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Monday, October 18, 2021

Wood exports surge 55% in Jan-Jul

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HCMC – Vietnam exported wood and wooden products worth US$9.58 billion from January to July, surging 55% compared with the same period last year.

Exports of wooden products alone reached US$7.44 billion, soaring 64% year-on-year, according to the General Department of Customs.

The Covid-19 pandemic has negatively affected most manufacturing industries. However, the wood processing industry has grown amid the pandemic thanks to the strong demand for wooden products from foreign markets.

According to Dien Quang Hiep, chairman of the Binh Duong Furniture Association, the province’s exports of wood and wooden products to its major markets have increased drastically.

The U.S. market accounted for more than 65% of Binh Duong’s total exports of wood and wooden products in January-July, with an increase of 81% over the same period last year.

Exports to Hong Kong accounted for 8.5% and increased 47%, while exports to Taiwan made up 5.6% and rose 43%.

Ngo Van Tong, director of the Binh Dinh Province Department of Industry and Trade, said local wood and wooden products have been exported to 70 countries and territories around the world.

According to Tong, the Covid-19 pandemic has forced more people to work from home, leading to an increased demand for furniture.

Bui Chinh Nghia, deputy general director of the Vietnam Administration of Forestry under the Ministry of Agriculture and Rural Development, said alongside the U.S., Japan and Hong Kong markets, Vietnam’s exports of wood and wooden products to the European market are expected to increase sharply in the last months of 2021 thanks to the economic recovery of the European countries.

Although Vietnam has enjoyed a surge in the exports of wood and wooden products, the country is still facing a number of challenges.

Nguyen Liem, board chairman of Lam Viet Company in Binh Duong Province, said the solid growth in wood and wooden product exports over the past two years contains potential risks because the U.S. Government would increase defensive measures against imported products with sudden growth.

Besides, the shortage of containers for shipments has made transport costs to the U.S. and the EU increase by two, three and even 10 times in the past few years.

The Ministry of Industry and Trade suggested Vietnamese furniture exporters strictly comply with regulations on origin certification. They should also be careful to avoid becoming a transit point for goods to a third country.

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