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Saturday, July 13, 2024

Exports of wood products decline after years of growth

By Le Hoang

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HCMC – After years of double-digit growth, the wood products export value in the first eight months fell by 3% year-on-year, according to the General Department of Vietnam Customs.

During the Vietnam International Furniture and Home Accessories Fair (VIFA-EXPO) on August 31, Phung Quoc Man, vice chairman of the Handicraft And Wood Industry Association of HCMC, said it would be challenging to achieve the US$16.5-billion export target of 2022.

In August, the export revenue from wood and wood products reached US$1.35 billion. The total value hit US$11.07 billion in the January-August period, soaring by 6.2% over the same period last year.

However, the export revenue of wood products dropped 3% to US$7.77 billion in the first eight months of this year.

According to Man, this is the first time in many years that Vietnam’s wood product exports have decreased. Earlier, the lowest rate of growth was 8-9%.

Since July, many enterprises’ exports have fallen by over 30%, even 70-80%, compared to the first 5-6 months of the year.

Runaway inflation in the U.S. and Europe has affected the demand for imports, which has a direct impact on Vietnam’s exports of wood and wood products.

The export demand for wood and wood products is likely to be higher in the second half of the year than the first, mostly due to the need for interior demand in the major export markets.

Still, challenges remain as a result of inflation and post-Covid-19 excess inventories.

VIFA-EXPO 2022 is being held in HCMC, with the participation of 200 enterprises. The event showcases wood products, handicrafts, interior decorating and support services, connecting domestic and foreign producers and enterprises.

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