Big target for wood industry export
As one of the five largest wood exporting countries in the world, the Vietnamese wood industry has set a target of achieving an export turnover of 15.2 billion USD in 2024, a sharp increase compared to 2023.This is an ambitious figure in the context of many difficulties in the global economy.
In 2024, the global economic recession and inflation will last.These factors will reduce purchasing power in large markets such as the US and EU.Consumers in these regions tend to cut spending on non-essential products, including wooden furniture.Meanwhile, regulations such as the US Lacey Act and the EU Timber Regulation (EUTR) require Vietnamese businesses to prove the legal origin of wood and ensure transparent traceability.This is a great pressure, especially for small and medium-sized enterprises with limited resources and experience.
Wood raw material prices are volatile as the global supply chain has not fully recovered from the pandemic. High interest rates and rising energy prices are also putting financial burdens on businesses. Competition from regional countries such as China, Indonesia and Malaysia is becoming formidable. These countries not only have low production costs but are also investing heavily in technology and developing international markets.
However, the wood industry has made efforts to overcome difficulties and recorded encouraging achievements over the past year. According to preliminary statistics from the General Department of Customs, in the first 10 months of 2024, wood and wood product exports reached nearly 13.22 billion USD, an increase of 21.2% compared to the first 10 months of 2023. Vietnam continues to be in the top 5 largest wood furniture exporting countries globally, affirming its competitiveness and reputation in the international supply chain. Wood exports to markets such as Canada, Australia and the Middle East have made significant progress. This is a testament to efforts to diversify markets and reduce dependence on traditional markets.
Overcome challenges to break through
According to Mr. Do Xuan Lap - Chairman of the Vietnam Timber and Forest Products Association - along with finding customers, wood industry enterprises have proactively switched to environmentally friendly materials and recycled materials to both save costs and meet new customer requirements.
“Not being able to build a good market will greatly affect export sales, especially market promotion and connection. Organizing wood industry fairs creates trade opportunities and allows Vietnamese businesses to approach customers in the international market. If the export value reaches 3 billion USD in the last 2 months of the year, the wood industry's export value will reach nearly 16 billion USD this year," Mr. Lap shared.
Key export markets such as the United States, the European Union (EU), Japan and South Korea continue to be key targets. These markets not only have high demand but also require products that meet standards of quality, design and sustainability. In addition, the Vietnamese wood industry is actively expanding into emerging markets such as Canada, Australia and the Middle East, where demand is high and competition is not too fierce.
In addition to the turnover target, the wood industry is also shifting from a processing production model to the production of high value-added products. Investing in design, branding and applying advanced technology is a priority strategy to improve competitiveness and meet the strict requirements of the international market.
