Vietnam’s woodwork exports are expected to reach $16.5 billion this year, up from $14.12 billion in 2021, the Ho Chi Minh City Wood Crafts and Industry Association said. .
Although orders for the fourth quarter declined, “the export target of $16.5 billion…is achievable,” said Nguyen Chanh Phuong, vice president and general secretary of HAWA.
Exports of wood and wood-based products, including furniture, in the first nine months amounted to $12.4 billion, up 11.4% year-on-year, data from the Ministry of Agriculture and Rural Development.
As US and European consumers spend less due to inflation fears and the Chinese economy, especially the real estate sector, slows down, Vietnamese carpentry companies are receiving fewer orders.
Vietnam ships wood products to some 160 countries and territories, but 90% last year were destined for the United States, China, Japan, South Korea and Europe.
The industry is likely to look inward to tap into the domestic market, especially as construction resumed after Covid-19, HAWA said, noting that around 30% of businesses serve the local market.
A plan for this decade, approved by the government in March, predicts that industry revenues will increase by 2030 to $6 billion domestically and $25 billion from exports.
To achieve them, experts said furniture makers should replace outdated equipment and technology and improve management.
Only 5-10% of companies use modern machinery, said Vecta, a supplier of wood processing equipment.