Vietnam’s export of wood and wood products to the United States has soared
VNA – Vietnam’s exports of wood and wood products to the United States have surged this year, but companies need to choose the right key markets to enter the main market, according to people familiar with Vietnam.
In the first nine months of 2020, the export of wood and forest products was US $8.97 billion, an increase of 12% year-on-year. According to the Vietnam Forestry Bureau of the Ministry of agriculture and rural development, the income includes wood and wood products worth $8.38 billion, an increase of 11.2 per cent.
Growth in exports of timber and wood products to most large markets, such as the United States, China, the Republic of Korea, Canada and Australia, has been recorded. It is worth mentioning that in the first eight months of this year, the US exports to the United States exceeded $4.19 billion, an increase of 27.4 per cent year on year. Statistics show that the market accounts for 55.1% of the total export of wood and wood products, an increase of 7.2 percentage points year-on-year.
The Vietnam wood and forest products association noted that, so far this year, while exports of office and bedroom furniture have declined compared to the same period last year, the shipments of kitchen and bathroom furniture abroad have increased. Du Xuan lap, chairman of the vibefore, explained that the strong export growth of goods benefited from the anti-dumping and countervailing duties imposed by the United States on Chinese goods, which encouraged us companies to move to Vietnam to partially compensate for supply shortages.
Nguyen Liem, chairman of Lam Viet JSC’s board, said covid-19 promoted the sale of the wood industry, especially kitchen cabinets and bathroom cabinets, as people spend more time at home in the epidemic and demand is increasing for home maintenance and furniture. Vietnam’s wood industry currently has many advantages in the U.S. market, but the risk is relatively high, he said, because it is a huge market with severe action on tax evasion and trade fraud. Exports of wood and wood products are expected to reach $12.5 billion this year, thanks to the sharp increase in sales to the United States and the arrival of peak export seasons in the last months of this year.
Kitchen cabinets and bathroom cabinets are strategic products for the industry for some time to come, lap said. From January to September, they created nearly $1billion in export turnover, up more than 80 per cent year on year. He added that during the covid-19 peak, the supply chain of these items was not disturbed.
But, in the view of President vibefore, the moves of companies have not yet matched each other, suggesting that they have refined their strategy and increased competitiveness in joining the supply chain, thereby exporting more products to the United States. Lap recommends that rather than manufacturing many products at a time, they should be focused on certain demand projects. In November, vibefore will establish a sub Association of kitchen cabinets, bathroom cabinets and decorative panels to form a broad network of strategic commodity producers to provide products for the strategic market.