In the context of difficulties caused by the complicated development of the Covid-19 epidemic and the tension between Russia and Ukraine has not "cooled down", but export - import still has impressive growth, especially wood export. According to the Import-Export Department (Ministry of Industry and Trade), in the first three months of 2022, the export turnover of wood and wood products is estimated at 3.94 billion USD, up 3% over the same period in 2021. However, the wood industry is still facing great challenges in the supply of raw materials for export, the price of raw wood is increasing sharply... Therefore, it is necessary to have policies to promote development, to ensure proactive supply to promote sustainable wood export. .
These achievements
Currently, Vietnam's wood and wood products have been exported to 160 countries and territories around the world. According to the Import and Export Department, in March, the export of wood and products reached 1.5 billion USD, of which the export of wood products reached 1.12 billion USD, down 5.9% over the same period last year.
Exports of wood and wood products to major markets all grew positively (except for China and Canada). Leading in export value was the US market with 2.4 billion USD, up 4.2% over the same period in 2021. Following was wood export to Japan with 396.8 million USD, up 11.3% ; China reached 353 million USD, down 0.7%; South Korea reached 248.8 million USD, up 18.4%… Generally in the first 3 months of 2022, export turnover of wood and wood products reached 3.94 billion USD, up 3% over the same period in 2021. In which, export turnover of wood products was estimated at 2.97 billion USD, down 0.5% over the same period last year.
The Covid-19 pandemic has not only caused a medical crisis, but also an unprecedented serious socio-economic crisis. China is one of the countries in the world deeply affected by the prolonged Covid-19 epidemic, so China's wood production and export activities are interrupted when implementing the "Zero Covid" strategy. so this is also an opportunity for Vietnam's wood industry to increase its export market share in key markets such as the United States, the European Union (EU), Japan, and South Korea.
The United States is a strong market for wooden furniture. Every year, US consumers spend about $75 billion on furniture. A strong increase in wood furniture exports to the US will contribute to promoting the good growth of Vietnam's wood industry in 2022. However, exporting to this market, businesses need to strictly control the origin of wood and respond effectively. results in trade remedy cases.
For the European market, in the first quarter of 2022, wood exports to this market grew positively. Accumulated from the beginning of the year to the end of March 2022, the export of wood and wood products to this market is estimated at 198.6 million USD, an increase of 6.1% over the same period in 2021.
Export of wood and wood products remains the mainstay in the agricultural sector. With the second position in the export of wood and wood products in Asia and a fast growth rate of 17%/year, economists believe that wood exports will continue to grow strongly in 2022.
Prospects and challenges
It is forecasted that in 2022, the global economy will gradually recover and grow after the Covid-19 pandemic; commodity consumption increases, so the initiative in production technology and input wood materials will be the growth engine for Vietnam's export of wood and wood products. However, Deputy Minister of Agriculture and Rural Development Le Quoc Doanh said that although the planting of raw materials has achieved positive results, in order to provide enough raw wood for processing and export. reaching 17 billion USD in 2022 and 20 billion USD in 2025, the afforestation of raw materials is still limited. In which, the volume of wood harvested from planted forests has not yet met enough raw materials for processing. , the amount of small wood, young wood accounts for a large proportion, unable to produce wood products with high added value; The quantity of timber certified for sustainable forest management to meet the demand of producing wood products for export to major markets such as the United States, Japan, Korea, and the EU is still low.
In addition, some wood exporters said that orders to the US and Europe were closed until the end of the third quarter of 2022 and are still receiving orders for the fourth quarter of 2022. However, logistics costs are increasing, so the very high product prices also negatively affect the price of exported wood products of Vietnam. Currently, a container to the EU costs about 6,000 - 8,000 USD/container, the US about 10,000 - 12,000 USD/container. There are even businesses that have to pay up to $25,000 to transport a container from Cat Lai port to the East Coast of the United States, even though the goods are exported, the profit of the business is almost zero.
Mr. Nguyen Chanh Phuong, Vice Chairman of the Handicraft and Woodworking Association of Ho Chi Minh City, said that Vietnam is promoting the development of new products in the markets (Australia, China, EU, UK and other countries). Middle East), the Chinese market is being promoted by Vietnamese enterprises. Previously, the enterprise mainly exported wood chips and raw materials, but it is possible that by the end of 2022, the enterprise will officially export wooden furniture to China.
Mr. Phuong also said that in the context of the implementation of the Vietnam - UK Free Trade Agreement (UKVFTA), wood exports to the UK market will continue to grow and the wood industry will still benefit from traditional products. Traditionally, the Middle East market is promising with wooden furniture for commercial buildings when the tourism industry recovers. With the situation of disease control in the country, importers and partners in the EU and the US will be very secure with orders made in Vietnam. Especially since the implementation of Resolution No. 128/NQ-CP on safe, flexible adaptation and effective control of the Covid-19 epidemic, production has not been delayed even though the epidemic has worsened because businesses are actively in production organization and epidemic prevention and control.
In order to boost wood exports in 2022, in the first 6 months of 2022, businesses need to focus on high-value orders, choose orders that have the strength of Vietnam's wood industry and do not give priority to the target. growth in quantity, but must ensure quality. At the same time, Vietnam's wood industry needs to promote the organization of many trade connection activities of the industry; International exhibitions serve trade promotion activities to promote businesses to reach customers.
According to Dr. Tran Dinh Thien - Member of the Prime Minister's Economic Advisory Group, the supporting industry for the wood processing industry is still small, the design is still weak, while the incentive policies of the The state is still not strong enough for businesses to take advantage of development opportunities. Therefore, in the coming time, the wood industry needs more attention from the Government in order to create momentum for stronger development. On the other hand, at present, the level of workers in the wood industry is still low, and the supporting industry system is still weak. Therefore, Vietnam needs a system of supportive policies and incentive mechanisms for the wood industry to develop, go into orbit, be more modern and suitable in the new situation.
In order to diversify wood products for export, Vietnamese enterprises need to focus on prioritizing the development of production and processing of main product groups such as furniture products (tables and chairs, beds, cabinets, kitchen cabinets, tables). makeup, bookshelf; all kinds of flooring); outdoor furniture products (swing chairs, slides, tables and chairs, benches; parasols); artificial wood products (joint board; plywood, chipboard; MDF board); wood products combined with other materials to increase aesthetics, durability, save wood (rattan, bamboo, bamboo; plastic, metal, fabric, leather); wooden handicraft products (tables and chairs, beds, cabinets; lacquer products, wooden paintings, all kinds of wooden statues; souvenir products, decorative arts and crafts combined with rattan, bamboo, bamboo, other materials) ; wood pellets, wood chips, etc. Through these priorities, Vietnam's wood processing and export industry will have more new customers, helping to take full advantage of the traditional market, and at the same time open up expand export markets in the near future.
Thu Trang
