AsemconnectVietnam - Reaching only 4.7 billion USD in the first 5 months of 2023, the exports of wood and wood products decreased by nearly 30% over the same period last year, and wood businesses are going through very difficult times.

According to a press release released by the Vietnam Timber and Forest Products Association, after many years of continuous rapid growth, in the first five months of 2023, the export turnover of wood and wood products reached 4.7 billion USD , down by nearly 30% over the same period in 2022.
In particular, the exports of wood products for deep processing, under HS code 94, decreased by up to 38%. Currently, only a few items of HS 44 group still have positive growth.
Regarding specific items, in the first 4 months of 2023, while the exports of plywood products manufactured from hardwood, which were mainly exported to the US decreased sharply due to the impact of the investigation by the US Department of Commerce (DOC) conducted from mid-2021 on combating evasion of anti-dumping and subsidy taxes, plywood products used in construction (film-coated plywood) exported to the US and EU markets increased.
In the first 4 months of 2023, the export turnover of fiberboard products to the Indian market reached 21.19 million USD, up by 3 times over the same period of 2022 (7.6 million USD). Fiberboard currently accounts for 47% of the total export value of wood and wood products to the Indian market.
The exports of plywood in the first four months of the year reached 69.4 million USD, up by 9% over the same period of 2022.
The main import markets for this product were China (57.2 million USD), Cambodia (3.4 million USD), both increased by 1% and 20% respectively over the same period of 2022. In addition, the exports of peeled boards to the Indian market also increased sharply from 284,500 USD in the first 4 months of the year of 2022 to 3.1 million USD in the first 4 months of 2023.
According to the Vietnam Wood and Forest Products Association, although the export price of woodchips has decreased sharply compared to the end of 2022, the export turnover of woodchips in the first four months of 2023 reached over 4.1 million tonnes, worth of 704.4 million USD, up by 3% over the same period of 2022. China and Japan were still the two main markets for woodchips exported from Vietnam, of which the exports to China accounted for over 70%.
The exports of pallets in the first 4 months of the year reached 1.2 million tonnes, with the turnover of 213.04 million USD, down by 22% in volume and 10% in value over the same period of 2022. Especially, export price of pallets has decreased sharply.
However, according to the Vietnam Wood Pellet Association, it is expected that in June and July, the demand for pellets in the South Korean market will increase again with a consumption of 100,000 tonnes/month. Meanwhile, in the Japanese market, Vietnamese enterprises have signed long-term contracts of 2-3 years to supply pallets to this market.
It can be seen that the two major import markets of Vietnam's pellets, South Korea and Japan, accounting for 98% of the total volume, have been showing good signals.
The EU market seems to have gradually stabilized after the rush of energy supplies, including biomass fuels. However, with strong commitments to reduce emissions and increase use of bio-energy, it is expected that pellet exports will recover in both price and volume from the last months of 2023.
Despite facing many difficulties, mainly due to external influences, Vietnam Timber and Forest Products Association expects that, with its existing position in the global timber trade, along with competitive capacity, Vietnamese wood enterprises will soon regain their growth momentum when the global wood market recovers.
In order to support wood businesses at this time, Mr. Do Xuan Lap - Chairman of the Vietnam Timber and Forest Products Association - suggested that ministries and functional agencies step up trade promotion activities, introduce and advertise the products through international furniture fair in Vietnam; provide information and support Vietnamese businesses to participate in international furniture fairs.
At the same time, they should also support wood industry enterprises in opening companies, representative offices and shops in potential markets. This is the basic foundation for market development.
“The Ministry of Foreign Affairs and the Ministry of Industry and Trade are requested to support wood industry enterprises in understanding market information about products, including consumer demand, consumer tastes, and government mechanisms and policies on quality, design, legality and sustainability of imported wood products”, shared Mr. Do Xuan Lap.
CK
Source: VITIC/congthuong.vn