In the first 03 months of 2023, exports of wood and wood products brought in 2.88 billion USD, down 28.3% over the same period in 2022. In particular, the export turnover of wood products only reached 1.87 billion USD, down 38.5% over the same period in 2022.
Many wood enterprises now do not set profit targets but only need orders to keep workers.
According to the Vietnam Timber and Forest Product Association (Vifores), in March 2023, the export turnover of wood and wood products reached 1.2 billion USD, up 36.3% compared to Feb 2023 but down 22.8% compared to March 2022. In particular, the export turnover of wood products is estimated at 823 million USD, up 47.7% compared to Feb 2023 but down 30% compared to March 2022.
DIFFICULTY IS “AROUND”
In the first 03 months of 2023, the export turnover of wood and wood products is estimated at 2.88 billion USD, down 28.3% over the same period in 2022. In particular, the export turnover of wood products is estimated at 1.87 billion USD, down 38.5% over the same period in 2022.
Regarding the reason for a sharp decline in the exports of wood and wood products, Vifores said that: Due to a sharp decrease in global purchasing power, the world economy faces difficulties and challenges, leading to a sharp decrease in the number of orders of the wood industry compared to the same period in 2022.
“It is very difficult for the wood industry. Currently, orders are mainly small and only last until June 2023. Since the importers have a lot of inventory, only the items that are in low inventory are newly ordered and the business can get orders, “said Chairman of Vifores Do Xuan Lap.
“Normally by this time, businesses have orders for outdoor wood furniture and are preparing materials, by May or June, the goods must be available, then by Nov or Dec, export them to Europe for sale in the summer. However, up to now, businesses have not had orders so far.”
Mr. Do Xuan Lap, Chairman of Vifores
Regarding the information on the structure of the wood and wood products export market, Vifores said that: In particular, the group of wood furniture to the US decreased sharply. Since the housing demand index in the US in Feb 2023 decreased by 48.1% compared to the same period last year, it has caused a sharp decrease in the demand for wood and wood products in this market.
Notably, China is Vietnam’s main competitor in the US market in terms of wood furniture. Therefore, China’s reopening of its economy also makes it difficult for Vietnam’s wood businesses in 2023.
Vietnamese wood enterprises are still “hungry” for orders.
Meanwhile, the US is a key export market for Vietnam’s wood industry. So, exports to this market decreased sharply will directly affect the overall export result. Therefore, the export growth potential of Vietnam’s wood industry is forecast to be less positive in the first half of 2023.
In addition, the new regulation that wood planted on deforestation land after 2020 will not be imported into the EU under a recent agreement, will also slow down the growth momentum of the wood industry.
Regarding imports, according to the General Department of Customs, Vietnam’s imports of wood and wood products in March 2023 reached about 220 million USD, up 46.3% compared to Feb 2023 but down 7.6% compared to March 2022.
In the first 03 months of 2023, the import of wood and wood products is estimated at 491 million USD, down 27.8% over the same period in 2022. In particular, it is estimated that Vietnam’s import of raw wood in the first quarter of the year reached 973.6 thousand m³, worth 350.9 million USD. This result is down 21.4% in quantity and 24.7% in value compared to the same period in 2022.
With difficulties in exporting wood and wood products when demand decreases, Vietnam’s raw wood imports in the coming time are forecast to decrease due to the weak demand of processing factories, along with domestic enterprises promoting the trend of using domestic wood materials when the exploiting output increases and to reduce input costs./.