According to the Ministry of Agriculture and Rural Development, the export value of wood and wood products in 2023 is expected to reach $13.4 billion, a decrease of 16.2% compared to 2022. This is the first year that Vietnam’s wood industry has ranked in the top 5 globally, experiencing negative growth after maintaining a steady increase for the past two decades, with export value increasing from $219 million in 2000 to $15.8 billion in 2022.
In the beginning of this year, Deputy Minister of Agriculture and Rural Development Phung Duc Tien stated that the market has recovered well, and all export items have seen significant growth. Specifically, the export value of wood and wood products reached $1.49 billion, an increase of 72.5% compared to the same period last year.
In the agricultural sector, wood and wood products are the only items that have achieved an export value of over $1 billion in just one month, accounting for 29% of the total export value of the entire agricultural industry.
Currently, the United States, China, Japan, and South Korea are the four main export markets for Vietnam’s wood industry. In 2023, these markets are expected to account for 85% of the total export value of this industry in the country.
The export value of the wood industry shows signs of recovery from the last few months of 2023. However, due to the difficulties in the market caused by complex conflicts between countries, which have had a prolonged impact on business activities.
The wood industry is facing several issues that directly affect its sustainability, particularly the EU’s anti-deforestation regulations, low-carbon emitting wood products, and the risks associated with imported wood materials.
In addition, the conflict in the Red River Delta has led to some shipping companies announcing a suspension of cargo transportation or changes in schedules, resulting in increased shipping fees and additional surcharges.
Vietnam’s wood industry is facing an opportunity to transition towards sustainable growth (Illustrative photo: Dan Tri) |
These factors significantly impact wood industry enterprises, so the export prospects for wood and wood products in 2024 still face many challenges.
However, the forestry industry has set a target for wood exports to reach $17.5 billion this year. If this target is achieved, the export value of this industry in 2024 will increase by 21% compared to 2023 and by 3% compared to 2022.
Management agencies and experts in the industry emphasize the importance of building an image of sustainable development for the Vietnamese wood industry, based on the fundamental factors of using certified wood and reducing emissions in wood products.
According to Tran Quang Bao, Director of the Forestry Department (under the Ministry of Agriculture and Rural Development), achieving green production goals will give wood processing and forestry enterprises an advantage because consumers are increasingly focused on green products, products that do not cause deforestation, and products that do not emit greenhouse gases during the production process.
Green production enterprises with green supply chains will also gain credibility with customers.
Tam An
