Wood export has high growth during the pandemic

From the beginning of the year, the export of wood and wood products recorded impressive growth. Orders of many businesses are quite abundant with positive market signals; the wood industry has a favorable start towards the target of exporting US$14 billion for the whole year

Export value increased by 51%

Furnist Furniture Company is a company that has achieved many successes in furniture export in 2020 as well as positive business activities at the beginning of this year.

Specifically, this enterprise has exported about US$5 million, up 10% compared to 2019.

The export markets accounting for the largest proportion are the US and EU. Notably, from the end of 2020, the company has had many significant export orders from partners in the US and EU.

Mr. Nguyen Van Sang, CEO of the company, said: "Currently, we have production orders from now until the middle of the year. Compared to the previous year, this year, the company grew nearly 30%, especially in the US market where export orders increased. Besides, businesses also focus on developing new product models, looking for new markets.”

In terms of orders, Mr. Tran Lam Son, Deputy General Director of Thien Minh Production-Trading & Import-Export Co., Ltd., said: "Currently, the enterprise has confirmed orders and continued to work until the end of May 2021. From now on, the Company will schedule production plans tailored to customers' orders.”

According to the latest information from the Department of Agricultural Product Processing and Market Development (Ministry of Agriculture and Rural Development), the export value of wood and wood products in the first two months of 2021 reached US$2.44 billion, up 51% compared to the same period in 2020.

The US, Japan, China and South Korea are the four largest import markets for wood and wood products of Vietnam in January 2021, accounting for 85.5% of the total export value.

Compared to the same period in 2020, the export value of wood and wood products in January 2021 increased in most markets, except Taiwan (down 11.2%) and the UK (down 6.5%).

The target reaches US$14 billion

In 2021, the entire forestry sector strives to achieve an export target of US$14 billion and in the future this figure will be US$20 billion by 2025.

According to the Ministry of Agriculture and Rural Development, the world furniture trade market is very large, about US$450 billion in commercial value / year, of which about US$150 billion is of commercial value of wooden furniture. Currently, Vietnam's wooden furniture export turnover accounts for over 6% of the global market share, so businesses have the opportunity to expand and develop market share. In addition, Vietnam has many strong export products such as tablets, wood chips, plywood, laminated wood, construction carpentry, chairs, furniture and furniture parts. Especially, the furniture group with the largest export value among wood and forest products will continue to grow steadily in the near future.

The US is currently the largest export market for Vietnamese wood industry. The opportunity for growth of exports to the US, especially wooden furniture, is one of the positive signals for exporting wood and wood products this year and the next few years.

According to forecasts from the Mortgage Bankers Association (MBA) of America, by 2021 the home housing market in the US will reach about 1,134 million houses; in 2022, it will reach 1,165 million houses; by 2023 to reach 1.21 million houses. The US housing market has grown strongly, leading to an increase in demand for home furniture in 2021 and the coming years. This is a great opportunity for markets that supply wooden furniture, including Vietnam.

Mr. Nguyen Liem, Chairman of Lam Viet Joint Stock Company, said that Covid-19 makes Americans stay more indoors; they have the need to renovate their house, buy new furniture to replace old furniture. In particular, consistent consumption habits are the reason why the furniture consumption in the US market will increase. “In the past, Vietnam's wood brand name significantly improved in the US market and has a certain foothold. American people are willing to buy Vietnamese wooden furniture, even more expensive than similar products in the Chinese market,” said Liem.

From the perspective of the Ministry of Industry and Trade, Deputy Minister of Industry and Trade Cao Quoc Hung said: "The Ministry of Industry and Trade will continue to support enterprises to effectively implement trade promotion programs to exploit large markets such as the US, EU, Japan, South Korea as well as emerging and potential markets. In terms of ensuring raw materials for the wood industry, the Ministry of Industry and Trade recommends that the Ministry of Agriculture and Rural Development soon have a plan to develop stable material sources for processing wood, and at the same time strengthening the planting of large timber material forests to meet the demand for raw materials for the growing wood processing and export industry.”

Source: Customs News