The information at the press conference HawaExpo International Wood and Furniture Fair 2024, Mr. Nguyen Quoc Khanh – Chairman of the Ho Chi Minh City Wood Processing Association (Hawa), Head of the organizing committee said, the wood market is recovering when the first month of 2024, wood exports reached $ 1.5 billion, an increase of 72.5% compared to the same period in 2023. Currently, many businesses have recovered orders up to 80-90%. Some businesses have orders until May. However, customer requirements are increasingly strict about standards, models must constantly change, prices must be more competitive.
In that context, to support businesses in seeking orders, diversifying customers, under the auspices of the Ministry of Industry and Trade, the Ministry of Agriculture and Rural Development, the Ho Chi Minh City Crafts and Wood Processing Association (Hawa) said it will organize the International Exhibition for Wood and Furniture with over 80% of Vietnam’s manufacturing businesses.
According to Hawa, Vietnam’s wood export growth still depends on the United States. At present, according to forecasts, the US economy as well as the real estate market is heating up, interest rates are expected to remain flat or decrease, helping the prospect of wood demand be good.
Some notable export customers of Vietnam last year, according to Hawa representatives, also included India with a purchasing power increase of over 200% compared to 2022. However, the absolute number of Indian customers is still very low, and their characteristics are strict about prices.
The other big market is the Middle East, but to exploit this customer well, we must have a good “network” and clear technical specifications.
Besides, although there are positive recovery signals, there are still many challenges in the context of low global economic growth, weak global consumer demand, increasing protectionism, many countries continue to maintain tight monetary policies, so the export situation of wood and wood products in the final month will encounter many difficulties.
Along with that, the wood industry still faces challenges such as competitive orders and high requirements for models and quality. Because foreign trade barriers are increasingly strict, certificates of sustainable forest management or carbon emission reduction certificates in the future will require wood products exported to comply. For example, Japan requires sustainable certification. The German market is currently applying the obligation to assess the business in the supply chain, indirectly affecting Vietnamese wood manufacturers. They require Vietnamese wood businesses to provide certificates related to product origin, labor use, wages, waste treatment, etc.
According to statistics from the General Department of Customs, it is estimated that in December 2023, the export turnover of wood and wood products reached $1.3 billion, up 6.4% compared to November 2023, down 0.7% compared to December 2022. Of which, the export turnover of wood products is estimated at $950 million, up 9.5% compared to November 2023 and up 8.6% compared to December 2022.
In 2023, the export turnover of wood and wood products is estimated at $13.4 billion, down 16.2% compared to 2022. Of which, the export turnover of wood products is estimated at $9.2 billion, down 22.9% compared to 2022.
