Vietnam's export turnover of wood and wooden products down 19.9% year-on-year in the first 10 months of the year, reached an estimated US$10.8 billion in October 2023, according to the Ministry of Industry and Trade.
People working at the factory in Vietnam
The challenges like strategic competition between major countries, fierce conflicts, recent fighting in the Middle East, and slow global economic growth gave impact to export activities in many economies, including Vietnam.
Wood industry is one of the key export turnovers for Vietnam industries, it has continuously declined since the beginning of 2023.
It is predicted that global economic growth will slow to 2.7% in 2023, the lowest level since the 2008 global financial crisis. Consumer prioritize their purchase on essential items, and due to countries high interest rates and inflation control, demand on non-essential items were declined.
The wood export industry targeted US$17 billion export value in 2023 seems cannot be achieved. It is expected that in the Q4 of 2023, exports of wood and wooden products will reach more than US$4 billion, bringing export turnover in 2023 to about US$13.6 billion to US$14 billion. In 2022, wood and wood product exports reached US$15.8 billion
The ministry noted that the potential to expand the export of wood and wooden products in the near future is huge because the size of the global market is up to US$200 billion.
"Although Vietnam is one of the world’s top five largest wooden furniture exporting countries, average exports value around US$16 billion per year. Therefore, wood industry enterprises are offering solutions to ensure the sustainable development of the market, such as applying technology and proactively sourcing raw materials to improve product quality," it added.
Source: theinvestor
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People working at the factory in Vietnam
The challenges like strategic competition between major countries, fierce conflicts, recent fighting in the Middle East, and slow global economic growth gave impact to export activities in many economies, including Vietnam.
"Exports are still facing difficulties due to lack of demand. Consumers care more about gasoline and food than furniture," said Tran Lam Son, deputy general director of Thien Minh Import-Export Co., Ltd., which focuses on exporting wood products to the U.S.
Wood industry is one of the key export turnovers for Vietnam industries, it has continuously declined since the beginning of 2023.
It is predicted that global economic growth will slow to 2.7% in 2023, the lowest level since the 2008 global financial crisis. Consumer prioritize their purchase on essential items, and due to countries high interest rates and inflation control, demand on non-essential items were declined.
The wood export industry targeted US$17 billion export value in 2023 seems cannot be achieved. It is expected that in the Q4 of 2023, exports of wood and wooden products will reach more than US$4 billion, bringing export turnover in 2023 to about US$13.6 billion to US$14 billion. In 2022, wood and wood product exports reached US$15.8 billion
The ministry noted that the potential to expand the export of wood and wooden products in the near future is huge because the size of the global market is up to US$200 billion.
"Although Vietnam is one of the world’s top five largest wooden furniture exporting countries, average exports value around US$16 billion per year. Therefore, wood industry enterprises are offering solutions to ensure the sustainable development of the market, such as applying technology and proactively sourcing raw materials to improve product quality," it added.
Source: theinvestor
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