2021 was a year riddled with challenges for Vietnam’s wood and wood products industry. The Southern region of Vietnam, the center of wood furniture manufacturers, underwent prolonged social distancing, heavily impacting import-export activities. The disrupted supply chain also affected wood and wood products exports in 2021.
In the last two months of 2021, Vietnam’s wood and wood products exports went on a surge, boosting the industry’s total export turnover, surpassing the predetermined goal. According to the General Department of Customs statistics, Vietnam’s export of wood products in December 2021 reached 1.43 billion USD, up 12.4% compared to November 2021 and 6.7% compared to December 2020. The export of wood products reached 1.07 billion USD, which increased by 17.3% compared to November 2021 and 2.7% compared to December 2020.
In 2021, the export of wood and wood products reached 14.81 billion USD, up 19.7% compared to 2020. In particular, the export of wood products reached 11.07 billion USD, up 16.1% over the year 2020.
Vietnam’s wood and wood products export markets
In 2021, Vietnam’s wood and wood products exports to most markets saw positive growth compared to 2020.
The US remained the biggest export market of Vietnam’s wood and wood products. The total export turnover to the US in 11 months of 2021 was 7.9 billion USD, up 24.6% over the same period in 2020. Follow was the Japanese and Chinese markets, reaching a 2-digit growth rate in both markets.
The export of wood and wood products of Vietnam in 2021 is still growing, showing that Vietnam's wood products have built a strong foothold in many major markets. In 2022, Vietnam's exports of wood and wood products will continue to increase thanks to the continued recovery of the world economy and the continued increase in world furniture demand.
(November 2021 and 11 months of 2021)
Do Xuan Lap, chairman of the Vietnam Timber and Forest Production Association, stated that in 2022, Vietnam’s wood and wood products export would aim for a turnover of 17.5 – 18 billion USD. In particular, wooden chairs export would aim to account for 4.1 billion USD, wooden furniture 10 billion USD. The rest would be other major export products groups.
Vietnam is seeing export prospects to the US and Korean markets. In the US, the trend of working from home may continue to persist when the COVID-19 pandemic is still complicated. Therefore, spending on furniture and home furniture in the US is expected to continue to increase in 2022. The US still has plenty of room for wooden furniture and wood products used in construction because the housing market is growing well.
Meanwhile, Vietnamese wooden furniture products are increasingly asserting their position in the US market. The share of Vietnamese furniture in total US imports increased to 38.7% in 10 months of 2021, from 36.9% in 10 months of 2020.
However, challenges remain when exporting wood products to the US. Trade remedies are the foremost challenge for Vietnam’s wood exporting companies. Although Vietnam and the US have reached an agreement on controlling the origin of wood, several Vietnamese products would be undergoing investigation when there are unusual signs. In addition, due to a shortage of empty containers, logistics fees will be a problem for Vietnam’s wood and wood products companies. The cost of transporting one container of wooden furniture to the US ranges from 20,000 USD to 30,000 USD, up four times compared to before, which affects the competitiveness of Vietnamese goods.
In Korea, according to statistics from the Korea International Trade Association, on average, Korea imports nearly 1.1 billion USD of wooden furniture every year, of which imports from Vietnam account for about 18%. Thus, Vietnamese wood and wood products still have room to exploit the Korean market in the coming time. Export of wood and wood products to the Korean market in 2022 will be supported since import demand in Korea is improving. The Korean economy shows strong signs of recovery after the pandemic when exports increase strongly and domestic consumption recovers, which will be the driving force behind the country's demand for imported goods in general and wooden furniture in particular.
Source: The Ministry of Industry and Trade
Compiled by VietnamCredit