This billion-dollar product is wood and wood products. According to data from the General Department of Customs, the export value of wood and wood products in 2023 reached $13.4 billion, a decrease of 16.2% compared to 2022. However, 2023 is the first year that this product of Vietnam has made it into the top 5 in the world.
According to information from the Ministry of Agriculture and Rural Development, in the first month of 2024, the market recovered well and the export of wood products also increased dramatically. Among them, the export value of wood and wood products reached $1.49 billion, an increase of 72.5% compared to the same period in 2023. This is also the only agricultural product with an export value of over $1 billion in just one month. The export volume of this potential product accounts for 29% of the total export value of the entire agricultural sector in our country.
The export value of Vietnamese wood products has shown signs of recovery since the last months of 2023. Specifically, in the market report of Agriculture, Forestry and Aquatic Products in the fourth quarter of 2023, the Ministry of Industry and Trade stated that the export of wood and wood products recorded positive growth in the fourth quarter of 2023.
Although earning nearly $1.5 billion in the first month of 2024, the wood industry of Vietnam is also facing some issues that directly affect its sustainability. These include risks in imported wood materials, EU forest protection regulations, and low-carbon emission requirements for wood products. In addition, conflicts in the Red Sea have led to some shipping companies announcing a suspension of shipment or changes in schedules, resulting in increased shipping costs…
Currently, the four main export markets for Vietnamese wood products are the US, China, Japan, and South Korea. In 2023, these four markets accounted for 85% of the total export value of this industry in Vietnam.
In January 2024 alone, the export value of wood and wood products from Vietnam reached $1.49 billion. Illustrative image
Especially, the export of wood and wood products to the US is expected to recover stable growth in 2024. According to the US Institute for Supply Management (ISM), furniture is forecasted to be the industry group with improved revenue and production. According to the ISM survey, furniture is also the industry group expected to have the largest capital expenditure increase in 2024.
In the import markets, Vietnam is the largest supplier of wooden furniture to the US, accounting for 36.4% of the total import value. Although the import proportion from Vietnam for this product has decreased in recent months, the decrease is not significant. This also shows that wood and wood products from Vietnam are still popular among US consumers.
Positive signals for Vietnamese wood exports in 2024
Vietnamese wood exports are forecasted to recover in 2024. Photo: TTXVN
According to the Ministry of Industry and Trade, the global economy in 2024 will still face many challenges from various causes such as economic recession, military conflicts, political tensions…
However, the fact that the US Federal Reserve (FED) has stopped raising interest rates in 3 consecutive adjustment periods and has indicated that it may reduce interest rates in 2024 to boost growth is a positive signal. This may have a chain effect on the central banks of countries agreeing to lower interest rates. This will be a positive signal to help countries regain growth momentum, indirectly affecting the export of Vietnam’s wood industry to these markets, including the US.
To enhance the export of wood and wood products to the US and other markets, the Ministry of Industry and Trade recommends that businesses continue to make efforts in market research and development, especially in investing in improving production capacity and product quality to meet technical standards and sustainable development regulations.
In addition, Vietnamese businesses need to effectively take care of their customers.
In 2024, the forestry sector sets a target to export wood and wood products worth $17.5 billion. If this target is achieved, the export value of this product will increase by 21% compared to 2023.
Reference: Mard, Moit, Customs, ISM
