, up 11% over the same period in 2021.
Thus, compared to the export target of 16.5 billion USD this year, the wood industry has completed 77.6% and still needs 3.7 billion USD in the remaining time to complete the set target. .
This year, the wood industry sets an export target of 16.5 billion USD. (Illustration image – Photo: Investment Newspaper)
However, according to the Handicraft and Woodworking Association of Ho Chi Minh City, in November, wood exports decreased by 10% compared to October. This year’s export target is also difficult to complete, because in the last month of this year, revenue Exports of enterprises have not shown any positive signs, especially in key markets.
Businesses face difficulties when orders drop
Business results in the last months of this year of many wood industry enterprises are recording a serious decrease in orders. This is also one of the difficulties of the wood industry.
The wood export industry has never faced many difficulties and challenges like this year. The increase in input costs, the high inventory levels, make it difficult for wood businesses. Declining orders is one of the bottlenecks many businesses are facing.
At the same time last year, the production and supply of machinery and equipment for wood exporting enterprises in Vietnam of Hong Ky Woodworking Machinery Manufacturing Company took place very bustling. However, since the beginning of the second quarter of 2022, this activity has slowed down and has almost stalled until now. Wood export enterprises do not have orders, so the purchase of production machinery and equipment also stops.
“Comparing in terms of output and sales in the same period, our company has decreased by 70%”, said Mr. Nguyen Duy Toan, Deputy General Director of Hong Ky Woodworking Machinery Manufacturing Company.
Not to mention the decrease in revenue, if in previous years, at this time, businesses had orders until June next year to start production, but now many businesses still have no orders or even stop operating. .
“Current inventories are all high-priced, while in the US and Western countries are in a state of high inflation, high interest rates, the real estate industry freezes, resulting in inventories at retailers in general being depleted. like mountains, causing Vietnamese manufacturers to temporarily have no orders in the first 6 months of 2023. If they are lucky to have orders, there will be every month”, said Mr. Vu Tien Thap, Chairman of the Board of Directors of D Furniture Joint Stock Company ‘Furni, said.
“With the high inflation situation, all retail chains have not yet dared to place orders, so maybe from January to April, May and June next year, growth cannot match the pace of 2022,” said Nguyen Chanh. Phuong, Vice Chairman of the Ho Chi Minh City Handicraft and Woodworking Association (HAWA), commented.
The main export market of Vietnam’s wood in the US and EU is experiencing a serious decline. This is also the main factor that makes the wood industry grow, but it is still difficult to be optimistic in the remaining months of 2022.
Many difficulties in exporting wood in 2023
There has been no positive sign of the export market at the end of the year, which is something that has never happened in many years with our country’s wood export industry.
Commenting on the export situation of wood and wood products in 2023, Mr. Nguyen Chanh Phuong, Vice Chairman of the Ho Chi Minh City Handicraft and Woodworking Association (HAWA), said that at the beginning of the year, there will not be much growth. Expect to March and April, after the first fair season of the year, businesses start to have more orders.
The wood export industry has never faced many difficulties and challenges like this year. (Illustration image – Photo: Investment Newspaper)
“HAWA is trying to make HawaExpo fair at the end of February 2023, hoping this is a fair to help businesses start getting goods; Also, it is also expected that world inflation will be under control. Hopefully by May. 6, if inflation is controlled, development resources will be for the second half of 2023,” said Mr. Nguyen Chanh Phuong.
In fact, the US is still the main market of Vietnam’s wood industry. When this market is in crisis, Vietnam will also have many risks. Finding a new market, closer to Vietnam, such as the Asian market is also a solution many businesses are aggressively implementing in the context of the current price of production materials and the sharp increase in transportation costs. In addition, markets such as Australia, Canada or the Middle East are also considered to be very potential for Vietnamese wood.
