US remains largest purchaser of Vietnamese wood products

The US is widely viewed as the main market which has contributed to the strong growth of local timber and wood product exports, with export turnover to the lucrative market in 2020 surging by 34.37% to US$7.166 billion, despite being heavily hit by the impact of the COVID-19 pandemic, according to the Timber and Forest Product Association.

Dr. To Xuan Phuc, forestry expert of Forest Trends and member of the research team of the Timber and Forest Product Association (VIFOREST), believes one of the key reasons why the export of timber and wood products to the US has prospered over the past year is due to strong growth in the US housing market, causing an increase in demand for home furniture.

This therefore represents a great opportunity for wooden furniture suppliers, including those from the nation, he adds.

A report compiled by the VIFOREST indicates that the export value of timber and wood products last year hit US$12.01 billion, marking an increase of 16.3% over the previous year, with the US, China, the Republic of Korea, Japan, and the EU making up five major Vietnamese export markets. Indeed, the country’s export turnover from these markets reached US$10.78 billion, accounting for 89.7% of its export value over the past year.

Most notably, 2020 saw Vietnamese exports to the US market represent 58.1% of the country's export value in terms of timber and wood products to all markets.

Despite local wood exports recording many positive signs over the past year, VIFOREST experts also warn about risks relating to origin evasion for this export item, especially in terms of kitchen cabinets and upholstered seats.

The export of kitchen cabinets and their spare parts last year from the country to the US market accounted for 76% of the total export value of this product, thereby representing a 134% rise to  over US$514.53 million compared to 2019. However, VIFORES notes that these two items contain a variety of risky factors when exporting to the US market.

According to VIFOREST, the local wood industry has yet to overcome the obstacles from major markets, including the US and the EU, in terms of measures or actions that are likely to be imposed on timber and wood products from the nation, such as anti-tax evasion, antidumping, and countervailing duty.

VIFOREST recommends relevant Vietnamese agencies co-ordinate efforts with the business community in order to identify risky items and fraudulent companies. This can be done whilst building a communication channel between various timber associations and management agencies in order to regularly update information regarding fraudulence-related signs, thereby making timely interventions.

Source: VOV