Firms call for support as wood exports slump

Statistics of Việt Nam Timber and Forest Products Association (Viforest) showed that wood exports were estimated at US$4.7 billion in January – May, falling by nearly 30 per cent against the same period last year.

Timber enterprises were calling for support in terms of market information, requirements and consumer tastes to cope with declining exports which were pushing them into many difficulties from the beginning of this year.

The export of timber and wood products, after many years of rapid increases, dropped significantly from the beginning of this year.

Statistics of Việt Nam Timber and Forest Products Association (Viforest) showed that wood exports were estimated at US$4.7 billion in January – May, falling by nearly 30 per cent against the same period last year.

Viforest’s president Đỗ Xuân Lập said that wood companies were struggling with exports due to falling demand in major markets, such as the US, Japan, the Republic of Korea, China, the UK and the Europe Union.

Viet Nam was facing two trade defence investigations on plywood and kitchen cabinets initiated by the US. Lập said that the prolonged investigations seriously affected Vietnamese plywood companies. The biggest problem was that American companies were shifting their purchases to other markets.

Nguyễn Liêm, president of Bình Dương Furniture Association, said that enterprises were facing a lot of difficulties and many of them had to cut their operating capacity by 60-70 per cent.

“The global economic situation remains unpredictable with rising inflation risks in major markets, including the US and the EU. All market signals are not very positive for the wood industry,” Liêm said.

VNDirect Securities said that as a recession was on the horizon, it would be a difficult time for the wood industry of Việt Nam, which might last until the end of this year.

Source: Việt Nam News