Workers in the wood processing facility/img: vir
Despite Vietnam’s export market still being fraught with challenges, businesses in the wood industry are expediting measures to bring about a recovery for the sector.
According to the figure shown by the General Department of Vietnam Customs by March 15, wood and wooden furniture took the lead in the export value totalling 2.86 billion US$, showing a 30% jump year-on-year.
Bui Ta Hoang Vu, director of Ho Chi Minh City Department of Industry and Trade, revealed that the order intake from businesses in the sector in the first quarter has been fairly positive.
Businesses have received orders until the end of June, with some others even securing orders until the end of the year. This positive signs being felt in Ho Chi Minh City and the southern region.
"Based on the current situation, we expect to attain 20% growth in total export value for 2024," said Chau, one of the company's representative, that each month the firm exports 10-15 containers of wood products to the United States, generating over 1 million US$ in export value.
Geopolitical conflicts are driving up logistics costs and the requirements on preventing forest degradation shall be applied in the EU starting from late 2024, while the US is applying anti-dumping regulations..
At the same time, the export figures to new markets such as China, India, Malaysia, Cambodia, Laos, and Indonesia have seen fair growth.
Source: VIR