Wood Industry Flourishes at the Beginning of the Year

​(News Portal – Dong Nai) – In 2023, wood exports faced difficulties and failed to meet the set targets. However, in 2024, the export situation in Vietnam as a whole, and specifically in the wood industry, has shown positive signs. 

Foreign customers visit products at VIFA EXPO 2024 ​

Despite the rebound in export growth, there are still negative factors affecting the production of the industry. Therefore, manufacturing and exporting businesses must stay informed about market trends and consumer preferences in major markets to facilitate the expansion of export volumes. 

Export Growth on the Rise

Mr. Tran Ngoc Liem, Director of the Vietnam Chamber of Commerce and Industry (VCCI) branch in Ho Chi Minh City, stated that the wood and furniture industry is a strong export sector for Vietnam, ranking among the top five in the world. Throughout 2023, furniture and home accessory exports reached only $16 billion, a decline of 14.8%, significantly more than the overall export decline of 4.6% across all sectors.

According to Mr. Liem, analysis of customs statistics indicates some positive signs of recovery in the industry towards the end of 2023 and the beginning of 2024. Specifically, in 2023, there were still markets that experienced good growth in furniture and home accessory exports, such as India with a 288% increase, Peru with a 111% increase, Turkey with a 90% increase, Norway with a 525% increase, and Cambodia with a 45% increase. Wood and related products were the only agricultural commodities that exceeded $1 billion in export value in just one month, with 32 out of 45 major export markets showing growth.

Dong Nai, the second-largest wood export region in the country after Binh Duong, is also affected by global market trends, which consequently impact the local wood production and export situation. Positive signs have begun to reappear in the first two months of the year.

According to data from the Dong Nai Statistics Office, import-export activities have shown more positive signals during the first two months of 2024. Despite still being affected by the global economic situation, local businesses have gradually overcome difficulties, consolidated traditional markets, actively expanded into new markets, and capitalized on opportunities provided by Free Trade Agreements (FTAs) to expand their product consumption markets.

Export recovery is evident, with a total export turnover of over $3.6 billion in the first two months, a 19.6% increase compared to the same period in 2023. Specifically, wood exports experienced a growth of 69.7% compared to the same period in 2023. Specifically, the export value of this product in the province during the first two months of 2024 was $279.3 million, compared to $142.6 million during the same period in 2023.

Understanding Market Trends to Boost Exports

For businesses, it is crucial to thoroughly research the global market when it comes to exports. Despite the improved prospects, the wood and furniture industries still face certain challenges that directly affect its sustainability.

Mr. Tran Quoc Manh, Chairman of the Board of Directors of Saigon Trade and Production Development Corporation, highlighted the risks of imported raw materials, EU regulations against deforestation, and the requirement for low-carbon emission wood products. Additionally, conflicts in the Red Sea have led some shipping companies to announce a suspension of transportation or changes in schedules, resulting in increased transportation costs that could impact exports. Exporting businesses must find a balance between ensuring product quality and reducing production costs to remain competitive in the market.

Similarly, Ms. Alessandra Tracona, representative of CSIL Milano (Italy), an organization specializing in wood market research worldwide, emphasized the importance of understanding global buying trends, especially in regions such as the United States and Europe, for businesses exporting goods to these areas.