Vietnam’s timber industry continues to grow | Business

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A worker checks a wooden product before packing it for export at a wood processing company in Binh Duong province (Photo: VNA)

Hanoi (VNS/VNA) – Vietnamese wood products and furniture are expected to grow in 2022 due to international market purchase demand and fulfillment of necessary factors in Free Trade Agreements (FTAs).

Although it had a difficult year last year after being heavily affected by the pandemic, the country’s exports of timber and non-timber forest products in 2021 are expected to reach $15.6 billion, up 18 percent. compared to 2020. wood and products reached 14.5 billion USD, up 17.2% compared to 2020.

from vietnam wood and forest products are exported to more than 140 countries and territories, the main markets of which are the United States, Japan, China, the EU and South Korea, with an estimated total export value of $13.98 billion , or 89.5% of the value of the country’s forest products exports.

The move will give great impetus to the development of Vietnam’s wood processing and export industry with an export turnover value 20% higher than in 2021.

The gains are attributed to the effects of FTAs ​​such as the EU-Vietnam Free Trade Agreement, the UK-Viet Nam Free Trade Agreement (UKVFTA), the Comprehensive and Progressive Trans-Pacific Partnership Agreement.

They have created favorable conditions for the development of Vietnam’s agricultural industry, bringing benefits by accessing difficult markets and increasing competition with similar agricultural products from other countries.

According to the Vietnam Wood and Forest Products Association, last year the export of wooden furniture to the UK rose sharply with products for living rooms and dining rooms. They are followed by wooden furniture for the bedroom and wooden frame chairs.

As the UK-Vietnam Free Trade Agreement (UKVFTA) entered into force in May 2021, the timber processing and exporting industry has witnessed a high import volume on the market, reaching an export turnover of 5.24 billion USD, an increase of more than 15% compared to 2020. .

The UKVFTA agreement is driving Vietnamese wood processing and exporting companies to expand the market and diversify products to provide more choices to consumers.

Ta Hoang Linh, director of the Europe-America market department, said the UK is Vietnam’s most important partner and sixth-largest export market.

However, Vietnamese products imported into this market remain modest, accounting for only 1% of the total volume of goods imported into the UK. The UK still has plenty of room for Vietnamese agricultural products, including wooden products.

Over the year, Vietnamese timber processing and exporting enterprises have shown speed and flexibility in response to the COVID-19 pandemic to secure contracts with international customers.

According to the General Department of Vietnam Customs, the value of Vietnamese wood and wood products exports in 2021 to the Americas reached USD 9.3 billion, up 22% from 2020, and the US market to him alone accounted for USD 8.7 billion, an increase of more than 22% compared to 2021.

Local economists predict that the global economy will gradually recover and grow again this year. Global consumption and foreign direct investment in Vietnam will also increase. Technology and raw material initiatives available from local wood product manufacturers will become the driving force of the country’s wood sector.

Le Minh Thien, chairman of the Binh Dinh Wood and Forest Products Association, said that during an economic recovery, the economy will undergo a process of adapting to new conditions affecting the industry.

In response to the COVID-19 pandemic, wood processing and exporting enterprises in Binh Dinh province have received many orders, but also face challenges, including a shortage of raw materials and accessories. , while the price of wood chips and pellets fell sharply.

There are still many difficulties and challenges such as shortage of raw materials, rising raw material prices, labor shortages and factory capacity. Logistics is also a big challenge when companies need to export goods but cannot find empty containers, disrupting the supply chain.

The Vietnam Timber and Forest Products Association and timber processing and exporting enterprises have worked with authorized agencies to minimize risks in sourcing imported timber materials to avoid trade fraud.

He suggested that authorized agencies carefully consider FDI investment posing a high risk for the Vietnamese timber industry.

Do Xuan Lap, president of the association, said that despite the difficulties, the opportunities for the Vietnamese furniture industry are wide open.

Companies themselves are aware of the great opportunity, so they have constantly sought ways to adapt to new conditions, from retaining workers and finding a stable source of raw materials, to applying machinery and modern equipment to reduce reliance on human resources, improved product quality and packaging and delivery services./.

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