According to data from the General Department of Customs, in March 2022, Vietnam’s wood and wood products export turnover reached 1.54 billion USD, up 0.5% over March 2021. In the first quarter, wood and wood products exports were 3.98 billion USD, an increase of 4% over the same period in 2021.
Vietnam’s wood products export turnover in March 2022 was 1.16 billion USD, down 2.6% over March 2021. In the first three months of 2022, the total turnover was 3 billion USD, up 0.7% compared to the same period in 2021.
In the first quarter of 2022, Vietnam’s wood and wood products exports to big markets mainly increased over the same period in 2021, except for exports to China, Canada, and Taiwan, which saw a decline.
Wood and wood exports to the US market slowed down after the rapid increase in recent years. Vietnam's total wood and wood products export turnover to this market in the first quarter of 2022 was 2.4 billion USD, increasing by 4.2% over the first quarter of 2021.
In addition, export turnover to Japan, Korea, the UK, and members of the EU had positive growth. Japan is Vietnam’s second-largest wood and wood products exporting market in the first quarter of 2022, with a turnover of 396.8 million USD, up 11.3% over the same period in 2021.
Exports to Korea reached a turnover of 248.8 million USD, up 18.4% over 2021. Exports to the UK were up 14%, with a total turnover of 248.8 million USD. Exports to EU members such as the Netherlands, Belgium, and Denmark were up 15.1%, 38.4%, and 32.6% in turnover over 2021, respectively.
Wanek Furniture Limited Liability Company was Vietnam’s top wood and wood products exporter in the first quarter of 2022.
Vietnam's wood and wood products exports are facing difficulties that come from the COVID-19 and the conflict between Russia and Ukraine. In particular, production costs increase; there has been a lack of shipping vessels, containers, and the sea freight rates are rocketing, had led to disruptions in the supply chain of input and output goods of enterprises.
It had been previously mentioned that some of Vietnam's wood manufacturers had received orders until the end of 2022. Supplies are now a major concern for most companies in the industry.
Tensions between Russia and Ukraine have affected the supply of raw materials to many countries globally. Russia and Ukraine are the two major markets supplying birch, oak, and pine wood to Vietnam.
Many businesses have produced in moderation, delayed delivery because the price of wood materials since the beginning of the year has increased sharply, while the signed output contracts have all closed the selling price.
Another problem lies in shipping. Shipping prices have not shown any signs of cooling down, even escalating due to the crisis caused by the conflict between Russia and Ukraine. If production and delivery follow the signed contract, many businesses will suffer losses. This problem causes wood companies to recalculate.
On the other hand, the industry is still assessed with a positive outlook. Vietnam's wood production and export activities are promoted by a series of agreements that are being implemented, such as EVFTA and CPTPP, creating a competitive advantage for products when the tax rate is gradually reduced to 0%. In addition, the fact that China, the world's largest export market for wood and wood products, persists with the "Zero Covid" strategy, causing production and export disruptions, will create opportunities for the wood industry and Vietnamese wood products.
In the long term, Vietnam's wood and wood product industry still has a lot of growth potential as businesses in the industry grow stronger and the competitiveness of products on the world market is constantly improved.
To support the wood and wood products industry, the Government has approved the Project to develop a sustainable and effective wood processing industry in the period from 2021 to 2030.
Compiled by VietnamCredit