HCMC – Vietnam’s wood and furniture exports grew more than 20% in the first seven months of this year, driven by a 38% surge in shipments to China.
Tran Ngoc Liem, director of the Vietnam Chamber of Commerce and Industry’s HCMC chapter, highlighted the growth at the opening of the Vietnam-ASEAN International Furniture & Home Accessories Fair 2024 (VIFA-ASEAN 2024) in HCMC today, August 27.
Liem cited data from the Ministry of Agriculture and Rural Development, showing that the country’s wood and forestry exports reached an estimated US$9.36 billion during the period, equivalent to 61.5% of the annual target.
Exports to the U.S., Vietnam’s largest market, rose by 24% to US$5.02 billion, while shipments to Europe increased by 22.4% to US$555 million, according to the ministry’s data.
China’s imports of Vietnamese wood products jumped by 38% year on year to US$1.22 billion.
In contrast, exports to Japan and South Korea, two other key Asian markets, declined by 2.73% to US$949 million and 1% to US$472 million, respectively.
Despite the strong export performance, Vietnam’s wood and furniture producers face challenges, including high shipping costs and rising raw material prices, Liem said.
He also pointed to stricter quality and safety standards, as well as trade protectionism in importing countries, as ongoing obstacles for exporters.
In encounters with The Saigon Times, companies attending the fair expressed concern about the sustainability of the export growth momentum, particularly in the outdoor furniture segment, where demand remains weak.
Dang Quoc Hung, general director of Alliance Handicraft & Wooden Fine Art Corporation, a co-organizer of the event, said some of the export growth was due to orders shifting from China to Vietnam.
However, he warned that the market remains challenging, and exporters must expand into new markets and improve product quality to maintain growth.
The VIFA-ASEAN 2024 fair from August 27 to 30 at the Saigon Exhibition and Convention Center, is being attended by more than 200 companies from Vietnam and 13 other countries, showcasing their products at 600 booths.
